What is a Procurement Manager?

A procurement manager is a person in charge of purchasing goods or services. The procurement manager’s job description outlines the necessity of ensuring that the right products or services are purchased at the right time and that they are getting the best value for money. Those who are pursuing the position of Purchasing Manager or Procurement Manager should know that these two are almost the same thing. The procurement roles and responsibilities remain the same, regardless of how the employer decides to call this position. Before applying for or even accepting such a job, it is highly recommended to know what it is all about. To make sure that you will fit in the right place and that you will be able to deliver great results, you need to be aware of key procurement roles and responsibilities.

Procurement Roles and Responsibilities:

The procurement manager will do everything they can, to ensure that the company spends less money while getting the right products or services. Here are the 10 key procurement roles and responsibilities:

1. Supplier Evaluation:

Before the company gets to sign a contract with a particular supplier, you will have to evaluate the supplier to see if it is worth collaborating with it. You will look at the price and quality of the provided items, and how fast delivery can be completed.

2. Interviewing Vendors:

You will also have to talk, face to face, with vendors, to learn more about their products and services, to make sure that your evaluation is correct and comprehensive.

3. Visiting Supplier Plants and Distribution Centers:

Visiting the supplier’s plant and distribution center can tell you a lot about a particular supplier. Is the supplier meeting the standards? Is it working efficiently in order to meet your company’s demand? Are the manufacturing, storing, and shipping conditions appropriate? These and other questions will be answered during such visits.

4. Attending Trade Shows, Conferences, and Meetings:

Procurement roles and responsibilities are always in a constant learning process, as it is mandatory to be up to date with the latest products and suppliers, conditions of the market, and emerging trends.

5. Unrolling Analysis of Price Proposals and the Financial Reports of the Company:

Your company will always want to obtain the best price for each acquisition, so it is your duty to analyze the price proposals of suppliers and the financial reports of the company, before negotiating the best price. Your company will always want to obtain the best price for each acquisition, so it is your duty to analyze the price proposals of suppliers and the financial reports of the company, before negotiating the best price.

6. Negotiation of Various Contracts:

One of purchasing manager’s responsibilities is to close great deals on the behalf of the company, so being a good negotiator is definitely an advantage. Conditions of the contract are details for those dealing in global supply chain management.

7. Collaboration with Suppliers for Agreeing Upon Policies:

You will have to collaborate with the suppliers in order to come up with convenient policies that will determine details concerning the shipment of products and other details that will keep the workflow steady.

8. Collaboration with Staff Members for Meeting the Standards:

Procurement manager responsibilities include the staff members’ training concerning the acceptable quality of the received goods, how to determine defective or unacceptable goods, and what actions to take in such cases. So you will be in charge of their preparation when it comes to such knowledge.

9. Monitoring and Evaluation of Unrolling Contracts:

Once a contract is signed, you will have to keep an eye on it to make sure that the vendors will respect their part of the contract. And, of course, when needed, you will have to make the required adjustments to the existing contracts.

10. Maintaining and Reviewing Records of Bought Items:

You will constantly have to be aware of the items that have been purchased. Thus, you need to have up-to-date inventories, plus detailed information about a product’s price, performance, and delivery.

procurement manager

Procurement Manager Job Description:

Before diving into procurement manager roles and responsibilities, it is crucial to understand what a purchasing manager does. Here are just a few examples.

  • A purchasing manager conducts negotiations with sellers and vendors for the best possible prices.
  • They are responsible for selecting the right suppliers who will provide products or services that the company needs at the right time and in the right quantity.
  • They will also help to ensure that the company gets the best possible terms and conditions for the purchased goods or services.
  • They are also responsible for the inventory and logistics management when it comes to the purchased items.
  • They will also take care of ordering new supplies when these are running out.
  • They are also responsible for the finances related to purchases.
  • Procurement managers review and assess potential suppliers, comparing their products, services, prices, and quality to ensure the best choice for the organization.
  • They play a crucial role in planning and predicting procurement needs based on market trends, seasonality, and business goals.
  • They are responsible for developing and implementing procurement strategies to optimize efficiency and cost-effectiveness.
  • A procurement manager handles contract management, ensuring the company’s adherence to all contractual obligations and overseeing the renewal, termination, or renegotiation of contracts as necessary.
  • They maintain an updated knowledge of procurement best practices, market conditions, and product innovations.
  • They must ensure compliance with all relevant laws, regulations, and company policies regarding procurement activities.
  • Procurement managers also manage relationships with suppliers, fostering collaboration, addressing any issues, and seeking mutually beneficial solutions to challenges.
  • They set and manage procurement KPIs to track and improve performance.
  • They are responsible for preparing and managing the procurement budget, controlling expenditures, and reporting on procurement expenditures and savings.

