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Purchasing Agents buy machinery, equipment, tools, raw materials, parts, services, and supplies necessary for the operation of an industrial establishment, public utility, or governmental unit and select the appropriate vendors.

NATURE OF THE OCCUPATION

Review written requests for products and services

Interview sellers (vendors) to learn about products and prices

Determine the ability of sellers to produce products and services and to meet delivery dates

Review proposals from sellers (vendors)

Negotiate contracts with acceptable sellers while keeping within budgetary limits

Keep records on items purchased, costs, deliveries, product performance, and inventories

Discuss defects of purchased goods with quality control or inspection personnel to determine source of trouble and take corrective action

Approve bills for payment

Seek and obtain new items which will help the company

Follow up orders to ensure designated delivery dates

Oversee inventory management of purchased materials and expedite incoming shipments with suppliers and carriers

Develop standards for selecting specific material or services

Keep current on the short range and long range supply situation of critical raw materials used by vendors

Arrange sales meetings with suppliers and the department using materials supplied, especially on new items

Changing business practices have altered the traditional role of Purchasing Agents in many industries. For example, manufacturing companies increasingly involve purchasing professionals at most stages of product development because of their ability to forecast a part's or material's cost, availability and suitability for its intended purpose. Furthermore, potential problems with the supply of materials may be avoided by consulting the purchasing department in the early stages of production design.

Another practice is for businesses to enter into integrated supply contracts. These contracts increase the importance of supplier selection because agreements are larger in scope and longer in duration. A major responsibility of Purchasing Agents is to work out problems what may occur with a supplier because the success of the relationship directly affects the buying firm's performance.

Machines, equipment and work aids used by Purchasing Agents may include:

OCCUPATIONAL SPECIALTIES

Purchasing Agents, also known as Industrial Buyers, may specialize in these areas:

162.157-038 PURCHASING AGENTS buy machinery, equipment, tools, raw materials, parts, services, and supplies necessary for the operation of an industrial establishment, public utility, or governmental unit. They may also be designated according to the type of goods purchased, such as electronics buyer, or according to position held, such as purchasing manager.

162.117-018 CONTRACT SPECIALISTS negotiate, administer, extend, terminate, and renegotiate procurement contracts with suppliers. They are involved with formulating bid proposals; analyzing price proposals, financial reports, and other data to determine the reasonableness of prices; evaluating contract performance to determine the need for changes to or extensions of contracts; and approving or rejecting requests for deviations in contract specifications.

162.167-030 PURCHASE-PRICE ANALYSTS compile and analyze data to determine the feasibility of buying products and to establish price objectives for contract transactions.

In addition to learning about theses specialties, you may also find it helpful to explore the following CEscripts:

WORKING CONDITIONS AND REQUIREMENTS

Most Purchasing Agents work in firms that have fewer than ten employees in the purchasing department. Purchasing Agents work closely with engineering supervisors, production and marketing personnel, and budget coordinators.

The offices of Purchasing Agents are usually pleasant, well lighted and clean.

The average workweek for Purchasing Agents is 40 hours, usually from 8 A.M. until 5 P.M., 5 days a week. They may spend time after normal work hours attending meetings, preparing reports, visiting the plants or other work locations of suppliers. Weekend and evening travel may also be necessary.

Associations which Purchasing Agents may join include The American Management Association and The National Association of Purchasing Management, Inc. Members must pay dues.

You Should Prefer:

• Activities involving business contact with various people

• Activities which bring recognition or appreciation by others

• Activities concerned with the communication of information

You Should Be Able To:

• Deal effectively with others beyond giving instructions

• See details and recognize errors in written and numerical data

• Use logical procedures in your work

• Acquire and apply knowledge of contracts and legal responsibilities

• Evaluate information and arrive at judgments and decisions

• Negotiate and persuade

• Direct or plan an activity or the activities of others

• Demonstrate above average skill in math

• Communicate well, both orally and in writing

Math Problem You Should Be Able to Solve:

Yearly sales are $1.5 million. Inventory on January 1 is $600,000 (at cost). During the year, $1.5 million of merchandise (at cost) is purchased. The ending inventory is $88,000 (at cost). Operating costs are $100,000. Calculate the cost of goods sold and net profit, and set up a profit and loss statement.

Reading Example You Should Be Able to Read and Comprehend:

The costs of unit pricing to retailers include calculations of per unit prices, printing of product labels, printing of shelf labels, and computer records. These costs are affected by the way prices are adhered, the number of items in a store subject to unit pricing, the frequency of price changes, sales volume, and the number of stores in a chain.

Writing Example You Should Be Able to Produce:

Prepare a product performance analysis for a new product.

Thinking Skill You Should Be Able to Demonstrate:

Should be able to demonstrate analytical skills and be detail oriented in assessing and buying equipment.

EDUCATION AND PREPARATION OPPORTUNITIES

NOTE: A High School Diploma with specific Vocational Education Classes or an Associate Degree (two years of study beyond high school) or an Apprenticeship (usually three to four years of training beyond high school) or a Bachelor's Degree (four years of study beyond high school) may qualify a person for this occupation.

