This job is sometimes referred to by alternative titles
Procurement managers create up-to-date strategies to deliver goods and services that best meet their organisation’s business needs. They work with suppliers to get the right solutions, at the right time, for the best price, quality and value.
Procurement managers usually earn
$90K-$140K per year
Source: Hays Recruitment, '2013 Hays Salary Guide'; Lincoln University, 'Supply Chain Management'.
Pay for procurement managers depends on where they work, and their skills and experience.
- Procurement managers usually earn from $90,000 to $140,000 per year.
- Chief procurement officers in large organisations can earn from $120,000 to $200,000 per year. They may receive benefits such as bonuses or company cars.
Source: Hays Recruitment, '2013 Hays Salary Guide', Lincoln University, 'Supply Chain Management'.
What you will do
Procurement managers do some or all of the following:
- assess an organisation's goals and its needs for goods and services that will help it meet those goals
- look for new products and services
- negotiate and monitor complex deals and relationships with suppliers to meet quality, cost and delivery requirements
- set and oversee policies and plans for purchasing, storing and distributing goods or services
- prepare plans to maintain stock levels at minimum cost
- monitor and review inventory systems and tracking systems
- direct staff and monitor their performance.
Skills and knowledge
Procurement managers need to have:
- skills in assessing and describing their organisation’s needs
- skills in developing and implementing procurement strategies, policies and processes
- skills in evaluating options for supplying goods or services, including pricing, quality, service and support
- skills in managing relationships with vendors, and with staff within their own organisation
- negotiation skills
- knowledge of project management and strategic planning
- knowledge of planning and reporting
- knowledge of relevant laws and standards (for example, health and safety).
- work normal business hours, but may have to work extra hours at times
- work in offices
- travel domestically or internationally to find, assess and liaise with suppliers.
What's the job really like?
Carroll Hill, Procurement Manager
What does a procurement manager do?
"We’re all about supplier management. We ask suppliers what they can offer and we pick the best supplier. We have a contract in place for specific rates, and we monitor that.
"If you don't have a procurement manager, everyone orders from Uncle George’s cousin, and you end up with not only multiple suppliers, multiple costs – but also, you are not doing the best for the company."
Why do you still feel "new in the role" after 12 months?
"It's a very challenging job! At times I feel a little bit overwhelmed. But I'm a really firm believer in that if you can step into a job and do it in the first week, you'll be bored in a month and you won't be happy.
"I belong to a Crown Research Institute Procurement Group and we've been negotiating some large contracts as a group. I've found the group very helpful – even after a year it's still a learning curve for me."
What's your favourite part of the job?
"Knowing my work supports scientists who are inventing things that could potentially change the world."
- Helping the organisation save money.
- Interesting work supporting ground-breaking research.
- Knowing you can never please everyone when you make changes.
- People commenting on the negatives more often than the positives.
There are no specific requirements for becoming a procurement manager. However, you are likely to need a tertiary qualification.
Specific qualifications for procurement managers
- Diploma in Procurement and Supply Management from New Zealand Careers College
- Bachelor of Commerce majoring in Supply Chain Management from Lincoln University
- New Zealand Careers College website– information on Diploma in Applied Management (Level 7)
- Lincoln University website - Bachelor of Commerce majoring in Supply Chain Management
Chartered institute training and membership useful for procurement managers
Employers also value training from, and membership, of the Chartered Institute of Purchasing and Supply (CIPS).
- Chartered Institute of Purchasing and Supply website - information on training
- Chartered Institute of Purchasing and Supply website - information on New Zealand membership
General qualifications that can lead to procurement manager roles
These qualifications may also help you get a job as a procurement manager:
- a tertiary qualification majoring in commerce, finance, business, law or logistics
- a tertiary qualification in warehousing and supply management or project management
- a postgraduate qualification in strategic procurement (available by distance learning from some Australian universities).
