What Does a Procurement Manager Do?
Procurement managers oversee an organization’s purchasing process. The process involves identifying potential suppliers, negotiating contracts and pricing, and ensuring that the goods and services purchased meet the organization’s quality standards. To ensure that departments have the necessary materials and equipment to function effectively, these professionals also work closely with internal departments to understand their purchasing needs.
Managing a team of procurement professionals requires strong leadership and management skills. It is critical that a procurement manager is able to delegate tasks effectively and provide guidance and support to their team members. They must also be excellent communicators and negotiators to negotiate contracts and prices. In order to become a procurement manager, individuals typically need a bachelor’s degree in engineering, business, or a related field, in addition to several years of procurement or supply chain management experience. Employers often prefer candidates with industry-specific experience, such as in construction or manufacturing.
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National Average Salary
Procurement manager salaries vary by experience, industry, organization size, and geography. To explore salary ranges by local market, please visit our sister site zengig.com.
The average U.S. salary for a Procurement Manager is:
$109,500
Procurement Manager Job Descriptions
The first step when hiring a great procurement manager is a well-crafted job description. Below are real-world examples to help give you the best chance of success on your recruiting journey.
Example 1
The procurement manager leads the procurement team and will manage the overall direction, coordination, and evaluation of the procurement of goods and services across all departments within the company. This includes determining product and service needs, negotiating agreements with suppliers and vendors, and preparing and reviewing contracts. You will specialize in raising supplier performance, implementing cost-effective purchases, and ensuring quality control. You must educate employees on applicable purchasing policies, conduct continual analysis of the procurement process, and ensure compliance with all regulatory requirements, policies, procedures, and contracts. The procurement manager will control the procurement budget while also working closely with the finance team on project cost management. You will approve purchase orders, and organize and confirm the delivery of goods and services. As an ideal candidate, you have proven experience in managing supply chain operations, in-depth knowledge of supply chain management software and tools, and exceptional problem-solving and negotiating skills.
Typical duties and responsibilities
- Lead and manage procurement team and provide guidance on the procurement process
- Determine a company or organization’s product and service needs
- Build and maintain strong and long-term relationships with vendors and suppliers
- Strategize and negotiate with suppliers and vendors to acquire the most cost-effective deals
- Develop procurement strategies to reduce procurement expenses
- Approve purchase orders, organize the delivery of goods and services, and ensure quality control
- Ensure compliance with all regulatory supply chain management requirements, policies, and procedures
- Control procurement budget and manage company spending
- Identify areas of improvement to drive performance and business results
- Conduct analysis and prepare procurement reports
Education and experience
- Bachelor’s degree in business, engineering, contract management, supply chain management, logistics, accounting, or related field
- Master’s degree a plus
- 5+ years of related experience
Required skills and qualifications
- Extensive knowledge of supply chain management software and tools including Oracle, SAP Ariba, and/or Envision
- Exceptional networking and negotiating skills
- Excellent analytical and problem-solving skills
- High-level attention to detail
- Excellent management and leadership skills
- Excellent communication skills
Preferred qualifications
- Previous experience managing supply chain operations
- Proficient in Microsoft Office Suite (Word, Excel, Outlook, and PowerPoint)
- Procurement and/or supply chain management certification
- Negotiation and financial management experience
Example 2
ABC Company is seeking a Procurement Manager for its Orlando, FL. facility. We’re a young company that’s growing super-fast! We’re seeking candidates who are forward thinkers, have a high sense of urgency, and strong follow through! A person who thrives in finding new opportunity and knows how to stay the course! These are just a few traits that the Procurement manger will have! If this is you, we want to speak to you! A background in food manufacturing is necessary. Knowledge of national and local vendors that sell commodities such as meat, produce, spices, dairy, cheese, flour, etc.
