PROCUREMENT & SUPPLY CHAIN
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- Jessie Harrell
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1 Procurement & Supply Chain /16 NEW ZEALAND SALARY & EMPLOYMENT OUTLOOK
2 & SUPPLY CHAIN OVERVIEW Both the procurement and supply chain sectors continue to experience a high level of demand for talent. This is apparent across all industry sectors, particularly product based manufacturing. We have continued to see investment into supply chain functions as businesses look to capitalise on opportunities to improve customer delivery, operational performance and cost savings. Professionals with planning and coordination experience in inventory, demand and supply are in demand as companies continue to invest in value-add roles that are able to deliver improved performance and relationships cross-functionally across the business. As companies see wider benefits of a well-functioning supply chain, the demand for professionals with planning and analysis skills has grown. Analysts and planners enable companies to understand their supply chain, identify areas for improvement and execute solutions to improve efficiency and performance at minimum cost to the business. We are also seeing commercially-minded Procurement Category Managers in high demand to effectively manage internal stakeholders and supplier relationships, as well as to negotiate beneficial medium and longterm supplier contracts focusing on increase in supplier performance and minimising costs to the business. This is representative of an overall shift we are seeing in approaches to procurement and supply chains. Where previously decisions were made based on existing suppliers and relationships, we re now seeing a pivot towards information gathering and data-driven decision making. We expect procurement manager roles to rise in demand over the next 12 months as a result of this shift. The slowing of the Australian economy over the past 24 months has led to an increase in the number of highly skilled and qualified workers returning to New Zealand. While the majority of respondents (77%) state that they do not have any plans to specifically hire overseas workers in the next 12 months, 96% said that they would be willing to hire expats or those relocating to NZ. This speaks to the shortage of suitable talent in market, which has put upward pressure on salaries. The salary increases we re seeing are also bigger than what we ve observed in previous years. A full 94% of respondents indicated that their team would receive a pay rise of up to 3% in the next 12 months, with a small percentage (3%) set to receive an increase of 4-5% /16 NEW ZEALAND SALARY & EMPLOYMENT OUTLOOK In addition to higher salaries, organisations are focusing on highlighting their strong company culture to attract and retain talent, while flexible working arrangements are the most popular strategy used to support employees work/life balance. Survey respondents also indicated that they are investing in increased maternity/ paternity leave and team building activities to provide further benefits to employees.
3 KEY INSIGHTS Continued investment into supply chain functions has seen the market grow and demand for talent rise. As companies seek to gain further efficiencies, there is high demand for talent with skills in planning and analysis. Are you expecting to increase headcount in your team over the next 12 months? Do you expect staff turnover within your team over the next 12 months? 30 % Yes 13 % Unsure 37 % Yes 70 % No 50 % No Do your direct employees receive bonuses as part of their remuneration package? How do you rate the current national economy? 31 % NO 9 % 6 % 31 % Fair Very good Poor 69 % YES 54 % Good /16 NEW ZEALAND SALARY & EMPLOYMENT OUTLOOK
4 KEY INSIGHTS In addition to offering higher salaries, companies are focusing on highlighting their strong company culture to attract and retain talent, while flexible working arrangements are the most popular strategy used to support employee work/life balance. What do you think is the key reason employees will leave your company? Which strategies does your company prioritise in order to attract and retain talent? * Improve Salary Gain more seniority Broaden experience/opportunity to learn Achieve better work/life balance Better training and support Overseas opportunities 25% 13% 31% 19% 6% 6% Structured career progression Training and mentoring partnership Global career opportunities Strong company culture Work/Life balance initiatives Recognition and rewards Other 50% 42% 11% 80% 38% 73% 3% * Respondents could select more than one answer. Will your direct employees receive salary increases over the next 12 months? Would you consider hiring expats living/relocating in New Zealand? 6 % NO 6 % NO 94 % YES 94 % YES /16 NEW ZEALAND SALARY & EMPLOYMENT OUTLOOK
5 SALARY TABLES Company size Small/Medium Large Salary $ 000 $ 000 Purchasing/Procurement Officer Procurement Coordinator Procurement Specialist Buyer Senior Buyer Contracts Administrator Senior Contracts Administrator Strategic Sourcing/Procurement Analyst Procure to Pay/e-Procurement Purchasing Manager Junior Category/Commodity Manager Category/Commodity Manager Senior Category/Commodity Manager Procurement Manager Strategic Sourcing Leader/Manager Commercial/Contracts Manager Vendor/Supplier Relationship Manager GM Procurement Please note: 1. Salaries indicated are in New Zealand dollars and based on annual basic salary, excluding bonus/incentive schemes. 2. Small to medium companies are defined as having a turnover of less than $100 million. Large companies are defined as having a turnover of more than $100 million. 3. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information /16 NEW ZEALAND SALARY & EMPLOYMENT OUTLOOK
6 SALARY TABLES SUPPLY CHAIN PLANNING/SCHEDULING/BUYING Company size Small/Medium Large Salary $ 000 $ 000 Production Planner/Scheduler Inventory Planner/Planner Buyer Purchasing Officer Purchasing Manager Demand Planner/Analyst Supply (MRP or Finished Goods) Planner S&OP Analyst Replenishment Manager S&OP Deman/Supply Planning Manager LOGISTICS/DISTRIBUTION Company size Small/Medium Large Salary $ 000 $ 000 Customer Service Officer Transport Planner Logistics/Supply Chain Coordinator Warehouse Assistant/Stores Logistics/Inventory Analyst/Controller Warehouse Supervisor Inventory Manager Import/Export Manager Warehouse Manager DC Manager Transport/Distribution/Logistics Manager Operations Manager Supply Chain Development Manager Supply Chain Manager Supply Chain Director/GM Please note: 1. Salaries indicated are in New Zealand dollars and based on annual basic salary, excluding bonus/incentive schemes. 2. Small to medium companies are defined as having a turnover of less than $100 million. Large companies are defined as having a turnover of more than $100 million. 3. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information /16 NEW ZEALAND SALARY & EMPLOYMENT OUTLOOK
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