The following education and preparation opportunities are helpful in preparing for occupations in the CEscript:

***SCHOOL SUBJECTS***

0600 BUSINESS, 0700 CAREERS, 0900 COMMUNICATIONS, 1000 COMPUTERS, 1100 ECONOMICS, 1600 FOREIGN LANGUAGE, 2200 MATH, 3100

***VOCATIONAL EDUCATION PROGRAMS***

011 MARKETING EDUCATION

Approved vocational education programs in Marketing Education prepare students for occupations in moving industrial and consumer goods and providing services to users of those goods. These programs deal with marketing, sales, distribution, merchandising, and management. In addition, these programs provide instruction in buying, pricing, promoting, financing, storage, and market research.

The following courses may be required for completion of this program:

High school students should consult their guidance office for more information about the specific requirements of this program at their school or area vocational education center.

***POSTSECONDARY PROGRAMS***

093 MARKETING & PURCHASING

Programs in Marketing and Purchasing provide opportunities to gain the knowledge and skills needed for managerial employment in activities that contribute to the exchange of goods and services. Marketing functions include buying, merchandising, advertising, selling, transportation and distribution, storage and finance, and market research. Individuals who teach Marketing and Purchasing at the secondary level must have a Michigan Teaching Certificate.

Courses vary from school to school but may include:

Search for a College and/or Instructional Program

***APPRENTICESHIP OPPORTUNITIES***

Although this occupation has apprenticeship programs available in Michigan , they are limited in number. See the Sources Of More Information below for name, address and phone number of the Bureau of Apprenticeship and Training.

You will also find a more extensive list of information sources in the "What Is An Apprenticeship?" document found under the CEscript Supports Menu Items.

***MILITARY TRAINING OPPORTUNITIES***

Please Check the Military website at http://www.myfuture.com

PURCHASING AND CONTRACTING MANAGERS

The military buys billions of dollars worth of equipment, supplies, and services from private industry each year. The services must make sure their purchases meet military specifications and are made at a fair price. Purchasing and contracting mangers negotiate, write, and monitor contracts for purchasing equipment, materials, and services.

What They Do

Purchasing and contracting managers in the military perform some or all of the following duties:

• Review requests for supplies and services to make sure they are complete and accurate

• Prepare bid invitations or requests for proposals for contracts with civilian firms, which specify the type, amount, price, and delivery date for supplies or services

• Review bids or proposals and award contracts

• Prepare formal contracts, specifying all terms and conditions

• Review work to make sure that it meets the requirements of contracts

Special Requirements

A 4-year college degree is normally required to enter this occupation.

Helpful Attributes

Helpful fields of study include management and business or public administration. Helpful attributes include:

• Ability to develop detailed plans

• Interest in work requiring accuracy and attention to detail

• Interest in negotiating

Work Environment

Purchasing and contracting managers work in offices.

Training Provided

Job training consists of 3 to 10 weeks of classroom instruction. Training length varies depending on specialty. Course content typically includes:

• Purchasing and accounting procedures

• Use of computers in contract administration

• Supply and financial management

Further training occurs through advanced courses.

Civilian Counterparts

Civilian purchasing and contracting managers work for a wide variety of employers, including engineering, manufacturing, and construction firms. They perform duties similar to those performed by military purchasing and contract managers. They may also be called procurement services managers, purchasing directors, supply managers, or material control managers.

Opportunities

The services have about 7,200 purchasing and contracting managers. On average, they need 300 new purchasing and contracting managers each year. After training, purchasing and contracting managers work with and advise commanders on contract proposals. With experience, they may advance to senior management and command positions.  

E-Learning Courses and Programs

OPPORTUNITIES FOR EXPERIENCE AND METHODS OF ENTRY

Secondary vocational education programs in marketing or college programs in marketing and purchasing may offer a co-op, internship, or related work experience. Part-time retail, manufacturing, warehouse jobs in shipping and receiving, and related jobs in military service could be helpful.

School-to-Work opportunities include:

informal apprenticeships

mentorships

job shadowing experiences

touring a local Purchasing and Contracting Manager employer

internships

volunteer work with a Purchasing and Contracting Manager employer

community service work with an agency

The most common method of finding Purchasing Agent jobs is direct application to employers. Many employers require college training. To enter government purchasing departments, applicants must pass a competitive civil service examination. Assistance in finding jobs may be obtained from college placement offices and local offices of Michigan Works!. Professional journals, such as the "Purchasing Magazine", and newspaper want ads list job openings. In addition, you should access and search the Internet's on-line employment services sites such as: 

Michigan Careers, Colleges, Training

Institute for Supply Management

American Management Association     

Michigan Talent Bank

  Classifieds Employment

Yahoo! Careers

MONSTER.COM

Career Builder

Michigan Works!

You should also enter an electronic resume on these on-line services.

EARNINGS AND ADVANCEMENT

Salaries of Purchasing Agents vary according to the individual's job responsibilities and experience; the type of materials, supplies, equipment, and services purchased; the size of the employer; and the geographic location.

