How to fire for a Purchase/Procurement Manager


Procurement Managers, also known as Purchasing Managers, manage a company’s sourcing capabilities and supply chain. They are responsible for strategizing and negotiating with suppliers and vendors in order to acquire the most cost-effective deals and to reduce procurement expenses. 

A Purchasing Manager is a representative inside an organization, business or other association who is dependable at some level for purchasing or affirming the procurement of products and ventures required by the organization. Liable for purchasing the best quality items, merchandise and enterprises for their organization at the most serious costs, Purchasing Manager work in a wide scope of areas for a wide range of associations. The position obligations might be equivalent to that of a purchaser or buying specialist or may incorporate more extensive administrative or administrative duties. A Purchasing Manager may regulate the procurement of materials required for creation, general supplies for workplaces and offices, gear, or development contracts. A Purchasing Manager frequently regulates buying operators and purchasers, however in little organizations the Purchasing Manager may likewise be the buying specialist or purchaser. 

Standard Job Description:

A Procurement Manager will spearhead the purchasing process from selecting suppliers to ensuring stock optimization, as well as provide guidance on sourcing and procurement processes. 

A Procurement Manager will be a supply chain and logistics expert who will specialize in implementing cost-effective purchases of all goods and services, as required by the company. Ensuring quality control and adhering to the company’s policies and procedures on supply chain management will be some of your main priorities when carrying out this role. 

Key Job Responsibilities:

1. Developing procurement strategies that are inventive and cost-effective. 

2. Sourcing and engaging reliable suppliers and vendors. 

3. Negotiating with suppliers and vendors to secure advantageous terms. 

4. Reviewing existing contracts with suppliers and vendors to ensure on-going feasibility. 

5. Building and maintaining long-term relationships with vendors and suppliers. 

6. Approving purchase orders and organizing and confirming delivery of goods and services. 

7. Performing risk assessments on potential contracts and agreements. 

8. Controlling the procurement budget and promoting a culture of long-term saving on procurement costs. 

9. Overseeing and managing the IT systems that track shipments, inventory, and the supply of goods. 

10. Preparing procurement reports. 

Ideal Candidate: 

1. Proven experience managing supply chain operations. 

2. Experience using supply chain management software and tools, including Oracle, SAP Ariba, and/or Envision. 

3. In-depth knowledge of preparing and reviewing contracts, invoicing, and negotiation terms. 

4. Proficient in Microsoft Office Suite (Word, Excel, Outlook, and Access). 

5. Management and leadership skills. 

6. Multi-tasking and time-management skills, with the ability to prioritize tasks. 

7. Highly organized and detail oriented. 

8. Excellent analytical and problem-solving skills. 

Desired Education: 

Bachelor’s degree in supply chain management, logistics, or business administration. Master’s degree in the same field will be preferred. 

Certifications Associated: 

1. Certified International Procurement Professional (CIPP) & Certified International Procurement Professional (CIAPP)  

2. Certified Professional in Supply Management (CPSM) 

3. Member of the Chartered Institute of Procurement & Supply (MCIPS) 

4. Six Sigma (any belt) 

Key Skills:

Global Sourcing, Procurement, Vendor Management, Contract Management, Strategic Sourcing, Material Management, Purchase Management,
Supply Chain Management, Price Negotiation, Logistics Management, Supply Chain Management, Facility Management, Warehousing, Project Management, Techno-commercial evaluation, Delivery Cycle Management. 

Common Positions:

1. Commodity Manager 

2. Purchasing Supervisor/ Agent 

3. Category Purchasing Manager 

4. Materials Manager 

5. Procurement Specialist 

6. Logistics Team Lead 

Screening Questions/Assessment Parameters: 

Basic Terminologies:

1. Addendum. Addendum is an addition or supplement to a document. It can be item or information added to a procurement document. 

2. Amendment. Amendment or change order is written modification to a contract or purchase order or other agreements. 

3. Blanket Order. The blanket order is a contract under which a vendor agrees to provide goods or services on a purchase-on-demand basis. 

4. Cash Flow. Cash flow is the amount of money moving into and out of a business. 

5. Cost Avoidance. Cost avoidance represents reductions that cause future spending to fall, but not below the level of current spending. 

6. Debarment. Debarment means the disqualification of a person to receive invitations for bids or requests for proposals. 

7. Default. Default represents a failure to a contract to comply with contractual requirements by a party. 

8. Life Cycle Costing. Life cycle costing represents a procurement evaluation technique that designates the total cost of acquisition, operation, maintenance, and disposal of the items acquired. 

9. Liquidated Damages. A specific sum of money agreed to as part of a contract to be paid by one party to the other in the event of a breach of contract in lieu of actual damages, unless otherwise provided by law. 

10. OSHA. OSHA is shortened from “The Occupational Safety and Health Administration.” 

Industry Jargons: 

1. Per Diem. Per Diem means by the day – a daily allowance for expenses, a specific amount of money an organization gives an individual,
often an employee, per day to cover living expenses when traveling for work. 

2. Requisition. Requisition represents an internal document that a functional department (stores, maintenance, etc.) sends to the
purchasing department. 

3. Solicitation. Solicitation is the process that procurement professionals use to communicate their requirements and to request
responses from interested vendors. 

4. Tort. A tort is a wrongful act, other than a breach of contract, such that the law permits compensation of damages. 

5. Cross-Docking. Costs are reduced by the process of receiving a product and shipping it out immediately without putting it into
storage. The process is referred to as cross-docking. 

6. Inventory Turnover. Number of times the average inventory has been sold during the year. Calculated by dividing the cost of goods sold by
the average value of inventory. 

7. Lean Processes. A method used to reduce unnecessary steps or activities in manufacturing or services and thereby improve efficiency and
reduce error. 

8. Sole Sourcing. A sole source indicates that there are no alternative suppliers that produce the same product with the same specifications. 

9. Split Sourcing Where more than one supplier is used to buy the same item. 

10. Six Sigma. A method of using data to eliminate defects or errors in any process by eliminating variation in a process. The term refers
to the statistical measurement of standard deviations from the mean of a set of values. 

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