A procurement manager is responsible for purchasing the goods, services and supplies needed by an organization. They need to be able to purchase goods at favorable prices while still meeting the needs of their organization. Procurement managers can work in a variety of environments including industry and commerce and also within government organizations.
The average salary for a Procurement Manager is $77,007 per year in the United States. This salary was obtained from the Bureau of Labor Statistics, U.S. Department of Labor and is based on the millions of employees in similar professions nationwide who received data in their region. The Procurement Manager’s salary out of 100% (as seen here), which means that members ranked this career as very valuable to have.
Salary For Procurement Manager Overview
Are you looking for a career in procurement management?
If so, you’re in luck! We’ve got some of the best information on the web about how much money procurement managers make—and how to get started as one.
Let’s start with the basics: what does a procurement manager do? A procurement manager is responsible for finding and negotiating contracts with vendors and suppliers who supply goods and services to their company. They also manage staff members who work on those contracts.
It’s an easy job to get into—just about anyone with experience in sales or contract management can apply for a position as a procurement manager. But it’s also an important job, because procuring goods and services affects every aspect of your company’s bottom line. If you’re interested in this career path, here are some things to keep in mind as you start your search.
First off, what kind of salary should you expect? The Bureau of Public Procurement (BOP) has released data showing that on average, entry-level positions offer annual salaries between NGN30,000 and NGN60,000 (USD280–520). This means that if you have less than three years’ experience under your belt when applying for a job as a procurement manager, your salary will
The Average Salary Range for Procurement Managers
Ever wonder who decides which goods your favorite companies will sell? Whether you appreciate the quality or you shake your head at the hodgepodge of items, it’s those who hold the procurement agent and procurement manager jobs that you should compliment or question. Procurement manager is a synonym for purchasing manager, and the two job titles are interchangeable, although organizations tend to choose one or the other and stick with it. This manager oversees procurement and supervises the procurement agents and buyers who handle the purchasing.
Procurement Manager Job Description
Procurement managers set, update and revise procurement processes, policies and ethics. They hire and train procurement agents to follow these procedures while they choose suppliers for each product, negotiate what the supplier will charge, how many of each product to buy and that they can meet necessary deadlines, according to the U.S. Bureau of Labor Statistics (BLS) Occupational Outlook Handbook for Purchasing Managers, Buyers and Agents revised April 2020. Agents may attend sales shows and conferences to see what’s new or consult with design engineers and other experts, and procurement managers must approve these trips.
Procurement managers supervise the individual procurement agents, making sure they are getting the best possible pricing for the highest quality products. Often, individual agents will be responsible for purchasing a category of products and become experts in purchasing them. Procurement managers may step in to help agents when the situation is complicated or problems arise, or to approve special deals or unusual circumstances.
Typically, procurement managers are former procurement agents who have been promoted to management, so they know the agent’s job well. But as part of the leadership team, procurement managers also are aware of the bigger picture, including the department’s overall budget, benchmarks that must be met and the organization’s overall goals.
Procurement Manager Education Requirements
Procurement managers are usually procurement agents with at least five years of experience who have been promoted within the company or hired from outside the company to be the assistant procurement manager and later promoted to procurement manager. Although some small organizations may hire agents with only a high school diploma who have knowledge of the products and experience as a procurement agent, most prefer candidates with at least a bachelor’s degree, preferably in business, finance or supply management. If they will be purchasing farm products, a degree in agriculture or animal science might be helpful.
The median annual procurement manager salary was $121,110 in May 2019, which means that half of the managers earned more than this and half earned less, according to the BLS. The lowest 10 percent earned less than $71,450 and the highest 10 percent earned over $193,400.
Procurement Manager Industry
Most procurement managers (27 percent) worked in manufacturing in 2018, the BLS reports, while others worked in company management, wholesale trade and government. They typically work in offices except when it’s necessary to travel to visit suppliers or design experts or to attend trade shows and conferences. Their work is usually full-time and often includes overtime, which can be stressful.
Procurement Manager Years of Experience
The procurement manager payscale depends on years of experience. For example, according to PayScale, the progression of increases in the procurement manager salary, which are given as averages and include bonuses and overtime, if applicable, is:
- <1 year experience: $58,530
- 1-4 years: $70,520
- 5-9 years: $81,785
- 10-19 years: $88,706
- 20+ years: $93,135
Procurement Manager Job Growth Trend
The increasing use of automation for some purchasing tasks, outsourcing to save money and bulk purchasing through cooperative arrangements will likely result in a decrease in the need for procurement agents and buyers through 2028. The need for procurement managers is still expected to increase, however, because humans will still be needed to oversee the procurement process and to handle purchasing that is not automated.
