Procurement was once considered an occupation, but spurred by the rise of

globalization has evolved into a recognized profession. Businesses in all

industries, in both the private and public sectors, depend on the expertise of
procurement specialists to obtain the products, materials, and services
needed to conduct operations and do that at an acceptable cost.

A manufacturing company may spend 70% of its revenue on purchases from

outside suppliers, according to Dr. Tobias Schoenherr of Michigan State
University. For a company the size of GE, that could amount to $100 billion, he
said in a lecture on supply base management.

A non-manufacturing company typically spends 40% of its revenue on outside

suppliers, he said.

The duties performed by procurement specialists vary widely according to the

nature and size of the business and may even vary daily. Here, we’ll look at
some of the multiple roles a procurement specialist may fill, as well as the
knowledge needed to perform them.

Procurement Specialist Roles

While the primary duties of a procurement manager or specialist are linked to

sourcing goods and services for the organization, they also can handle
additional duties:

 Research: Procurement managers evaluate and compare products and

services to determine which best meet the organization’s needs.
 Cost analysis: Obtaining goods at the right cost can determine whether
the company achieves profitability. Cost is also a factor when setting
prices for the company’s products or services which must be in line with
what the market will support.
 Inventory control: Often, the procurement specialist oversees
the inventory of raw materials or other goods and places orders when
supplies run low.
 Negotiating contracts: Negotiation is a major share of the procurement
specialist’s job. After securing the best pricing, terms and delivery
options for each product or service, they settle the contract.
  Projecting future needs: Not only do procurement specialists manage
current needs, they strategize with various departments and suppliers to
ensure the organization’s future needs will be seamlessly met.
Knowledge Required to Succeed in Procurement

Most procurement specialists hold at least a bachelor’s degree in business,

finance or a related field, according to the U.S. Bureau of Labor Statistics. In
addition, the BLS said, many seek advanced education to hone skills specific
to their profession.

In specialized professional education programs, procurement courses cover

such topics as:

 Strategies and tools for evaluating supplier performance

 How to develop quality relationships with suppliers
 Effective tactics for negotiating costs and contracts
 Managing inventory with quantity and quality merchandise control
 Establishing e-procurement in the organization
 How to promote ethical behavior in an organization
 Driving environmental sourcing and sustainability

Additional education beyond the bachelor’s degree is a path for supply chain
professionals who wish to improve their skills and knowledge and seek to
advance their career to become a procurement specialist or manager. It also
is valuable for professionals from other fields looking to move into
procurement or other areas of supply chain management.

How Procurement Specialist Roles Are Evolving

Some companies have increased their reliance on external procurement

specialists to source everything from payroll software packages to marketing
and legal services. These specialists have a deep understanding of specific
industries and of the intricacies of negotiating contracts in their area of
expertise.

In-house procurement managers are becoming more specialized, as well. New

technology enables them to take on more complex and strategic roles in
many organizations. They are becoming more empowered to analyze
business operations, identify potential problems and recommend solutions.

The role of purchasing and attention were given to procurement has changed,

Schoenherr said.

“If we go back 30 or 40 years, purchasing was primarily a clerical activity. The

focus at that time was primarily on doing that work efficiently,” he said.

“Over time, attention turned to really the amount of money that we were
spending with outside suppliers. The focus moved from clerical efficiency to
make sure that we were getting the lowest prices for the products and
services we were buying for the enterprise.”

Today, companies are looking at whether suppliers provide the best value to
the company.

“In leading organizations, the focus in the purchasing function today is really
on buying for the best value to the business,” Schoenherr said. And that is
when purchasing turns into a competitive advantage.

They are also focusing more on developing good supplier relationships,

improving internal communications and leveraging the power brought by
emerging technological tools.

“Having the appropriate kinds of relationships with suppliers and managing

those relationships effectively is critical to making sure we can execute this
kind of best value purchase,” he said.

Companies are not buying just the product or services from a supplier. They
are buying its capabilities and expertise, according to Schoenherr.

Reducing risk is another important role for procurement specialists.

