What is a Procurement Manager?
A Procurement Manager is in charge of acquiring goods and services for their organisation. The position is also referred to as a Buying Manager.
Agents in major firms. The position frequently answers to a Chief Procurement Officer (CPO). Procurement Manager in small and medium-sized firms is frequently a department of one. In this situation, they often report to the Chief Operating Officer (COO) or Chief Financial Officer (CFO). Regardless of size, procurement teams must collaborate closely with the operations, finance, and legal divisions. A company’s employees and management must follow the organisation’s purchasing strategy, and a Procurement Manager oversees this process. Finding new suppliers, managing vendor relationships, managing various sourcing operations, and negotiating terms and conditions are all duties of the Procurement Manager. Using this strategy will assist in keeping prices within a budget.
In bigger businesses, the Procurement Manager’s duties are mostly focused on strategic activities, although they may also entail certain operational duties in smaller businesses. It is believed that the Procurement Manager is responsible for everything prior to issuing purchase orders. Generally speaking, purchasing is a subset of procurement and is managed by the Procurement Manager.
There are five basic procurement categories that you could specialise in when looking into a career in Procurement Management. These are:
- Administrative support.
- Travel.
- Professional services.
- Insurance.
- Information technology.
The majority of Procurement Managers are often ambitious people, making them relatively natural leaders who excel at influencing and convincing others.They also tend to be traditional, which means that they enjoy working in structured environments and are often organised and detail-oriented.
Responsibilities
As a Procurement Manager, your duties will vary according to the type of company, its size and location. Some of your responsibilities may include:
- Product and solution research
- Request for Proposal (RFP) management
- Return on Investment (ROI) evaluation
- Evaluation and selection of suppliers
- Inventory control
- Management of risk and compliance
- Procurement process improvement
- Contract negotiation
- Data analysis
Salary
The salary for Procurement Managers is influenced by experience, company and location.
The national average salary for a Procurement Manager in the UK is £52,285, ranging from £36,000 to £76,000. The average additional cash compensation amounts to £5,125 ranging from £1,467 to £17,902.
Working hours and work location
A Procurement Manager often works a full-time schedule of 40 hours per week. The position is mostly office-based except for meetings with suppliers and attendance at trade exhibitions and conferences. Procurement Managers are employed by numerous industries and business sectors.
However, the following areas and industries are where Procurement Managers are most likely to find employment:
- Healthcare
- Regional government agencies
- Corporate management
- Executive branches of government
- Merchant wholesalers
What to expect
A Procurement Manager is in charge of making sure that the company buys the products and services that will enable them to fulfil their objectives. Typically, this entails locating supplier partners who balance cost and quality. The Procurement Manager’s duties also include auditing the business’s previous acquisitions. This assessment establishes vendor performance, compliance, and ultimately the business’s Return On Investment (ROI).
The procurement department’s job has evolved and grown over the past few years. The job’s traditional focus was on only acquiring items to satisfy internal requirements. However, more businesses are starting to appreciate the knowledge and value that Procurement Managers possess. It shouldn’t be a surprise given their capacity to lower expenses, enhance results, and find beneficial alliances. As a result, the responsibilities of a Procurement Manager have increased. The number of considerations people take into account when choosing a provider has also increased. Even in organisations where digital transformation programmes are broadly implemented, technology appears to be arriving slowly in the procurement department. Many duties may be handled manually, therefore higher management’s investment in automation in this sector may be restricted. As businesses recognise the importance of the procurement department, the demand for Procurement Managers grows.
Unsurprisingly, strategic sourcing has grown in favour as a means of addressing this difficulty. The practice prioritises long-term cooperation above transactional providers. Longer, more productive vendor relationships result in fewer procurement initiatives and reduced costs. The procurement team’s work does not end with selecting a suitable supplier. Indeed, managing vendor relationships is a rare and underrated talent. A Procurement Manager supervises and reviews each vendor’s performance on a regular basis to ensure that the collaboration stays mutually beneficial. Vendor profiles, fortunately, aid in centralising critical vendor information for simple access and tracking.