Responsibilities:
- Monitor and analyze assigned ingredient and commodity markets
- Forecast prices and communicate commodity prices
- Identify suppliers on a global basis for strategic sourcing of food ingredients
- Managing supply and quality problems/issues at the plant
- Ensuring vendor compliance with company purchasing and quality policies
- Negotiate with suppliers to achieve optimal supply agreements
Skills, experience, and education:
- Bachelor’s Degree preferred
- Strong technical and analytical skills
- Excellent verbal & written communication skills
- Excellent negotiation skills
- Advanced Microsoft Excel
- 3-5 years of procurement experience in the food manufacturing industry
- Commodity experience
Example 3
The Procurement Manager role will be responsible for leading a team focused on Source to Pay Procurement operations (S2P) in one of the core shared services workstreams of: (1) Supplier Set up & Maintenance, including supplier onboarding, management of supplier set up request, compliance to supplier onboarding in line with processes and policies; (2) Catalogue & UIN management, including catalogue maintenance, creation and update, UIN compliance and quality checks or (3) Tactical sourcing management including end-to-end transactional sourcing cycle, maverick spend management, and long tail management as defined by GPO category pillar in line with the category strategies.
This role will focus on leading one of the workstreams and report to the Head of Procurement Shared Services in (State). It will be focused in supporting the North American and LATAM businesses.
The role will be based in (State) with up to 15% of time travelling to other countries of EU or NA.
Key job responsibilities
- Lead and develop a team of highly qualified procurement experts
- Ensure adherence to ABC Company’s global spend policy and driving compliance to Procurement policies and procedures
- Partner with GPO key stakeholders to understand all business requirements and define procurement operations strategy
- Build effective stakeholder relationships – develop relationships with primary internal customers (local Ops leadership), external suppliers, and other teams within respective market
- Implement, change, and/or develop new processes as required to provide ability to better procure goods and services
- Ensure data integrity
- Drive effective delivery of metrics by leading/supporting projects and initiatives; identifying root cause of issues and corrective actions
- Assist with the development of new standards, procedures, and solutions for the procurement operations
- Partner with the procurement technology team to support innovation, automation and transformation of procurement process and operations
- Ensure attainment of department goals, and support senior management to establish goals, KPI’s, and policies for the department
- Lead or assist with the development of process documentation, implementation, and best practices adoption
- Partner with other procurement leaders and teams on local or regional projects and initiative
- Promote the strategic importance of procurement across each business unit supported
- Contribute to achievement of Procurement’s annual targets, catalogue penetration, contracts maintenance, vendor set-up, and maintenance objectives
- Scope roles, recruit, and hire according to business needs
- Mentor and develop employees for career enhancement and direction
- Evaluate team capability and organization structure and make necessary change to align with business needs
- Be responsible for the overall direction, coordination, and evaluation of procurement operations within assigned area of responsibility or territory
Basic qualifications
- Procurement professional adept at both Procurement Operations and Category Management/Sourcing
- People management experience, 2+ years, with an ability to influence and earn the trust of stakeholders
- Experience in a fast-paced multi-national environment, 2+ years, dealing with Ambiguity and with an eye for detail, able to work independently with limited supervision, and a bias for action
- Strong written and verbal communication skills
- Familiarity with procurement tools e.g. Coupa
- Fluency in English. Knowledge of any other additional languages will be an asset (e.g. Spanish, Portuguese)
- Excellent Microsoft Excel skills, alongside willingness to learn proprietary systems
- Experience with metrics and data presentation
- Experience of improving processes and building scalability
- Hands-on experience of running process, technology or operations improvement projects or initiatives
- Experience managing complex customer relationships
- Significant previous experience in procurement/shared services center or BPO/program management
- Bachelor’s degree
- At least 2+ years of relevant experience in procurement, operations management, or shared services environment
Preferred qualifications
- Masters Degree from an accredited university in Supply Chain Management, Finance, Engineering, Business, or equivalent experience
- Fluency in Spanish
- Fluence in Portuguese
- Results oriented person with a strong delivery focus who can work independently and collaboratively with global teams while leading people empathically
- Passionate self-starter with the highest integrity and ethics
Example 4
The Procurement Manager (City, State or City, State) will take the lead in creating value through innovation, sustainability, risk management, quality, service, cash and productivity programs all while ensuring compliance with policies, strategies, and processes. In addition, this position will lead in the development and deployment of sourcing strategies and the ongoing management of supplier relationships to ensure ABC Company’s competitive advantage. In addition, this position will completely build a program with the business and suppliers that incorporates best practices, market insights, risks and opportunities, and set a clear vision for various areas, defining and delivering ambitious plans that encourage teams and stakeholders to engage not just in the destination, but also in the journey.
- Develop preferred supplier programs for US operations
- Analyze US spend data and understand the business needs.
