A Career in Procurement Management
Procurement (also referred to as purchasing, buying, or sourcing) is the function in
an organisation that is responsible for sourcing materials and services and managing
the commercial relationship with suppliers. We are all buyers; if we are planning
a large purchase like a car or an item of technology then we are likely to research the
market, check the prices and then look to get the best deal. This is essentially
the buying function though, in the world of work, a professional buyer is likely to be
buying in larger quantities whilst seeking to establish long term supplier
relationships and is likely to be faced with a much stronger imperative to make the
right decisions.
The work
All organisations purchase goods and services whatever their size or sector.
In a manufacturing environment this could involve sourcing spare parts or raw
ingredients for products, or outsourced services such as warehousing, logistics
services or cleaning and facilities management. Products and services bought will vary
depending on the sector but is likely to include day-to-day purchases like office
consumables, mobile phones, travel and accommodation through to major purchases like
plant, machinery or buses, trains and trucks. The role of the purchasing manager is to
understand what is required and create a product/service specification; research the
markets; and secure the best deal in terms of price, quality, availability and contract
terms.
With an increasingly complex supply chains, some procurement managers may be
required to travel extensively in the UK and/or overseas to visit suppliers and check
quality locally.
In the current economic climate organisations are increasingly looking to purchasing
and supply professionals to reduce costs and manage risks, which reflects the key role
that this function plays in business success.
The skills
A career in purchasing requires a wide range of skills:
- Mathematical skills – including analysis and calculations
- Communication skills – verbal and written skills are essential to liaise
with customers and present arguments succinctly, clearly and persuasively.
- Relationship skills – you will need to interact with people, persuading
suppliers to work with you more effectively and with smaller margins
- Strong ethics – you need a good sense of right and wrong
- Risk awareness – an ability to assess the risks of supply and formulate
contingency plans is essential
- Negotiation skills – a good negotiator needs to give and take, they need
to know the boundaries and create a win-win situation for each party
involved.
- Market knowledge – it is important to understand the market and the
things that affect it, so keeping up to date on business and world news is
important
- Legal awareness – working in purchasing involves drawing up contracts
and it is important to have an eye for detail and legal requirements to ensure
that the company is not put at risk either financially or by losing
credibility
- IT skills – general business software and specialist business software
such as e-sourcing and e-procurement and resource planning tools
- Language skills and cultural awareness may be required if working with
overseas suppliers.
Entry requirements
There is no set entry requirement for this area of work. It is possible to enter the
profession straight from school or college either via direct entry to an employer or by
taking up one of the apprenticeship opportunities that exist in procurement and supply
management. If the apprenticeship route appeals to you then take some time to
visit the Apprenticeship websites to see what is available (there are separate sites
for each of the four nations):
Many employers ask for either a BTEC/SQA higher national certificate or diploma (HNC
or HND) or a degree. There are some courses that specialise in purchasingor supply
management, otherwise business administration, public administration and similar
subjects are the most relevant. There are graduate training schemes available in some
organisations, usually sitting in the supply chain function, and these are usually
advertised directly on the organisation’s own website or via the various graduate
job sites.
Some employers prefer employees to be members of the Chartered Institute of Purchasing
and Supply (CIPS). In some sectors, a second or even third language could be useful to
facilitate negotiations with suppliers and customers.
Salary and career development
Salary levels will vary according to the job role. On qualification,
apprentices will earn around £13,500 depending on the occupational pathway
followed, and the salary for graduate schemes is in the range £18-25,000.
New purchasing managers earn around £20,000 a year. With experience, earnings
may rise to around £25,000. The prospects are excellent, with more senior roles
in purchasing attracting salaries of £50,000 rising to £100,000+ for
director level roles for those with the right skills, qualifications and
experience.
Membership of a relevant professional body will support people as they progress up
the career ladder and provide a variety of opportunities to network and to acquire
professional qualifications. There are specialist degrees at undergraduate and
post-graduate level, which provide the academic background to support and inform
practical experience.
In 2011, demand for purchasing and procurement professionals at all levels has
increased sharply compared to 2010, according to figures published by CIPS and
recruitment agency Hays Procurement. The salaries offered also show an increase,
with a 35 per cent rise in the number of jobs offering salaries of
£75,000-£100,000.
Employers
Procurement management roles exist across a range of employers:
- Public sector – national/local government offices, such as NHS or
MoD
- Manufacturing companies
- Construction
- Transport operators – passenger and freight – all modes
- Food and drink industry
- Retailers
- Education providers – schools, colleges, universities
- Services companies
In fact, there is likely to be procurement management opportunities within most
organisations, although in smaller organisations it is likely that the activity may be
devolved to non-specialists.
Contacts
For more information careers in procurement management visit the following
websites: