Strategic Sourcing Manager Salary
Average Strategic Sourcing Managers in the United States make around $88K annually. Overall cash earnings for Strategic Sourcing Managers stretch from $64K on the lower end to $132K near the top, and the heftiest packages can encompass around $19K from bonuses and $10K from profit sharing. Compensation for this group is mainly affected by location, but career length and the particular employer are influential factors as well. Men make up the majority of Strategic Sourcing Managers (62 percent) survey respondents. Most workers in this position report high levels of job satisfaction. Nearly all report receiving medical coverage from their employers and most collect dental insurance. The figures in this overview were provided by individuals who took PayScale's salary questionnaire.
Job Description for Strategic Sourcing Manager
Strategic sourcing managers are responsible for directing and analyzing how a business spends money. Their ultimate goal is to make sure the business is cost effective so it maintains higher profit margins and a competitive advantage. The research that strategic sourcing managers conduct drives the purchasing decisions for the business. They are expected to rigorously locate and analyze new opportunities and developments for the business. When plans are adopted, these managers also may have to lead conversion management within their organization.Read More...
Strategic sourcing managers deal with many suppliers and vendors to negotiate pricing. They work closely with purchasing and procurement departments because the plans that they create directs their activities. In addition, they take direction from and report to senior management. They are ultimately responsible to business stakeholders and may have to present business cases and analyses to stakeholders for approval.
Typically, strategic sourcing managers work in a business setting during regular business hours. At times, they may be required to travel to develop, promote, or maintain business relationships.
Most companies require strategic sourcing managers to have at least a bachelor’s degree in economics, finance, logistics, or a related field. A master’s degree in business is preferred for this position. Strong communication and negotiation skills are required to broker the deals that will be advantageous to the company with suppliers. Additionally, depending on the field, candidates may be required to have at least four years of experience in the business' industry.
Strategic Sourcing Manager Tasks
- Hire, train, and manage sourcing team.
- Negotiate with suppliers and vendors for contracts for timely supplies at fair prices and in compliance with regulations.
- Manage procurement and sourcing policies and activities, including overseeing specific contracts.
- Conduct market research, create estimates and forecasts, and identify cost reduction strategies.
Common Career Paths for Strategic Sourcing Manager
While not commonly seen, Strategic Sourcing Managers who transition into a Director of Strategic Sourcing position may see a rise in pay. The median salary for Directors of Strategic Sourcing is $136K per year. Strategic Sourcing Managers typically move into roles as Senior Strategic Sourcing Managers or Global Sourcing Managers, and those positions pay $11K more and $7K more, respectively.
Strategic Sourcing Manager Job Listings
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Popular Skills for Strategic Sourcing Manager
Survey respondents exploit a significant toolbox of skills in their work. Most notably, skills in Contract Negotiation, Supply Chain, Project Management, and Supplier Management are correlated to pay that is above average. At the other end of the pay range are skills like Data Analysis, Sourcing, and Microsoft Office. Skill sets containing Procurement also tend to include Negotiation and Project Management. Most people who know Contract Negotiation also know Project Management and Negotiation.
Pay by Experience Level for Strategic Sourcing Manager
Median of all compensation (including tips, bonus, and overtime) by years of experience.
More years of relevant experience do not necessarily translate to higher paychecks. Average salaries for inexperienced employees average out to around $84K, but folks who have five to 10 years of experience earn a higher median of $93K. Six-figure salaries surface after one to two decades on the job — experienced professionals in this group reap a six-figure median of $104K. 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 $109K.
Pay Difference by Location
Surpassing the national average by 22 percent, Strategic Sourcing Managers in San Francisco receive some of the highest pay in the country. Strategic Sourcing Managers can also look forward to large paychecks in cities like Houston (+17 percent), Atlanta (+15 percent), San Antonio (+10 percent), and Plano (+4 percent). Chicago ranks last in the field for pay, reporting salaries 11 percent below the national average. Employers pay around 4 percent less in Jacksonville and 3 percent less in Milwaukee, below-median salaries for those in this field.