skills 2012

7/29/2019 Skills 2012

1/20

The 2012 Purchasing & Supply Management Career & Skills Report

7/29/2019 Skills 2012

2/20


Table of Contents

Section Page

Section I: Purchasing & Supply Management Career & Skills Report Overview 1

Section II: Cost Savings & Avoidance Statistics 6

Section III: Purchasing & Supply Management Skill Facts 7

Section IV: Purchasing & Supply Management Career Considerations 9

Section V: Summary 11

Section VI: About The Authors & Publisher 12

7/29/2019 Skills 2012

3/20


1

Section I: Purchasing & Supply Management Career & Skills Report Overview

The Purchasing & Supply Management Career & Skills Report is provided to give you, the purchaser,insight on the important skills, career development trends, and perceptions that impact todays

purchasing and supply management profession. In this report, you will learn interesting statistics aboutthe profession and will read analyses of those statistics. The purpose of the report is to help you createa personal career development plan based on best practices in the profession and, ultimately, achievemaximum performance in the workplace.

All of the data used in this report were gathered in a survey of purchasing and supply managementprofessionals. Over 2,500 purchasing and supply management professionals from around the worldparticipated in this survey to assess trends, skills and career development in the purchasing and supplymanagement profession. Survey responses were collected in January 2012. Next Level Purchasingconducts these surveys annually, so some of this years statistics are compared against statisticsgathered from previous years surveys.

This report will be read by purchasing and supply management professionals in over 100 countriesaround the world. Unfortunately, it is not practical to publish the monetary values expressed in thisreport in each readers home currency. Therefore, US dollars will be used. If you wish to convert thecurrency values into your home currency, you can find a currency converter at www.xe.com.

Profile of Participants

The average number of years of purchasing experience for the survey participants was 10.4 years.

Fifty-six percent of the participants supervise other purchasers.

Table 1 illustrates the age groups of the participants. Table 2 illustrates the job titles of theparticipants. Table 3 illustrates the geographical locations of the participants. Table 4 illustrates theeducational background of the participants. Table 5 illustrates the industries in which the participantswork. Table 6 illustrates the gender of the participants. The total of the percentages may not add up to100% due to rounding.

