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Purchase Manager Job Description and Salary details [2022 Updated]

Last Updated on June 26, 2022 by Admin

In this article, learn all you need to know about purchase manager jobs description, duties, roles and responsibilities, and salary details.

Today’s purchasing managers need to be strategic and flexible. The time when businesses could establish relationships with a select group of regional suppliers and rely on them to continue for decades is long gone.

Your vendor partnerships must adapt to new trends and possibilities, given today’s supplier landscape’s global and dynamic nature. Your purchase manager job description has a lot on the line.

A professional who oversees an organization’s purchases of goods and services is known as a purchase manager. A purchase manager’s job is crucial to the success of any firm because they identify the goods and services required by the business and negotiate the best price to buy them.

A company’s whole list of purchases, together with the prices related to each one, must be kept up to date by the buy manager. To carry out their tasks and obligations as purchase managers, they might also be expected to keep track of the organization’s inventory and stock availability.

Who is a Purchase Manager?

A purchase manager is a logistics and supply chain expert with specialized training in assuring the cost-effective purchase of all goods and services as specified in the procurement strategy, as well as quality control and adherence to the company’s rules and procedures. In a construction company, the purchase manager plays a significant function.

Purchasing manager, also referred to as a procurement manager, supply chain and logistics expert is also referred to as a. The procurement manager purchases all of the materials required for the projects undertaken by the construction company, looking for the most economical and suitable supplies for each task.

The buying manager also makes sure the materials arrive on schedule and budget. That is no easy task in the building world, where material prices can change drastically and abruptly.

To bargain on the company’s behalf, Purchase Managers must continue cooperating with the vendors. As a result, the position demands practical communication abilities.

They advise on what goods or services would be most appropriate for the demands of a company. As a result, a Purchase Manager must also be proficient in mathematics and analytical skills.

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What does a Purchase Manager do?

Beyond overseeing the supply chain strategy for the organization, a procurement manager has several other duties.

They must ensure the materials adhere to accepted quality standards, including tolerances, and keep stock at an ideal level. Procurement managers also negotiate the price, service, and delivery agreements with suppliers and vendors.

The role of the procurement manager in the construction industry also includes less apparent activities like Evaluating RFPs and bids. Creating requests for proposals (RFPs) and evaluating offers are two aspects of procurement strategy.

A proposal or bid based on inflated figures can affect the number of accepted bids and the project’s profitability. Too high of a bid will cause the company to lose to a rival.

A low-ball offer will hurt the company’s profitability, which will turn off internal stakeholders. The cost of construction materials and other expenses related to the proposed project are inputted by a procurement manager into the proposal or bid.




Construction procurement managers must have a firm plan for assessing RFPs and bids in today’s highly competitive climate. A general contractor typically receives one of every six jobs it bids, whereas a subcontractor typically receives one of every seven jobs. Some only have a bid-to-hit ratio of 35:1.

One of the primary causes of the construction industry’s sub-1% average profit margin is an abnormally low bid-to-hit ratio. Each proposal or bid that the project’s procurement manager and other team members create requires hours of labor and makes little difference to the project’s financial performance.

Setting timelines and managing resources. A construction procurement schedule outlines the various things that must be procured and the timetable required to guarantee that each is on-site when needed.

It is a valuable tool for creating the project’s cash-flow plans. The procurement schedule can also include the timeframe for elements such as shop drawings, approvals, the project contract, building permits, and the contractual notice to proceed.

Experience is necessary to comprehend procurement times for goods, like how long it usually takes to obtain shop drawings and approvals.

Coordinating the procurement schedule with the project manager and the project construction timetable is another duty of the procurement manager in the construction industry.

This is essential to maintaining the project’s success and the overall building timetable. The entire project timetable could be affected, and the project could be delayed, for instance, if the light fixtures are not in the staging area and prepared to go when needed.

Observing the construction process. The duties of a procurement manager in the construction industry extend beyond acquiring the goods and services required for the project.

They oversee contracts, modification orders, submittals, assessments, and performance throughout the project.

When circumstances change during construction, procurement managers can work with customers, vendors, and suppliers to renegotiate contract conditions and adjust timelines using project data. A corporation can save thousands of dollars by obtaining quick approvals and avoiding the restrictions of the initial offer.

Making submittals for hundreds of products is another duty procurement managers carry out during the construction phase. This may be an uphill, time-consuming task, and tracking every single item presents difficulties.



