Purchasing Agent
A Purchasing Agent is a professional responsible for evaluating and procuring raw materials and supplies necessary for a company’s production processes. Their primary goal is to source high-quality materials at the lowest possible cost while aligning with customer demands and market trends. Typically employed across various sectors, including manufacturing and food production, Purchasing Agents split their time between office environments and on-site visits to suppliers and production facilities.
Candidates for this role often possess strong skills in mathematics, economics, and negotiation, and it is common for them to be multilingual. Daily responsibilities include communicating with internal teams to assess purchasing needs, evaluating potential suppliers, negotiating contracts, and staying informed about market conditions that could impact pricing and availability.
While a bachelor's degree is generally preferred, significant on-the-job training equips new agents with the skills needed. This profession often attracts individuals who enjoy interpersonal interactions and possess solid communication abilities, as these are crucial for successful negotiations and relationship management with suppliers. Overall, the role of a Purchasing Agent is vital to ensuring efficient and cost-effective supply chain operations within a business.
Purchasing Agent
Snapshot
Career Cluster(s): Agriculture, Food & Natural Resources, Architecture & Construction, Business, Management & Administration, Manufacturing, Marketing, Sales & Service
Interests: Sales, supply chain management, business management, negotiations, economics
Earnings (Yearly Median): $77,180 per year, $37.11 per hour
Employment & Outlook: -6 percent (Decline)
Entry-Level Education Bachelor's degree
Related Work Experience None
On-the-job-Training Moderate on-the-job training
Overview
Sphere of Work. Purchasing agents evaluate raw materials and other supplies for companies to use as an ingredient or component of their products. They assess the materials for quality, durability, and market value. The main responsibility of purchasing agents is to find the highest quality supplies and equipment at the lowest cost while adhering to the desires of current customers and target markets. Purchasing agents work in nearly all realms of manufacturing.
Work Environment. Purchasing agents split their time between administrative and office settings and warehouse and manufacturing facilities. Agents employed in food production or medical manufacturing may spend time on farms and in other environments where products are grown and harvested. Purchasing agents also spend a lot of time at trade shows, product demonstration seminars, and other industry meetings to evaluate new products and foster professional contacts with potential suppliers.
Occupation Interest. A job in purchasing attracts candidates who enjoy and are skilled in mathematics, economics, and sales. It is not uncommon for purchasing agents to be fluent in more than one language. The field also attracts professionals who enjoy the process of negotiation and maximizing profits. Purchasing agents are typically outgoing and confident individuals with deft interpersonal communication skills who are comfortable interacting with new people regularly.
A Day in the Life—Duties and Responsibilities. Purchasing agents fill their days with numerous duties and responsibilities, many of which need to be tended to simultaneously. Purchasing agents are in constant communication with people inside their own companies to understand and anticipate the company’s needs from a purchasing standpoint. If current suppliers are not meeting quality standards, purchasing agents are responsible for recruiting their replacements.
One of the major tasks assumed by purchasing agents is the evaluation of potential suppliers and their products. Such evaluations can entail extensive travel and an in-depth familiarity with the manufacturing processes and quality standards of their employing organization.
Once suppliers are vetted and narrowed down to a small group of potential candidates, purchasing agents are responsible for negotiating bid proposals and contracts. Contract negotiations can involve large sums of money, depending on a purchasing agent’s particular realm of industry. Agents must ensure that potential suppliers can meet requirements surrounding delivery dates and potential demand.
Purchasing agents should pay attention to markets and financial trends relevant to their particular industry in order to stay knowledgeable about potential cost-cutting avenues and to anticipate fluctuations in consumer demand. They are also responsible for the ongoing evaluation of vendors, and they maintain records of various vendors’ track records in pricing and overall quality.
Outside Property Agents (162.157-030). Outside Property Agents locate and arrange for the purchase or rental of props specified for use in motion pictures when such props are not in studio stock and cannot be constructed by studio personnel.
Procurement Engineers (162.157-034). Procurement Engineers develop specifications and performance test requirements to facilitate the procurement of parts and equipment for aeronautical and aerospace products. They investigate potential suppliers and recommend those who are most desirable.
Procurement Services Managers (162.167-022). Procurement Services Managers direct and coordinate the activities of personnel who are engaged in purchasing and distributing raw materials, equipment, machinery, and supplies in industrial plants, public utilities, and other organizations.
Purchase-Price Analysts (162.167-030). Purchase-Price Analysts compile and analyze statistical data to determine how practical it would be to buy certain products and establish price objectives for contract transactions.
Promotion Managers (163.117-018). Promotion Managers plan and administer sales policies and programs to foster and promote hotel patronage. They consult newspapers, trade journals, and other publications to learn about planned conventions and social functions.
Commissary Superintendents (184.117.078). Commissary Superintendents manage the commissary department of companies that operate sea-going vessels and process requests for supplies and equipment from vessels. They represent the company in contract disputes with the unions and negotiate contracts with supply houses, manufacturers, and wholesalers for equipment, supplies, and furnishings.
Work Environment
Immediate Physical Environment. Purchasing agents alternate between office settings and on-site visits with suppliers. They also frequently attend large conferences and trade shows.
Plant Environment. Purchasing agents may travel to factories or plants to inspect a supplier’s manufacturing processes or to examine their products.
Human Environment. Peer-to-peer and customer-client interaction is the hallmark of the purchasing industry. Purchasing agents are traditionally skilled conversationalists with strong negotiating skills.
Technological Environment. Purchasing agents utilize technologies ranging from smartphones, email, and Internet conferencing software to financial analysis tools.
Education, Training, and Advancement
High School/Secondary. High school students can best prepare for a career as a purchasing agent with coursework in algebra, calculus, economics, finance, and introductory computer science. Gaining some hands-on business experience through internships, volunteer programs, or participation in school-run fundraisers or entrepreneurial programs can benefit those who are interested in a career in purchasing. Classes in rhetorical communication and participation in debate and forensic clubs can help students hone their negotiation tactics and strategies, which can be useful in the occupation.
Postsecondary. Postsecondary education was not historically a requirement for entry-level positions in purchasing due to the extensive on-the-job training new employees receive. However, candidates benefit from having completed postsecondary coursework in finance, business management, economics, or applied science. Undergraduate students interested in pursuing a career in purchasing should explore courses in retailing, advertising, supply chain management, or international business.
Related Occupations
− Wholesale & Retail Buyer
− Wholesale Sales Representative
Bibliography
"Purchasing Managers." O*NET OnLine, 6 Aug. 2024, www.onetonline.org/link/summary/11-3061.00. Accessed 23 Aug. 2024.
"Wholesale and Retail Buyers, Except Farm Products." O*NET OnLine, 6 Aug. 2024, www.onetonline.org/link/summary/13-1022.00. Accessed 23 Aug. 2024.
"Purchasing Managers, Buyers, and Purchasing Agents." Occupational Outlook Handbook. Bureau of Labor Statistics, US Department. of Labor, 6 Sept. 2023, www.bls.gov/ooh/business-and-financial/purchasing-managers-buyers-and-purchasing-agents.htm. Accessed 8 Sept. 2023.