Sales

Purchasing Agents — In order for a company or other organization to function, it has to purchase materials, supplies, equipment and services. These necessities often represent a large part of the total cost of operations. They can significantly affect a company's profits. Because of its importance, purchasing is usually designated as a separate responsibility to be handled by one member of the management team. The Purchasing Agent.

What Purchasing Agents and their assistants buy depends upon the kind of organization employing them. Purchasing Agents are responsible for obtaining goods and services at the lowest cost consistent with required specifications and quality. Seeing that adequate supplies are on hand may also be one of their responsibilities.

The Purchasing Agent receives orders or requisitions from various departments within the company. The requisitions list and describe needed items and include information such as required dates. Since the Agent usually can purchase from many sources, his or her main job is to select the seller who offers the best value. To do this the Agent must consider many factors, such as exact specifications for the required items, price, quality, quantity discounts, transportation cost, and delivery time. Much of this information is obtained by comparing listing in catalogs and trade journals and by telephoning various suppliers. But, the Purchasing Agent also meets with sales representative to examine goods, watch demonstrations of equipment, and discuss items to be purchased.

It is important for Purchasing Agents to develop good working relations with their suppliers. These relations can result in savings on purchases, favorable terms of payment, and quick delivery on rush orders or materials in short supply.

In many companies you will be directed to the Purchasing Agent who may send you to the department head or buyer concerned. The Purchasing Agent usually signs an order based on their recommendations. But remember, whenever the Purchasing Agent is directly involved, you usually run into competition.

Never assume you are being directed to the right person. Always check to see if there are others you can more profitably contact. I once was calling on a person to whom I was directed for two years, quite unsuccessfully, and only by accident did I discover that a better man to see, who also had buying authority, was head of a customer service department. No rule can guide you to that right person. While one company may have formal procedures for you to follow, in making contact within the company, in another company you may have to rely on your wits alone.

Always make sure that the person who is giving you the order to buy is a properly authorized Purchasing Agent or has the authority to buy. You make sure by asking the person, "Are you authorized to buy?"

The order to purchase may range from a short verbal exchange in one company to a lengthy cosigned approval or purchase order in another.