There are four basic dimensions of risk to a supply chain, Schoenherr said:

 Disruption of the physical flow of the product through the supply chain
 Sudden and unexpected increases in costs or prices
  Security of the product or its condition as it moves along the supply
chain
 Activities by suppliers that could reflect badly on the enterprise

By closely analyzing suppliers, they can identify those at risk of failure and
prevent possible supply chain disruptions.

Job Outlook for Procurement Specialists

Procurement professionals can expect a steady job market in the coming

years as cost-conscious organizations continue to rely on their expertise to
source goods and services at the right cost.

The BLS classifies procurement specialists as purchasing agents. The agency

projects a 3% increase in jobs through 2022 for those workers. However, the
BLS predicts healthcare and companies involved in computer design and
related services will see strong job growth.

Salary Range

Salary levels remain strong for procurement specialists. According to the BLS,
the median annual salary for purchasing buyers and agents was $61,000 in
2014, while the top 10% of earners were paid $98,000.

The District of Columbia along with four states, Virginia, New Jersey,
Maryland, and Alaska, offered the highest average salaries for purchasing
agents and buyers in 2013, ranging from $71,000 in Alaska to $88,000 in the
District of Columbia, according to the BLS.

Purchasing managers, who usually have at least five years of experience in

procurement, typically command higher pay and the BLS reports a 2014
median salary of $106,000 for this category with the top 10% earning
$169,000. Rhode Island, New York, the District of Columbia, New Jersey and
Maryland had the top average salaries for purchasing managers in 2014,
going from $133,500 in Rhode Island to $127,700 in Maryland, the BLS said.

