Procurement Manager: Job Profile and Role

Every business dealing with goods, products, and services needs a procurement manager. He or she is responsible for optimising supply chains and reducing costs and potential risks for a company or business. A procurement manager therefore needs a vast set of skills that are accompanied by theoretical and practical knowledge.

The following blog will explore the job of a procurement manager in detail. We will a very close look at the required qualifications and accompanying soft skills. We will also give you a first idea of the annual salaries you can expect as a procurement manager. After looking at potential employers and your working hours, we will give you exciting insights into a day in the life of a procurement manager. Last, but not least, you will receive three invaluable tips for thriving in this job.

Short Summary

• As a procurement manager, you are tasked with optimising a company’s supply chain. This way, you ideally reduce any excess costs and potential risks for said company.
• As a procurement manager, you are in charge of your company’s procurement and sourcing activities. Again, you make sure that procuring and sourcing are achieved with cost-efficiency and the lowest possible risk level.
• As a procurement manager, you develop short-term and long-term procurement strategies. These take regulations, laws, company policies, and compliances into account. You may also have to change and adjust contracts.

Job description

The job of a procurement manager is to source products and services for his or her company. Purchasing the respective supplies involves staying within a projected budget and adhering to the latest regulations, laws, and compliances. As a procurement manager, you ensure that your company’s supply chain is optimised so it can run smoothly and cost-efficiently.

As a procurement manager, you are also responsible for liaising with suppliers, vendors, stakeholders, and your team. Supplier and vendor negotiations can involve international dealings, meaning that a procurement manager needs to be aware of cultural differences. Lastly, a procurement manager develops short-term and long-term procurement strategies that stay within a projected budget and adhere to all the mandatory regulations and laws.

Responsibilities

• Supplier Relationship Management
• Technology/Process Improvement
• Inventory Management
• Contract Management
• Cost Management
• Risk Management
• Market Research
• Vendor Selection
• Quality Control
• Data Analysis

Different types of Procurement Managers

• Tactical Procurement Manager
• Global Procurement Manager
• Public Procurement Manager
• Direct Procurement Manager
• E-Procurement Manager

Salary

Procurement Managers in the UK are paid between £50,100 and £60,800 annually. The salary is influenced by work performance, the employer, the company size, and the location. In fact, the annual salary of a procurement manager can be considerably less than £50,100, for instance, in Scotland. Procurement managers in Edinburgh typically get paid £48,900 per year. The annual salary can also be increased by boni which can be part of a procurement manager’s salary package.

Working hours

A full-time procurement manager generally works between 37 and 40 hours a week, typically from 9 a.m. to 5 p.m., Monday through Friday. Note that procurement managers may have to work more hours, depending on procurement emergencies or the client setup.

Procurement managers might liaise with international suppliers. This can involve both travelling and video/phone calls. These, in turn, take place in different time zones, meaning that a procurement manager might have to work early in the mornings, in the evenings, or at the weekends.

Employers

Procurement managers can find employment in small companies, medium-sized businesses, and large corporations. These can be found in various sectors, for example, the public sector or even the armed forces. Depending on your preferences and qualifications, you can look for your first procurement job with technology companies, engineering companies, retail companies, or pharmaceutical companies, to name but a few.

Your Company’s Reputation relies on you as the Procurement Manager

Did you know that you, as a procurement manager, are responsible for your company’s success or downfall, respectively? By choosing ethical suppliers and vendors, you ensure that your company’s brand/image does not suffer. Choose the wrong kind of supplier, however, and your company’s reputation will probably be shot to pieces within the blink of an eye.

Qualifications

To become a procurement manager, you can either earn an academic degree or complete an apprenticeship. Both approaches require a certain number of GCSEs and the appropriate grades. Note that your educational background should ideally fit with the company you are applying to. For instance, retail stores prefer candidates who have earned a business-related degree, whereas engineering companies may favour applicants with an engineering-related degree.

Also, note that some employers may require that you are a member of the Chartered Institute of Procurement & Supply (CIPS) which also offers undergraduate and postgraduate schemes and degrees.

Skills

Personal strengths and competencies go hand-in-hand with your educational qualifications. As a procurement manager, you should have both strong negotiation and communication skills. These two skills are by far not the only skills you should have when you want to become a procurement manager. Let’s take a closer look at three more skills you should have or should develop when you want to be a procurement manager.

Diplomatic Skills

Being diplomatic certainly is not a skill we are all born with. Depending on your personal set-up and mindset, being blunt is the way forward. But not if you want to succeed as a procurement manager. Why is that? As a procurement manager, you deal with lots of different people daily. You need to negotiate the best price deals and offers, you need to discuss procurement strategies with your company’s stakeholders, and you need to resolve conflicts between different parties. Being blunt will not help you to get anywhere. Instead, try to be diplomatic and find ways with which to resolve any potential issues and with which your company will gain the most.

