Please provide compensation information on the Supply Chain / Procurement industry using three variables: job title, industry, and location. Bonus points if you can balance salary information relative to cost of living (i.e. $100,000 in Houston is better than $100,000 in NYC).
Hello and thank you for sending your inquiry to Wonder about compensation information on the Supply Chain/Procurement industry. The short answer is that the median salary for managers and directors in Supply Chain and Procurement dropped from $129,000 in 2016 to $117,000 in 2017. Also, Tech and Consumer goods companies pay senior level practitioners the most. Lastly, there is a spike in median salaries in the Midwest for Supply Chain and Procurement practitioners due to regional logistics shift. Below you will find a deep dive of our findings.
For this research, we reviewed your LinkedIn profile in consideration of your intentions to make a career move to understand where to focus the research on. Having known this, we based our research on available salary information for at least a manager role and above to make our response consistent to what constitutes a career move — lateral or vertical movement. Whenever available, we considered salary information for managers, senior managers, and directors, which are logical career progressions from your current role. Our research found that there is no published data in relation to average compensation in the Supply Chain and Procurement management at an industry level. What we did, instead, is to estimate this by identifying the top companies in each identified industry and their estimated compensation packages at a senior level, and made a comparison. We used online publications related to Supply Chain and Procurement, relevant studies and popular company review sites as references.
SENIOR LEVEL SUPPLY CHAIN/PROCUREMENT COMPENSATION INFORMATION
According to Indeed.com, there are currently at least 2,753 senior level job openings in the Supply Chain Management category that pays an average annual salary between $110,000 and $120,000, and $120,000 and above. Of the 2,753 openings, a total of 1,755 senior level jobs are open within the $110,000 and $120,000 average annual salary range, while there are 998 posts within the $120,000 and above average annual salary range. The vacancies in this salary and career band are mostly for Manager/Senior Manager, Management Consultant, Vice President or Director/Senior Director roles. A survey that was conducted to supply chain managers and directors shows that the median salary at this job level is $117,000 in 2017, a drop from last year's $129,000. The same study also shows how experience matters a lot when it comes to supply chain-related jobs and the gap between annual wages, where a practitioner with 3 years of experience are paid a median salary of $56,300, far from those with experience of at least 30 years that are paid $124,000.
SUPPLY CHAIN/PROCUREMENT COMPENSATION INFORMATION ON TOP COMPANIES AND INDUSTRIES
e-Commerce giant Amazon always comes up as an ideal destination for Supply chain or Procurement practitioners to have a career on. According to Glassdoor, the annual compensation for the below manager/senior manager supply chain or procurement roles in Amazon are as follows:
Supply Chain Managers- $121,098 (base salary of $106,098 plus cash bonuses and commission and profit sharing)
Supply Chain Senior Managers- $226,000 to $245,000 (base salary ranging $147,000- $160,000 plus stock bonuses and commission and profit sharing)
Procurement Manager- $82,000- $98,000 (base salary)
Senior Procurement Manager- $155,684 (base salary of $123,184 plus cash bonuses and commission and profit sharing)
Spend Matters, in its article about Procurement leaders' top employer choice, listed down the below as the top industries for Supply Chain or Procurement practitioners:
1. Consumer Goods
2. Tech Companies
3. Food and Beverage
4. Medical Devices/Pharma
5. Consulting Firms
Unilever is the top consumer goods company in supply chain according to Garner Inc. Supply Chain or Procurement Managers/Senior Managers and Directors are annually compensated as follows:
Procurement Manager- $149,744 (base salary ranging $129,742 plus stock bonuses and commission and profit sharing)
Senior Procurement Manager- $143,000 — $154,000 (base salary ranging $123,000 — $131,000 plus stock bonuses and commission and profit sharing)
Supply Chain Manager- $118,278 (base salary ranging $107,594 plus stock bonuses and commission and profit sharing)
Senior Supply Chain Manager- $144,000 — $177,000 (base salary ranging $119,000 — $148,000 plus stock bonuses and commission and profit sharing)
Director of Procurement- $188,000 — $206,000 (base salary ranging $145,000 — $154,000 plus commission and profit sharing)
In Tech, Apple is the leading organization in Supply Chain and Procurement. The senior level compensation is as below:
Supply Chain Manager- $160,787 (base salary ranging $130,126 plus commission and profit sharing)
Procurement Manager- $313,987 (base salary ranging $177,320 plus commission and profit sharing)
Global Procurement Manager- $141,043 (base salary ranging $130,177 plus commission and profit sharing)
Senior Procurement Manager- $260,102 (base salary ranging $170,250 plus commission and profit sharing)
Procurement Director- $209,000 — $227,000 (base salary)
Among companies in food and beverages, Gartner Inc listed McDonald's as the industry best in Procurement and Supply Chain. Managers are paid annually as below:
Supply Chain Manager- $96,317 (base salary)
Senior Supply Chain Manager- $95,000 — $102,000 (base salary)
Procurement Manager- $81,000 — $86,000 (base salary)
In Pharma and medical devices, 3M is the best in Supply Chain and Procurement, where managers are paid as below:
Supply Chain Manager- $145,361 (base salary of $126,958 plus commission and profit sharing)
Senior Supply Chain Manager- $142,000 — $153,000 (base salary)
In consulting firms such as McKinsey, practitioners in relation to Supply Chain and Procurement are compensated as below:
Supply Chain- $82,511 (base salary)
Procurement- $72,000 — $79,000 (base salary)
Looking at the compensation packages of the top companies in each of the top industries in Supply Chain and Procurement, practitioners are likely to be paid the most in Tech and Consumer Goods companies.
SUPPLY CHAIN/PROCUREMENT SALARY DATA BY REGION
While still the region with the smallest salary paid to Supply Chain, Procurement or Logistics management practitioners, Supplychain247's report on Logistics Management 33rd Annual Salary Survey shows that the American Midwest is the place to consider the most. According to the survey, median salary went up from $81,000 last year to $90,000 in 2017. A similar study by JLL attributes this growth to e-Commerce that is causing the shift in logistics to this region.
Regionally, the average and median compensation for logistics-related jobs are as follows (average/median):
New England- $132,070/$110,000
Midwest states such as Indiana, Iowa, Kansas, Michigan, Missouri and Nebraska are among the states with the cheapest cost of living. This means that a career move to the Midwest can be considered a sound decision considering the growth of median salaries in the area and an affordable cost of living.
Based on the research and findings above, the median salary for managers and directors in Supply Chain and Procurement dropped from $129,000 in 2016 to $117,000 in 2017. Also, Tech and Consumer goods companies pay senior level practitioners the most. Lastly, there is a spike in median salaries in the Midwest for Supply Chain and Procurement practitioners due to regional logistics shift. Thank you for using Wonder. Please let us know if we can help you with anything else.