Purchasing Manager: Job Profile and Role

Imagine you want to order something online and buy something in a store. Naturally, you hope – and maybe expect – that your chosen product is in stock and ready to move into your home. Therefore, suppliers are an integral part of any business – as is a purchasing manager. It is his or her job to ensure that all goods are sufficiently in stock and in the right place.

In this blog, we explore the job of a purchasing manager in the UK. You will find out how much you will earn annually and who your potential employers are. Besides, we tell you what it takes to become a purchasing manager and what a working day can look like. To help you advance your career, we have also researched three tips for thriving in this profession.

Short Summary

• As a purchasing manager, you are responsible for sourcing suppliers and negotiating contracts with them which must be beneficial for your company.
• As a purchasing manager, you take on managerial roles, such as managing inventory levels and your team of purchasing experts.
• As a purchasing manager, you are tasked with supplier performance evaluation. Besides the contract negotiations, this ensures the best suppliers for your company.

Job description

As a purchasing manager in the UK, you take on several different and varied jobs, tasks, and responsibilities. One of your most important jobs will be to source suppliers based on the so-called forecasting demand. To ensure the most beneficial outcome for your company, you also evaluate your suppliers’ performance and draft and negotiate contracts. Besides, you are responsible for your team of procurement, supply chain, and purchasing experts. Another of your responsibilities is budgeting and cost control, thus, ensuring that your company does not suffer financial losses. Lastly, you are asked to manage your company’s inventory levels and adjust orders accordingly.

Responsibilities

• Risk Management
• Sourcing Suppliers
• Team Management
• Forecasting Demand
• Ensuring Compliance
• Negotiating Contracts
• Budgeting/Cost Control
• Managing Inventory Levels
• Managing Vendor Relationships
• Supplier Performance Evaluation

Different types of Purchasing Managers

• Procurement Operations Manager
• Supplier Relationship Manager
• Direct Procurement Manager
• Strategic Sourcing Manager
• Category Manager

Salary

When working as a full-time purchasing manager in the UK, you can expect a starting salary of around ￡35,000. With experience, further training and more responsibilities, this can increase to ￡55,000 or more. Always keep in mind that your annual salary as a purchasing manager is influenced by further factors, among which are your employer and your location. As a general rule, bigger organisations tend to pay more. The same can be true for metropolitan areas as opposed to rural regions.

Working Hours

As a purchasing manager, you will work between 38 and 42 hours a week. Generally, you will work from 9 to 5, Monday through Friday. Keep in mind that evening and weekend work can be part of your working hours, especially during peak times, such as the festive season. Earlier starts and later finishes may also occur if you work for an international company with a branch in the UK. We recommend that you inquire about the possibility of remote work. This may be an option since a manager’s job can be conducted from home in some cases.

Employers

In the UK, purchasing managers are a vital part of many different businesses, both in e-commerce and in retail. Here, you can look for a job with big companies as well as small and medium-sized businesses/enterprises (SMEs). Besides, you can also find employment in non-retail-related sectors, such as government agencies and the armed forces. Other interesting options are the IT and telecommunications, the health/pharmaceutical, and the public services sector.

Qualifications

Even though there is no specific entry route to becoming a purchasing manager in the UK, you will benefit from earning a university degree. To attend university, you need a specific number of GCSEs or the equivalent A levels. Note that your GCSE pass grades must be 9 to 4 (A* to C) and should include English and maths. As for your A levels, these should focus on related subjects, such as marketing, supply chain management, and economics. Note that you can also become a purchasing manager by completing an apprenticeship, this approach also requires the afore-mentioned GCSEs and pass grades.

Keep in mind that it will be necessary to familiarise yourself with the relevant software which can range from procurement management systems (PMS) like SAP Ariba to contract management and supplier relationship management software (SRM), to name but a few.

Skills

Every job requires a certain set of skills. In purchase management, you not only should have strong communication skills, but you should also be a team player who has leadership competencies. After all, you work closely with a team of supply chain and procurement specialists and you also need to communicate with your directors and suppliers.

That said, there are a few other competencies you will benefit from. Before we take a closer look at three of them, we recommend that you check every job post for the skills required by your future employer. This way, you ensure that you have all it takes to successfully apply for and get the vacancy.

Negotiation Skills

As you already know, negotiating will be a vital part of your job description. Paramount are supplier contracts that naturally must not only meet all legal requirements and company policies but also must be beneficial to your organisation. Getting what you want from your respective suppliers is no mean feat and requires very strong negotiation skills. These will also be needed when discussing prices and quantities of goods and delivery times and shipping fees, to name but a few.

Strategic Sourcing

Strategic sourcing is another important competency you should have when working in purchase management. This particular skill involves in-depth market research, data collection, and data analysis. Combined, sales figures and market trends give you valuable insights into which products will fly off the shelves and which ones will not. Of course, you also need to be able to read and interpret said factors correctly, which means that analytical skills should accompany your strategic sourcing abilities.

Budget Management

One of the most important things to keep in mind when working in purchase management is that you must stay within a projected budget. Your company’s directors will give you said budget and expect you to do your best to meet this and the desired profit margins. Therefore, budget management skills are just as important as the other two competencies we have already explored. This way, you ensure your company’s (financial) success as well as your own.

Career Path

Working as a purchasing manager in the UK means that you are already some way up on your career ladder. With more responsibilities and the right amount of ambition and drive, you can advance to higher levels in this field. Some of the possible jobs can be the following: head of procurement/purchasing, chief purchasing officer, and purchasing director.

