what is a procurement manager?
As a procurement manager, you are responsible for sourcing products and services for the company. You ensure the company get the best products that help them achieve its goals. You should create a buying strategy for your employer that considers the budget and the supplies needed.
As the head of the procurement team, you supervise the selection of vendors based on the quality of raw materials and budgetary constraints. Since your job is to optimise cost, you need to pick the best vendors that give the company value for money while delivering tangible benefits.
what does a procurement manager do?
The specific duties of a procurement manager depend on the company size. In large organisations, you lead a team of procurement specialists and agents. That means you are unlikely to participate in the purchasing process. Your job is to strategise the company's best procurement procedures and policies. You also report to the chief procurement officer.
In small or medium-sized businesses, the procurement manager is responsible for strategising for procurement functions and purchasing. For instance, your job involves selecting vendors and negotiating contracts aside from developing a procurement plan. You are also likely to report to the chief operations officer.
Traditionally, the role of a procurement manager was to supervise purchasing, but it is expanding as more companies recognise the value of a procurement team. Nowadays, procurement managers participate in identifying strategic partnerships that improve business outcomes.
Would working as a procurement manager suit your negotiation skills? Then read on to find out what competencies and qualifications you need to thrive in the procurement manager role.
average salary of a procurement manager
According to National Careers, the average salary of a procurement manager ranges from £30,000 to £60,000 per year. When you are new to the role or work in an interim position, your salary starts at £30,000 annually, but as you gain experience and secure a permanent role, your earnings start from £50,000 to £70,000 per year.
While you don't earn commissions for securing the best vendors, some companies have annual bonuses and provide other incentives to increase your compensation package. The standard allowances for procurement managers include house and transport allowance. Your employer will also pay for your medical insurance and provide paid sick days and vacation days.
how to boost your salary as a procurement manager
Your experience and educational background influence your salary potential. Since the role doesn't require a licence to practice like legal and finance jobs, procurement managers are usually from varied backgrounds. However, having additional certifications can tip the odds in your favour during the hiring and determination of salaries. When you have certifications, you bring different skills, which warrant better pay. The location also influences your salary. For instance, urban centres attract better pay than small towns.
types of procurement managers
The types of procurement managers depend on how the company will use the items they procure. Some procurement managers are involved in:
- direct procurement: as a direct procurement manager, you source the raw materials necessary to produce end products. For instance, in a manufacturing company, you obtain raw materials, while in retail shops, you acquire items from wholesalers for resale to customers.
- indirect procurement: as an indirect procurement manager, you procure items vital for day-to-day operations but don't contribute to the company's bottom line. For instance, you procure office supplies, furniture and advertising items.
working as a procurement manager
As a procurement manager, you are the key driver of efficiency since you assist your employer in minimising waste and ensuring the daily operations run smoothly. Let's explore the specific roles and duties of a procurement manager.
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procurement manager job description
Daily tasks of a procurement manager include:
- sourcing for supplies: as a procurement manager, you identify the supplies a company needs. When you have a list of the requirements, you can collect the supplier data necessary for fulfilling the purchases. Your job is to ensure the suppliers comply with the corporate policies and meet the company's supplier qualifications.
- negotiating and contracting: as a procurement manager, you are in charge of negotiating the best deals for the company. You ensure the products procured are high-quality and the supplier offers the best price. Your job involves negotiating directly with suppliers to ensure the conditions of each side are met, and your employer saves money. You also offer the contract to the best vendor and ensure the contractual agreements meet industry regulations.
- monitoring suppliers' performance: as a procurement manager, you ensure vendors execute their contracts as expected. You monitor the delivery of goods and pricing. Aside from timely delivery of the items, you need to ensure the goods meet the quality requirements. When a vendor misses delivery timelines, you have to liaise with them to fix the problems and avoid shortages in the company.
- ensuring compliance with business protocols: as a procurement manager, you need to ensure the procurement department meets the compliance requirements. Since you are in charge of formulating the policies and requirements, you need to monitor their execution. For instance, you have to ensure the procurement team follows the purchase and budget approval protocols. You also ensure the accounting team pays suppliers on time.
