Procurement Director Salary
Job Description for Procurement Director
Procurement directors generally are upper-level managers that are part of the logistics of planning departments. They are typically responsible for overseeing the purchasing, logistics, and operations staff, ensuring that all departmental employees are providing excellent quality of work and meeting all company standards. Procurement directors provides leadership to supply chain and operations employees, as well as ensure all purchasing requests are completed in an efficient manner. The procurement director is also responsible for establishing approval guidelines for all purchase orders and ensuring all purchases are approved by the proper individuals. Additionally, procurement directors are responsible for cost-reduction initiatives, inventory management, and material budgets. The procurement director also provides analysis on all corporate suppliers. These directors work in a wide variety of industries, but these positions are most often found in manufacturing and engineering companies that do a high level of intricate purchasing.Read More...
Procurement directors work with a wide variety of professionals within their organization, including engineers, project managers, sales representatives, production workers, accounting and finance employees, and administrative workers. Additionally, they communicate extensively without outside suppliers. A procurement director usually works full time in an office setting and reports directly to the chief financial officer (CFO) of an organization.
Procurement director jobs generally require at least a bachelor's degree in a relevant field and a minimum of 10 years' related experience, including five years prior management experience. Excellent organizational and multitasking skills are also required. They must have extensive experience in their field and possess the ability to lead and direct the work of other team members.
Procurement Director Tasks
- Review, analyze and monitor quotes and bids, negotiate contracts and service agreements.
- Oversee purchasing sources for services, equipment and supplies.
- Plan and direct policies and procedures for the purchasing of an organization's goods and services.
- Maintain updated knowledge of market status and current rates for goods and services.
Common Career Paths for Procurement Director
Procurement Directors might see a strong upturn in salary after transitioning into upper-level roles such as VP of Procurement, a seemingly popular career choice. People currently working in the latter position report a noticeably higher median income of $154K per year. Procurement Directors most frequently advance into Director of Supply Chain Management and Purchasing Director roles even though the median salaries are $6K lower and $43K lower, respectively.
Procurement Director Job Listings
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Popular Skills for Procurement Director
Procurement Directors report using a large range of skills on the job. Most notably, facility with Sourcing, Strategic Planning, and Vendor Management are correlated to pay that is significantly above average, leading to increases of 26 percent, 21 percent, and 4 percent, respectively. Those listing Contract Management as a skill should be prepared for drastically lower pay. Project Management and Microsoft Word also typically command lower compensation. It is often found that people who know Contract Negotiation are also skilled in Microsoft Office and Microsoft Word.
Pay by Experience Level for Procurement Director
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Procurement Directors who reported more years of relevant experience also reported higher earnings. Respondents with less than five years' experience take home $80K on average. In contrast, those who have been around for five to 10 years earn a noticeably higher average of $108K. Procurement Directors claiming one to two decades of experience make an estimated median of $136K. People who have worked for more than 20 years report a median income of $147K, which is barely higher than the median for folks with 10 to 20 years of experience.
Pay Difference by Location
San Francisco offers some of the highest pay in the country for Procurement Directors, 41 percent above the national average. Procurement Directors can also look forward to large paychecks in cities like Chicago (+31 percent), Houston (+21 percent), Atlanta (+18 percent), and Dallas (+17 percent). Procurement Directors in St. Louis take home the lowest salaries, earning a whopping 35 percent less than the national average. Two other places where employers salaries are below the median are Washington and Tampa (4 percent lower).