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Purchasing Manager: Job and Compensation Strategy

Job description

The purchasing manager should have excellent planning and procurement ability with good skills in executing procurement activities and running a quality purchasing authority program. He should also be knowledgeable about the importance of the procuring authority buyer and the elementary procedures of the procurement method.

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He should be equipped with tools to ensure well-organized and effective planning, implementation, and good control of movement and storage of goods and services. He should have communication ability to enable good negotiations with the suppliers or other representatives alongside operational negotiation skills in difficult situations.

The successful purchasing manager should be able to recognize and generate solutions towards financing goods and other products. He or she should also comprehend the obtainable financing tools in every step in the supply chain, commencing from the source to destination. He should also be conversant with purchasing law, insurance risk in addition to contract law.

The manager should identify the best supplies of goods and services at the lowest likely procurement cost by selecting suppliers, negotiating prices, and awarding contracts that guarantee the correct quantity of the good or service is delivered when required. Therefore, the person should have researched sales records and stock levels of the available inventory and bargain with domestic and foreign suppliers. He should also be updated on the changing trends in the world of demand for or supply of the required products and supplies.

He should exhibit outstanding ability to identify good suppliers using the appropriate criteria guided by price, quality, dependability, service support, accessibility, and selection, among other criteria. They should be able to gauge the supplier’s history and reputation using the available information on catalogs, directories, and industry and business periodicals, trade journals in addition to the internet. He should also be able to solicit bids through advertisements for purchase actions.

The production manager should be able to utilize meetings, seminars, trade shows, prospective contractor’s plants, and delivery centers to scrutinize goods and services, evaluate the capabilities of the supplier in terms of production and distribution, and similarly engage in deliberating other significant considerations. He should then be able to issue awards and contracts on merit and understand the technicality of the goods and services involved. He should be flexible to fit into the company requirements and the type of goods and services it specializes in.

Performance evaluation

Our organization performance evaluation is pegged on the employee’s ability to meet the expectations of the company. Therefore, the performance is divided into four categories that comprise; outstanding, exceeds expectations, and meets expectations and those who do not meet expectations. Employees in the outstanding category usually receive a 6% increase, a 4% increase for those who exceed the expectations category, and a 2% rise for those who meet expectations. There is no increase for those who do not meet the organization’s s expectations. This evaluation takes place at the end of the financial year of the company.

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The company’s expectations are clearly stipulated, especially in reference to the position of the purchasing manager, and performance is evaluated against them. Expectations on the part of the manager include:

  • negotiating prices and awarding contracts and bids that reduce the variable costs of the organization
  • ensuring that the chosen suppliers deliver goods on time and in the right quantity to avoid shortages or delays in production through well-assessed tenders
  • processing payments, receipts, invoices within one week
  • carrying out research to come up with innovative and firsthand products and suppliers
  • quality goods and supplies that enhance the productivity and efficiency of the firm
  • be able to make timely decisions on equipment, products, and services required as well as monitoring and forecasting stock levels for efficient budgets
  • guide a team of administrators and buyers

Compensation scheme

The salary is very competitive compared to the market rates and other managers in the equivalent position. However, it is important to note that competence and expertise in the job requirements will determine the salary scale. In addition to the increment accompanying the capacity to meet the organization’s expectations, there will be an appraisal in regard, and efficient suppliers awarded the contracts every two years. The ability to effectively carry out these descriptions will see an increase of the benefits up to $5000 from a starting salary of $4200.

Additionally, a commission of 5% will be awarded for all cost cuts due to negotiating better prices and quality supplies that will enhance profitability. Benefits arising from the development of new products or new suppliers will warrant a 2% increase in pay. This will be in line with the salary scheme of other managers in similar positions. Still, with good performance, the salary scale for the purchasing manager will be more lucrative. The usual working hours run from Monday to Friday. Therefore, any extra hours offered would be rewarded accordingly. This position is office-based. However, it may require the manager to travel to meet suppliers, research, and trade fairs. In the case of traveling requirements, the company will compensate with reasonable allowances. Knowledge of the technicality of the products we produce will be an added advantage since it will ensure quality purchases of raw materials and equipment.

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StudyCorgi. (2021, February 4). Purchasing Manager: Job and Compensation Strategy. Retrieved from https://studycorgi.com/purchasing-manager-job-and-compensation-strategy/

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StudyCorgi. (2021, February 4). Purchasing Manager: Job and Compensation Strategy. https://studycorgi.com/purchasing-manager-job-and-compensation-strategy/

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"Purchasing Manager: Job and Compensation Strategy." StudyCorgi, 4 Feb. 2021, studycorgi.com/purchasing-manager-job-and-compensation-strategy/.

1. StudyCorgi. "Purchasing Manager: Job and Compensation Strategy." February 4, 2021. https://studycorgi.com/purchasing-manager-job-and-compensation-strategy/.


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StudyCorgi. "Purchasing Manager: Job and Compensation Strategy." February 4, 2021. https://studycorgi.com/purchasing-manager-job-and-compensation-strategy/.

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StudyCorgi. 2021. "Purchasing Manager: Job and Compensation Strategy." February 4, 2021. https://studycorgi.com/purchasing-manager-job-and-compensation-strategy/.

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StudyCorgi. (2021) 'Purchasing Manager: Job and Compensation Strategy'. 4 February.

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