Most years, SCDigest covers the annual compensation study released from the Institute for Supply Management.
Supply Chain Digest Says... |
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| Jones said that in Philadelphia he has seen procurement executives tasked with managing all direct or indirect spend consistently earn over $180,000 a year. |
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The 2018 study, based on 2017 data, found that the median compensation (half above, half below) in 2017 increased 4.2% to $100,000, versus $96,000 in 2016. That is across all levels of managers, from those just beginning carriers to chief procurement officers.
The ISM report includes the chart below on average salary (before bonus) by level in the organization, from CPOs and equivalent positions down to supply management newbies.
As can be seen, CPOs averaged about $263,000 in salary compensation, all the way down to an average just over $77,000 in salary for staff early in their supply management careers. (See Purchasing and Procurement Professionals - How Does Your Salary Measure Up in 2018?)
Once again, at all levels women earn less than men, in some cases significantly, continuing a multi-year trend. The factors behind this are not clear.
The ISM report is based on survey responses from 3000 procurement managers, a sizable pool that certainly provides some credibility.
But the Strategic Sourceror blog recently spoke with Source One's supply chain staffing specialist Andy Jones, who had some interesting perspectives on procurement salaries.
Source: ISM
First, Jones noted that salaries will vary slightly based on factors such location and spend category. So, example, a procurement position located in Philadelphia will almost always command a higher salary than a similarly-qualified resource based in central Pennsylvania.
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CATEGORY SPONSOR: SOFTEON |
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Jones said that sourcing professionals with five years of experience, capable of overseeing numerous spend categories, can expect a salary of around $80,000 per year, not including bonus and additional benefits. But Jones said the manager of that level of procurement professionals easily collect more than double that – which seems a little high to SCDigest.
But Jones said that in Philadelphia he has seen procurement executives tasked with managing all direct or indirect spend consistently earn over $180,000 a year.
Do these estimates of procurement salaries seem right to you or not? Let us know your thoughts at the Feedback section below.
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