Manufacturing, production and assembly companies often employ a supply chain management buyer. This person is responsible for purchasing supplies and goods the company needs to produce products. According to the U.S. Bureau of Labor Statistics, more than 500,000 people were employed in this position in the United States and earning an average salary of about $89,000 as of 2008. Using a supply chain management buyer in your organization can have advantages and disadvantages.
Companies must pay salary and benefits for an employee serving as the supply chain management buyer. This can be a disadvantage for a company because it has the potential to reduce profits by increasing personnel costs.
A supply chain management buyer has the potential to increase productivity within an organization. By doing his job well, the buyer ensures that production or manufacturing never slows down or comes to a halt because the company is out of supplies to make its products. In addition, an organization can increase its productivity by employing a supply chain management buyer because management staff and executives who had handled purchasing duties can focus on making the company more profitable.
Supply chain management buyers who are skilled at their job may provide their company with better supplies to make products, or they may be able to reduce the price the company pays for those supplies. The buyer can negotiate lower costs, bulk purchases or upgrades in supplies, all of which benefit the company that employs him.
Employing an unskilled or inexperienced supply chain management buyer can be a disadvantage to a company. She has the potential to wreak havoc on the productivity and profits of the company if she is incapable of ordering supplies in a timely manner within a budgeted amount. This is why it’s important for companies to take time to interview and select the right buyer for their organization.