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
- 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.
- Review, analyze and monitor quotes and bids, negotiate contracts and service agreements.
- Oversee purchasing sources for services, equipment and supplies.
Common Career Paths for Procurement Director
A lot of Procurement Directors move on to become VPs of Procurement, that group gets paid a slightly higher $154K on average. Procurement Directors most frequently advance into Director of Supply Chain Management and Purchasing Director roles even though the median salaries are $7K lower and $44K lower, respectively.
Procurement Director Job Listings
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Popular Skills for Procurement Director
Survey respondents exploit a significant toolbox of skills in their work. Most notably, facility with Sourcing, Supplier Management, and Strategic Planning are correlated to pay that is significantly above average, leading to increases of 24 percent, 23 percent, and 7 percent, respectively. Those listing Contract Management as a skill should be prepared for drastically lower pay. Windows NT / 2000 / XP Networking and Microsoft Office also typically command lower compensation. For most people, competency in Contract Negotiation indicates knowledge of 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. Individuals with fewer than five years of experience earn $86K on average, but those in the five-to-10 year group see a six-figure median of $107K. Procurement Directors who work for 10 to 20 years in their occupation tend to earn about $138K. More than 20 years of experience mean a somewhat bigger median paycheck of $146K, but it's not much more than what less experienced people make.
Pay Difference by Location
For those looking to make money, Procurement Directors in San Francisco enjoy an exceptional pay rate, 39 percent above the national average. Procurement Directors can also look forward to large paychecks in cities like Chicago (+28 percent), Houston (+22 percent), Boston (+17 percent), and New York (+16 percent). Procurement Directors in St. Louis make 34 percent less than the national average, proving that location is a major factor in pay. Employers pay around 8 percent less in Washington and 5 percent less in Tampa, below-median salaries for those in this field.
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Key Stats for Procurement Director
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