How to become a Purchasing Manager

A purchasing manager operates as an agent for several different companies or organizations. They bargain with businesspeople for the best possible prices for the commodities. Even before negotiation takes place, a review must be done to obtain information on suppliers so that it makes it easier to decide about the various factors and interview them. A purchasing manager keeps a hold of the suppliers on a contractual basis along with other necessary agreements. They search for the goods and services required by their firm and do their best to buy them for the best possible quality for a reasonable price. Those who are associated with manufacturers, purchase raw materials for them and those who operate for wholesalers or retailers are responsible for purchasing final goods. They plan, direct, or coordinate the activities of customers, purchasing administrators, as well as related workers who are involved in purchasing products and services. This includes wholesale as well as retail trade managers along with acquisition managers.

Their core responsibilities involve conducting:

• A thorough study of the market to catalogue price trends and future anticipation of the availability of required goods and services is their responsibility.
• Keep a tab on supplies and goods; positioning vendors; bargaining rates; preparing and purchase orders; along with maintaining records for every purchase.
• Responsible for hiring, training and managing juniors alongside being involved in an overall role for the development of product or machinery specifications.
• Responsible for developing appropriate policies and schemes to help work them out.
• Hold the power to decide about suppliers and take interviews with prospective vendors.
• Frequently visit trade shows to acquire information about the new trends in the business.
• Coordinate with buyers and purchasing agents to get them hired for the company.
• Develop cost reduction strategies and savings plans.

The quality of leadership and the capability to motivate others is a must for a person applying for this position. An individual must also be equipped with problem-solving abilities and analytical skills for usage in mathematical areas that are essential for their job role. The individual must be able to express themselves both verbally and in writings as well, as their field requires them to manage people. For those individuals who are more inclined towards international businesses, foreign language skills are useful for them in the long run. With the rise in online purchases in today's world, computer literacy is the main requirement. Another very important specification required is negotiation skills along with keeping a keen eye towards cost savings. They need to be very much flexible and adaptive on their workstation as well as client dealing. They must have the fluency of ideas, this means that they must possess the ability to come up with a number of ideas about a topic. Their oral, as well as written comprehension, must also be efficient as they will need an upper hand in reading or listening in order to understand the information and ideas provided.

Minimum Monthly Salary: Entry-level Purchasing Managers may earn a minimum monthly salary of around INR 40,000 to INR 60,000. These are typically individuals who have recently transitioned into purchasing management roles or have a few years of experience in procurement.

Maximum Monthly Salary: Experienced and highly skilled Purchasing Managers with significant experience, advanced degrees, and successful track records may earn anywhere from INR 1,00,000 to INR 2,50,000 or more monthly. The salary can vary based on factors such as the size and reputation of the company, the complexity of procurement responsibilities, and the industry's demand for procurement expertise.

Annual Salary: For entry-level or junior Purchasing Managers, the annual salary may range from INR 4,80,000 to INR 7,20,000. As Purchasing Managers gain more experience, handle larger procurement budgets, negotiate higher-value contracts, and demonstrate cost-saving strategies, their annual income can increase from approximately INR 12,00,000 to INR 30,00,000 or higher.

Highest Paying Jobs and Scope: Purchasing Managers who work in industries with complex and high-value supply chains, such as manufacturing, aerospace, or healthcare, may have better salary prospects. Those specialising in strategic sourcing, vendor management, or international procurement may also have higher salaries.

The scope for Purchasing Managers in India is promising as businesses increasingly recognise the importance of effective procurement and supply chain management in driving operational efficiency and cost savings. Purchasing Managers can find employment opportunities in manufacturing, retail, logistics, and multinational corporations.

CAT/ GMAT/ ACET/ IAI/ IFoA

Manufacturing
Pharmaceutical
Logistics
Corporate house
Banks
Financial corporations
Trading corporations
Media
Entertainment and fashion industries
Tourism
Ttravel
Hospitality industries
Telecom and IT sector