Table 1Age Groups of Participants

Age Range Percentage of

Participants

Under 20 0.3%

20 - 29 18.5%

30 - 39 34.1%

40 - 49 27.1%

50 - 59 16.8%

60 or over 3.2%

7/29/2019 Skills 2012

4/20


2

Table 2Job Titles of Participants

Job Title

Percentage of

Participants

Expediter/Junior Buyer 4.7%

Buyer/Purchasing Agent/Procurement Specialist 30.2%

Purchasing Manager/Supply Manager 35.0%

Director of Purchasing/Procurement/Supply Chain 8.1%

VP of Purchasing/Procurement/Supply Chain 2.0%

Chief Procurement Officer 0.7%

President 1.0%

Training Manager 1.7%

Vendor Representative/Consultant/Sales 2.3%

Student 4.8%

Unemployed 2.6%

Other 7.0%

7/29/2019 Skills 2012

5/20


3

Table 3Geographical Locations of the Participants

Location

Percentage of

Respondents

Africa 38.3%

Asia 31.2%

North America 19.6%

Europe 7.4%

South America 2.1%

Australia 1.2%

Table 4Educational Background of the Participants

Highest Level of Education Completed

Percentage of

Respondents

Ph.D 0.9%

Masters Degree 26.6%

Bachelors Degree 44.6%

Associates Degree 13.8%

High School 13.0%

Less than High School 1.1%

7/29/2019 Skills 2012

6/20


4

Table 5Industries in Which the Participants Work

Industry

Percentage of

Respondents

Government Offices & Services 8.1%

Oil & Petroleum 6.7%

Education 4.9%

Construction 4.8%

Business Services 4.3%

Telecommunications 3.8%

Food Manufacturing 3.7%

Consumer Goods Manufacturing 3.6%

Engineering Services 3.6%

Motor Vehicles 3.6%

Medical Providers 2.9%

Warehouse & Storage 2.6%

Chemical Production 2.6%

Mining 2.6%

Metal Products 2.4%

Electrical Components 2.4%

Industrial Equipment 2.3%

37 Other Industries 30.2%

7/29/2019 Skills 2012

7/20


5

Table 6Genders of the Participants

Gender

Percentage of

Respondents

Male 73.4%

Female 26.6%

7/29/2019 Skills 2012

8/20


6

Section II: Cost Savings & Avoidance Statistics

While different purchasing and supply management departments have different goals, one commongoal among most of them is to achieve cost savings and avoidance. As part of this research, NextLevel Purchasing collected data about cost savings and avoidance. Table 7 illustrates the various cost

savings and avoidance statistics gathered. In order to put the cost savings and avoidance numbers incontext, it should be noted that the average annual revenue of the employers of the participants is$3,089,468,644.

Table 7Annual Cost Savings & Avoidance Statistics

Category Average Annual Cost Savings & Avoidance

Overall $2,582,967 per person

If SPSM-Certified $3,213,722 per person

If not SPSM-Certified $2,551,758 per person

As a percentage of employees salary 2,228%

By continent Australia/Oceania: $4,649,357 per personAsia: $3,292,181 per personNorth America: $2,975,285 per personSouth America: $2,932,680 per personEurope: $2,419,208 per personAfrica: $1,677,045 per person

By annual hours of training 0-10: $1,425,178 per person11-20: $2,068,225 per person21+: $3,965,306 per person

By degree status Associates Degree or none: $2,096,780 per personBachelors Degree: $2,263,086 per personMasters Degree or PhD: $3,583,152 per person

By years of experience 0-5 years: $2,019,317 per person6-10 years: $2,183,653 per person11-15 years: $2,839,592 per person16+ years: $3,785,076 per person

For a breakdown of annual per person cost savings and avoidance by industry, see Exhibit A.

7/29/2019 Skills 2012

9/20


7

Section III: Purchasing & Supply Management Skill Facts

Most Important Skills

With purchasing and supply management departments having the ability to contribute cost savings andavoidances to their organizations and the rising expectations to do just that, it should be no surprisethat todays purchasing and supply management professionals need better skills than they had in yearspast. The participants were asked to identify the most important skill in purchasing and supplymanagement. The participants identified Sourcing & Supplier Selection as the most important skill.Negotiation, which held the top spot in five of the last eight years, placed second. Chart A shows thedistribution of responses to that question.

Chart AMost Important Skills In Purchasing & Supply Management

Through its email newsletter, PurchTips, as well as its online classes, Next Level Purchasing helpspurchasing and supply management professionals stay current in these skill areas.

The need for continuing education is evident in the sustained high number of hours a purchasing andsupply management professional devotes to training in a year. The average purchasing and supply

7/29/2019 Skills 2012

10/20


8

management professional participates in 22.5 hours of training annually. This represents a nearlyidentical result as the previous years average of 22.8 and a maintaining of a steep climb in annualtraining hours that began in 2006 and now appears to have been only temporarily interrupted by theglobal economic turmoil of 2008. This trend is illustrated in Chart B.

Chart B

Hours of Training

The rise in annual training hours per purchasing and supply management employee over the past 10years was the result of both more individuals being trained and individuals getting more training.

Consider that the percentage of respondents who reported receiving training increased to 81.6% in2011 from 75.5% in 2008 and the percentage of respondents who reported receiving 80 or more hoursof training annually increased significantly to 7.1% in 2011 from 1.8% in 2008.