The challenging and ever-changing role of procurement in the supply chain

provides solid potential as a career choice for people who are familiar
with supply chain operations and wish to expand their knowledge and skills in
this area.
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Ten Common Problems Students Face During University
While time spent at university is a fond memory and a happy experience for most, university
life is not without its rough patches. Every student’s situation is unique, but there are a few
problems that almost all university students deal with at least once during their time at
school. If you are on your way to college, get a jump on how to deal with the challenges that
may come your way.
1. Study.
Problem: University is academically challenging. For many, university courses require
much more effort than high school classes. Unlike most high schools, universities often
pack two years of content into one year. Many students take a full 15 credit semester, while
other try to cram in up to 18 or even 21 credits. At times, it seems impossibe to stay on top
of it all.
Solution: Know your limits. If you can’t handle 18 credit semesters, it is worth it in the long
run to slow down and take only 15. While the purpose of university is to study and to further
your education, that doesn’t mean studying all of the time. It is important to schedule time
for fun and to take breaks from studying to keep your mind fresh and clear.
2. Money
Problem: Tuition costs are rising at alarmingly high rates. Add to that the cost of meals,
supplies, transportation, and textbooks, and you have a university student’s worst
nightmare. University students drop out of school each year because they cannot afford the
price. Others are forced to juggle full academic schedules with full time jobs to make ends
meet. It is becoming increasingly difficult for students to graduate debt-free.
Solution: Student loans are relatively easy to get. Many students, however, don’t know how
repayment works and just how many years they may spend paying off their loans. Consider
an on-campus job. Working on-campus will cut out potential transportation expenses and
help you stay more focused academically. If you had a job in high school and are going to
university locally, see if you can keep working while in school. If you are going away to
school, inquire about transferring to a job location near your school. In addition, create a
budget for shopping trips and eating out and stick to it.
3. Working While in School
Problem: To afford the high price of college tuition, many students must get a job. Juggling
a job, 15 to 18 credits, and a club or sports team is a big commitment. Many students try to
cram all of these activities into one day and do not get enough sleep. Without proper rest,
students are vulnerable to health problems.
Solution: Decide what is important. Prioritize and schedule events, games, meetings, and
studies accordingly. Also, be aware of your options when getting a job. Universities often
offer jobs to students that fit into a student’s schedule.
4. Homesickness
Homesickness is a common and normal challenge for university students, especially for
those who are very far from home and in their first year of school. If you can, visit home
once every month or two and ask your family to send care packages.
Problem: Whether they admit it or not, most students will at one point get homesick. It is
especially common for students who go to a school that is more than three hours from
home to feel homesick. Freshmen suffer more, as it is presumably their first year away from
home.
Solution: If you live within three or four hours from home (a comfortable day’s drive) then
plan to visit home once every month or two. Ask friends and family to send care packages,
emails, and phone calls. These steps should greatly assist in reducing feelings of
homesickness.
5. Depression
Problem: Every problem on this list can raise a student’s stress level. Some find relief in
partying, and others (even some who party) may find themselves getting depressed.
Solution: If stress and depression are an issue, seek professional support. Many
campuses have free counseling programs for students. Counselors are trained to listen and
help students get back on track. (This doesn’t mean the partying has to stop either, so long
as students are partying responsibly and legally.)
6. Sickness/Health Conditions
Problem: Heightened stress and lack of sleep can cause health problems. Living in close
quarters also poses health risks and can increase a student’s chances of contracing some
sort of virus.
Solution: Eat healthy, balanced meals. Get a good night’s rest as well. Keep your hands
illness does develop, visit your campus clinic.
7. Friends/Roommates
Problem: Friends and roommates are important for fun social activities. However, spending
time together can be challenging. Conflicts can arise.
Solution: Take some time out for yourself. If possible, get away from campus for a break
and visit a coffee shop or a mall. If conflicts do arise and you need help, get your RA or
another friend involved.
8. Partying
Problem: Partying in itself is not a problem. Parties were designed so that students can
have a good time. However, some parties can cause problems. Too much alcohol can lead
to drunkenness and potentially deadly situations. Having sex without taking the necessary
precautions can spread disease.
Solution: While parties are important for blowing off steam, enjoy them in a responsible
and legal way so you don’t create problems for yourself or others. Get to know your limits.
Ask for a ride home if you’ve had a lot to drink. Make sure to eat and drink enough water
when consuming alcohol. Carry a condom with you when you go to a party.
9. Relationships
Problem: Relationships are good, but they can be overwhelming. There are times in every
relationship when a couple will have a disagreement or issue. Disagreements between
couples can distract students from school work and add to stress levels. Break-ups can
drive some students even further into depression.
Solution: Relationship advice is hard to give. It varies on a case-by-case basis. Try and
reconcile their differences but if you do break up, consult with a school counselor to work
through the experience.
10. Choosing a Major
Problem: There is a lot of pressure to choose a major. It is easy to think that your major will
determine your future career and how much money you will make.
Solution: University majors are important, but they do not chisel your future career or
wages into stone. Choose something that you like. If you are unsure about what major to
choose, choose something broad and versatile, such as communications. Many students
who get their undergraduate degree in one field progress to get a Master’s degree in a
different area. Worrying too much about your major is simply not worth it. Focus instead on
gaining knowledge and life skills.
Is University Worth it All?
These are just ten of the major challenges that college students face. In the end, is college
worth facing these problems and struggles? Ask college students, and probably eight out of
ten will say it is. While students can get stressed to the limit, the good times outweigh the
bad.
-Garfield Gates (Article here)
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Education.co.za is the ultimate resource for South African - specific information on
education. From distance learning, home schooling and special education to practice
resources and system discussion, education.co.za has all the answers.
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The benefits of university education
The job market is extremely competitive and skilled employees are high in demand.

Degrees are required for a wide range of careers such as Medicine, Education,
Engineering, Accounting and Law.

A university education will help your child succeed in today's workforce and establish an
enjoyable career of their choice.

Improve your prospects for life

 University graduates gain professional qualifications that are recognised and respected
worldwide.
 University graduates are offered higher pay and greater financial stability.
 University graduates are given the option to fast-track their career with graduate study.

Learn and discover

 University education exposes students to new research and technology.

 Studying at university encourages creative and independent thought.
 Students are given the chance to travel and experience life overseas through study
abroad programs.
 University life exposes students to other cultures and backgrounds.

Achieve and excel

 Students conquer intellectual challenges and develop a sense of achievement.

 University builds initiative and leadership skills that can be used for life.

Establish professional connections

 University is where students build their first adult networks.

 Students meet friends and mentors that become future contacts and colleagues
 Students mix with inspiring academic staff who are leading experts in their field.