Purchase planner

Purchase planner article illustration

Description

Purchase planners are responsible for planning and executing the purchasing of raw materials, components, and finished goods. They work with suppliers to determine which products will be used in production and how much of each item should be purchased.

Purchase planners may also help coordinate the flow of information between different departments within their company. This might include passing along requests from other departments for specific types of materials or parts, as well as providing updates on current inventory levels so that everyone knows whatโ€™s available at any given time.

The duties of a purchase planner include, but are not limited to:

  • Reviewing contracts for legal violations or conditions that could lead to litigation
  • Negotiating prices with sellers on behalf of the company or organization 
  • Coordinating the closing process and working with legal, financial, tax, and insurance professionals to ensure all requirements are met 
  • Preparing budgets, bids, proposals, presentations, and other planning documents that help ensure projects are completed successfully 
  • Researching available materials and equipment, estimating costs, and developing pricing guidelines 
  • Estimating the time needed to complete a project based on historical data on similar projects 
  • Reviewing plans and providing feedback to architects, engineers, contractors, or other consultants as needed 
  • Working with contractors to schedule work, inspect progress, and resolve problems throughout the construction process 
  • Developing contracts with vendors, clients, customers, or other parties involved in a business transaction

Other titles

The following job titles also refer to purchase planner:

purchasing team worker
graduate supply chain planner
demand and inventory planner
senior buyer planner
graduate buyer planner
assistant purchase planner
assistant supply chain planner
procurement planner
purchase planning office worker
demand planner
company buyer
purchasing team leader
trainee purchase planner
buyer planner
purchase planning office manager
graduate purchase planner
senior purchase planner
material planner
senior supply chain planner
purchase administrator
purchasing coordinator
trainee supply chain planner
assistant buyer planner
trainee buyer planner

Working conditions

Purchase planners work in various settings, including manufacturing plants, corporate offices, and retail stores. They typically work regular business hours, although they may occasionally work overtime to meet deadlines. Some buyer planners travel to attend trade shows or to visit suppliers.

Purchase planners who work in manufacturing plants may be exposed to noise and fumes from the production process. They may also be required to lift and move heavy boxes of merchandise.

Minimum qualifications

Purchase planners are typically required to have a bachelorโ€™s degree in a related field, such as business administration, marketing or supply chain management. Some companies may accept candidates with a related associateโ€™s degree.

Purchase planners typically receive on-the-job training after they are hired. This training may include learning the companyโ€™s policies and procedures, as well as the software and technology they use. It may also include shadowing a current employee to learn the workflow and responsibilities of the job.

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Purchase planner is a Skill level 3 occupation.

Purchase planner career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to purchase planner.

purchaser
wholesale merchant in agricultural machinery and equipment
wholesale merchant in agricultural raw materials, seeds and animal feeds
wholesale merchant in beverages
wholesale merchant in chemical products

Long term prospects

These occupations require some skills and knowledge of purchase planner. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of purchase planner with a significant experience and/or extensive training.

ICT vendor relationship manager
purchasing manager
import export manager in china and other glassware
import export manager in computers, computer peripheral equipment and software
import export manager in electrical household appliances

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of purchase planner.

  • Embargo regulations: The national, international and foreign sanctions and embargo regulations, e.g. Council Regulation (EU) No 961/2010.
  • Export control principles: The restrictions a country imposes on its exported products and goods.
  • Transportation methods: Knowledge of principles and methods for moving people or goods by air, rail, sea, or road, including the relative costs and optimal work strategies.
  • International import export regulations: Know the principles that govern the import and export of products and equipment, trade restrictions, health and safety measures, licenses, etc.
  • Supply chain management: The flow of goods in the supply chain, movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Essential skills and competences

These skills are necessary for the role of purchase planner.