Online training, also referred to as e-Learning and often regarded as the most cost-effective approachto education, continues to be popular with this years participants reporting that theyve participated inan average number of 1.8 online classes taken in the past year. This is a 12.5% increase over theprevious years average of 1.6 and over double the average number of online classes taken seven yearsago (0.75). Indications are that online training will become even more popular in 2012 as therespondents expected to take an average of 4.28 online classes in the 12 months following the survey.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Hours 18 18 18.3 17.4 18.5 20.4 19.6 21.3 22.8 22.5

15

16

17

18

19

20

21

22

23

24

25

Hou

rsofTraining

Training Per Year

7/29/2019 Skills 2012

11/20


9

Section IV: Purchasing & Supply Management Career Considerations

Employers Embracing Skill Development Are Rewarded

High skill levels do not just benefit purchasing and supply management professionalsthey benefitthe organizations that employ those highly skilled professionals. Skilled purchasing and supplymanagement professionals deliver improved results to their employers in the form of:

More cost savings More efficient and reliable operations Less risk

In fact, participants who have earned the SPSM Certification achieved an average of $3,213,722 (US)per person in annual cost savings and avoidance for their employers compared to $2,551,758 for thosewho have not earned the SPSM Certificationa difference of $661,964. The actual difference may

truly be much higher as the Senior Professional in Supply Management

Program teaches a moreconservative, verifiable approach to reporting cost savings and avoidance that ensures the recognitionof legitimacy by senior management and Chief Financial Officers. Without such an education,purchasing and supply management professionals are more likely to overstate their cost savings.Considering that the current all-inclusive cost to enroll in the Senior Professional in SupplyManagement Program is only $1,149, employers were rewarded handsomely for their investment.

As no surprise, the vast majority of participants felt that certification in purchasing and supplymanagement will become more important in the next five years as illustrated in Table 8.

Table 8Change in the Importance of Certification in Purchasing & Supply Management in the

Next 5 Years

Result

Percentage of

Participants

Who Expect

This Result

Certification will become more important 71.3%

Certification will remain as important as it is today 26.2%

Certification will become less important 2.5%

Individuals Embracing Skill Development Are Rewarded

While the preceding section clearly indicates the financial benefit to employers for developing theskills of their employees, the individuals themselves stand to gain. The survey revealed that thosewho have earned the SPSM Certification have an average annual salary that is $21,151 higher thanthose who have not earned the SPSM Certification. Additionally, the survey revealed that those whohave earned the SPSM Certification earn an average of $16,942 per year more than purchasingprofessionals who have a certification other than the SPSM Certification.

7/29/2019 Skills 2012

12/20


10

The Business Case For Certification

The data showing financial benefit to both the employer and the employee may encourage thepurchasing and supply management professional to either (a) petition his/her employer to fundcertification or (b) fund his/her own certification. If the purchasing and supply management

professional opts to petition his/her employer to fund their skill development, citing these facts canhelp one make his/her case:

Over 81% of purchasing and supply management professionals get some level of trainingwithin a years time, even managers

The average company annually budgets $3,196 for training for each purchasing and supplymanagement employee (see Exhibit B for a more detailed per purchasing employee annualtraining budget by industry breakdown)

The financial benefits to the employer, most notably increased cost savings, will likely exceedthe amount expended on training provided that the proper, results-based training is selected

Considering that the current all-inclusive cost to enroll in the Senior Professional in Supply

Management Program is only $1,149, even if one has to personally take financial responsibility forones own skill development, it appears to be a wise investment. In addition to the salary statisticspreviously mentioned, consider the data in Table 9 which indicates the results that survey participantswould expect to get after earning a certification.

Table 9Expected Results From Certification (out of 1,942 responses to this question,

participants could select as many results as they felt were applicable)

Result

# Participants

Who Expect

This Result

Earning a certification will help the purchasing and supply managementprofessional get a pay increase 652

Earning a certification will help the purchasing and supply managementprofessional get a promotion 742

Earning a certification will help the purchasing and supply managementprofessional get more respect 1,022

Earning a certification will help the purchasing and supply managementprofessional get a better job 1,136

True purchasing and supply management professionals should not let their employers unwillingness toinvest in training be a deterrent to their skill development. To have a successful career, individuals

need to take control of their own destinies. After all, the individual reaps many rewards from beingmore highly skilled.