What is the Purchase order process flow?

Make an order for supplies. The purchase order process includes several compliance checkpoints and approval/input processes to enable prompt PO processing. The following are the steps that purchase orders typically go through:

  • Make an order for supplies.
  • Distribute numerous requests for quotes (RFQ)
  • Research and choose a vendor.
  • Discuss the contract and send the PO
  • Obtain products or services
  • Acquire and examine the invoice (3-Way Matching)
  • Approve the invoice and pay the supplier.
  • Keeping records
  • Closing the purchase order

Software used by Purchase manager

In the construction industry, the procurement manager has many responsibilities. They juggle multiple balls at once while donning many caps. It is understandable why many procurement managers utilize building software to streamline their operations. Here are a few of them:

  • From the original project bid through closeout, procurement procedures may be made better using construction software like eSUB’s software. It streamlines procedures for quicker completion and provides procurement managers with simple access to information such as contracts, purchase orders, submittals, and modification orders. The real-time nature of all data greatly facilitates scheduling and resource management. Additionally, everything is kept in a single spot. Reminders can be set up in eSUB’s construction software to ensure that critical deadlines aren’t missed.
  • The procurement software from Kissflow is adaptable. Using its user-friendly platform, you can manage order requests, vendors, purchase orders, and much more. Anyone on your team may rapidly become familiar with the minimal code platform because of its accessibility. Additionally, it is made to integrate quickly with your current systems. Through Kissflow’s easily adjustable dashboard interface, you’ll receive spend management and three-way matching. Overall, it’s a reliable platform for procurement.
  • For expanding enterprises, Fraxion is a cloud-based procurement software solution. Offering precise reporting, proactive spend monitoring, and total control over everything from requisition to payment processing may help you manage your procurement process more effectively. You may monitor travel expenses using Fraxion, evaluate budgets, and audit your procurement procedure to ensure compliance. You can manage your budget and vendors, automate your workflows, integrate your procurement process with other systems, and more with Fraxion.



  • Look further than Tradogram if you’re seeking a well-regarded eProcurement software solution. Thanks to the seemingly endless list of companies who have already done so, you’ll have the social proof you need to include it into your company’s application stack. Your business can profit from the personalized management assistance that supports various locations and divisions, no matter how big or small. With its user-friendly interface, you can swiftly enroll personnel and use several of its efficient procurement solutions. The tradogram also enables you to build a supplier database for market leverage and transparency. Supplier information gives you the upper hand in negotiating better deals and realizing more significant savings. Additionally, the functions of spend management make it simpler to examine supplier management, analyze spending, and forecast cost difficulties.
  • You have total control over your procurement process thanks to the industry-leading source-to-pay platform GEP SMART. This artificial intelligence-powered software offers robust spend analysis, contract management, and detailed sourcing knowledge. It also incorporates downstream and upstream purchases. You can uncover more opportunities with artificial intelligence-guided insights than your procurement team could independently. Your data will be more beneficial to you, allowing you to make better decisions.
  • You should check out Procurify if you’re seeking a cloud-based solution for your procurement procedures. You can better centralize the procurement process using the cloud to minimize waste and maximize spending. You’ll have the improved mobility you need to make the most of your procurement system. Additionally, Procurify’s API function makes integration simple. As you add more apps, it grows to accommodate your expanding business. Making wise business decisions frequently involves using timing. Procurify offers real-time analytics as a result. No more winging it; you’ll be able to quickly decide based on data that will significantly influence your organization.
  • Last but not the minor ERP software for purchase. You will be aware of the stock you currently have on hand and what needs to be ordered to finish a job because an ERP continuously manages your inventory levels in the background of everything you do. By automating these processes and giving you precise real-time data, an ERP makes purchasing more straightforward.

Additionally, you will be able to swiftly and efficiently streamline the purchasing process by generating a PO with only one click. An ERP will also assist you in managing your buy orders by segmenting orders so they can include specific lines referring to particular items and allowing for multiple delivery dates to be specified.

You will have a more organized purchase ordering system and be better equipped to track which parts are needed for which jobs. By collecting POs, an ERP will also give your purchasing department more negotiation leverage when dealing with vendors, ultimately resulting in cost savings.



Roles and responsibilities of Purchase Manager

You must be able to coordinate and streamline purchasing activities and procedures if you want to be a successful purchasing manager. Excellent leadership qualities and the capacity to negotiate the best prices with suppliers are essential for a successful buying manager.

