Director of Purchasing Salary
Directors of Purchasing in the United States with more than 10 years of experience in their profession represent more than two-thirds of Directors of Purchasing. Salaries average out to around $93K annually and spread from $50K to $150K per year. Total incomes of Directors of Purchasing incorporate potential for, in a few cases, more than $30K from bonuses and close to $20K from profit sharing; these performance components cause packages to range between $50K and $150K. Career length is the biggest factor affecting pay for this group, followed by geography. Most Directors of Purchasing report high levels of job satisfaction. Most report receiving medical coverage from their employers and a strong majority collect dental insurance. Male Directors of Purchasing are more prevalent than women among those who took the survey — 68 percent of professionals. The figures in this rundown are based on the results of 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
- 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.
- 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.
Purchasing Director Job Listings
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Popular Skills for Director of Purchasing
Overall, survey participants reported applying a fair number of skills to their work. Most notably, facility with Sourcing, Project Management, and Purchasing are correlated to pay that is significantly above average, leading to increases of 64 percent, 38 percent, and 31 percent, respectively. At the other end of the pay range are skills like Negotiation, Inventory Management, and People 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.
In general, experience and pay appear to be strongly linked; those with more experience usually bring in higher incomes. Those who have worked for fewer than five years take home a median salary of $62K, and workers with five to 10 years of experience earn a higher $80K on average. After 10 to 20 years, professionals can make it pretty big; the median salary sits in the six-figure neighborhood of $105K. 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
For Directors of Purchasing, working in the bustling city of Chicago has its advantages, including an above-average pay rate. Directors of Purchasing can also look forward to large paychecks in cities like Atlanta (+16 percent), Miami (+13 percent), Los Angeles (+13 percent), and Orlando (+13 percent). The smallest paychecks in the market, 18 percent south of the national average, can be found in Cleveland. Below-median salaries also turn up in New York and Dallas (5 percent lower and 3 percent lower, respectively).