7/29/2019 Skills 2012

13/20


11

Section V: Summary

The Next Level Purchasing Association conducted a survey of over 2,500 purchasing and supplymanagement professionals in January 2012. The average participant had 10.4 years of purchasing andsupply management experience and the majority of participants supervised other purchasers.

With many recent changes in the profession, purchasing and supply management professionals aredevoting more time to education than they did in the preceding decade, spending an average of 22.5hours a year on training. More and more of that training is being accessed online, with the participantsengaging in an average of 1.8 online classes in the past year. The participants consider sourcing andsupplier selection to be the most important skill in purchasing and supply management.

Certification is gaining importance in the purchasing and supply management field. Individualsholding the SPSM Certification save their employers an average of $661,964 more per year thanthose who have not earned the SPSM Certification. In addition, purchasing and supply managementprofessionals possessing the SPSM Certification earn an average of $21,151 more per year than those

who do not possess it. As of February 2012, the SPSM Certification has been earned by purchasingand supply management professionals in 77 countries around the world. Large numbers of theparticipants felt that earning a certification will help purchasing and supply management professionalsget better job, more respect, and higher pay.

7/29/2019 Skills 2012

14/20


12

Section VI: About The Authors, Sponsor & Publisher

Primary Author

Charles Dominick, SPSM, SPSM2 is the President and Chief Procurement Officerof Next Level Purchasing, Inc., based in the suburbs of Pittsburgh, Pennsylvania.Through the online purchasing and supply management classes that he hasdeveloped for Next Level Purchasing, Charles has trained purchasing and supplymanagement professionals from over 100 countries throughout the world. He isalso the mastermind behind the globally recognized SPSM and SPSM2

Certifications, which were launched in 2004 and 2009, respectively, and have beenearned by purchasing and supply management professionals all over the globe in

locations as diverse as India, South Africa, the United States, Singapore, Germany, the United ArabEmirates, and more.

Charles has taught eBusiness and purchasing classes for Penn State University and the University ofPittsburgh. Charles is frequently recruited to deliver educational seminars for companies andprocurement institutions throughout the world.

Charles has led Next Level Purchasing to awards and honors including being named to the Supply &Demand Chain Executive 100 in each year between 2007 and 2011, the Pittsburgh Airport AreaChamber of Commerces Innovative Business of the Year in 2006, and the Better Business Bureau ofWestern Pennsylvanias Torch Award for Marketplace Ethics in 2011. He was also named one ofSupply & Demand Chain Executives Pros To Know every year between 2007 and 2012.

Prior to founding Next Level Purchasing in 2000, Charles acquired nearly a decade of results-

producing experience in purchasing at a small manufacturer, a Fortune 500 airline, and aninternationally renowned university. Between 2002 and 2005, Charles served on the board of directorsof a Pittsburgh supply management association.

Charles is the co-author ofThe Procurement Game Plan: Winning Strategies and Techniques forSupply Management Professionals, and his articles and interviews have also been published in thenewsletters and on the websites of purchasing institutions as well as in publications such asInsideSupply Management,Purchasing,Multichannel Merchant, Construction Purchasing, Supply &Demand Chain Executive, Supply Management, Government Procurement, and the Irish HealthcareMaterials Management Associations Yearbook. More importantly, the companies that have benefittedfrom Next Level Purchasings training have had their post-training success stories featured in

PurchasingMagazine and Supply & Demand Chain Executive Magazine, including two cover storiesin the latter.

Charles holds the SPSM Certification, the SPSM2 Certification, and a Bachelors Degree inBusiness Administration from Duquesne University.

7/29/2019 Skills 2012

15/20


13

Supporting Author

Megan Tyrseck, SPSM is the Manager of Marketing, Operations &Communications for Next Level Purchasing, Inc. Megan holds the SPSMCertification and a Bachelor's Degree in Business Administration and Economics

from Lycoming College.

