Director of Purchasing Salary
Directors of Purchasing in the United States with more than 10 years of experience in their profession represent somewhere between two-thirds and three-fourths of Directors of Purchasing. Salaries average out to around $93K annually and spread from $50K to $150K per year. Final cash compensation to Directors of Purchasing varies from around $50K to approximately $150K; choice pay grades include potential for bonuses and profit sharing as high as $30K and $20K, respectively. Experience level is the biggest factor affecting pay for this group, followed by geography. Most people who answered the questionnaire are men; 67 percent of Directors of Purchasing are male. The majority of Directors of Purchasing claim high levels of job satisfaction. Most enjoy medical while a strong majority get dental coverage. Vision coverage is also available to the greater part. This report is based on answers to PayScale's salary questionnaire.
Job Description for Director of Purchasing
The director of purchasing oversees purchasing operations for their company.Read More...
They establish an effective chain of command for their department to manage all purchasing and inventory. Directors of purchasing work with company vendors to get the best price for all purchases. Additionally, they are responsible for delivery schedules, vendor contracts, and accountability of all purchases. Directors of purchasing must also work with other heads of departments to assess, evaluate, and fulfill their inventory requirements. All purchases must be counted and transferred to the proper departments within the company. They also make predictions as to when, how, and how much inventory needs to be purchased for their company.
Directors of purchasing work primarily indoors, but they often have to visit warehouses in different parts of the company that have variable temperature controls. Long hours and frequent travel may be required for this role.
Large companies and government organizations often require directors of purchasing to have master’s degrees in a relevant field. For smaller companies, director of purchasing position may only require a bachelor’s degree. Most companies require a minimum of five years' experience in a purchasing department. Directors of purchasing must be proficient in inventory-control software to effectively track purchasing orders. Because directors of purchasing must manage multiple employees in their department, they must have strong management skills. They must have excellent financial and budget-management skills as well.
Director of Purchasing Tasks
- Maintain inventory levels, planning when to make purchases and how to distribute goods.
- Hire, train, and supervise staff in charge of vendor transactions and inventory.
- Handle paperwork for purchase orders and keep records of inventory and transactions.
- Research vendors, determine which ones have the best services and prices, and negotiate contracts with vendors.
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Popular Skills for Director of Purchasing
Survey results show that Directors of Purchasing use a fair number of skills. Most notably, facility with Sourcing, Project Management, and Purchasing are correlated to pay that is significantly above average, leading to increases of 63 percent, 38 percent, and 31 percent, respectively. Skills that are correlated to lower pay, on the other hand, include Negotiation and Inventory Management. It is often found that people who know Contract Negotiation are also skilled in Forecasting.
Pay by Experience Level for Director of Purchasing
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For many Directors of Purchasing, more experience generally translates to higher pay. People who have worked for fewer than five years bring home $71K on average. Median compensation in the five-to-10 year group, however, is higher at approximately $80K. Experienced professionals — those with 10 to 20 years in the field — see salaries in the six-figure territory, securing around $105K on average. Respondents who claim more than 20 years of experience may encounter pay that doesn't quite reflect their extensive experience; these veterans report a median income of around $110K.
Pay Difference by Location
Surpassing the national average by 26 percent, Directors of Purchasing in Chicago receive some of the highest pay in the country. Directors of Purchasing can also look forward to large paychecks in cities like Miami (+24 percent), Atlanta (+23 percent), Orlando (+22 percent), and Los Angeles (+12 percent). Dallas ranks last in the field for pay, reporting salaries 14 percent below the national average. Workers in New York and Detroit earn salaries that trail the national average for those in this profession (5 percent less and 3 percent less, respectively).
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Key Stats for Director of Purchasing
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