If you are considering recruiting a procurement manager for your company, read on to learn more about what this role entails and suggestions of what to include in a job description.
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What Does A Procurement Manager Do?
A procurement manager can also be called a purchasing manager. Their job is to ensure a company has all the goods and services required to meet its business objectives. The goods and services involved can vary enormously from company to company, ranging from raw materials to technical support or even personnel.
Procurement managers are involved in finding and negotiating contracts with suppliers, working within budgets and using IT systems to keep track of where all the goods and services are. They also monitor trends and availability of goods and services to mitigate risks to the business.
Procurement managers play a significant role in improving profits by making cost savings and minimising waste. They are often also involved in risk management strategies and sustainability and ethical issues that arise from the supply chain.
As this is a managerial role, a procurement manager will usually oversee the staff involved in a company’s procurement process. A procurement manager will coordinate the procurement activities across the buying team and ensure that different departments adhere to the company’s procurement policies and procedures.
A procurement manager may report to a chief procurement officer.
Key Duties Of A Procurement Manager
The following list covers the different duties a procurement manager can be responsible for. Individual companies will tailor this list to reflect how the role fits into their procurement department and the broader company and how the company-wide strategy impacts the sourcing required and the wider supply chain.
- Create and implement company-wide policies and procedures for procurement.
- Recruit, train and manage a wider procurement team.
- Source, evaluate and interview potential suppliers and vendors.
- Negotiate contracts to ensure they are cost-efficient and supportive of the broader company goals.
- Follow a similar rigorous process for contracts that need to be renewed.
- Build long-term relationships with suppliers and vendors.
- Attend industry-wide conferences and trade shows to keep up with industry trends and build relationships with new suppliers.
- Monitor suppliers to ensure they meet their contract requirements and work to resolve any issues, such as low-quality goods or poor-performing services.
- Manage budgets, including approving purchase orders and working with the accounting department to ensure suppliers get paid on time.
- Promote cost control throughout the supply chain by implementing cost efficiencies where possible and tracking expenditures closely.
- Oversee inventory tracking systems so the company knows exactly where the goods and services required are at any moment in time.
- Write procurement reports for the leadership team and wider business.
- Track business trends and product availability to ensure the company has the best value for the right products.
- Create risk assessments for any potential issues in the supply chain.
- Identify any ethical issues and write reports to ensure the company is completely transparent about the supply chain and complies with legislation such as the Modern Slavery Act 2015.
- Ensure a sustainable ESG-focussed approach is taken towards all procurement within the company.
Key Skills, Experience And Qualifications For A Procurement Manager
Skills
Procurement managers need to have a range of skills to be able to meet the requirements of the role:
Emotional intelligence and leadership skills: the ability to create and maintain strong relationships with suppliers and to solve interpersonal conflicts that may impact the supply chain and motivating staff.
Negotiation skills: understand the market for the products and services required and agree the best terms for the company.
Financial skills: awareness of procurement costs, departmental budgets and the overall financial strategy, as well as the ability to manage budgets, interpret financial statements and create financial reports.
Communication skills: the ability to communicate the company’s requirements, listen to feedback and proactively work to avoid misunderstandings that can cost the company money.
Analytical skills: evaluate suppliers against a variety of different factors including price, quality and service.
Organisational skills: managing a number of different priorities on a daily basis to best use the resources available and achieve what is required; these skills include time management, planning, prioritising, flexibility, attention to detail and following directions as necessary.
Experience
As procurement managers usually have significant responsibilities, either in terms of managing a team of procurement professionals or in their contribution to the procurement process, it is usual for companies to include experience in procurement management as a pre-requisite for this role.
The period is often a minimum of three years’ experience.
Education, Training Or Qualifications
Different job descriptions will use different titles for the section on the educational requirements. Each company needs to decide what is most important for them. Education attainment for procurement managers can include:
- Bachelor’s degree in business administration, supply chain management or another related field.
- Professional training such as the Chartered Institute of Procurement & Supply (CIPS) in Britain or the Certified Professional in Supply Management (CPSM) in North America.
Tips For Writing A Procurement Manager Job Description
Once you have spent time focussing on the key duties and responsibilities that you would like your procurement manager to fulfil and the essential skills, experience and education that you expect them to have, you can write the job description.
Remember your job description needs to be clear on what your requirements for the role but also make the company sound like an attractive place to work. A good job description will include the following sections:
- Responsibilities: an overview of the role and the duties it is expected to fulfil
- Requirements: often split into skills, experience and qualification, with any essential requirements highlighted
- Compensation Package: including salary and benefits
- About Us: information on the company and why it’s an excellent place to work
- How To Apply: precise details on the application process, including how to apply if you have special needs
