Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
Procurement Executive — The Ultimate Guide of 2024
Key takeaways
- Procurement executives are known as purchasing agents assigned to buy goods or services for the daily operation of organization.
- The procurement executive handles the company’s profitability through comprehensive decision-making.
- Procurement executive are valued by company and given a competitive salary, due to its valuable position within its operations.
Having a procurement executive in your company will determine the success of your procurement process. However, many newbies in the procurement field are wondering what the role of a procurement executive is. Because of this, some may even confuse the term for procurement director due to the word “executive” in it.
In this article, we will discuss what a procurement executive is. We will check what the job responsibilities and duties of procurement executives are. Additionally, we will unravel what it takes to be a procurement executive.
After reading this article, you will gain a deeper knowledge of the role of a procurement executive. Additionally, this will allow you to see them from a new perspective that will improve their standing in the field of procurement.
What is a Procurement Executive?
In the world of procurement, there are many job titles you can select or choose to consider before diving in.
Additionally, you may find that there are different job titles for each company although the duties are just the same. Quite frankly, it is confusing, but you will be used to it once you start your journey in procurement. So what is a procurement executive?
Procurement executives are known as purchasing agents or buyers in some organizations. They work for an organization to buy goods and services that the company needs for daily operations. Additionally, it is their job to get the best products at the lowest possible prices.
Purchasing agents are responsible for negotiating and evaluating with the suppliers. They must have a keen eye for seeing opportunities with their potential suppliers to get the lowest price possible.
Purchasing agents are tasked with sourcing direct and indirect materials requested by different departments in an organization.
Some purchasing agents are required to communicate with the suppliers for timeliness in delivery. Also, they coordinate and monitor all purchases to avoid shortages, breakages, and overcharges.
A senior procurement executive manages procurement operations. Senior procurement executives ensure that quality standards are followed in every procurement process.
It improves processes by advising sourcing strategies to ensure that the materials will be delivered promptly.
Functions of Procurement Executives and their Work Environment
The main function of a procurement executive is to predict what the customers want to buy. If the prediction is incorrect, it can negatively affect the profitability of the company.
Its other function is to check the stocks and sales levels and compare the sales activities of other companies. Additionally, it oversees the market trends to see what people want to buy.
For the most part, procurement executives work in pleasant offices of their organization. Usually, the standard work for a procurement executive is 40 hours per week. However, overtime is common, especially for holidays and peak seasons.
Procurement Executive Salary
According to salary.com, the average global supply chain and procurement executive salary in the United States is $260,390 as of May 27, 2022.
However, the typical salary of a procurement executive ranges from $221,690 to $312,290. The salary of a procurement executive depends on so many factors like education, years of experience, and certifications.
Additionally, the salary is also dependent on the country in which the procurement executive resides.
What Does it Take To Be A Procurement Executive?
Becoming a procurement executive is not easily attained where you can simply apply for that position and get it right away. Many companies have requirements in choosing a procurement executive for their organization.
The following are some of the most frequent qualifications to apply as a procurement executive:
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- Large companies prefer their candidates to have a Bachelor’s Degree. For the most advanced position, the company may require you to have a master’s degree.
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- Diploma or Degree in Operation Management, Supply Chain Management, Technology Management, Business Administration, or equivalent education.
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- Some companies prefer applicants who have 1 to 2 years of experience working as a purchaser.
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- Excellent communication and negotiation skills with suppliers and internal customers.
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- Proficiency in CRM and inventory management software programs.
Responsibilities of Procurement Executives
A procurement executive does not entirely consume their time working closely with a purchasing manager. The following are some of the responsibilities of a procurement executive:
Conclusion
Understanding the role of a procurement executive is crucial for successful procurement processes. This guide explores their responsibilities, qualifications, and work environment, offering insights to enhance their effectiveness in the dynamic field of procurement.
Frequentlyasked questions
What is a procurement executive?
Procurement executives are assigned to buy goods or services for the daily operation of the organization.
What is the salary of a procurement executive?
In the United States, the average salary of a procurement executive ranges from $221,690 to $312,290.
Do companies accept applicants without a master’s degree?
Yes. Usually, companies accept applicants with a bachelor’s degree. Some even accept fresh graduates as procurement executives in their organizations.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