- Lead all category sourcing activities in US
- Provide US market and supplier insights to maximize opportunities.
- Prepare and plan for any of the bids in US, and co-lead global negotiations.
- Lead supplier performance evaluation process and developing appropriate action plans in alignment with internal stakeholders.
- Lead contract implementation and drive contract compliance as per Procurement policies
Qualifications
- Bachelor’s degree in business related field (i.e. E-commerce, Finance or Accounting, International business, Marketing, Economy, etc.) with 5 years experience in Procurement or Supply Chain (Technical or Sourcing)
- Masters degree preferred; experience in indirect sourcing preferred
- Experience of managing through multi-functional and multi-cultural projects and teams, preferred in biotech and biopharma companies
- Business acumen and Entrepreneurial spirit
- Chinese speaking is a plus
- Ability to travel 10%-15% of the time
- ABC Company requires all employees who are working onsite or who are in customer facing positions to be vaccinated against COVID-19 (subject to any legally required exemptions)
Candidate Certifications to Look For
- Certified Purchasing Professional (CPP) Certification. The Certified Purchasing Professional (CCP) Certification is offered by the American Purchasing Society. The program is for professionals who have demonstrated the skills to successfully implement improved purchasing and supply chain practices as part of a business solution in an organization. The CCP certification is valid for 5 years and candidates must earn a certain number of professional “points” to renew their certification. Certifications can be renewed through a combination of purchasing-related experience, education, and professional contributions (such as published articles or delivered speeches).
- Certified Supply Chain Professional (CSCP) Credential. The Certified Supply Chain Professional (CSCP) credential is offered by the Association for Supply Chain Management. The program will help candidates demonstrate knowledge of the essential technology, concepts, and strategies in today’s extended supply chain. Applicants must have 3 years of relevant business experience or a bachelor’s degree in order to be eligible for the CSCP credential. The credential is valid for 5 years and candidates must earn a certain number of professional development points to renew their certification.
- Certified Professional Public Buyer (CPPB) Credential. The Certified Professional Public Buyer (CPPB) credential is offered by the Universal Public Procurement Certification Council. The program is best suited for candidates who are responsible for performing essential functions within the procurement cycle for a public/governmental entity but may or may not have management or supervisory responsibilities. Applicants must serve in responsible procurement positions with their organization. Two different requirement options are available for applicants. Option 1 requires applicants to have completed a 2-year education program from a post-secondary institution or higher, have 3 or more years of procurement experience, and have completed 72 contact hours of coursework/training. Option 2 does not require applicants to have a degree but requires at least 5 years of procurement experience and to have completed 72 contact hours of coursework/training. The certification must be renewed every 5 years by completing continuing education courses or attending procurement-related conferences or events.
Sample Interview Questions
- In your role as a procurement manager, how did you identify potential suppliers and negotiate agreements for an organization?
- Do you follow a process to ensure that the goods and services you purchase meet your organization’s needs?
- Do you have experience using supply chain management software? If so, what platforms have you used in the past?
- What are your leading procurement and supply chain management practices, and how do you apply this knowledge to your work?
- How do you prioritize tasks and manage your time effectively when managing multiple projects at once?
- How did you come to a decision regarding a procurement contract when you were faced with a difficult decision?
- What sources do you use to maintain and build your knowledge of relevant marketplaces?
- Can you tell me about your experience lowering expenses and monitoring costs?
- How do you perform market analysis in order to source the most cost-effective supply rates? What tools do you use?
- How would you handle the situation if a department requests to order equipment that isn’t within budget?
- What is your experience leading a team of procurement professionals, and how do you delegate tasks and provide guidance and support?
- In order to ensure your organization’s quality standards are met, what criteria do you use to evaluate suppliers and their products and services?
- What is a Qualified Products List (QPL)?
- Have you ever had to cancel a vendor contract? If so, what happened?
- How do you grow your network of industry professionals, like suppliers?
- When choosing suppliers, what are the most crucial criteria to consider?
- If a supplier informs you that there will be a delay in their shipping, how would you deal with it?
- Have you ever had to handle a conflict with a vendor or supplier, and how did you resolve it?
- Which strategies do you use to ensure that the organization gets the best deal when negotiating contracts with vendors and suppliers?
- What was the impact of a project you worked on that involved a significant procurement process?
- What do you know about Uniform Commercial Code (UCC)?