Publisher

Are you struggling to have a rewarding purchasing career? The Next Level Purchasing, Associationwas founded to help you.

Whether you want to learn about purchasing and supply management by reading free articles, sharpen

your skills in a specific area such as negotiation, or earn a valuable certification while getting a

comprehensive education in supply management, the Next Level Purchasing Association can help you

achieve your personal and professional goals.

Next Level Purchasing was founded in 2000, introduced the SPSM Certification on July 1, 2004, and

launched the SPSM2 Certification on July 1, 2009. Since its introduction, prestigious organizationsfrom throughout North America, South America, the Caribbean, Europe, Asia, Africa, and Australia

have enrolled their purchasers in the Senior Professional in Supply Management Program.

Learn more about how Next Level Purchasing can help you have a rewarding career by visitingwww.NextLevelPurchasing.com.

Valuable pages youll find on the Next Level Purchasing Web site include:

SPSM

Certificationhttp://www.NextLevelPurchasing.com/spsm.html

SPSM2

Certificationhttp://www.NextLevelPurchasing.com/spsm2.html

Jobs For SPSMs http://www.NextLevelPurchasing.com/purchasing-jobs.php

SPSM Certification Success Stories -http://www.NextLevelPurchasing.com/spsm-certification.html

Online Purchasing Courseshttp://www.NextLevelPurchasing.com/purchasing-courses.php
http://www.nextlevelpurchasing.com/http://www.nextlevelpurchasing.com/http://www.nextlevelpurchasing.com/spsm.htmlhttp://www.nextlevelpurchasing.com/spsm.htmlhttp://www.nextlevelpurchasing.com/spsm.htmlhttp://www.nextlevelpurchasing.com/purchasing-jobs.phphttp://www.nextlevelpurchasing.com/purchasing-jobs.phphttp://www.nextlevelpurchasing.com/purchasing-jobs.phphttp://www.nextlevelpurchasing.com/spsm-certification.htmlhttp://www.nextlevelpurchasing.com/spsm-certification.htmlhttp://www.nextlevelpurchasing.com/spsm-certification.htmlhttp://www.nextlevelpurchasing.com/spsm-certification.htmlhttp://www.nextlevelpurchasing.com/purchasing-jobs.phphttp://www.nextlevelpurchasing.com/spsm.htmlhttp://www.nextlevelpurchasing.com/

7/29/2019 Skills 2012

16/20


14

Training For Teamshttp://www.NextLevelPurchasing.com/purchasing-training.html

Free Purchasing Articleshttp://www.NextLevelPurchasing.com/free.html

Next Level Purchasing, Inc.P.O. Box 1360Moon Township, PA 15108United States of America

Phone: 1-412-294-1990

Email: [email protected]
http://www.nextlevelpurchasing.com/purchasing-training.htmlhttp://www.nextlevelpurchasing.com/purchasing-training.htmlhttp://www.nextlevelpurchasing.com/purchasing-training.htmlhttp://www.nextlevelpurchasing.com/free.htmlhttp://www.nextlevelpurchasing.com/free.htmlhttp://www.nextlevelpurchasing.com/free.htmlmailto:[email protected]:[email protected]:[email protected]://www.nextlevelpurchasing.com/free.htmlhttp://www.nextlevelpurchasing.com/purchasing-training.html