Educational Background

As already mentioned, you do not need an academic background to become a purchasing manager in the UK. However, an undergraduate or even postgraduate degree, a foundation degree, or a higher diploma can benefit you enormously since it sets you apart from your competition when applying for a job. If you want to approach your future career in purchase management, you can look into earning a Bachelor’s degree in marketing and/or economics, for example.

If you would rather approach your job by completing an apprenticeship, you can look into the following: a procurement and supply assistant level 3 advanced apprenticeship or a commercial procurement and supply level 4 higher apprenticeship. Typically, these two options take two years to complete and come with an important advantage over a university course: you can already gain your first work experience.

Entry Level

To advance to the position of a purchasing manager in the UK, you first need to work in a trainee position. This can include the job of an assistant purchasing manager, a purchasing assistant, or a supply chain assistant. There are no fixed timeframes as to how long you stay in this entry-level position. Typically, you can expect to stay in this role for about a year before you can start discussing promotion to a managerial role with your employer/human resources.

Continuous Learning

It may also be the case that you are required to have completed further training or that you are a member of the Chartered Institute of Procurement and Supply (CIPS/MCIPS)) when thinking about promotion to the job of a purchasing manager. Therefore, your continuous learning should include the necessary CIPS qualifications and training, such as the following:

• CIPS Level 2 Certificate in Procurement and Supply Operations
• CIPS Level 3 Advanced Certificate in Procurement and Supply Operations
• CIPS Level 4 Diploma in Procurement and Supply
• CIPS Level 5 Advanced Diploma in Procurement and Supply
• CIPS Level 6 Professional Diploma in Procurement and Supply

Note that you will also need three years of work experience in purchase management if you want to apply for your MCIPS status. The above-mentioned qualifications can be completed either in a study centre/classroom or from home. Whichever you prefer, you will then have some training that is not only recognised nationally but globally.

Foundation Degree vs. Undergraduate Degree

We frequently mention undergraduate and foundation degrees in our job blogs. But what is a foundation degree in relation to an undergraduate (Bachelor’s) degree? Technically, a foundation degree equals a level 5 qualification, which, in turn, equals the first two years of an honours degree, such as a BA Hons. 

An undergraduate degree, on the other hand, is defined as the first university degree and takes about three years to complete. If you want to earn a Master’s degree (postgraduate degree), note that a foundation degree does not suffice as an entry requirement. This can only be achieved with a prior undergraduate degree in your chosen subject.

A Day in the Life of a Purchasing Manager

Let’s take a look at some of the daily tasks you will perform as a purchasing manager in the UK. They will also show you how you can and will apply the theoretical and practical knowledge which you have gained in your education and previous work in purchase management.

Strategic Planning

As in any retail or e-commerce business, some products are absolute customer favourites and some are most certainly not. However, what is hot today may not be so hot tomorrow. Therefore, strategic planning when it comes to products and supplies is an important job in purchase management. To identify and discuss your company’s purchasing goals, you can conduct team meetings where you take a close look at the latest market trends and figures. With your insights, you can then come up with a strategic plan that meets your company’s goals and helps with process and supply improvements.

Vendor/Supplier Evaluation

As a purchase manager, you will already have a list of trustworthy and reliable vendors/suppliers. However, it never hurts to evaluate their respective performance every once in a while. Are they still doing their job as they are supposed to? Are they still reliable and deliver on time? Is the supply quality top notch and are the prices still acceptable for your company? These are some of the questions you need to ask yourself and evaluate your suppliers accordingly. In the end, you ideally still have the same suppliers. But it can equally be the case that you need to start looking for better and more reliable replacements.

Contract Negotiation

This brings us to another important job in the life of a purchasing manager: contract negotiation. Your supplier evaluation may have shown that some of your suppliers may either need to be replaced or that existing contracts need adjustments. Whatever the case, negotiating existing or new contracts is on the cards. Make sure that these legal documents cover everything from fair and beneficial pricing to discounts, payment terms, and rebates. This way, you have watertight documentation that outlines what your suppliers are to supply you with and when.

Tips for Thriving as a Purchasing Manager

We have already given you quite a few pointers when it comes to thriving as a purchasing manager in the UK. Besides the training and qualifications explored in our continuous learning section, there are further ways with which to advance your career. Three of these we will take a look at in this section:

• Understand company needs
• Follow market trends
• Stay compliant

Understand Company Needs

Purchasing managers are needed by different businesses and organisations. Through your education and first jobs, you have already gained insights into the kind of goods and products your company sells or needs to function. Therefore, you know that it is essential to understand your company’s needs. What is the one piece of equipment it needs to be the best in its sector? What is the one product that ensures your company is the absolute best of the best in retail or e-commerce? Understanding this vital aspect goes a long way towards thriving as a purchasing manager in the UK.

Follow Market Trends

Let’s assume you work for a retail or e-commerce business that deals with sellable products. To know what will sell, you need to be aware of current market trends. This includes being a bit of a social media whizz, especially, where Instagram and TikTok are concerned. Why is that, you may wonder? As an unofficial rule, everything that is trending on these platforms will turn into a sales hit in record time. If you are aware of what’s trending on the market, you ensure your company’s and your own thriving.

Stay Compliant

As much as a business does not function without supplies and goods to sell, it is not allowed to function if it does not adhere to all rules and regulations. Therefore, being and staying compliant is an important aspect of the life of a purchasing manager. If you want to succeed, you must know all the relevant regulations and stay updated on any changes and adjustments. The same applies to the current industry standards, company policies, and legal requirements.

Frequently Asked Questions