We know that the job of a buyer is ensure the supply of production supplies and other materials used by the company, at the lowest possible price, within the established standards of time and quality of products and services. But what does a Buyer do in his day to day work life? This article will give you complete information on the buyer job description and responsibilities.
Buyer Job Description And Responsibilities
Let’s start with a definition of the profession:
Who is a Buyer?
The Buyer is the one who works in the purchasing department office that deals with supplying the company with the products they need to keep the business active.
What does a Buyer do?
As a purchasing agent, the Buyer has the task of planning and managing the company’s supplies and coordinating and controlling the activities of purchasing goods and services, with a view to optimizing stocks, improving storage flows and processes and reducing costs.
Depending on the type of company in which he works, a Buyer can take care of the purchase of the raw materials necessary for production, as well as the purchase of everything necessary for the daily operation of the internal departments: from the supply of office products to energy contracts. In this case we are talking about procurement buyers.
The Wholesale Buyer deals with buying directly from the manufacturers the goods destined to be sold to retail chains, while the Retail Buyer deals with buying from wholesalers the goods and products intended to be sold to consumers through the points of sale, and works in commercial enterprises or distribution, for example in the fashion sectors (such as Fashion Buyer), retail and Large-scale retail.
Responsibilities of a Buyer
Research the market supplier of products and services, through price collection, in order to identify the best shopping opportunities.
Negotiate with suppliers, aiming at closing purchases within the best price conditions, quality delivery time.
Issue purchase orders and forward them to suppliers, monitoring the delivery process and final fulfillment of all negotiated conditions.
Search new suppliers of various products and services, aiming to develop alternative sources of supplies.
Search for alternative products, according to the possibilities of the production process, aiming to improve product quality and reduce production costs.
Follow-up of orders, in order to ensure their delivery within the established deadline.
Buyer’s Skills and tasks
The main task of a Buyer is to plan purchases according to the company’s needs and the needs of the supply chain, to ensure the efficiency of procurement processes and at the same time ensure cost savings. The buyer is in charge of identifying potential suppliers, analyzing the offers and evaluating the best value for money. He gets involved in validating and contacting the chosen suppliers and negotiating the terms of purchase and the conditions of supply: quantity, time, price, delivery methods etc.
He finalizes purchase contracts, manages orders at the administrative level and maintains commercial relations with suppliers, both national and international. He takes care of verifying compliance with the agreed procedures (delivery times, product quality, payments…), also in collaboration with the quality control department, and deals directly with suppliers for any complaints and returns.
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At the heart of the Buyer’s work is therefore the relationship with suppliers: to negotiate and to acquire goods and services at the most competitive price, without compromising quality and respecting the budget. The scouting activity of new suppliers is very important: for this reason buyers regularly participate in trade fairs, dedicated B2B events in which companies exhibit for Buyers the best of their production.
In addition, the Buyer must have the ability to analyze the evolution of markets and prices, and know in depth the company’s operational logic to anticipate its needs. It must also be very well aware of the commercial contracts, as well as the technical and production characteristics of the supplies to be treated.
The Buyer constantly analyzes the information coming from the internal departments (production, commercial area, logistics..), suppliers, sales network and market (competitors, economic and financial data..), and provides for the possible modification of the purchase plans according to what has been noted.
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What does a Retail Buyer do?
If he works as a Retail Buyer, and deals with buying products intended for sale, the purchasing agent must have an in-depth knowledge of the reference market: analyze sales data by product category, brands, trends, competitors etc. to choose, buy and introduce products in stores in line with the tastes of consumers, and to predict sales trends.
He or she works in direct contact with Store Managers and Area Managers, creates report sell in and sell out of stores, supports the activity of store replenishment and stock control. The creation of plans for the inclusion of new purchased items in the company could also fall within the duties of the Retail Buyer: for example, designing merchandising operations or training on new products together with marketing and sales managers.
Where does the Buyer work?
The Buyer works in production companies in every sector – food, chemical, pharmaceutical, cosmetic, mechanical and automotive, textile and many others – and in commercial companies and large-scale distribution industries: Large-scale retail, e-commerce. The workplace is typically the purchasing department. He may have to travel for visits to suppliers as per the company requirements. Working time is usually a traditional full time.
Duties of the Buyer
But what does the Buyer do on his working day? Here are the main tasks
- Plan the purchase of goods and raw materials in line with the needs of the company’s supply chain
- Negotiate economic and contractual conditions – time, costs, quantities, delivery methods of supplies
- Carry out scouting and validation activities of the best suppliers for value for money
- Check delivery trends and inventory status
- Manage purchases, enter orders and item personal data through management software
- Generate reports on the activities of the purchasing department
- Evaluate the purchase and introduction of new products
- Study market trends
How to become a Buyer? Training and Requirements
How to become a Buyer
To work in the purchasing office it is useful to attend a technical institute or a vocational school with a commercial background. Sometimes, a degree is required preferably in Economics or Management Engineering. There are also master’s degrees and specialization courses in the purchasing and logistics sector, which provide knowledge on supply and supply chain management, warehouse management, integrated logistics, distribution, administration and management control.
Training and Requirements
A Buyer must also have IT skills and know how to use the various office automation tools and management software (such as SAP) that allow you to check the status of orders, payments and deliveries, manage administrative procedures related to purchases and monitor the supplier fleet. In addition, a requirement that is often sought in candidates is the knowledge of foreign languages, necessary to relate to foreign suppliers and participate in international fairs.
Knowledge of the product sector in which you work and the experience gained at work are other preferential requirements, which can be preferred even more than the qualifications.
Skills of a Buyer
The main competences of the Buyer are:
- Management and assessment skills of forecast and final budgets
- Expertise in purchasing, warehouse and distribution management
- Knowledge of the reference product sector
- Ability to negotiate and conduct trade negotiations
- Knowledge of administrative procedures for order management
- Knowledge of the rules relating to commercial transactions
- Use management software and IT applications
- Analytical skills
Job Opportunities and Buyer’s Career
Buyer’s career
Before becoming a Buyer, you can start working in the sales department or purchasing office of a company as an employee or junior purchasing agent: support tasks such as checking deliveries or stock status, or writing reports.
With the experience and skills shown in identifying suppliers and conducting negotiations that allow you to obtain the best price and the best quality under the best conditions, you can become a Senior Buyer: a figure that operates independently to ensure maximum efficiency of supplies. The Senior Buyer personally follows the negotiation, manages the purchase requests and promotes actions to reduce costs and cost sharing, confronting the management on a daily basis.
The career can then be developed towards managerial positions, as purchasing manager/ director.
Good Reasons to Work as a Buyer
The role of the Buyer is strategic in a company, because the purchasing department (together with logistics and distribution) is one of the main levers available to management to optimize costs and maximize the efficiency of processes. The buyer’s task is to ensure the company a supply constantly in line with the needs of the business, guaranteeing competitiveness and flexibility to the company. The impact of the work of the purchasing department on the success of a company is therefore considerable, and a source of great professional satisfaction.
The characteristics of the profession allow for fairly stable working hours, and in some cases there is also the opportunity to travel: for example to visit suppliers or to participate in international trade fairs.
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