Advancing Your Career in Procurement

When it comes to education and training in procurement, there are many options available for individuals to enhance their skills and knowledge. Institutions like AIMS’ Supply Chain Management Institute offer comprehensive courses that delve into the intricate mechanisms of procurement. For those aiming for advanced studies, a PhD in Logistics and Supply Chain Management can help them delve into research-based aspects of the field, while an MBA in Supply Chain Management provides a blend of practical and theoretical knowledge catering to managerial roles. For busy professionals seeking flexibility, AIMS UK offers online diploma courses in supply chain management and numerous online logistics certification courses, allowing them to learn at their own pace. Thus, with the right mix of education and training, one can effectively navigate the complex landscape of procurement.

procurement roles and responsibilities

Difference between Purchasing Manager and Procurement Manager:

As you can see, there are very few differences between these two roles. Here are a few key points that highlight this.

  • Both positions are responsible for purchasing products or services for the company.
  • Both work closely with sellers or vendors.
  • Both positions manage inventory and logistics.

The only difference between them would be the title used for the position. In fact, in many companies, these positions are interchangeable. They are often referred to by different names. However, in some cases, the difference lies in the level of authority that a procurement manager has, over the purchasing manager. They have the power to make decisions and give orders. Purchasing managers must first consult or get approval from the boss. They are there to assist the procurement manager when it comes to purchasing the right products or services. So, regardless of what the company calls the positions, you should know that the responsibilities are the same.

Procurement Job Titles and Salaries

1. Chief Procurement Officer (CPO)

The CPO is the highest-ranking executive in charge of procurement activities in supply chain management companies. They set procurement strategies, oversee all procurement operations, and make high-level purchasing decisions. PayScale reports the average salary for a CPO in the U.S to be around $168,000 annually.

2. Procurement Director

A Procurement Director leads the overall procurement function within an organization, setting strategic goals, managing procurement teams, and overseeing all procurement processes. According to ZipRecruiter, the average salary for a Procurement Director in the U.S is around $138,000 per year.

3. Procurement Manager

The Procurement Manager is responsible for overseeing and managing the purchasing activities of an organization. Their main duties include supplier evaluation, contract negotiation, and risk management to ensure the efficient acquisition of goods and services. According to Payscale, the average salary for a Procurement Manager in the United States is approximately $83,000 per year.

4. Purchasing Manager

The Purchasing Manager focuses on managing and coordinating purchasing tasks within the company. This includes strategic purchasing, supplier management, and inventory control. The average salary for a Purchasing Manager, as reported by Glassdoor, is about $76,000 per year.

5. Procurement Specialist

Procurement Specialists handle daily procurement activities, such as processing purchase orders, liaising with suppliers, and maintaining procurement records. The average salary for a Procurement Specialist in the U.S, according to Salary.com, is around $60,000 annually.

6. Procurement Analyst

Procurement Analysts are in charge of examining and interpreting data related to procurement activities. Their role involves analyzing supplier performance, evaluating procurement trends, and providing data-driven recommendations. The average salary for a Procurement Analyst in the United States is approximately $63,000 per year, as per Indeed.

7. Procurement Coordinator

Procurement Coordinators support procurement managers by coordinating and organizing purchasing activities, managing contracts and agreements, and maintaining relationships with suppliers. The average salary for a Procurement Coordinator in the United States is about $52,000 per year.

procurement manager job description


Now that you are fully aware of the purchasing manager role or procurement manager role, you can make the best choices for your career. The role of a procurement manager encompasses a wide range of procurement duties and responsibilities, requiring both management skills and extensive working experience. From overseeing the procurement department to executing purchase orders, the procurement manager is integral to any organization. Key procurement responsibilities include developing procurement strategies, ensuring cost-effective purchasing, and overseeing risk management. It’s also crucial for procurement professionals to have a strong grasp of the procurement process, and a background in business administration is often beneficial.

The procurement officer plays a vital role in the organization, contributing significantly to its financial and operational success. Hence, understanding and fulfilling these duties and responsibilities are paramount for anyone aspiring to excel in this role. If you have what it takes to manage these responsibilities and roles, and others that may come along during your activity, then there is no reason not to apply for such a position. Most certainly an organized person who has great negotiation skills and is not afraid to work with numbers will do a great job in this position.