Salary Trends in South African Supply Chain Management

Tech-Pro’s Salary Survey 2014, published to coincide with the recent SAPICS Conference and Exhibition, highlights how growing demand for skilled Supply Chain practitioners is improving career and earnings prospects for Procurement, Logistics, Planning, Supply Chain and Consulting staff, Tech-Pro tells SmartProcurement.

Today, business success is heavily influenced by supply chain efficiency.
Having the right product in the right place at the right time is key to ensuring that companies – like Apple or Walmart – remain highly profitable.
As a result, skilled supply chain professionals are in demand, which impacts availability, improves career prospects – and drives earnings.

Factors that Influence Earnings

Several factors play a role in determining salary, including position, level of responsibility, education, location, gender, company size and industry.
Research also indicates that, the more mature the supply chain, the higher the salaries earned.

The 9th Annual Institute for Supply Management (ISM) Salary Survey (2014) found that the most significant of these factors are experience, education and gender.
According to the Survey:

• Experience:
Supply management professionals with 15 or more years of experience ‘can expect to earn 56% more than those with 4 or fewer years of experience’.¹
• Gender:
Male respondents earn, on average, 29% more than female.
• Education Level:
Professionals holding a Masters degree earn up to 24% more than those with a Bachelor’s degree – and salaries are ‘highest for respondents with a Technical or Engineering degree’.
The South African Story: The Tech-Pro Salary Survey 2014

Tech-Pro’s Salary Survey, which analysed salaries earned by 2901 supply chain professionals across various areas of specialisation, reflects the rising importance of South African supply chain skills.

Highlights of the 2014 Survey include:

• Procurement:
Sourcing Managers with between 3 and 6 years of experience earn an average of R518 335 per annum, while those with more than 6 years of experience earn up to R1, 012, 501.

• Logistics:
Senior Logistics Managers – with 6+ years of experience – earn up to R908 334 per annum, while their more junior counter-parts – with 3 to 6 years of experience – average R585 001 per annum. 

• Planning:
Mid-career Planning Managers – 3 to 6 years of experience – earn R555 001.
This rises to R1, 050, 001 for Senior Planning Managers with more than 6 years of experience.

• Supply Chain:
Supply Chain Optimisation Managers average between R600 001 at mid-career level and R1, 050, 001 at senior level.

• Consulting:
Senior Continuous Improvement Managers, with more than 6 years of experience, earn an average of R1, 056, 250, while mid-level staff, with between 3 and 6 years of experience, earn R568 215.

Is Salary the Biggest Draw Card for Skilled Supply Chain Talent?

According to the ISM’s 2014 Salary Survey, the answer is ‘yes’.
Respondents ranked ‘Amount of Pay’ as the most important feature to consider when looking for a new supply management job. ‘Likely Job Satisfaction’ placed second, followed by ‘Prospect of Improved Work/ Life Balance’ and ‘Benefits Package Offered’, which ranked third and fourth respectively.¹

Growing economic recovery, which improves job stability and drives demand for skills, is most likely responsible for the return to prominence of salary.
As recently as two years ago, the picture looked very different.

In ISM’s 2012 Survey, ‘Financial Stability of the Organisation’ was ranked the leading feature to consider when looking for a new supply management job. ‘Amount of Pay’ dropped into 5th place, behind ‘Prospect of Improved Work/ Life Balance’, ‘Benefits Package Offered’ and ‘Likely Job Satisfaction’, ranked 4th, 3rd and 2nd respectively.⁴

The full Tech-Pro Salary Survey 2014, which contains a breakdown of salaries earned by a range of Supply Chain staff across all areas of specialisation, is available. If you would like a copy, please email tjones@tech-pro.co.za for further information.

Have you noticed an improvement in supply chain salaries? Which factors do you believe have the most impact on earnings? What features do you consider most important when considering new job opportunities?
Share your thoughts by joining our discussion on LinkedIn.

[Words: 651]

1: ‘ISM Salary Survey Suggests Experience Pays’, Patrick Burnson writing for the Supply
     Chain Management Review, May 2014
2: ISM’s Salary Survey 2014
3: Tech-Pro Salary Survey 2014

4: ‘Supply in Demand’ – Salary Survey 2012, Institute of Supply Management, 2012

'This article was written by Tech-Pro and first appeared on the SmartProcurement website'