From manufacturing to retail and healthcare, any type of business needs to manage effective vendor relationships to harvest the supplies their operations require. One report from Michigan State University found that companies typically spend 40 percent of their revenue on purchases from third-party suppliers. Procurement specialists are skilled financial agents who focus on ascertaining which vendors will provide the highest quality goods for the most profitable margins. Sometimes called purchasing managers, these specialists control the inventory flow to ensure supplies don’t run out and halt operations. Whether they’re buying grain for agribusiness or industrial equipment, procurement specialists negotiate the best price points for needed goods without breaking budget. Procurement jobs could be attractive to Master of Science in Finance graduates who also exhibit interest in supply chain and logistics.
Salary
The Bureau of Labor Statistics reports that America’s 291,540 purchasing agents, including procurement specialists, make a mean yearly salary of $66,120, or $31.79 per hour. Those working in the federal executive branch earn $80,900 on average, but the top-paid procurement specialists are employed by securities and commodity brokerages for $92,130 annually. The highest-paying states for procurement specialists are Maryland and New Jersey with averages at $77,400 and $76,850 respectively.
Beginning Salary
Entry-level procurement specialists typically land in the bottom 10th percentile of earnings with annual income around $37,850. However, procurement specialists have great advancement potential to six-figure salaries above $99,960. The BLS shows that purchasing managers with 5+ years of experience make a mean wage of $114,130 per year. PayScale also reports that those reaching the Chief Procurement Officer (CPO) title earn up to $346,451 annually.
Key Responsibilities
Procurement specialists perform in-depth cost analysis to obtain high-quality goods at excellent market value for boosted profitability. They stay abreast of new suppliers by conducting market research, attending trade shows, and setting up interviews. When contacts are formed, they’ll take active roles in negotiating contracts to settle on the best price and delivery time. Procurement specialists must consistently monitor the terms and conditions to ensure compliance or take corrective measures if needed. Watching over inventory records to see which supplies must be replenished with purchase orders is essential. Procurement specialists also project the organization’s future buying needs to ensure the bottom line isn’t jeopardized.
Necessary Skills
Being an adept procurement specialist will require excellent finance skills to accurately compare prices and make calculations about the best contract deals. Negotiation ability is a must since procurement specialists must act with self-confidence to successfully drive down prices without risking vendor relationships or compromising quality. Procurement specialists need critical decision-making skills to select goods that will produce sellable products. Analytical skills are crucial to find the most cost-effective means of spending revenue on supplies. Computer proficiency is increasingly essential to run pricing data through financial software and keep inventory logs digitally. Procurement specialists should also possess top-notch organizational, communication, problem-solving, and research skills.
Degree and Education Requirements
Most employers expect procurement specialists to hold a bachelor’s degree from a regionally accredited college. Successful applicants often major in business, finance, accounting, or supply chain management. Some BBA programs even offer course sequences for purchasing management. Important courses to take include negotiations, contracts law, logistics, inventory control, and operations management. Advancing into upper-level procurement specialist roles, including CPO, may depend on graduate school training. Finishing a Master of Science in Finance, Master of Business Administration, or Master of Supply Chain Management could pay off. Some schools like the University of Virginia have a Graduate Certificate in Procurement and Contracts Management for specialization.
Pros and Cons of the Position
Stepping into the purchasing agent’s shoes will provide procurement specialists both rewards and challenges. Let’s start off positive with the above-average salary potential that can grow exponentially with experience. Procurement specialists can choose from various economic sectors, including government jobs with excellent benefits. Opportunities exist for specialists to work nationwide and abroad with remote telecommuting. Most procurement specialists also can handle their organization’s purchases with autonomy and independence. However, sluggish job growth will leave competition heated for procurement positions. Investing in post-secondary education is critical to advancing beyond entry-level clerk jobs. Procurement specialists report above-average stress in maintaining solid profits while working long overtime hours. Some could be turned off by the sometimes contentious means for vendor negotiations too.
Getting Started
Getting apt business education is only one piece of the puzzle for future procurement specialists. Actual on-the-job experience is invaluable to learn the ins and outs of purchasing decisions. Employers will generally look for one to three years of work experience even for entry-level procurement roles. Internships during your collegiate years is a wonderful way to build your resume. Companies like Chevron, Nestle, Goodyear, and Nike offer summer internship programs for studying the business of buying. As your experience grows, consider gaining professional credentials to stand out. For example, the Universal Public Procurement Certification Council offers a Certified Professional Public Buyer (CPPB) option. This requires solely an associate degree and 56 contact hours in procurement training. The American Purchasing Society also grants the Certified Purchasing Professional (CPP) credential.
Future Outlook
Unfortunately, job growth in procurement is significantly lagging behind the 7 percent mark for other business operations specialists. The BLS predicts that the hiring of purchasing agents like procurement specialists will only rise by 2 percent through 2024 for 7,200 new jobs. Although corporations need to continue buying goods at controllable costs, the field is affected greatly by outsourcing. Organizations are steadily sending their purchase processing tasks to third-party firms, perhaps overseas. Government agencies are also starting public purchasing cooperatives between branch levels to limit the need for procurement specialists. Candidates with a master’s degree will have the best prospects in wholesale trade, manufacturing, energy, retail, computer design, healthcare, and supply chain consulting.
Finance majors can perform well as procurement specialists to analyze business operations and find remunerative solutions to purchase supplies for less “green.” They utilize strategic tactics to negotiate the costs of vendor contracts and maximize the efficiency of supplier performance. The purchasing agent’s role in keeping commercial vehicles fully stocked with quality goods is priceless in protecting product development. Choosing to become a procurement specialist could develop a well-paid, gratifying career with the fiduciary responsibility to reserve needed materials at the best price possible.
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