The role of the Buyer in a company is extremely important for success in the market. This person is responsible for the entire purchasing and procurement process of the company for the necessary products and services. He or she strives to give the company a competitive advantage by negotiating the best possible purchasing terms. The tasks of a retail buyer are varied and include a wide range of responsibilities. Read more Vendor vs Supplier: How to Distinguish and Manage?
Buyer skills and necessary duties
1️⃣ Analysing the market, following trends and identifying new market opportunities: Using analytical skills, the buyer evaluates available Suppliers and quality products to ensure that they meet the Customer’s requirements, provide competitive pricing and offer high quality.
2️⃣ Looking after relationships with Suppliers are also key in the Buyer’s role. He or she needs to maintain good relationships with existing Suppliers and define appropriate terms of cooperation to ensure product quality, timely delivery and competitive pricing. He or she must also research potential Suppliers and negotiate contracts that will benefit the company.
3️⃣ Interpersonal skills: The Buyer often deals with different people at different levels of the organisation and therefore needs to be able to communicate and build relationships effectively and has the right mix of soft skills. Strong negotiation skills are also important in this role in order to get the best buying terms for the company. The Buyer’s dialogue with the Customer must be balanced and at the same time effective.
4️⃣ Awareness of market trends and industry changes: the Retail Buyer should keep abreast of retail industry news and events and innovations in their field. Understanding market trends, predicting future trends and changes in Customer behaviour is key to effective supply management and meeting Customer expectations. Learning appropriately from the surrounding industry trends is a key aspect in creating a long-term strategy for the company and setting the direction for expansion. Also organisational skills and time management skills are crucial.
5️⃣ Supply Chain Management: A good Buyer should correctly monitor stock levels, ensure timely delivery of products, identify and resolve any supply issues and liaise with the stock and purchasing team. He or she is also tasked with optimising purchasing processes, troubleshooting faults in the purchasing process, resolving quality issues and continuously developing operations to increase the company’s efficiency and savings. A key element is to ensure product availability while striving to maintain the lowest stock levels.
6️⃣ Relevant education: Many Buyers have a business degree, although this is not always required. In general, however, , ‘Buyers’ need to have strong subject matter qualifications and experience in supply management, for example use hard skills. Some of the most common qualifications for purchasing positions also include excellent communication skills, establishing new relationships, excellent computer skills and proficient use of Excel. Continuous improvement and a willingness to learn about new and innovative solutions, to look for new competences and the ability to think logically are also important.
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✅ Examples of tasks performed by the Buyer ✅
- Responsibility for day-to-day communication with overseas Suppliers regarding sourcing, planning and logistics and rapid problem solving.
- Management of spreadsheets to optimise stock levels and Supplier performance.
- Management of business relationships with foreign Manufacturers e.g. hairdryer motors.
- Managing, expediting and maintaining the purchase order of goods and services in the ERP system.
- Development of a product assortment strategy for the department.
- Analysis and determination of monthly safety stock levels.
- Analyse KPIs on sales, stock, profits and discounts against budget and historical performance.
- Facilitating requests for quotations and coordinating all communication with potential bidders, evaluating subcontractor bids, sourcing and selecting bidders.
🏆 Buyer’s career 🏆
A Buyer’s career can have different development paths. At the initial stage, one has to go through introductory positions such as Trainee, Assistant, Specialist and then Junior Buyer to get to the final position of Buyer. Buyers can advance to a management position such as Purchasing Manager, where they will manage the entire purchasing or supply chain team. They can also move into other positions within their industry, such as project management or supply chain management. The responsibilities of a buyer vary depending on where they are employed. If a company has a large purchasing volume and many Buyers in the structure, the next step may be to be promoted to Purchasing Director. Because the purchasing role has points of contact with virtually every department in the company, these individuals are often considered for General Manager/CEO positions.
Conclusion
The role of the Buyer within a company is an important part of the purchasing and supply management process. Buyers have numerous tasks and responsibilities, which include: market analysis, building relationships with Suppliers, price negotiations, inventory and supply chain management, as well as anticipating and monitoring market trends to achieve company goals. Being a Buyer is not only about managing purchasing, but also about managing risk. To succeed in this role, Buyers need to have analytical, communication and negotiation skills, as well as being aware of market trends and industry changes. A business degree and experience in supply management are also often required qualifications for purchasing positions. A purchasing career can provide many opportunities for growth and advancement, such as Purchasing Manager or Supply Chain Management Manager. A good Buyer should therefore be versatile and ready for new challenges.