7/29/2019 Skills 2012

17/20


15

EXHIBIT A: AVERAGE ANNUAL PER PERSON COST SAVINGS &

AVOIDANCE BY INDUSTRY

Industry Per Person Cost Savings & AvoidanceAccounting Services $ 1,190,009

Apparel and Fabric Manufacturing $ 9,097,440

Appliance Manufacturing $ 4,633,750

Beverage Products $ 753,720

Business Services $ 1,414,614

Casinos, Racetracks and Amusement $ 6,000,000

Cement and Concrete Products $ 476,597

Chemical Production $ 402,300

Commercial Machinery $ 1,463,154

Commercial Printing $ 1,764,000Communications Equipment $ 12,896,779

Computer Design Services $ 249,012

Computer Equipment $ 1,692,136

Construction $ 7,733,083

Consumer Goods Manufacturing $ 2,446,466

Control Instruments $ 750,000

Cosmetic Goods $ 3,351,760

Education $ 502,500

Electrical Components $ 1,556,270

Electronic Shopping $ 50,001Engineering Services $ 1,271,344

Family and Personal Services $ 80,000

Farming and Agriculture $ 2,725,642

Financial Institutions $ 3,733,770

Food Manufacturing $ 2,981,002

Food Service $ 985,907

Government Offices and Services $ 1,990,005

Grocery and Drug Stores $ 6,000

Hotels $ 582,316

Industrial Equipment $ 913,803Insurance $ 701,667

Legal Services $ 200,005

Management Consulting Services $ 4,105,787

Medical Equipment $ 2,072,650

Medical Providers $ 3,948,905

Metal Products $ 1,464,938

Mining $ 3,378,631

7/29/2019 Skills 2012

18/20


16

Motor Vehicles $ 3,875,311

News Providers and Libraries $ 205,715

Oil and Petroleum $ 2,376,205

Pharmaceutical Manufacturing $ 6,078,938

Plastic Products $ 788,127Pottery and Glass Products $ 100,000

Power Generation and Distribution $ 3,971,850

Publishers $ 1,001,904

Real Estate $ 224,520

Religious and Professional Organizations $ 158,714

Scientific Research and Development $ 40,000

Software Providers $ 1,089,708

Telecommunications $ 4,333,390

Transportation Providers $ 532,981

Warehouse and Storage $ 17,225Wood and Paper Products $ 860,705

7/29/2019 Skills 2012

19/20


17

EXHIBIT B: PER PURCHASING EMPLOYEE ANNUAL TRAINING BUDGET

BY INDUSTRY

Industry Per PersonTraining BudgetAccounting Services $ 2,941

Apparel and Fabric Manufacturing $ 1,367

Appliance Manufacturing $ 1,058

Beverage Products $ 2,799

Business Services $ 4,892

Casinos, Racetracks and Amusement $ 2,000

Cement and Concrete Products $ 1,678

Chemical Production $ 2,688

Commercial Machinery $ 1,138

Commercial Printing $ 2,300Communications Equipment $ 1,383

Computer Design Services $ 1,313

Computer Equipment $ 1,423

Construction $ 3,496

Consumer Goods Manufacturing $ 4,430

Control Instruments $ 667

Cosmetic Goods $ 2,868

Education $ 2,945

Electrical Components $ 2,093

Electronic Shopping $ 5,001Engineering Services $ 3,048

Family and Personal Services $ 2,061

Farming and Agriculture $ 777

Financial Institutions $ 5,509

Food Manufacturing $ 2,467

Food Service $ 985

Government Offices and Services $ 3,497

Grocery and Drug Stores $ 1,806

Hotels $ 697

Industrial Equipment $ 3,353Insurance $ 1,100

Legal Services $ 1,750

Management Consulting Services $ 1,630

Medical Equipment $ 934

Medical Providers $ 1,763

Metal Products $ 4,433

Mining $ 4,925

7/29/2019 Skills 2012

20/20


18

Motor Vehicles $ 3,303

News Providers and Libraries $ 350

Oil and Petroleum $ 6,176

Pharmaceutical Manufacturing $ 1,632

Plastic Products $ 1,685Pottery and Glass Products $ 100

Power Generation and Distribution $ 5,002

Publishers $ 2,184

Real Estate $ 7,735

Religious and Professional Organizations $ 2,230

Scientific Research and Development $ 2,643

Software Providers $ 1,667

Telecommunications $ 5,413

Transportation Providers $ 3,322

Warehouse and Storage $ 1,410Wood and Paper Products $ 1,980

skills 2012

Documents