Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
Purchasing Manager Salary — The Ultimate Guide for 2024
Key takeaways
- The purchasing manager salary rate according to Glassdoor is $63,007.
- The department oversees the entire procurement process, from initial planning to finalization, under the leadership of a director.
- The average income of a procurement manager in North America is $96,361, with an increase of 4.6% and a bonus possibility of 12.9%.
One of the things that interest people in getting a job in the procurement industry is the purchasing manager’s salary. Because procurement remains one of the industries that remain strong despite the COVID-19 pandemic, people believe getting a job in a procurement team is profitable.
That may be true, but it is also important to learn more about what you’re going to get into. So for people who want to get a career in procurement, this article will show you the latest salary rate for 2024.
After reading this article, you’ll have a basic idea of how much you’re going to get paid once you land a job in purchasing or procurement.
What to Expect in the Procurement Department
Also called the purchasing department, the procurement department is where the procurement process starts and finishes. This is where the procurement manager discusses how the procurement process should go with the other team members.
This is also where each member does their respective assignments, which is why it is important for the company or organization that the procurement department function well, with each member coordinating without problems.
The procurement department is often headed by the director of procurement. They are the ones who gather the members of the procurement department. The procurement director also assigns the tasks needed during the procurement process while checking to see if each process involved aligns with the strategies that the company wants for the procurement.
Finally, it is also in the procurement department where the final stages of the process are done. When the supplies are received in good condition, the suppliers paid, and contracts are negotiated, the procurement department takes care of all the necessary work to finalize the procurement process.
What is the Role of a Purchasing Manager?
A purchasing manager’s role is to supervise the procurement of goods or services that the company needs. Purchasing managers seek the best quality for the lowest price or what can give them the most value.
Additionally, they assess suppliers to check if they can meet the company’s needs. They negotiate contracts with the suppliers for compliance and to ensure that everything they have promised in the agreement will be fulfilled.
Furthermore, purchasing managers create purchasing strategies and manage the purchasing team in their daily activities. This is to ensure that everything goes smoothly in the procurement process.
The Salary Details of the Procurement/Purchasing Manager
In the latest content provided by the CIPS/Hays Salary Guide, the average procurement salary for the North American procurement manager is $96,361. It does sound like a really good rate for anyone working in the procurement department.
How about Glassdoor? If we take a look at the website, the procurement specialist salary rate is $63,007 per year. That is for the procurement specialist, which is the entry-level rank in the procurement department. The price goes up for the high-level procurement jobs. Analyze offer and purchase bids and negotiate accordingly.
Apart from the good salary rate, there’s also a 4.6% average salary increase and a 12.9% chance for an average bonus. And despite the COVID pandemic, around 76% of procurement managers received a bonus in the last year. Of course, the rate only includes those who are eligible. That means procurement managers who’ve worked hard and are the best in what they do.
The 8 Key Procurement Department Roles
To become an effective purchasing or procurement manager, it’s time to take a look at the 8 key procurement department roles.
Understand that each procurement role is dependent on one another. If the procurement department misses one, then it may present problems for the procurement process itself.
To make things simpler, we at Procurement Tactics created this very simple table so you can recognize each role and its core definition. This table is also present in our Negotiation Gamechanger, so you should check it out today.
So without further ado, here are the 8 key procurement department roles:
1. Chief of Procurement
- Leading a strong procurement team
- Managing Annual Organizational Budgets
- Managing Supplier Relationships
- Developing an Organization’s purchasing policies
- Sourcing, Negotiating, and Reviewing Supplier Contracts
- Managing Supplier Relationships
2. Director of Procurement
- Maintaining Knowledge of the market, citing current prices and fair rates for supplies.
- Monitoring, reviewing, and analyzing bids and quotes with potential suppliers.
- Monitoring, reviewing, and analyzing service agreements and contracts
- Overseeing sources for purchasing supplies
- Maintaining company budget and streamlining costs
3. Procurement manager
- Identifying potential supplier sources
- Conducting interviews with potential vendors
- Negotiating good supplier agreements
- Managing supplier and vendor contracts
4. Procurement analyst
- Meeting with vendors
- Testing products
- Negotiating supply contracts
- Creating cost reports
5. Procurement specialist
- Supervising budget estimation and sourcing operations
- Maintaining excellent communication with all business stakeholders
- Analyzing offer and purchase bids and negotiate accordingly
- Assisting in asset management procedures when required
6. Contract specialist
- Managing contract development through all lifecycle stages
- Providing ongoing assistance to staff on contract development and compliance issues.
- Evaluating records for retention in compliance with Board-approved policies
7. Legal counselor
- Providing Legal Guidance
- Conducting Legal Research
- Drafting Legal Correspondence
- Ensuring compliance with the law
8. Business controller
- Analyzing and controlling the development of purchase prices
- Analyzing and controlling the impact from cost down projects and R&D projects
- Monthly reports and KPIs regarding procurement
- Forecasting the impact with procurement activities and development in purchase prices
- Preparing presentations for meetings
Employment Websites to Help You Find a Job
1. Indeed
It is no surprise that our first pick will be Indeed as it is one of the best and most popular job websites. Indeed was founded in 2004 with a mission to help people find jobs.
Indeed also posts listings for job seekers in every industry, every job level, and every job type. Indeed is free to use which is why it is loved by many.
If you want to be notified of the latest jobs on Indeed, you will need to create an account. Although you do not have to worry as making an account is free.
Furthermore, Indeed has a review section for companies so you can read the opinions about your prospective employers before applying.
2. Foundit
Foundit, formerly known as Monster, was founded in 1994 to bring talents and companies together. Like Indeed, you can see many job opportunities.
However, in order to apply for a job listed in Monster, you need to create an account. You do not need to worry as creating an account is free.
Additionally, once you have created an account, you will be able to save job positions and search queries as well as be notified of new job listings available on the website.
3. Glassdoor
Glassdoor was founded in 2008 aiming to help bring salary transparency and honest company reviews to millions of its users. Just like Indeed and Foundit, glassdoor is free to use for job seekers. They can also simultaneously search for open jobs and read detailed information about the company they are going to apply to.
However, to start your job search, you must create a profile, upload your resume, and sign up for email notifications to receive the latest job postings on the website.
Conclusion
In 2024, the procurement industry offers promising career prospects, attracting attention for purchasing managers’ salaries. This article outlines the latest salary insights, highlighting an average of $96,361 for North American procurement managers.
It emphasizes the critical role of the procurement department and encourages aspiring professionals to grasp key roles and salary expectations.
Frequentlyasked questions
What is a purchasing manager?
A purchasing manager is someone who manages purchasing or procurement as a whole.
Why is a purchasing manager important?
Purchasing managers are important because they create different procurement processes needed for the company to buy needed supplies.
What is a procurement manager?
A procurement manager is the same as a purchasing manager.
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.
