Expand mobile version menu
  Skip to main content

Purchasing Agent

salary graphic

AVG. SALARY

$64,970

education graphic

EDUCATION

Bachelor's degree

job outlook graphic

JOB OUTLOOK

Decreasing

What They Do

Purchasing Agents Career Video

Insider Info

Purchasing agents are professional shoppers who get the highest quality merchandise at the lowest price for their employers. They assess the needs they are trying to meet, find a suitable product, negotiate a price and award a contract.

An agent may develop long- and short-term supply strategies, or work closely with engineers and marketers to enhance cost, function and product appeal. They may work out the details of complicated international supply deals, or be called upon to quickly find materials for an unexpected surge in demand.

The purchasing agent works both internally and externally, selecting the right supplier, negotiating favorable terms in a contract, optimizing costs and finalizing specifications and designs.

Sandy Hearn works with a firm dealing with cellular phones. She says purchasing departments used to be viewed in the same light that human resources and personnel once shared. If a company was looking to save money, those departments took the hardest cuts, because they weren't seen as generating income.

"They didn't see the value added to the bottom line," she says. "Now, when we save money, we document it."

Buyers largely determine which products their establishment will sell. Therefore, they need be able to foresee what consumers will want. To avoid endangering profits and the reputation of their company, buyers must always be one step ahead of current fads. They watch ads and other media to stay on top of their competitors and observe general economic conditions to predict consumers' buying patterns.

To find a product they want to buy, they may visit trade shows or receive visits from salespeople. Buyers working for large companies will specialize in one or two lines of merchandise, while buyers for small companies may buy the entire inventory.

Other agents work for government agencies, private industry or manufacturing companies. They may be called a purchasing director, supply manager or agent, industrial buyer or contract specialist.

The items obtained by purchasing agents and managers range from raw materials, fabricated parts, machinery and office supplies to construction services and airline tickets.

These professional shoppers rely on information from catalogs, industry periodicals, directories and trade journals. They also often attend meetings, trade shows and conferences to learn about more suppliers.

Because the flow of work -- or even the entire production process -- can be slowed or halted if the right materials, supplies or equipment are not on hand when needed, purchasers and buyers must have technical knowledge of the goods or services to be purchased.

Politics and tricky negotiations are a major part of all purchasing jobs, although they are especially prevalent in government positions. Because of this, diplomacy and people skills are a must.

Purchasing manager Roy Thomas says he is constantly under the scrutiny of politicians, department heads and the general public. "Purchasing people work in a fishbowl," he explains. He says you just can't let it bother you.

Most purchasers and buyers work in comfortable, well-lit offices at stores, corporate headquarters or production facilities. They frequently work more than a 40-hour week because of special sales, conferences or production deadlines.

Travel is usually required, and many purchasers and buyers spend at least several days a month on the road. There is also opportunity to work in many different international locales. That's because the need for supply management positions within companies and organizations is universal.

This is one job that usually requires an employee to be physically present, as opposed to telecommuting. As a result, physical disabilities may prove to be a challenge, although with creativity and dedication they can usually be accommodated.

Just the Facts

Want a quick overview of what this career is about?Check out Just the Facts for simple lists of characteristics.

At a Glance

Determine which commodity or service is best for a company

  • Good buying decisions are a vital key to a company's success
  • Agents must be skilled at negotiating and handling tricky situations
  • Success means predicting what will appeal to consumers and staying one step ahead of trends

Contact

  • Email Support

  • 1-800-GO-TO-XAP (1-800-468-6927)
    From outside the U.S., please call +1 (424) 750-3900

Support


Powered by XAP

OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.