Qualifications
All graduates are eligible for this line of work, although the following degree fields may increase your chances when looking to start a successful career in procurement.
- Economics
- Supply chain management
- Business
- Purchasing and logistics
- Management
- Retail management
- Engineering
- Marketing
Skills
must have skills:
Some of the skills that you should acquire or possess in order to become a successful Procurement Manager include:
- Excellent communication abilities in writing, speaking, and in presentations.
- Commercial and financial awareness (managing budgets and keeping expenses down is a significant aspect of the work).
- Strong negotiating skills to secure the greatest deal and value for money.
- Excellent interpersonal and relationship-building skills
- The capacity to make critical decisions and handle the pressure of high expectations and short deadlines
- The capacity for time management and the ability to meet deadlines
- Strong project management skills, with the ability to work collaboratively with internal and external teams
- Numeracy skills for analysing facts and figures
- The capacity for problem-solving and decision-making, as well as for strategic and lateral thinking
- The ability to lead and motivate a team
- Tact and diplomacy
Work experience
There is fierce competition for positions in procurement management, and prior business experience is crucial, particularly that obtained in purchasing and selling.
Try to obtain appropriate job experiences, such as that of a buying assistant or junior buyer. You may also do a sandwich placement in procurement as part of your degree programme or request the opportunity to work with a Procurement Manager as a work shadow. Some bigger organisations operate summer vacation programmes or provide procurement internships. The procurement sector is home to several associations and organisations. In addition to the national organisation, there are industry-specific organisations that can assist you when preparing to enter the procurement industry.
Some of them are:
- The Chartered Institute of Logistics and Transport (CILT)
- Local Government Association
- Chartered Institute of Procurement and Supply
There is undoubtedly a tonne of excellent technology available to revolutionise procurement digitally. Solutions are available for a variety of procurement tasks, learning about them will assist you when applying for some of the most prestigious and best paid jobs in the procurement sector.
Some of them are:
- Request For Proposal (RFP) management applications
- Enterprise Resource Planning system (ERP)
- Software for managing inventories
- Platforms for contract and vendor management
Career prospects
The organisation you work for will determine your opportunities for professional development. In bigger businesses, teams of individuals may work at many locations to complete procurement tasks. You may advance by managing a team, and then a collection of teams.
However, at a smaller business, you can be in charge of all the work, so it’s more probable that you’ll need to change jobs in order to advance your career. If you’re thinking about a career in procurement, it provides a lot of excitement, chances for success, and room for growth. From the position of a Procurement Manager, you could advance to Senior Procurement Manager, Director of Procurement or even Vice President of Purchasing.
Related Courses
The University of the West of Scotland London offers this two years and eight months full-time degree, and students can choose from a variety of start dates. Students at UWS London get access to industry experts, guest lecturers, and seasoned professionals throughout their studies. Students may participate in the UK’s economic hub thanks to the fact that this programme is provided on the London Campus, in the country’s capital.
A one-year foundation degree from the University of the West of Scotland in London will get you ready for undergraduate coursework and build the platform for a career in procurement.
You will learn about contemporary research sources in this course, along with useful case examples. The students’ English language and study abilities will also get a boost as they gain knowledge of crucial business courses. You will be well-prepared to enter the undergraduate level with confidence after completing the Business Foundation Programme and gaining the necessary knowledge.
The University of West Scotland’s one-year full-time programme will equip you with the executive training you need to kick-start your career in Procurement Management. This program is available at UWS’ London Campus, which is located in the heart of London’s economic district.
The MBA and digital marketing components are combined in this one-year full-time program at the University of the West of Scotland’s London Campus. The MBA portion of the course looks at business practices and operations such as accounting, finance, and human resources, as well as how they are all related. This course allows students to specialise in digital marketing in a more specific manner, in addition to gaining a wide business perspective and the base for a career in Procurement Management.