Time-Management Skills

As a procurement manager, you will likely have to deal with multiple things at once. Or, if not at once, then within the same working day or week. Strong time-management skills are mandatory if you want to succeed and excel in your job as a procurement manager. They help you to stay on top of looming deadlines, procurement strategy completions and the tasks with the highest priorities.

Cultural Sensitivity

As a procurement manager, you not only deal with regulations, compliances, and company policies. You may also deal with international suppliers and vendors who generally come with their own cultural backgrounds. It is very easy to put your foot in it when you do not have an extensive knowledge of the various cultural differences and ethical standards. Therefore, cultural sensitivity is an essential skill to have when you want to be a procurement manager.

Career Path

The career path of a procurement manager typically starts with an educational background. After having earned the relevant educational background, a procurement manager starts at the entry-level, for example, as a procurement assistant. With several years of work experience, the procurement assistant can apply for mid-level positions, followed by senior procurement positions. After these, a procurement manager can also be promoted to Head of Procurement or Chief Procurement Officer/CPO.

Educational Background

Typically, a procurement manager has earned an academic degree, such as a Bachelor’s degree in business, engineering, marketing, economics, or operations management. An academic degree is not mandatory since you can also choose do to an advanced or higher apprenticeship in an appropriate field. However, most employers prefer candidates who have earned a degree. Also, note that most employers require a 2:1 in academic degrees, meaning First-Class Honours and Upper-Second Class Honours.

If you start your future career as a procurement manager, you can also look into the possibility of a company graduate procurement management scheme. If this is available, it is also an option for you when you have already earned your Bachelor’s degree in an appropriate field of study.

Senior Level

The job of a procurement manager is a senior-level position. This means that you will only become a procurement manager after you have gained experience in entry-level positions, such as procurement assistant or junior buyer, and mid-level positions which can include the job of a senior buyer or a procurement specialist.

Continuous Learning

To achieve the position of a procurement manager, you need to continuously learn. Your learning can include new technologies, market conditions, regulations, and software. Your continuous learning should also stretch to improving your soft skills. Adhering to these learning “schedules” can contribute to your being promoted to an even higher and more prestigious position in your company.

A Day in the Life of a Procurement Manager

Do you think that the job of a procurement manager might be the right fit for you? But you do not really know what daily tasks await you? Then, let’s take a look at a day in the life of a procurement manager.

In this section, you find out what daily tasks await you and your procurement team.

Supplier and Vendor Communication

Communicating with your suppliers and vendors is an important part of your working day as a procurement manager. You need to check and discuss all ongoing orders and delivery schedules. You also need to negotiate the best prices and offers with your vendors. This way, you ensure that your company eventually makes a profit and that you stay within your budget.

Purchase Requisition Reviews

By purchase requisition reviews, we mean that a procurement manager needs to evaluate every single purchase requisition that has been made. This involves close collaboration and communication with other departments, such as internal stakeholders and vendors. As a procurement manager, you need to ensure that all requisitions are accurate and meet both quality standards and projected budgets.

Ensuring Compliance

As a procurement manager, you need to ensure that all compliances, regulations, and laws are met, implied, and adhered to at any given time. You also need to ensure that your company’s policies and procedures are treated in the same way. Ensuring compliance can also involve checking contracts and adjusting these if the mandatory requirements are not fulfilled.

Tips for Thriving as a Procurement Manager

Everything in life is connected to a specific learning curve. Learning helps us to understand things and improve. Naturally, improvements are also vital for the job of a procurement manager. They help him or her thrive. Let’s take a look at three surefire ways to thrive as a procurement manager:

• Plan strategically
• Be open to change
• Encourage innovation in your suppliers

Plan Strategically

To plan strategically, you need to have an intrinsic knowledge of your company’s business goals. This knowledge enables you to come up with successful and innovative procurement strategies. When you want to thrive as a procurement manager, you should develop long-term strategies for your company. These procurement strategies take risk management, cost savings, and the so-called supply-chain resilience into account.

Be open to Change

One thing is for sure: today, markets evolve regularly. New regulations are being published, new technologies are being introduced that disrupt traditional business set-ups and dealings. When you want to thrive as a procurement manager, you need to be open to these changes and their side effects. With the rise of digitalisation and AI software, cyber security is an important issue you need to deal with appropriately – for your sake as well as for the sake of your company and every single person connected to it.

Encourage Innovation in your Suppliers

If you manage to open your suppliers’ eyes to innovation, you have implemented one of our most important tips for thriving as a procurement manager. Innovations and change typically go hand-in-hand with collaboration between you and your suppliers. Find new ways to reduce costs, open new revenue opportunities, and improve the customer experience. This way, you will thrive as a procurement manager.

Frequently Asked Questions