The person that generally runs the purchasing department is called the Purchasing Manager – sometimes in larger companies they may be deemed an executive e.g. Director, VP, or Chief Procurement Officer (CPO). Their purchasing job description is strategic in nature and usually includes the following:
Maintaining the purchasing policy and ensuring that all purchases adhere to it. An executive would set the policy as well.
Choosing the suppliers that the company will deal with and maintaining the legal interaction with them.
Managing any SLA’s (Service Level Agreements) that may be in place and managing any Master Agreements between the suppliers and the company.
Staff recruitment, training and management.
Liaison with other departments, particularly the accounting, manufacturing and stock departments.
Budgeting, costing and cost saving after reviewing the management information available.
Health and Safety, Quality and other legal requirements.
Overseeing any large procurement that may happen.
A Purchaser is responsible for sourcing and acquiring goods, services, or materials required by an organization. Their primary focus is to ensure cost-effectiveness, quality, and timely delivery.
Below are the key duties and responsibilities:
1. Supplier Management
Research and identify reliable suppliers to meet the organization's needs.
Evaluate supplier performance based on quality, cost, and delivery reliability.
Negotiate contracts and pricing to secure favorable terms.
2. Procurement Planning
Collaborate with internal teams to understand purchasing requirements.
Forecast demand for goods and services to create effective procurement plans.
Monitor inventory levels to prevent overstocking or shortages.
3. Cost Control and Analysis
Analyze market trends to identify cost-saving opportunities.
Compare quotes from multiple suppliers to ensure competitive pricing.
Optimize purchasing budgets to align with organizational goals.
4. Order and Delivery Management
Issue purchase orders and track the progress of deliveries.
Ensure goods or services are received in the correct quantity and quality.
Resolve issues such as delays, defective products, or incorrect shipments.