Procurement Manager Salary
Job Description for Procurement Manager
A procurement manager is the primary point of contact between a business and its suppliers. Using superb analytical skills, a procurement manager identifies potential suppliers, screens them, and negotiates favorable payment terms with selected suppliers. After formalizing the supply contract with the aid of legal professionals, the procurement manager then monitors supplier performance to ensure contractual obligations are met and to help make the supply procurement process as cost-effective and efficient as possible.Read More...
Aside from dealing with external suppliers, a procurement manager also works with managers, engineers, and executives within the company to engage in capital projects. By being involved early in the process, a procurement manager can ensure essential supplies are procured. Furthermore, a procurement manager monitors changes in the industry and develops forecasts to determine appropriate budgets. These forecasts are used to to develop comprehensive strategies to further the company's operational goals.
Due to the technical and analytic nature of the position, a procurement manager often has at least a bachelor's degree in a technical discipline. Also, a procurement manager will often have certification as a professional in supply management (CPSM) or will be a certified purchasing manager (CPM). A procurement manager also must be an excellent negotiator with in-depth knowledge of supply chain structures. Finally, a procurement manager must be able to effectively communicate with all levels of a business, and reconcile differences in understanding and vision. An effective procurement manager must be able to use diplomacy to keep various groups within a company on the same page and working towards the same goals.
Procurement Manager Tasks
- Negotiate contracts, policies and deadlines with suppliers and vendors.
- Monitor prices by product and vendor to predict and account for financial fluctuations.
- Manage flow of goods and supplies for optimum production, analyzing and adapting internal policies.
- Prepare and process purchase orders and purchase requisitions, and maintain documentation of the acquisition of goods.
- Manage staff and vendors for timely arrival of products and goods.
Common Career Paths for Procurement Manager
As Procurement Managers transition into upper-level roles such as Director of Supply Chain Management, they may see a strong upturn in salary. Directors of Supply Chain Management earn $121K on average per year. A common career progression for a Procurement Manager is to become a Procurement Director or a Senior Strategic Sourcing Manager. Compared to Procurement Managers, the first group earns $34K more on average, and the second group earns $24K more.
Procurement Manager Job Listings
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Popular Employer Salaries for Procurement Manager
Although salaries only range from $105K to just $130K, The Boeing Company still offers the highest pay with a median paycheck of $115K.
Popular Skills for Procurement Manager
Procurement Managers seem to require a rather large skill set. Most notably, skills in Supplier Management, Contract Negotiation, Contract Management, and Sourcing are correlated to pay that is above average, with boosts between 9 percent and 15 percent. Those listing Microsoft Excel as a skill should be prepared for drastically lower pay. Purchasing and Logistics also typically command lower compensation. Most people skilled in Procurement are similarly competent in Negotiation, Contract Management, and Supply Chain. Those familiar with Contract Negotiation also tend to know Contract Management.
Pay by Experience Level for Procurement Manager
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For many Procurement Managers, extensive experience does not lead to significantly more money. Relatively untried employees who have less than five years' experience make $66K, but folks with five to 10 years under their belts enjoy an appreciably larger median of $82K. After working for 10 to 20 years, Procurement Managers make a median salary of $92K. Individuals who report more than two decades of experience seem to make only slightly more than folks in the 10-to-20 year range; the more senior group sees median earnings in the comparatively modest ballpark of $98K.
Pay Difference by Location
For Procurement Managers, working in the bustling city of San Francisco has its advantages, including an above-average pay rate. Procurement Managers can also look forward to large paychecks in cities like Houston (+24 percent), Cincinnati (+18 percent), Los Angeles (+17 percent), and Chicago (+13 percent). One of the biggest compensable factors for Procurement Managers is geography, with workers in Dallas earning a whopping 21 percent below the national average. Workers in Orlando and Tampa earn salaries that trail the national average for those in this profession (12 percent less and 11 percent less, respectively).
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Key Stats for Procurement Manager
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