- hiring and training the procurement team: as a procurement manager, you are in charge of the procurement department. That means you recruit and hire new staff for the department. You also train and supervise them to ensure they follow the company's procurement procedures.
- attending industry gatherings: you need to stay updated with industry trends to keep up with the changing procurement laws and procedures. Hence, you need to attend industry gatherings like trade shows and conferences. The gatherings also help you make new supplier contacts.
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work environment
As a procurement manager, you work in various industries. Some work for merchant wholesalers, retail outlets or manufacturing plants. You can also work in the public sector. For instance, you could work for local government departs or national government branches. The role is office-bound since you spend the day reviewing contracts and finding suppliers from the vendors' data you have. Sometimes, you have to visit suppliers to negotiate contracts at off-site locations or inspect product samples. You also work outdoors when attending conferences, tradeshows and other industry events.
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who are your colleagues?
Depending on the employer, your colleagues may include logistics managers, supply chain managers and procurement specialists. You may also be working with operations managers, project managers and retail buyers, as well as other specialists, including production managers, cost estimators and office administrators.
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work schedule
The work schedule of a procurement manager is 40 hours a week. Since most procurement managers occupy full-time positions, finding part-time roles can be challenging. Your work hours cover the traditional office hours except for a few evenings and weekend appointments. You can also work on short contracts in temporary roles. While remote work opportunities are available, sometimes you have to meet vendors face to face to negotiate contracts.
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job outlook
You have a lucrative career with numerous progression opportunities as a procurement manager. You take up more roles in small companies, including developing procurement strategies. Such duties prepare you for executive-level positions. For instance, you can become the chief of procurement or the head of operations and other top managerial positions. Some procurement managers specialise in logistics roles or supply chain management instead of scaling the career progression ladder.
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advantages of finding a procurement manager job through randstad
Finding your procurement manager job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of procurement job opportunities
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as a procurement manager is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
education and skills
To become a procurement manager, you need the following educational qualifications:
- university: you can start your procurement career with any degree course related to the field. For instance, you can get a higher national diploma or foundation degree for purchasing and logistics or business studies.
- apprenticeship: you can join an apprenticeship and start as a trainee purchasing manager. Some apprenticeships available for the role include advanced procurement and supply assistant or commercial procurement and supply higher apprenticeships.
skills and competencies
Some of the qualities of a procurement manager include:
- financial skills: as a procurement manager, you need financial acumen since you must be aware of procurement costs and budgets. Financial skills help you balance the budgets and procurement costs.
- analytical skills: as a procurement manager, your role involves evaluating suppliers and ensuring the vendors' data is accurate. You need analytical skills to compare various factors necessary for choosing a supplier.
- leadership skills: since you are the manager, you take a supervisory role. Hence, you need to direct teams to complete procurement processes effectively. Leadership also involves inspiring and motivating employees to achieve the desired results.
- negotiation skills: as a procurement manager, you have to negotiate contracts and ensure you acquire the best prices from suppliers. Negotiation skills help you get the best prices and high-quality goods.
FAQs
FAQs about working as a procurement manager
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what is the role of a procurement manager?
A procurement manager is in charge of purchasing goods and acquiring resources that a company needs to achieve its goals. You negotiate contracts with vendors and ensure your employer gets the best deals for the desired items.
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how do you become a procurement manager?
You can become a procurement manager with any degree course. However, most employers prefer a candidate with a procurement or supply chain management background. You also need work experience to increase your competitiveness.
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is procurement manager a good career?
Yes. Becoming a procurement manager is a rewarding career since many companies value the cost savings of the procurement process. You will also have good career prospects if you want to progress.
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are procurement jobs in demand?
Procurement jobs are in high demand due to the contributions of procurement specialists to a company's success. They improve profit margins by optimising costs.
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do I need CIPS certification?
It is not compulsory to have a Chartered Institute of Purchasing and Supply (CIPS) certificate, but it gives you a competitive advantage in your job search.
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how do I apply for a procurement manager vacancy?
Applying for a procurement manager job is easy: create a Randstad profile and search our procurement manager job offers. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here!