Relevant experience can also lead to procurement manager roles
You may also be able to become a procurement manager if you have:
- experience and thorough knowledge in a particular organisation
- contract and/or project management experience
- relationship management skills
- commercial acumen.
Find out more from the New Zealand Procurement Academy about becoming qualified by getting your experience in procurement recognised and assessed.
- New Zealand Procurement Academy website - information on training
- New Zealand Procurement Academy website - assess your procurement know-how
There are no specific secondary education requirements for this job, but English, maths and accounting to at least NCEA Level 2 are useful.
Procurement managers need to be:
- good negotiators and able to build relationships
- good leaders and motivators
- excellent at spoken and written communication
- analytical, logical and accurate, with an eye for detail
- self-motivated and able to work well under pressure.
To be a procurement manager, you have to be open minded, curious, and be able to communicate with all levels of people. There's a lot of communication in this role.
Carroll Hill, Procurement Manager
Useful experience for procurement managers includes:
- managing relationships with suppliers
- developing and instigating processes and procedures
- contract negotiation and managing expectations from signed contracts.
Work as a purchasing officer, account manager, contract administrator, buyer or procurement analyst is useful background.
Find out more about training
- Chartered Institute of Purchasing and Supply (CIPS) Australasia
- (03) 9629 6000 - email@example.com - Chartered Institute of Purchasing and Supply (CIPS) New Zealand website
- The New Zealand Procurement Academy
- firstname.lastname@example.org - New Zealand Procurement Academy website
What are the chances of getting a job?
Organisations need strategic procurement managers to help meet their goals
Procurement managers are in high demand because:
- organisations want procurement managers who can work strategically to access goods and services, which will help them reach their business goals
- organisations want to cut costs by buying smarter and having better contracts negotiated with suppliers
- experienced procurement managers are leaving for better opportunities overseas
- large companies that contract out services, such as information technology support, need procurement managers to manage those contracts.
Procurement managers are needed particularly in manufacturing, insurance, IT, telecommunications and government.
Procurement Academy to train and support procurement managers
In response to the shortage of procurement managers the Government:
- set up the New Zealand Procurement Academy to support training for public and private sector procurement staff
- offers study support for public servants to develop skill in the area.
Number of procurement managers growing - but too slowly
The number of supply and distribution managers, which includes procurement managers, increased by about 7% from 2010 to 2012 according to Ministry of Business, Innovation and Employment estimates.
However, there are still not enough procurement managers to meet demand.
Procurement professional is on Immigration New Zealand's long-term skill shortage list, which means the Government is actively encouraging skilled procurement managers from overseas work in New Zealand.
Types of employers of procurement managers are varied
Procurement managers may work for:
- government organisations
- private companies
- the defence force.
- Australian Procurement and Construction Council, 'Building Government Procurement Capabilities - New Zealand Edition', December 2009,(www.procurement.govt.nz).
- Australian Procurement and Construction Council, 'Aspirational Capability Matrix for Government Procurement Professionals', 2008, (www.procurement.govt.nz).
- Classification Code Finder, Statistics New Zealand, accessed July 2013, (www.stats.govt.nz).
- Hays, 'Selective Investment Insights to Inform: The 2013 Hays Salary Guide', accessed July 2013.(www1.hays.net.nz).
- Immigration New Zealand, 'Long-term Skill Shortage List', accessed August 2013, (www.immigration.govt.nz).
- Ministry of Business, Innovation and Employment, '2003-2012 Occupation Data' (prepared for Careers New Zealand), 2012.
- Lincoln University, 'Supply Chain Management', accessed July 2013, (www.lincoln.ac.nz).
- Mudford, S, senior procurement analyst, Ministry of Business, Innovation and Employment, Careers New Zealand interview, August 2013.
- New Zealand Procurement Academy website, accessed July 2013 (www.procurement.govt.nz)
Progression and specialisations
Procurement managers may progress to work as a chief procurement manager for a large organisation.
Last updated 20 September 2017