Procurement Manager Salary
|Salary||$50,140 - $119,415|
|Bonus||$1,041 - $17,844|
|Profit Sharing||$0.00 - $14,740|
|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).)
|$49,035 - $125,734|
|Hourly Rate||$15.15 - $36.30|
|Overtime||$21.00 - $41.15|
|Bonus||$1,041 - $17,844|
|Profit Sharing||$0.00 - $14,740|
|Total Pay (||$49,035 - $125,734|
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
Though it's uncommon, some Procurement Managers move into roles as Directors of Supply Chain Management, where pay is an average $122K per year. Procurement Managers typically move into roles as Procurement Directors or Senior Strategic Sourcing Managers, and those positions pay $34K more and $22K more, respectively.
Procurement Manager Job Listings
Popular Employer Salaries for Procurement Manager
Salary cannot be beat at The Boeing Company, where median pay comes to $115K. The range seems somewhat confined, however; the lower end sits at $105K, and the higher end is not far away at $130K.
Popular Skills for Procurement Manager
Procurement Managers seem to require a rather large skill set. Most notably, skills in Contract Negotiation, Supplier Management, Contract Management, and Negotiation are correlated to pay that is above average, with boosts between 8 percent and 11 percent. Those listing Microsoft Excel as a skill should be prepared for drastically lower pay. Vendor Management and Purchasing also typically command lower compensation. Most people who know Contract Negotiation also know Contract Management. It is often found that people who know Procurement are also skilled in Negotiation, Contract Management, and Supply Chain.
Pay by Experience Level for Procurement Manager
Pay by Experience for a Procurement Manager has a positive trend. An entry-level Procurement Manager with less than 5 years of experience can expect to earn an average total compensation of $66,000 based on 435 salaries provided by anonymous users. Average total compensation includes tips, bonus, and overtime pay. A Procurement Manager with mid-career experience which includes employees with 5 to 10 years of experience can expect to earn an average total compensation of $83,000 based on 500 salaries. An experienced Procurement Manager which includes employees with 10 to 20 years of experience can expect to earn an average total compensation of $92,000 based on 475 salaries. A Procurement Manager with late-career experience which includes employees with greater than 20 years of experience can expect to earn an average total compensation of $97,000 based on 223 salaries.
Pay Difference by Location
With a pay rate for Procurement Managers that is 24 percent greater than the national average, Houston offers a comfortable salary for those in this profession. Procurement Managers will also find cushy salaries in Washington (+17 percent), Chicago (+16 percent), Cincinnati (+15 percent), and New York (+11 percent). Place of residence plays a huge part in a Procurement Manager's salary, with Tampa Procurement Managers earning salaries that are 28 percent less than the national average. Not at the bottom but still paying below the median are employers in Dallas and Seattle (15 percent lower and 10 percent lower, respectively).
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