Do You Need a Purchasing Manager for Your Business?

Do you want to know a universal truth?

At some point, your company is going to require you to purchase something.

It could be a raw material for your newest product, a consultancy service for that exciting project that's going to shake the market, or hey, just regular office supplies.

Whatever the case, you can bet purchasing is going to become an important part of your company's operations.

So the next question is

Do you need someone specialized in that?

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What's a Purchasing Manager? 

Simply put,  a purchasing manager is the professional who's responsible for sourcing and acquiring all the products and services your company might need to function. 

Like we said at the introduction, it could mean dealing with suppliers to find the best raw materials, building strong and loyal supplier relationships, negotiating contracts, securing the most convenient terms, or even working alongside the inventory manager to avoid overstocking or shortages. 

The main focus of a successful purchasing manager is to make the procurement process more strategic and effective to manage. 

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Key Responsibilities of a Purchasing Manager 

To have a better idea of whether your company requires a purchasing manager or not, take a look at their core responsibilities. 

Finding suppliers 

And not just any suppliers, the kind of suppliers that are fully aligned with your operations and future goals. Purchasing managers need to spend time researching the market and coming up with the most reliable alternatives for the business.

Negotiate contracts 

Because even when you find a supplier with potential to become your best friend, there are conditions that must be discussed. The purchasing manager is the right person to do that, so you can get the best deal while also keeping relationships with suppliers strong and professional.

Managing purchase orders and budgets 

This is also something important to consider when you're pondering the pros and cons of hiring a purchasing manager. It's not only about making purchases, purchasing managers are also in charge of guaranteeing your company's budget doesn't go over budget with unnecessary purchases. 

Keeping an eye on inventory 

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A purchasing manager helps build a sense of confidence that you’re not running out of essential supplies or wasting money on overstock. 

They work closely with inventory and operations teams to find the right balance. 

Leading procurement teams

Depending on the size of your company and how many procurement professionals you work with, a purchasing manager might be the right person to lead the department.

Skills to Look For in a Purchasing Manager 

Communication 

Technical skills matter 

But having the ability to connect with different people and listen actively?

That's gold

If you're planning to hire a purchasing manager, search for the person who knows how to send and receive messages or stories at the right time with the right words, regardless of the context. 

Attention to detail 

This is another must-have. 

Purchasing is never a linear path, there are going to be times when things start to pile up on one another. The person in charge needs to be capable of noticing what's happening at all times, no matter how difficult or fast-paced the environment may be.

Good analytical skills 

They often need to analyze cost trends, vendor performance, or market conditions to make smart, data-driven decisions, so it's not only about assessing a situation but also working with the necessary tools, like procurement software, to obtain high-quality insights.

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Education and professional background 

Many purchasing managers have backgrounds in business, supply chain, or finance. Some also hold certifications like the Certified Purchasing Professional (CPP) or Certified Professional in Supply Management (CPSM), but plenty of candidates build their skills through hands-on experience.

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5 Benefits of Hiring a Purchasing Manager 

It saves you money 

Wait, but how is hiring someone and paying them a salary going to be good for your finances?

Think long term 

A good purchasing manager doesn’t just accept the first price a supplier offers. They compare alternatives, negotiate terms, and look for bulk discounts or better choices if possible. Over time, their cost-saving strategies can have a significant impact on your budget.

It helps procurement to be more efficient 

Let's not fool ourselves 

Procurement isn't a walk in the park, and purchasing is a big part of that chaos. 

Working with a person who's an expert in creating systems for ordering, tracking, and reporting means reducing mistakes and improving turnaround time. Everything becomes more predictable and less messy.

Better supplier relationships 

Developing positive relationships with suppliers is one of the most important goals for any business leader. 

But as you expand and responsibilities increase, keeping in touch with all your suppliers becomes complicated. 

Unless, of course, you've a dedicated professional to do it. 

Like a purchasing manager

Risk reduction 

Purchasing without a clear direction is a pathway to danger. 

You are not only losing money. You're also putting your operations at risk of being the victim of a fraud scheme. 

Relying on the expertise and insights of a purchasing manager makes a positive shift in this reality, helping you to fully understand when and why you should purchase a product or hire a service. 

Growing is simpler

As your business scales, the volume and complexity of your purchasing needs will grow too. 

Having a purchasing manager in place from the beginning helps you build a strong foundation, so you’re not struggling to catch up later.

When Does Your Business Need a Purchasing Manager?

Ideally, you would have someone in charge of purchasing and procurement from the very beginning. 

It's, after all, the best way to guarantee your product development plans are in tune with the market. 

But if that's not the case, here are some telltale signs it's time to hire a purchasing manager.

Purchasing takes just too long. 

Purchasing isn't a job you complete in a couple of hours. And the more unique your product is? 

The harder it gets

So if you're spending days searching for the right supplier, fixing problems with your orders, and just wondering what the heck you've gotten yourself into, maybe it's time to call for help.

There's an increase in order volume.

So, are you seeing an increase in orders from customers? 

Great 

That means there are more things to purchase, which in turn leads to higher amounts of time and effort you need to dedicate to make it happen. 

That complexity can quickly get out of hand without someone focused on managing it all.

There are problems with your inventory 

Things shouldn't arrive at this point. 

But sometimes it happens. 

Whether it’s stockouts, delays, or over-ordering, problems with inventory are often related to gaps in the purchasing process. A purchasing manager works closely with your inventory and operations teams to keep things balanced.

You're spending more than you should. 

If you don't know where your money is going with your company's purchases or aren't aware of things like early payment discounts, there's a high chance you are spending too much, something that could quickly escalate into a problem for your cash liquidity as a company.

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Final Thoughts 

Purchasing might not always be the most visible part of your business, but it plays a huge role in keeping everything running correctly and profitably. 

A skilled purchasing manager can bring structure, savings, and strategy to your procurement process, freeing up your time and helping your business run more efficiently.

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