  • Perform multiple tasks at the same time: Execute multiple tasks at the same time, being aware of key priorities.
  • Identify suppliers: Determine potential suppliers for further negotiation. Take into consideration aspects such as product quality, sustainability, local sourcing, seasonality and coverage of the area. Evaluate the likelihood of obtaining beneficial contracts and agreements with them.
  • Visit suppliers: Visit local or international suppliers to get an accurate understanding of their services and report back to clients on that basis.
  • Track price trends: Monitor the direction and momentum of the product prices on a long-term basis, identify and predict the movement of prices as well as identify the recurring trends.
  • Maintain relationship with suppliers: Build a lasting and meaningful relationship with suppliers and service providers in order to establish a positive, profitable and enduring collaboration, co-operation and contract negotiation.
  • Apply numeracy skills: Practise reasoning and apply simple or complex numerical concepts and calculations.
  • Assess supplier risks: Evaluate supplier performance in order to assess which suppliers do or may not perform adequately, stick to the agreed contracts, meet the standard requirements and desired quality at all times or who may pose future risks.
  • Apply procurement: Undertake ordering of services, equipment, goods or ingredients, compare costs and check the quality to ensure optimal payoff for the organisation.
  • Ensure compliance with purchasing and contracting regulations: Implement and monitor company activities in compliance with legal contracting and purchasing legislations.
  • Prepare purchasing reportings: Prepare documentation and files related to product purchases.
  • Manage purchasing cycle: Oversee complete purchasing cycle, including generating requisitions, PO creation, PO follow-up, goods reception, and final payment actions.
  • Have computer literacy: Utilise computers, IT equipment and modern day technology in an efficient way.
  • Identify new business opportunities: Pursue potential customers or products in order to generate additional sales and ensure growth.
  • Negotiate buying conditions: Negotiate terms such as price, quantity, quality, and delivery terms with vendors and suppliers in order to ensure the most beneficial buying conditions.
  • Perform market research: Gather, assess and represent data about target market and customers in order to facilitate strategic development and feasibility studies. Identify market trends.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of purchase planner. However, mastering this knowledge allows you to have more opportunities for career development.

  • Manufacturer’s recommended price: The estimated price the manufacturer suggests the retailer to apply to a product or service and the pricing method through which it is calculated.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of purchase planner. However, mastering these skills and competences allows you to have more opportunities for career development.

  • Create solutions to problems: Solve problems which arise in planning, prioritising, organising, directing/facilitating action and evaluating performance. Use systematic processes of collecting, analysing, and synthesising information to evaluate current practice and generate new understandings about practice.
  • Check shipments: Staff members must be vigilant and well-organised to ensure that inbound and outbound shipments are accurate and undamaged.
  • Communicate with customers: Respond to and communicate with customers in the most efficient and appropriate manner to enable them to access the desired products or services, or any other help they may require.
  • Analyse logistic changes: Assess the financial impact of possible logistics changes such as shipping modes, product mixes or volumes, carriers and means of product transportation.
  • Negotiate sales contracts: Come to an agreement between commercial partners with a focus on terms and conditions, specifications, delivery time, price etc.
  • Analyse consumer buying trends: Analyse buying habits or currently prevalent customer behaviour.
  • Carry out statistical forecasts: Undertake a systematic statistical examination of data representing past observed behaviour of the system to be forecast, including observations of useful predictors outside the system.
  • Report accounts of the professional activity: Recount events and facts which happened in professional contexts in a trustworthy manner.
  • Show diplomacy: Deal with people in a sensitive and tactful way.
  • Manage standard enterprise resource planning system: Collect, manage and interpret data relevant for companies related to shipping, payment, inventory, resources and manufacturing using specific business management software. Such software as Microsoft Dynamicsโ€‹, SAP ERP, Oracle ERP.

ISCO group and title

3323 – Buyers


References
  1. Purchase planner – ESCO
  2. Buyer Planner Job Description: Salary, Duties, & More – Climb the Ladder
  3. Featured image: Photo by Headway on Unsplash
Last updated on February 6, 2023

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