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Contracts manager vs director of purchasing

The differences between contracts managers and directors of purchasing can be seen in a few details. Each job has different responsibilities and duties. It typically takes 4-6 years to become both a contracts manager and a director of purchasing. Additionally, a director of purchasing has an average salary of $106,945, which is higher than the $72,691 average annual salary of a contracts manager.

The top three skills for a contracts manager include contract management, contract administration and contract terms. The most important skills for a director of purchasing are supply chain, purchase orders, and product development.

Contracts manager vs director of purchasing overview

Contracts ManagerDirector Of Purchasing
Yearly salary$72,691$106,945
Hourly rate$34.95$51.42
Growth rate-6%-6%
Number of jobs13,21817,847
Job satisfaction--
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 68%
Average age4747
Years of experience66

What does a contracts manager do?

A contract manager is responsible for finalizing contract agreements between the company and its clients, revising documents, creating procurement proposals, and managing breach of contracts immediately. Contract managers respond to clients' inquiries and concerns about the contract's terms, conditions, and adjustment requests. They should be highly knowledgeable with legal terms and legislation regulations, ensuring that documents align with their objectives. The contract manager should also stay updated with the latest trends to meet contract demands, identify more business opportunities to boost revenues, and achieve profitability goals.

What does a director of purchasing do?

A director of purchasing oversees the procedures related to buying resources and supplies, directing operations from planning to execution while adhering to standards and company policies. They primarily perform research and assessments to understand project needs in terms of price, quality, and delivery time. They also identify ideal suppliers, negotiate deals, and build positive business relationships. Additionally, a director of purchasing has the authority to make significant decisions, delegate responsibilities among staff, oversee employment procedures within the department, and solve issues and concerns when any arise.

Contracts manager vs director of purchasing salary

Contracts managers and directors of purchasing have different pay scales, as shown below.

Contracts ManagerDirector Of Purchasing
Average salary$72,691$106,945
Salary rangeBetween $45,000 And $116,000Between $68,000 And $166,000
Highest paying CitySan Francisco, CASan Francisco, CA
Highest paying stateCaliforniaWashington
Best paying companyMcKinsey & Company IncRivian
Best paying industryTechnologyManufacturing

Differences between contracts manager and director of purchasing education

There are a few differences between a contracts manager and a director of purchasing in terms of educational background:

Contracts ManagerDirector Of Purchasing
Most common degreeBachelor's Degree, 63%Bachelor's Degree, 68%
Most common majorBusinessBusiness
Most common collegeStanford UniversityStanford University

Contracts manager vs director of purchasing demographics

Here are the differences between contracts managers' and directors of purchasing' demographics:

Contracts ManagerDirector Of Purchasing
Average age4747
Gender ratioMale, 54.0% Female, 46.0%Male, 75.1% Female, 24.9%
Race ratioBlack or African American, 9.0% Unknown, 3.8% Hispanic or Latino, 12.2% Asian, 7.4% White, 67.2% American Indian and Alaska Native, 0.3%Black or African American, 9.2% Unknown, 3.8% Hispanic or Latino, 12.4% Asian, 7.5% White, 66.8% American Indian and Alaska Native, 0.3%
LGBT Percentage11%11%

Differences between contracts manager and director of purchasing duties and responsibilities

Contracts manager example responsibilities.

  • Manage ISO requirements for sales and marketing.
  • Manage IDIQ contracts including task and delivery orders.
  • Manage RFI's and change orders through close out.
  • Manage all material for a non MRP driven program manually.
  • Coach and direct the IPT for use of proper policies to achieve goals.
  • Lead two DCAA audits for a $60 million project resulting in no-cost findings during tenure as manager.
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Director of purchasing example responsibilities.

  • Manage all aspects of the RFQ process, contracts, cost and rebate negotiations, and awarding of business.
  • Manage out-bound logistics services and third-party logistics providers to expand the range of commodities need to support automobile and aerospace manufacturing.
  • Develop standards and implement procedures for materials planning, product acquisition, inventory control, material distribution and logistics management.
  • Implement cost controls using commodity segmentation, vendor KPI's and cost justification base on key market indicators.
  • Monitor KPI indicators such as inventory turns, supplier on time delivery, inventory cycle count accuracy, and PPV.
  • Develop RFP (request for proposal) analysis, negotiation strategy, contract drafting and agreement execution plans on all contracts.
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Contracts manager vs director of purchasing skills

Common contracts manager skills
  • Contract Management, 9%
  • Contract Administration, 6%
  • Contract Terms, 5%
  • Project Management, 5%
  • Customer Service, 4%
  • Proposal Preparation, 3%
Common director of purchasing skills
  • Supply Chain, 18%
  • Purchase Orders, 9%
  • Product Development, 7%
  • Vendor Relations, 6%
  • Logistics, 5%
  • Cost Savings, 4%

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