  • Creating and putting into practice purchasing strategies.
  • Overseeing workers, assigning assignments, and managing daily purchasing activities.
  • Managing vendor relationships and negotiating terms of contracts, costs, delivery dates, etc.
  • Keeping up with the supplier database, purchase records, and other paperwork.
  • Working together with inventory control to manage and determine inventory needs.
  • Organizing the upkeep of manufacturing and office machinery.
  • Ensuring that every item purchased complies with the necessary quality requirements and specifications.
  • Creating cost projections and controlling spending.
  • Making efforts to enhance purchasing procedures and systems.
  • Educate new hires about the purchasing process and how to use the system.

Skills required to become Purchase Manager

The purchasing professional has a significant stake in the business since it is his job to close deals advantageous to the organization and because he has the power to lower acquisition expenses.

Following are the six significant abilities a successful purchasing manager needs

Organization Skills

The ability to organize is the first skill a competent purchasing manager must possess. Planning is necessary for this individual to assign duties, maintain the organization’s documentation, establish a successful work routine, and follow up with partners. No expert can successfully execute their work without organization, so this is the first ability that the purchasing manager needs to master.



Good relationship

Today, every professional is expected to meet the famous criteria of “knowing how to work in a team.” This ability is much more important for the purchasing manager because his area interacts with many other corporate departments, including finance, product quality, engineering, etc.

The ability to communicate with those around him is crucial since the purchasing expert frequently needs a team from other business departments to support him. Once more, the requirement for the organization is demonstrated by the fact that the manager must be sufficiently organized to assist the rest of the team when needed.

Knowledge of company strategies

The purchasing manager must be well informed about the business strategy to do his role effectively. He must also be able to connect his trade tactics with corporate objectives. For instance, if the company’s goal is to replace stocks to make room for new production lines, the purchasing professional cannot negotiate a lower price for acquiring a large batch of goods. Therefore, it is essential to understand the company’s objectives to make the most excellent choices.

Trading Skills

In the field of purchasing, negotiation is always necessary. A good purchasing manager is prepared to negotiate and is knowledgeable about the company’s trading goals, competitors, and suppliers.

Constant updating

The purchasing expert must keep up with internal and external developments in his organization’s market. He attends fairs and events, acting as a conduit between the business and the outside world and disseminating information into the workplace, which is intriguing given this.

Ethics

Respectable purchasing managers should always conduct themselves ethically. It is your responsibility to do this by communicating the phases of your quotation process and your expectations of suppliers, providing feedback to businesses, and maintaining the agreed guidelines throughout the negotiating process.



Essential Qualification required to become Purchase Manager

For the position of purchase manager, organizations often consider applicants who have earned at least a bachelor’s degree.

To be eligible for the role of a Purchase Manager, candidates must possess strong academic backgrounds in economics, mathematics, business management, logistics, etc.

Some companies may also favor applicants who have completed professional or technical training in the primary industry they serve (such as BTech candidates for Purchase Manager roles in Engineering companies).

  • A qualification in business administration or a closely connected discipline.
  • Proven track record as a purchasing manager or in a similar role.
  • Comprehensive understanding of supply chain and inventory management.
  • Management and supervision experience.
  • Knowledge of acquiring software and Microsoft Office.
  • Strong verbal and written communication abilities.
  • Effective bargaining and critical thinking abilities.
  • Excellent organizing and planning abilities.
  • The capacity for independent work.



Salary details of Purchase Manager

The average yearly pay for a purchase manager in India is 7.0 lakhs, with salaries ranging from 3.0 lakhs to 18.3 lakhs.

The average income for a construction purchasing manager in the US is $87,400, with salaries ranging from $52,350 to $155,200.

Final Thought

The purchase process is streamlined and structured thanks to better inventory control and the capability to assign parts to activities. You will prevent production interruptions by removing unexpected material shortages and replenishing depending on actual on-the-job needs or inventory.

You can advance quickly in the buying sector if you have a sharp eye for quality purchases and strong negotiating abilities. Further, learning how to use construction software can offer procurement managers several benefits that will streamline and speed up the process! To keep everyone involved on track and meet deadlines, constant and consistent communication is crucial.  Additionally, you may manage lists, shift materials, and avoid double data entry by using mobile devices.



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