Dive Brief:
- In order to quantify the value of procurement leaders, Procurify recently put together an interactive map of purchasing manager salaries in the U.S., based on 2015 data from the Bureau of Labor Statistics.
- Salaries for procurement managers ranges widely within North America, with the low end in Lafayette, Louisiana at $70,970, while Newark, New Jersey tops the list at $147,940.
- In some markets, variances of more than $20,000 can exist between relatively near locations, such as $87,650 in Canton, Ohio versus $109, 680 in Youngstown, Ohio.
Dive Insight:
Chief Procurement Officers (CPOs) offer significant value to companies, especially when they apply their extensive insight into cost savings. A recent study by the IBM Institute of Business Value (IBV) reveals that a strong procurement department can improve a company's profit margin by more than 7%. The most efficient procurement departments can grow the bottom line 15% or more.
CPOs justify having a seat at the C-Suite table. The contributions that come with skilled procurement and sourcing require the authority and support of an executive level position in order to truly effect their company's business strategy, particularly when it comes to supply chain optimization.
And yet, a good CPO can offer her company more than just savings. While cost reduction is often the starting point, a CPO also offers innovation, operational excellence, strong customer relationships and reduced time to market, all of which add significant value to a business. CEOs should therefore try to look at CPOs as more than a means to cutting costs; rather, they should consider the whole of what a CPO can offer.
