Purchase management in beauty and cosmetics

Purchase Managers in mid-size beauty and cosmetic companies are key players. They must balance customer demands, supplier relationships, cost efficiency, and quality control, and, when done right, they contribute greatly to the overall operational success of a company. However, the role does not come without challenges. This article examines the key pain points of a Purchase Manager in a mid-size cosmetic company and outlines strategies that can be implemented in order to address those issues.

1. Managing supplier relationships

A Purchase Manager must ensure that their suppliers are reliable and give competitive pricing. It is important to maintain open communication with vendors and cultivate positive relationships that benefit the company. Ideally, a brand strives to cultivate long term relationships with suppliers in order to meet demands of the end consumer as well as legal requirements. 

2. Forecasting demand

It is the responsibility of the Purchase Manager to accurately forecast customer demand and plan the appropriate amount of product needed in order to meet customer expectations. The cosmetic industry is also unique in the sense that its products can have a limited shelf life, making forecasting and inventory management even more crucial. 

3. Ensuring cost efficiency

The Purchase Manager must make sure that the products they purchase are cost-efficient while still meeting customer demands and maintaining proper quality standards. Review of materials, packaging and processes is essential for potential process streamlining to minimise wasteful spending. 

4. Maintaining quality control‍

The manager must ensure that the products they are purchasing meet the company’s quality standards, and suppliers must adhere to these standards either by implementing a rigorous process or hiring a third party company to carry out inspections and testing. 

5. Strategies to Address Pain Points

The following strategies can be employed to help manage the above-mentioned pain points:

6. Analysing and understanding data

The Purchase Manager must analyse data related to purchasing, in order to make informed decisions. It is also beneficial for the Purchaser to know the products well, understand trends, and sales performance. A combination of these items will help to make the right decision when it comes to purchasing the correct assortment volume. 

7. Maintaining strong relationships with vendors

It is important for the Purchase Manager to foster strong and mutually beneficial relationships with their suppliers. This helps to spearhead initiatives and create industry transparency as it relates to sustainability. Suppliers that have long term recurring business will always prioritise production of those items and be more inclined to invest in various initiatives. 

8. Streamlining processes and operations

Implementing efficient and streamlined processes in the purchasing process can help the Purchase Manager save time and money. This can include, sourcing packaging material from the same supplier, having a well documented quality process and standard and developing a close relationship with the development and design team to ensure timely delivery. 

9. Implementing cost-cutting measures

The Purchase Manager should look for opportunities to cut costs while still meeting customer demands. It’s always beneficial to benchmark processes and products with the industry. Requesting quotes and samples from new suppliers is always a good way to benchmark current supplier and product offering. 

To summarize, the role of the Purchase Manager in a mid-size cosmetic company is complex and multi-faceted. However, with the right strategies in place, the Purchase Manager can efficiently manage these challenges and ensure their company is set up for success. If you are struggling in your role as a purchase manager, take a step back and review of you've been given the best prerequisites in order to manage your responsibilities. Use the points provided above to put together an overall strategy and make sure your have the proper tools to execute on it.