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A
Michigan Jobs & Career Portal
service.
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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.
JOB DUTIES
Purchasing Agents may:
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
Monitor and follow applicable laws and regulations
Work with on-line material ordering systems
Have proficient with material resource planning systems and software
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 on 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
To view a Purchasing Agent at work click
here
.
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:
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* Adding machines
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* Computers (with Internet access)
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* Calculating machines
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* Catalogs & manuals
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* Record books & forms
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* Inventories & invoices
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* Purchase orders
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* Rate & price lists
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* Facsimile machines
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* Trade journals
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* Samples of materials
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* Contracts
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* Cell phones
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* Personal Digital Assistants (PDAs)
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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 Career Exploration Scripts:
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
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Activities which bring recognition or appreciation by others
-
Activities concerned with the communication of information
You Should Be Able To:
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Deal effectively with others beyond giving instructions
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See details and recognize errors in written and numerical data
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Use logical procedures in your work
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Acquire and apply knowledge of contracts and legal responsibilities
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Evaluate information and arrive at judgments and decisions
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Direct or plan an activity or the activities of others
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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.
An experienced purchasing agent may become an assistant purchasing manager in charge of a group of purchasing professionals before advancing to purchasing manager, supply manager, or director of materials management. At the top levels, duties may overlap with other management functions, such as production, planning, logistics, and marketing. There are several recognized credentials for purchasing agents and purchasing managers.
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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 this Career Exploration Script:
***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:
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GENERAL MARKETING
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FLORISTRY,
FARM, & GARDEN
|
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APPAREL/ACCESSORIES MARKETING
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SUPPLIES MARKETING
|
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BUSINESS/PERSONAL SERVICES
|
FOOD
MARKETING
|
|
MARKETING
|
HOME/OFFICE PRODUCTS MARKETING
|
|
FINANCIAL SERVICES MARKETING
|
HOSPITALITY/RECREATION MARKETING
|
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VEHICLES/PETROLEUM MARKETING
|
------
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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.
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Students should obtain the local
Education & Training Opportunities
for information on what happens to students who successfully complete a program. This information is available at each high school or career/technical 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:
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Principles of Purchasing
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Persuasion & Salesmanship
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Sales Management
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Marketing Problems
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Retail Administration
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Advertising
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Distribution Analysis
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International Market Systems
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Marketing Research
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Human Relations in Business
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Business Management
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Consumer Behavior
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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 Career Exploration Scripts 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:
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Review requests for supplies and services to make sure they are complete and accurate
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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
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Review bids or proposals and award contracts
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Prepare formal contracts, specifying all terms and conditions
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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
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Interest in work requiring accuracy and attention to detail
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:
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Purchasing and accounting procedures
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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 exact number of purchasing and contracting managers is unknown. 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
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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 Jobs and Career Portal
ISM Career Center
AMA Career Opportunities
APICS Career Center
Simply Hired
Michigan Talent Bank
Yahoo! Careers
MONSTER.COM
Career Builder
Michigan Works!
You should also enter an electronic resume on these on-line services.
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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 (early 2008), college graduates with a bachelor's degree in purchasing were offered average annual starting salaries of $42,214. Buyers had an annual average salary of $54,495 in mid 2008, depending on the size of the company where they were employed. Similarly, buyers' salaries (including senior buyers) averaged between $48,019 and $59,878 (mid 2008).
Materials managers and Purchasing Managers averaged $76,758 and $80,609 respectively, while high-level executives, purchasing directors or vice-presidents of purchasing, averaged between $127,945 and $170,795. In 2007, the median annual salary of most Purchasing Agents was $51,584.
The median yearly earnings of "all" workers in the
U.S.
were $36,140 in 2007
Purchasing Agents employed by the Federal Government earned from $26,264 to $75,025 per year in 2008, 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 $66,610 per year, with most earning between $54,000 and $78,222 in 2008. Purchasing Agents employed by city government agencies in
Michigan
earned (early 2008) from $32,328 to $55,786 a year. Those that also have other job responsibilities or a formally combined position may earn substantially more.
Annual salaries (mid 2009) of procurement technicians employed by the State of
Michigan
ranged from $33,366 to $51,052. Some higher level Agents earned up to $75,502. 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.
