The selection, evaluation, and management of vendor relationships fall under the purview of a strategic sourcing manager. They use these connections, in addition to data analytics, to get around problems and achieve organizational objectives. The ultimate goal is to maximize wealth while minimizing risk. The work focuses on applying strategic sourcing principles to the procurement process, as one might anticipate.let us know about that the Salaries For Strategic Sourcing Manager.
In addition to evaluating the cost and caliber of a product or service, they also consider the benefit or risk of doing business with a particular vendor, their dependability, long-term compatibility, intangible value, and other aspects.
Salary for a strategic sourcing manager
- A strategic sourcing expert enhances an organization’s supply chain or purchasing procedures. As a strategic sourcing expert, your goal is to help your company cut costs and speed up delivery.
- They must improve the processes for buying inventory and parts and negotiate contracts with suppliers and vendors.
- A strategic sourcing manager typically collaborates with upper-level management to ensure that the supply chain meets the company’s demands.
- The average annual salary for a strategic sourcing manager in the United States is $101,403. It comes to about $49.49 an hour. The result is $10,283 per month or $2,511 per week.
Salary for a strategic sourcing manager in the United States
The average yearly salary for a strategic sourcing manager in the US is $126,220. A strategic sourcing manager’s typical incentive is $15,000, or 12% of their salary, and all of their employees report receiving bonuses annually. The highest average salary for strategic sourcing managers is found in San Francisco, California, which is -1% higher than the national average.
Highest pay rate in the United States
According to our data, a strategic sourcing manager may make up to $123K a year.
Lowest pay rate in the United States
According to our research, the starting salary for a strategic sourcing manager is $65k per year.
Salary for the strategic sourcing manager in other areas
- The average salary for a strategic sourcing manager in San Francisco, California, is $131,667, which is 3% less than the national average of $122,420. This income is 12% higher than the median wage across all metro areas.
- On average, strategic sourcing manager salaries in New York City, NY, are $109,102, or 15% less than the $122,420 national average.
- Strategic sourcing managers in Los Angeles, California, make an average salary of $105,669, which is 18% less than the national average of $122,420.
- Strategic sourcing managers in Chicago, Illinois, earn an average salary of $149,678, which is 15% more than the national average of $122,420. A strategic sourcing manager’s typical incentive is $20,370, or 14% of their salary, and all staff members agree that they receive bonuses annually.
Responsibilities of a strategic sourcing manager
- Responsible for evaluating the proposals and selecting the final vendor.
- Collect and evaluate procurement-related data, cost analysis reporting, benchmarking spending, and RFP data.
- To ensure ongoing improvement, regularly review the current procurement procedures. After that, regulations, due diligence questionnaires, and RFP forms improved.
- Collaborating with senior executives, department heads, and key stakeholders is essential to understanding business needs fully. After that, specify the requirements, parameters, and requirements for procurement initiatives.
- Use the best vendor management techniques when contracting, onboarding, and renewing your agreement. After that, they regularly conduct vendor performance reviews and supplier risk analyses.
- It is in charge of overseeing all e-procurement and digital transformation-related activities. To ensure that it aligns with the organization’s corporate objectives, establish, evaluate, and optimize the procurement strategy.
- Use RFx tools to conduct preliminary market research, develop vendor profiles, and help with supplier selection to support strategic sourcing and RFP timeline management. RFPs can be created, distributed, and managed using an electronic system for managing RFPs.
Experience needed for the strategic sourcing manager
- A professional qualification might make you stand out when looking for jobs. For instance, a certification from the Institute of Supply Management could allow you to become a Certified Purchasing Manager or a Certified Professional in Supply Management.
- A degree and familiarity with supply chains and corporate resource planning (ERP) are prerequisites for employment as a strategic sourcing manager.
- It’s also essential to comprehend enterprise resource planning software.
- A bachelor’s degree in engineering, logistics, or supply chain management will give you the knowledge and abilities needed to perform the tasks associated with this job.
Tax payment for a strategic sourcing manager
In 2017, the average federal tax payment for a person in this tax bracket was anticipated to be 21%. At a federal tax rate of 21%, strategic sourcing managers’ annual take-home salary may be approximately $106,658 after deductions, or about $3,238 each paycheck.
Leading all significant terms and conditions, as well as pricing negotiations, will fall under the purview of this position. Strategic sourcing managers with knowledge of electronics, engines, safety systems, EV charging, fleet upkeep, or capital equipment are in high demand. Additionally, this position will handle commercial and supply chain problems, find and seize cost-saving opportunities, and collaborate across departments to comprehend the demands for third-party involvement throughout the company. If you wish to apply, you must be entirely aware of the duties and experience required for this position.
Frequently Asked Questions
Q. How can I improve my knowledge of strategic sourcing management?
- One needs a bachelor’s degree in supply chain management, and prior experience in manufacturing, logistics, or storage is required for employment as a strategic source manager. A strategic source manager must possess a bachelor’s degree in human resources or a closely related profession to be employed.
Q. What capabilities ought a strategic sourcing manager have?
- Planning and foreseeing.
- Data evaluation.
- Business ethics and openness.
- Risk administration.
- Understanding of tactical software procurement.
- Agreement-making and bargaining.
- Categories in charge.
- Managing a project.
Q. What precisely is a strategic sourcing manager responsible for?
- Choosing, evaluating, and managing vendor relationships are tasks that fall under the purview of a strategic sourcing manager. In addition to data analytics, they use these connections to get around problems and achieve organizational objectives. Using strategic sourcing principles during the procurement process is the position’s primary focus, as one might anticipate.