Nationally, purchasing trainees had an annual average salary of $39,062 in mid 2004, depending on the size of the company where they were employed. Similarly, buyers' salaries (including senior buyers) averaged between $42,400 and $57,400. Purchasing Agents earned an average of $50,000. Materials managers and Purchasing Managers averaged $74,200 and $67,900 respectively, while high-level executives, purchasing directors or vice-presidents of purchasing, averaged between $102,300 and $155,000. In 2003, the median annual salary of most Purchasing Agents was $40,768. The median yearly earnings of "all" workers in the U.S.  were $32,240 in 2003.

Purchasing Agents employed by the Federal Government earned from $23,794 to $67,968 per year in 2004, depending on their education and experience. The salaries of these federal government workers may be higher in some urban areas.

In the Detroit area, most Purchasing Agents averaged $66,889 per year, with most earning between $35,126 and $77,880 in early 2004. Purchasing Agents employed by city government agencies in Michigan earned (early 2004) from $26,953 to $98,802 a year. Those that also have other job responsibilities or a formally combined position may earn substantially more.

Annual salaries (mid 2004) of procurement technicians employed by the State of Michigan ranged from $29,650 to $44,474. Some higher level Agents earned up to $65,730. In addition to their salaries, many Purchasing Agents receive bonuses and/or cost-of-living adjustments.

Purchasing Agents are usually reimbursed for food, lodging, transportation, and other travel expenses. Some receive paid vacations and holidays, sick leave, medical and life insurance, and retirement plans. Some employers may offer stock purchase/savings plans for salaried employees.

Job experience and demonstration of good judgment in various purchasing tasks are considered when promotions are made. In addition, there is opportunity for advancement through changing employers. For example, an assistant Purchasing Agent for one firm may be hired as a Purchasing Agent by another firm.

EMPLOYMENT AND OUTLOOK

Nationally, about 242,200 Purchasing Agents were employed in 2002. Employment is expected to increase about as fast as the average for all occupations through the year 2012. The industry distribution for Purchasing Agents looked like this:

Changing business practices have altered the traditional roles of purchasing Agents. Computers are having a major effect on the jobs of Purchasing Agents. In manufacturing and service industries, computers handle most of the routine tasks -- enabling Purchasing Agents to concentrate on the analytical aspects of the job. Computers are used to obtain up-to-date product and price listings, to track inventory levels, process routine orders and help determine when to make purchases. Computers also maintain bidders' lists, record the history of supplier performance and issue purchase orders.

Purchasing Agents are now required to have a broader range of skills and in-depth knowledge of the supply chain, how it works and how it can increase the company's profit. Skills useful to Purchasing Agents include international buying experience (including negotiating and developing strategic alliances with leading suppliers in the global marketplace), strong analytical ability and ongoing computer training. Purchasing Agents also need an awareness of domestic and global economics when purchasing in international markets. The Internet and its robust growth in commerce has cut purchasing costs, streamlined inventories and provided Purchasing Agents with an efficient means to communicate with suppliers and key personnel within their company.

Opportunities should be best for persons with graduate degrees in purchasing management or with specialized expertise. Firms manufacturing technical products will need engineering and science graduates. The escalating trend toward single-source contracting (use of one supplier for a wide variety of goods), and the continued use of computers have led to greater productivity of Purchasing Agents. Another industry-wide trend is the increased use of credit cards by some employees to purchase supplies without using the services of the procurement or purchasing office. The Federal Acquisition Streamlining Act of 1994 will restrict demand for Purchasing Agents within the Federal Government because it requires certain purchases under mandated dollar value to be made electronically. In addition, business mergers, acquisitions and corporate downsizing have caused a decline in the number of new employment openings. A small number of openings will be due to growth, while many other openings will occur to replace workers who retire or leave this occupation for other reasons.

About 10,725 Purchasing Agents are employed in Michigan . Most worked in urban areas. The largest number were employed in manufacturing industries. Many were also employed by business services companies, government agencies, and construction companies.

Employment of Purchasing Agents is expected to grow more slowly than the average for all occupations through the year 2010. An average of 270 annual openings is expected, with 50 due to growth and 220 due to replacement of those who retire or leave the labor force. Additional openings will occur as workers change jobs or occupations.

Increased productivity gains from the use of computers and downsizing of middle management ranks by major manufacturers and service providers have limited employment opportunities for entry-level purchasing agents. Current business expansion may provide some openings for those who are skilled in a technical field and as well as computerized purchasing software. With the implementation of Radio Frequency Identification Devices (RFID) in large companies such as Wal-Mart, the procurement departments are able to order products directly from suppliers, thus eliminating the need for input from purchasing agents at lower levels.  This will decrease the number of jobs available in purchasing in the future.

Employment of female purchasing agents has been increasingly faster than that of males. Major employers of female purchasing agents are government agencies, restaurants, hospitals and textile firms.

MICHIGAN 'S EMPLOYMENT OUTLOOK TO 2010

SOURCES OF ADDITIONAL INFORMATION

Printed occupational information is available upon written request from sources below: