From: The Bureau of Labor Statistics Occupational Outlook Handbook 2010-2011
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Significant Points
* About 42 percent of purchasing managers, buyers, and purchasing agents are employed in wholesale trade or manufacturing establishments. * Employment is projected to grow 7 percent, which is as fast as the average. * Opportunities should be best for those with a college degree in engineering, business, economics, or one of the applied sciences. * Prospects often need continuing education or certification to advance.
Nature of the Work
Purchasing specialists who buy finished goods for resale are employed by wholesale and retail establishments, where they commonly are known as buyers or merchandise managers. Wholesale and retail buyers are an integral part of a complex system of distribution and merchandising that caters to the vast array of consumer needs and desires. Wholesale buyers purchase goods directly from manufacturers or from other wholesale firms for resale to retail firms, commercial establishments, and other organizations. In retail firms, buyers purchase goods from wholesale firms or directly from manufacturers for resale to the public.
Buyers largely determine which products their establishment will sell. Therefore, it is essential that they have the ability to predict what will appeal to consumers. If they fail to purchase the right products for resale, buyers jeopardize the profits and reputation of their company. They keep track of inventories and sales levels, check competitors' sales activities, and watch general economic conditions to anticipate consumer buying patterns. Buyers working for large and medium-sized firms usually specialize in acquiring one or two lines of merchandise, whereas buyers working for small stores may purchase the establishment's complete inventory.
Evaluating suppliers is one of the most critical functions of a purchasing manager, buyer, or purchasing agent. Many firms now run on a lean manufacturing schedule and use just-in-time inventories so any delays in the supply chain can shut down production and potentially cost the firm its customers. Purchasing professionals use many resources to find out all they can about potential suppliers. The Internet has become an effective tool for searching catalogs, trade journals, industry and company publications, and directories. Purchasing professionals attend meetings, trade shows, and conferences to learn of new industry trends and make contacts with suppliers. They often interview prospective suppliers and visit their plants and distribution centers to assess their capabilities. It is important to make certain that the supplier is capable of delivering the desired goods or services on time, in the correct quantities, and without sacrificing quality. Once all of the necessary information on suppliers is gathered, orders are placed, and contracts are awarded to those suppliers who meet the purchaser's needs. Most of the transaction process is now automated through use of the Internet.
Purchasing professionals often work closely with other employees in a process called “team buying.” For example, before submitting an order, the team may discuss the design of custom-made products with company design engineers, the problems involving the quality of purchased goods with production supervisors, or the issues in shipping with managers in the receiving department. This additional interaction improves the quality of buying by adding different perspectives to the process.
Training, Other Qualifications, and Advancement
Workers may begin as trainees, purchasing clerks, junior buyers, or assistant buyers. Most employers prefer to hire applicants who have a college degree and who are familiar with the merchandise they sell and with wholesaling and retailing practices. Prospects often need continuing education or certification to advance.
Education and training.
Educational requirements tend to vary with the size of the organization. Large stores and distributors prefer applicants who have completed a bachelor's degree program with a business emphasis. Many manufacturing firms put an even greater emphasis on formal training, preferring applicants with a bachelor's or master's degree in engineering, business, economics, or one of the applied sciences. A master's degree is essential for advancement to many top-level purchasing manager jobs.
Regardless of academic preparation, new employees must learn the specifics of their employer's business. Training periods vary in length, with most lasting 1 to 5 years. In manufacturing, new employees work with experienced purchasers to learn about commodities, prices, suppliers, and markets. In addition, they may be assigned to the production planning department to learn about the material requirements system and the inventory system the company uses to keep production and replenishment functions working smoothly.
In wholesale and retail establishments, most trainees begin by selling merchandise, checking invoices on material received, and keeping track of stock. As they progress, trainees are given increased buying-related responsibilities.
Job Outlook
Employment of purchasing managers, buyers, and purchasing agents is expected to increase 7 percent through the year 2018. Job growth and opportunities, however, will differ among different occupations in this category.
Employment change.
Overall employment of purchasing managers, buyers, and purchasing agents is expected to increase 7 percent during the 2008-18 decade, which is as fast as the average for all occupations. Employment of purchasing agents, except wholesale, retail, and farm products—the largest employment group in the industry—will experience faster than average growth as more companies demand a greater number of purchased goods and services.
Earnings
Median annual wages of purchasing managers were $89,160 in May 2008. The middle 50 percent earned between $67,370 and $115,830. The lowest 10 percent earned less than $51,490, and the highest 10 percent earned more than $142,550.
Median annual wages of purchasing agents and buyers of farm products were $49,670 in May 2008. The middle 50 percent earned between $37,930 and $67,440. The lowest 10 percent earned less than $28,990, and the highest 10 percent earned more than $96,220.
May 13, 2010