What They Do
Buyers and purchasing agents buy products and services for organizations to use or resell. They evaluate suppliers, negotiate contracts, and review the quality of products. Typical duties include the following:
- Evaluate suppliers on the basis of the price, quality, and speed of delivery of their products and services
- Attend meetings, trade shows, and conferences to learn about new industry trends and make contacts with suppliers
- Analyze price proposals, financial reports, and other information to determine reasonable prices
- Negotiate contracts on behalf of their organization
- Work out agreements with suppliers, such as when products will be delivered
- Meet with staff and vendors to discuss defective or unacceptable goods or services and determine corrective action
- Evaluate and monitor contracts to be sure that vendors and suppliers comply with the terms and conditions of the contract and to determine the need for changes
- Maintain and review records of items bought, costs, deliveries, product performance, and inventories
In addition to these tasks, purchasing managers also plan and coordinate the work of buyers and purchasing agents and hire and train new staff. Buyers and purchasing agents buy farm products, durable and nondurable goods, and services for organizations and institutions. They try to get the best deal for their organization: the highest quality goods and services at the lowest cost. They do this by studying sales records and inventory levels of current stock, identifying foreign and domestic suppliers, and keeping up to date with changes affecting both the supply of and demand for, products and materials. Purchasing agents and buyers consider price, quality, availability, reliability, and technical support when choosing suppliers and merchandise. To be effective, purchasing agents and buyers must have a working technical knowledge of the goods or services they are purchasing. Evaluating suppliers is one of the most critical functions of a buyer or purchasing agent. They ensure the supplies are ordered in time so that any delays in the supply chain do not shut down production and cause the organization to lose customers.
Key Skills
Analytical skills. When evaluating suppliers, buyers and purchasing agents must analyze their options and choose a supplier with the best combination of price, quality, delivery, or service.
Decision-making skills. Purchasing managers and buyers and purchasing agents must have the ability to make informed and timely decisions, choosing products that they think will sell.
Math skills. Purchasing managers and buyers and purchasing agents must possess math skills. They must be able to compare prices from different suppliers to ensure that their organization is getting the best deal.
Negotiating skills. Purchasing managers and buyers and purchasing agents often must negotiate the terms of a contract with a supplier. Interpersonal skills and self-confidence, in addition to knowledge of the product, can help lead to successful negotiations.
Salary
The median annual wage for buyers and purchasing agents was $64,380 in May 2019. The lowest 10 percent earned less than $38,230, and the highest 10 percent earned more than $107,510.
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Purchasing Managers, Buyers, and Purchasing Agents, at https://www.bls.gov/ooh/business-and-financial/purchasing-managers-buyers-and-purchasing-agents.htm (visited December 11, 2020).
