Procurement Manager Salary
|Salary||$49,632 - $119,057|
|Bonus||$998 - $18,339|
|Profit Sharing||$0.00 - $15,361|
|Total Pay (|
XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).)
|$48,736 - $125,964|
|Hourly Rate||$15.00 - $36.90|
|Overtime||$21.69 - $55.41|
|Bonus||$998 - $18,339|
|Profit Sharing||$0.00 - $15,361|
|Total Pay (||$48,736 - $125,964|
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
Procurement Managers may experience a large salary bump if they progress into a role such as Director of Supply Chain Management. The latter position pays an average of $122K annually. Procurement Managers most often move into positions as Procurement Directors or Senior Strategic Sourcing Managers; those groups report median salaries that are $34K higher and $23K higher, respectively.
Popular Employer Salaries for Procurement Manager
Pay for Procurement Managers is best at The Boeing Company, which offers a median salary of $115K. However, the highest reported salaries don't seem to be much higher than the lowest ones; the pay range here runs from $105K to $130K.
Popular Skills for Procurement Manager
Procurement Managers seem to exploit a large range of skills on the job. 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 12 percent. Those listing Microsoft Excel as a skill should be prepared for drastically lower pay. Purchasing and Logistics also typically command lower compensation. Those proficient in Procurement are, more often than not, also skilled in Negotiation, Contract Management, and Supply Chain. The majority of those who know Contract Negotiation also know Contract Management.
Pay by Experience Level for Procurement Manager
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Procurement Managers with more experience do not necessarily bring home bigger paychecks. In fact, experience in this field tends to impact compensation minimally. Survey participants with less than five years' experience pocket $65K on average, but those with five to 10 years of experience enjoy a much bigger median of $83K. Procurement Managers claiming one to two decades of experience make an estimated median of $92K. Procurement Managers who have stuck around for more than two decades see earnings that are only slightly higher than those of folks who have worked for 10 to 20 years; the more senior group makes around $98K on average.
Pay Difference by Location
For Procurement Managers, busy San Francisco offers a higher-than-average pay rate, 36 percent above the national average. Procurement Managers will also find cushy salaries in Houston (+25 percent), Cincinnati (+17 percent), Chicago (+12 percent), and New York (+9 percent). The smallest paychecks in the market, 17 percent south of the national average, can be found in Dallas. Employers also pay below the national average in Tampa (14 percent lower) and Seattle (9 percent lower).
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Key Stats for Procurement Manager
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