Inside Logistics

2011 Supply Chain Salary Survey

Salaries edge up again this year


November 25, 2011
by Michael Power

MM&D MAGAZINE, SEPTEMBER/OCTOBER 2011 PRINT EDITION:

For yet another year, it appears that many of you are making a bit more money. As Canada’s economy continues to pull out of recession, the average salary of the country’s supply chain professional has hit $82,800. That’s up from $81,000 in 2010 and $78,100 in 2009.

These are some of the results from the 2011 supply chain salary survey which, for the fourth year in a row, MM&D and Purchasingb2b magazines have produced in partnership with the Purchasing Management Association of Canada (PMAC) to glean information from those in the profession. The survey questionnaire—fielded this summer to PMAC members and supply chain professionals who subscribe to MM&D and Purchasingb2b—drew 1,567 responses, giving us a large pool of data from which to bring you the following report on wages, satisfaction and more.

Sex and the salary

The average salary of the supply chain professional in 2011 was $82,800, up 2.2 percent from last year’s $81,000. Those with larger paycheques appear to be more satisfied with their salaries. For those who listed themselves as “Very/Somewhat Satisfied” with their pay, the average salary was $90,700. Meanwhile, those who considered themselves “Not Very/Not at All Satisfied” had a salary of $64,500 on average.

The average salary for men fell to $88,300 this year, down from $93,600 in 2010—a 5.7-percent drop. The drop comes a year after men’s average salary on average rose a whopping $10,000 (up from $83,600 in 2009). But women’s salaries continue to rise, with the average salary in 2011 topping $74,600. That represents a 4.6-percent rise from $71,300, reported last year.

Overall, the average salary for men ($88,300) was 18.4-percent higher than that for women ($74,600). Across the board, women had lower salaries on average than men regardless of years experience. Women with five or less years pulled in $60,600 (although up 9.7 percent from $55,200 in 2010), while men with the same experienced earned $68,500 which is up slightly—just 0.1 percent—from $68,400 in 2010. After 16 to 20 years on the job, women averaged $72,600—$76,900 in 2010 for a 5.6-percent difference—while men’s average salary towered over that amount at $90,800. That means men in that category earned 25.1-percent more than the women.

Salaries rose along with the education and position, respondents reported. Executives topped the list at $140,000—down 14.9 percent from the $164,600 reported in 2010—while managers pulled in $93,300 annually. Perhaps surprisingly, the average salaries of respondents with an MBA dropped 10.9 percent to $98,700 this year, down from $110,800 in 2010. There was also a drop for supply chain professionals working in manufacturing. In 2010, those professionals earned $83,500, while this year saw them take home $75,400—a difference of $8,100 or 9.7 percent.

Organizations with 5,000 or more workers saw supply chain salaries drop from $94,100 in 2010 to $93,800 this year, 0.3 percent. Also experiencing a drop were companies with 250 to 499 employees, with salaries falling 2.5 percent from $80,700 in 2010 to $78,700 this year.

Those working on a professional SCMP designation saw their salary jump 3.0 percent from $67,200 on average in 2010 to $69,200 this year. When asked about the importance of a professional designation, 77 percent of PMAC member respondents said it was important to get ahead in their jobs. For non-PMAC members, 62 percent said it was important.

PMAC members took a more positive view of the availability of supply chain jobs. In total, 71 percent said there were more jobs in supply chain than five years ago (with 23 percent saying much more). That’s compared to non-PMAC members, 56 percent of which saw more jobs than five years ago.

Increased recognition

Supply chain professionals may also be getting even more recognition within their organizations this year. Among those asked, 76 percent said their companies have come to realize that business couldn’t function without supply chain management professionals. That’s up from 71 percent who responded the same last year.

Supply chain also seems to be attracting increased recognition from the C-suite, with 71 percent saying that during the last year the supply chain role has increased in influence with senior management. That’s up from 57 percent in 2010. For 2011, 45 percent said they have influence at the C-level, up from 39 percent in 2010.

The economy seems to have affected how recognized respondents felt within their organizations, with 76 percent saying they agree that the current economic environment has made their skills and experience more appreciated. Comparatively, 20 percent said they disagree. However, 56 percent said they agree that their compensation hadn’t kept pace with their job responsibilities, and 40 percent disagreed.

This year, 39 percent said they planned to be working in the same job in the next two years, down from 43 percent in 2010. As well, 36 percent said they planned on getting promoted within the same organization while 25 percent said they would be working with another organization. Six percent said they would be changing careers and five percent said they would be self-employed or consulting. When asked why they saw themselves working at another organization in the next two years, 54 percent said the availability of higher compensation, as compared to 52 percent in 2010 who said the same.

The big issues

The top supply chain issue respondents faced during the last year was cost control, with a total of 61 percent mentioning it as their top concern, Going forward, 57 percent saw it as their main concern over the next 12 months. That’s a jump from last year, when 46 percent answered likewise. A total of 39 percent said supplier relationship management would be their top concern in the next 12 months, up from 34 percent in 2010. Risk management came in third at 31 percent, a rise from last year’s 23 percent. Environmental responsibility and sustainability was the top concern of 18 percent of respondents over the last 12 months, while 31 percent saw it as their primary supply chain concern over the next 12 months. In 2011, 80 percent said the sustainability practices of their organization were important.

When answering about their levels of satisfaction regarding various elements of their jobs, 98 percent ranked competitive salary as important—the same as 2010—with 71 percent saying it was “very important.” As well, 27 percent ranked salary as “somewhat important.” Meanwhile, 69 percent of respondents said they were “satisfied” with their salaries. In total, 17 percent said they were “very satisfied”  while 52 percent answered they were “somewhat satisfied.” A total of 22 percent said they were “not very satisfied” and eight percent were “not at all satisfied.”

Ninety-six percent said a healthy work/life balance was important, with 82 percent satisfied with that balance; 91 percent said support for career and professional development was important and 72 percent were satisfied with that support. Job security was important to 91 percent of respondents. The percentage of those who said they were satisfied with that security was 87 percent. Vacation time was important to 93 percent. Most of you also saw on-the-job influence as important, at 95 percent.

Relationships with one’s superiors ranked high among respondents, with 96 percent saying it was important and 63 percent saying “very important.”

The skills you need

To do well in supply chain, 28 percent ranked people skills at the top. But that’s down from 33 percent who said the same in 2010. Next in line were negotiation skills at 13 percent (down from 17 percent in 2010) and followed by a new category this year—strategic leadership—also at 13 percent. Decision making ranked at 12 percent and analysis was cited by nine percent of respondents.

In conclusion, salaries have gone up, along with the recognition supply chain professionals receive from their organizations. The majority—87 percent—said you were satisfied with your jobs overall. The future once again looks bright for supply chain professionals.