From entry-level to executive positions, here is the typical procurement career path framework:
1. Procurement Analyst
A procurement analyst is an entry-level position. However, they are still directly involved in the purchasing operations of their company as a part of supplier communications, process, strategy and forecasting. Because an analyst is a junior role, he or she will typically specialize in one specific aspect of the procurement process — focusing on tasks like searching for prospective vendors, analyzing historical material purchasing costs or forecasting costs for the future.
Analysts begin with salaries of about $40,000 and can progress to $60,000 or more with experience. Often, individuals will spend two to four years as an analyst before moving up on the procurement career ladder.
2. Purchasing Manager
The purchasing manager is next on the career path after a procurement analyst. These professionals purchase products from vendors for the company to resell or use. They evaluate the quality of products, oversee buyers and purchasing agents and negotiate contracts. At smaller organizations, there may not be much distinction between the procurement analyst and the purchasing manager, and one person may handle both duties.
This position is a step up the career ladder, and it’s reflected in a salary of $100,000. Professionals who fill this role will need exceptional communication and negotiation skills as well as business management experience and the ability to find the right products and create a strong contract.
3. Director of Procurement
As a director of procurement, an individual is responsible for overseeing multiple aspects of the procurement process, including identifying vendors and suppliers, selecting sources, managing suppliers, negotiating and coordinating supply contracts and developing necessary business frameworks for new and existing contracts. Managers and directors communicate with other departments regularly, keep track of progress and develop strategies for cost management, service levels, delivery schedules and product quality.
With a salary of $140,000-$160,000, this position requires extensive experience and can be a permanent role or a stepping stone on the way to the ultimate position: vice president.
4. Vice President of Purchasing
As the ultimate head of procurement, the Vice President of Purchasing is responsible for overseeing all subordinate managers and directors, procurement specialists, buyers, contract specialists and processes. The vice president must assess the company’s needs and comply with its requirements in scheduling, forecasting, planning, analyzing, communicating, procuring and contracting with vendors.
The direct goal of the vice president is facilitating and ensuring the honest, efficient, competitive and cost-effective acquisition of the necessary materials and supplies for the company’s production needs. He or she must also make sure every subordinate meets requirements, complies with company policy and follows rules, regulations and procedures. Requiring a bare minimum of five years’ experience in the field, this position offers a salary upwards of $170,000.
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As an integral part of any supply chain company, the procurement industry offers extensive opportunities for a successful and upwardly mobile career. Explore your options further and submit your resume to Optimum Supply Chain Recruiters today!