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Sep22
Procurement Consultant Salaries And Cost

Actually, the information in this entry pertains not only to Purchasing consultant salaries, but also to salaries of consultants throughout an organization.  Since part of my job duties at an early point in my Purchasing career involved the administrative portion of consultant's hiring paperwork, I was privy to some behind-the scenes information which is usually only known to the Human Resources department and Purchasing (if that department handles procurement of consultants).

 

You may read information online or offline, which gives you information about consultant salaries.  What you should keep in mind is that there can be a large difference between the billing rate and the pay rate for a consultant.  Regardless of what an individual earns, the company is paying much more than that if a consultant, as most consultants do, works not on his or her own, but for or through another company.

 

The pay rate is, of course, the hourly or daily salary that the consultant actually earns.  The billing rate is the hourly or daily amount that the consulting firm or placement agency (depending on the skill level required) charges the organization.  During an RFP process, the Sourcing department will try to reduce that premium to the lowest percentage possible, but it still adds up to a significant amount of extra money. 

Speaking of salaries, if you want to compare your salary to others in your area, here is a salary tool to try.


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