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Computerized systems allow purchasing managers, buyers, and purchasing agents (and in turn the companies that employ them) to operate much more efficiently. With these systems, acquisition functions are dramatically simplified and sales patterns can be identified much more effectively. For example, through point-of-sale terminals (cash registers monitored by computers), organizations can instantly access current sales and inventory figures, which they can then use to produce accurate sales reports. Being able to quickly ascertain customers’ buying habits enables buyers and supply managers to maximize profits. Computer systems give buyers instant access to the specifications for thousands of commodities, inventory records, and their customers’ purchase records. Such information allows them to make more efficient purchases: they can avoid overpaying or ending up with shortages of popular goods and surpluses of less popular goods. Firms use electronic purchasing systems, the Internet, or Extranets to stay connected with manufacturers and wholesalers. Through these systems, buyers can better evaluate how they can select goods and suppliers, and can select, customize, and order products faster.
Purchasing Manager Training and Job Qualifications
Potential managers and specialists often start as trainees, purchasing clerks, expediters, junior buyers, or assistant buyers. Retail and wholesale firms like candidates to have a college degree and to be familiar with the goods they sell and with the nature of the wholesale and retail industries. In some retail firms, qualified employees are promoted to assistant buyer positions; in others, college graduates are recruited and trained. Most firms combine both techniques.
Formal training requirements generally depend on how large an organization is. Large stores and distributors, particularly those in wholesaling and retailing, like candidates to have a bachelor’s degree that emphasized business. Manufacturing firms tend to value formal education; they generally prefer bachelor’s or master’s degrees in business, economics, engineering, or an applied science. Many upper positions for purchasing managers essentially require a master’s degree.
Even with the best degree, new employees still need to learn the ins and outs of their employers’ business. Policies vary, but most training periods last 1 to 5 years. Most wholesale and retail firms start their trainees off in merchandise sales, supervision of sales people, and monitoring shipping and stock. Retail trainees gain more buying-related responsibilities as they gain experience.
Many manufacturing firms enroll their new purchasing workers in company training programs. These employees spend a substantial amount of time working with experienced purchasers to learn the details of their firm’s practices (for example, about commodities, prices, suppliers, and markets). They may also spend time working in the production planning department to gain insight into the inventory and material requirements systems the company uses to efficiently operate its production and replenishment functions.
Computer skills are important for purchasing managers, buyers, and purchasing agents. They must be proficient in word processing and spreadsheet programs, as well as in the use of the Internet. They should also know how to analyze technical data in suppliers’ proposals; be good communicators and negotiators; have solid mathematical skills; understand supply-chain management; and be able to carry out financial analyses.
Potential wholesale and retail buyers should be interested in merchandising and need to be effective planners and decision makers. They should be willing take risks and able to make fast decisions. They need resourcefulness, good judgment, and self-confidence to anticipate consumer preferences and to ensure that merchandise is in stock when it is needed. Candidates should know how to market products and identify items that will sell well. Employers also expect their buyers to have leadership potential because buyers constantly supervise assistant buyers and interact with manufacturers’ representatives and store executives.
Advancement for veteran buyers can come by becoming a merchandise manager or by transferring to a department that deals in larger quantities. Others move to a manufacturer or wholesaler to work in sales. Before promotion to a position as purchasing manager, supply manager, or director of materials management, experienced purchasing agents and buyers often work as assistant purchasing managers over a group of purchasing specialists. Responsibilities of top supervisors coincide with other management functions—logistics, marketing, planning, production, etc.
Continuing education is necessary for advancement in all industries. Professional certification is increasingly valued, particularly for those new to the field. Seminars offered by professional societies are popular among purchasers, as are college courses in supply management.
Private industry has several standard indicators of experience and professional competence: the Institute for Supply Management confers the designations of Accredited Purchasing Practitioner (APP) and Certified Purchasing Manager (CPM); and the American Purchasing Society confers the designations of Certified Purchasing Professional (CPP) and Certified Professional Purchasing Manager (CPPM). In Federal, State, and local government, the National Institute of Governmental Purchasing confers the marks of professional competence: Certified Professional Public Buyer (CPPB) and Certified Public Purchasing Officer, (CPPO). Most of these certifications require work-related experience, a certain level of education, successful completion of some type of exam.
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