Procurement Manager Salary & Pay

A company can measure a purchasing manager’s benefit. Testing the savings when purchasing from vendors. Procurement managers have targets. Meeting them affects their compensation. This makes the procurement department a cost-saving centre, not a cost centre. As a result, meeting or exceeding cost targets leads to better payments.

Some companies now provide more extensive variable compensation packages for these roles. The total compensation for procurement managers is based on their actual performance. Performance is determined by meeting cost targets.

(Note: Salaries can differ based on industry, experience, and company policies. The above figures are estimates taken from glassdoor.co.uk.)

Procurement Manager Salary and Pay

In Germany, procurement managers earn an average base salary of €65,293 annually.

The average procurement manager’s base salary in the Netherlands is €73,455.

In France, procurement managers earn an average yearly base salary of €51,923.

According to Glassdoor, the average yearly base salary for a procurement manager in the UK is €53,110.

In Europe, the salary for a procurement manager ranges from EUR 35,000 to EUR 73,000. The employees paid the most are usually the ones who bring in the most revenue for the company. Usually, these roles are client-facing, like in the sales department. Companies now rank cost control and increase top lines. Global competitiveness and narrowing profit margins are the driving forces behind this change. Departments such as procurement are crucial for cost control.

Photo by Vitaly Taranov on Unsplash

Which Sector of Procurement Management Is Best To Work In? 

Procurement managers find lucrative sectors with high external vendor involvement. These sectors contribute a large part of the final product value. Compensation in these sectors is favourable. Purchasing managers would affect the cost of these things. Sectors that import raw materials or do contract manufacturing fall here.

Procurement managers favour sectors requiring technical expertise. These sectors value skills. In industries like automobile and aerospace manufacturing, procurement managers need engineering degrees. They should also have expertise in operational and inventory management. Additionally, supply chain optimisation is essential. These professionals are paid highly in these industries.

Procurement managers can have varying degrees of responsibility in different companies. Some businesses are only required to buy goods or services at the lowest possible price. Other companies must specialise in supply chain management for the most outstanding efficiency. They play a crucial role in maintaining peak production. The pay for these specialists varies based on business needs. Each business environment has different requirements.

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