Functional Role of a Purchase Manager is to take care of the purchase and procurement of raw material, consumables, capital equipment and spare parts etc. of a company. Duties of Purchase Manager include Sourcing of materials, consumables, capital equipment, Formulating strategies for purchase of materials, Vendor Development & Management, Procurement planning, cost reduction etc.
Do you want to know in detail what a Purchase Manager does? What you should look for in a Purchase Manager Resume? What are the points you should include in your Purchase Manager CV? Please read below.
Responsibilities of Purchase Manager:
Sourcing / Procurement
- Formulating and implementing the annual strategies for purchase of materials as per orders and considering lead time requirements.
- Managing the overall procurement of raw material, equipment & machinery and other project requirements including Receipt Accounting & maintaining minimum stock level.
- Budgeting and planning the funds for procurement and sourcing of materials ensuring optimum utilization of materials, maximum cost savings & meeting anticipatory orders for monthly sales.
- Setting up the weekly, monthly, quarterly procurement plan.
- Development of alternative local sources for imported raw materials which helps in cost saving.
- Purchasing machinery with improved technology to increase production.
- Liaison with the production department to maintain optimum inventory.
- Implementing systems to avoid situations like over-stocking or out-of-stock which cause production and financial losses.
- Liaison with finance department for timely payment of bills.
- Developing reports on procurement and usage of material for top management.
- Managing logistics functions, negotiating with transporters & clearing agents for cost effective transport solutions & clearances. Liaison with local authorities & ensure preparation of all papers/documents.
- Interaction with the factory stores in charge and collecting indent time to time as per requirement. (Packing Materials, Raw materials)
- Interaction with our factory maintenance manager and collecting indent as per their requirement,
- Interaction with our factory Quality control, R&D manager and collecting Indent for Lab Maintenance items.
- Collecting quotations from various vendors and negotiating the prices and other terms & conditions
- Preparing the comparative chart for each & every material.
- Finalizing the rate and quantity with Higher Authority and getting approval time to time
- Raising the purchase order (PO) and share to the vendor.
- Follow up the material vigorously with the suppliers to ensure the dispatch on time for production.
- Interaction with, Finance& Accounts Dept release the payment to the vendors as per supply terms.
- In case if any rejection materials from stores interaction with quality control dept get the report and send back to the vendors.
- Identifying and developing potential vendors/ suppliers for achieving cost effective purchases of Raw Materials; achieving reduction in prices and timely delivery.
- Assessing performance of the vendors based on various criterion such as percentage for rejections, quality improvement, timely delivery, credit terms etc.
- Overseeing follow-up with vendors for timely deliveries, release schedules, quality checks & ensuring timely payments.
- Developing a number of vendors for various critical items.
- Negotiating with vendors and decreasing their rates without affecting the quality of materials.
- Coordinating with the production planning department, foundry and commercial department for spares production.
How to become a Purchase Manager:
Educational Qualification requirement to become a Purchase Manager is Graduate or Bachelor degree from any of college/university in any subject. Depending the industry, the companies decide the required educational qualification like in engineering, cement, iron and steel, petroleum industry companies look for diploma/degree engineer in mechanical engineering; in chemical industry they look for diploma/degree engineer in chemical engineering etc.
Software skills Required for Purchase Manage:
ERP/SAP (MM module)
MS-Word, MS-Excel, MS-Power Point
Soft skills Required for Purchase Manage:
- Strong negotiating skills essential for fixing correct price and other terms of contract.
- Excellent Verbal communication skills, both written and oral.
- Strong communicative and interpersonal skills essential for managing people.
- Self-motivated, hardworking. Always keen on constant improvement.
- Goal Oriented mindset.
What is the Job Opportunity of Purchase Manage in the industry?
Purchase Manager are required and hired in every manufacturing company in the industry. So, there is always a huge demand of Purchase Manager.
Salary of Purchase Manage (in India):
Salary of Purchase Manager in India ranges from 5 Lacs Rupees to 50 Lacs of Rupees per annum depending upon the Experience, Expertise, Industry, Business volume, procurement ticket size etc.
Yes, he needs to work in purchase department of a manufacturing company.
There are low demands of Purchase Manager abroad especially in Middle east countries (Gulf), South Africa, Canada but the incumbent must know the respective company acts and rules of that country.