Strategic buyer

In addition, developing and implementing new procurement strategies and optimizing procurement processes to save costs are also important responsibilities. These responsibilities are one thing, but in the process a strategic buyer is also charged with managing supplier relationships in the best possible way.

Identifying potential risks and implementing appropriate measures to mitigate them is also something the buyer can consider. This is what we discuss in more detail further down the page.

It helps when a strategic buyer has excellent communication skills, knowledge of the particular market and technologies. Skillful mastery of procurement processes is a crucial factor in successfully contributing to business results as a long-term purchaser.

In addition to a strategic buyer, there are often several buyers operating within an organization. These include tactical buyers and operational buyers. These are both important parts of an organization’s procurement process. For now, we will elaborate on the difference between the strategic buyer and the similar function operational buyer.

Purchasers who operate operationally focus primarily on placing orders and managing day-to-day purchasing activities. They ensure that business operations run smoothly. On the other hand, the strategic buyer is concerned with making the long-term approach. This includes, for example, the procurement of goods and services.

These goods and services the organization needs to achieve its long-term goals. Strategic procurement, then, is more focused on the future of the organization and tries to smartly and effectively anticipate changes within the market. A buyer must keep the needs and wants of the customer in mind at all times when performing his duties. Various aspects such as risk management, supplier management and identifying potential opportunities to generate more profits are taken into account.

A strategic buyer obviously works and thinks at a strategic level. In most cases, you will work as a buyer within a multidisciplinary team in an organization’s purchasing or supply department. Such an organization is, for example, a wholesaler, manufacturing company or retail chain. Your role, for example, as indicated earlier, is to develop and implement effective strategies to procure goods, services and materials in the most beneficial manner.

You will liaise with suppliers, identify opportunities for cost savings and negotiate contracts with suppliers. Strategic buyers are also responsible for researching market trends and understanding customer needs to ensure that the best products and services are procured at the most competitive prices. Ultimately, it depends entirely on your specific tasks and, not to mention, your own desires where you will eventually work.

A strategic buyer’s workday typically consists of procurement-focused activities. Researching and analyzing the market to identify opportunities for cost savings can be a task. For example, as a buyer, you will have to negotiate with suppliers to get the best prices and terms. Often, as an experienced buyer, you have short lines of communication with a specific person within large organizations where you procure.

In addition, you may also be responsible for keeping up with industry trends, assessing the latest technologies or materials that can benefit the organization. As a strategic buyer, you must also have strong analytical skills to make informed decisions about the purchase of goods and services.

Some of the tasks a strategic buyer may have are listed below.

• Set up market analyses and surveys to identify opportunities such as cost savings. This will allow you as a strategic buyer to, among other things, provide purchasing advice within the organization
• Negotiate with suppliers to get the most favorable purchasing terms.
• Oversee complex procurement processes from start to finish.
• Establish and monitor contracts with certain vendors
• Create strategic purchasing plans for different product categories
• Develop criteria for evaluating suppliers. Hereby checking that contractual obligations are fulfilled

Becoming an effective strategic buyer requires several key skills, including:

• Excellent communication and negotiation skills
• Building relationships with suppliers
• Understanding the market, technologies and trends
• Ability to analyze data to make purchasing decisions that fit business objectives
• Managing multiple projects and priorities simultaneously
• Making decisions and managing risk.
• Have strong business acumen to align procurement strategy with stated goals.

All of these factors will contribute to taking the organization to the next level.