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EMPLOYMENT
AND
OUTLOOK
Nationally, about 287,400 Purchasing Agents were employed in 2006. Employment is expected to have little or no change as compared to the average for all occupations through the year 2016. The industry distribution for Purchasing Agents looked like this:
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NAICS Code
|
NAICS Industry Title
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% Employed
|
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31-33
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Manufacturing
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36.8
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919999
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Federal government, excluding postal service
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10.3
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541000
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Professional, scientific, and technical services
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8.0
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551100
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Management of companies and enterprises
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5.5
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949400
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State and local government, excluding education and hospitals
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5.1
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423000
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Merchant wholesalers, durable goods
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5.0
|
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230000
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Construction
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4.5
|
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620000
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Health care and social assistance
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3.5
|
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510000
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Information
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2.9
|
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611000
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Educational services, public and private
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2.4
|
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44-45
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Retail trade
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1.8
|
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48-49
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Transportation and warehousing
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1.6
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810000
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Other services (except government and private households)
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1.4
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720000
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Accommodation and food services
|
1.1
|
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--
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Others
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10.1
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To find employers, click
Employer/ Business Locator.
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, to process routine orders and to 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. 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 12,575 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 about as fast as the average for all occupations through the year 2014. An average of 390 annual openings is expected, with 80 due to growth and 310 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. 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 2014
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EMPLOYMENT
REGION
|
NUMBER
EMPLOYED
|
PERCENT
GROWTH
|
PROJECTED
YEARLY
JOB
OPENINGS
|
|
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MICHIGAN - State-wide
|
12,575
|
6.1
|
390
|
|
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Ann Arbor Area
|
475
|
11.8
|
17
|
|
|
Battle Creek Area
|
310
|
3.9
|
9
|
|
|
Benton Harbor Area
|
255
|
7.1
|
8
|
|
|
Central Michigan
|
160
|
7.5
|
5
|
|
|
Detroit Area
|
7,520
|
5.1
|
226
|
|
|
East Central Michigan
|
90
|
8.7
|
3
|
|
|
Flint Area
|
240
|
6.6
|
8
|
|
|
Grand Rapids Area
|
1,350
|
9.9
|
47
|
|
|
Jackson Area
|
310
|
7.7
|
10
|
|
|
Kalamazoo Area
|
320
|
5.3
|
10
|
|
|
Lansing MSA
|
355
|
7.6
|
12
|
|
|
Muskegon Area
|
205
|
4.9
|
6
|
|
|
Northeast Lower Peninsula
|
95
|
7.4
|
3
|
|
|
Northwest Lower Peninsula
|
225
|
8.4
|
8
|
|
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Saginaw Area
|
305
|
4.0
|
9
|
|
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Thumb Area
|
110
|
4.5
|
3
|
|
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Upper Peninsula
|
265
|
6.4
|
8
|
|
|
West Central Michigan
|
70
|
11.3
|
3
|
|
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*NOTE: Areas may not add up to statewide total due to rounding, sampling or statistical errors, and/or confidentiality issues.
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SOURCES OF ADDITIONAL INFORMATION
Printed occupational information is available upon written request from sources below:
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Institute for Supply Management
2055 East Centennial Circle
P.O. Box 22160
Tempe,
AZ
85285
(800) 888-6276
|
National Association of Purchasing Management
Metro Detroit
P.O. Box 642
St. Clair Shores,
MI
48080-0642
(313) 881-0800
|
|
National Contract Management Association
21740 Beaumeade Circle, Suite 125
Ashburn,
VA
20147
(571) 382-0082
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American Management Association
Management Information and
Library Services
1601 Broadway
New York,
NY
10019-7420
(800) 262-9699
|
|
National Institute of Governmental Purchasing, Inc.
151 Spring Street,
Suite
300
Herndon,
VA
20170-5223
(800) 367-6447
|
American Society of Employers
23815 Northwestern Highway
Southfield,
MI
48075-7713
(248) 353-4500
|
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APICS-The Association for Operations Management
8430 West Bryn Maur Ave.
Suite 1000
Chicago,
IL
60631
(800) 444-2742
|
American Purchasing Society
P.O. Box 256
Aurora,
IL
60506
(630) 859-0250
|
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Federal, State, and Local
Civil Service Offices
|
Michigan Public Purchasing Officers Association
P.O. Box 11038
Lansing,
MI
48901
(517) 886-2794
|
|
Local Military Recruiters
|
School/College Placement Offices
|
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Copyright © 2009 Michigan Department of Energy, Labor & Economic Growth
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