Procurementtips.com - Exchanging tips, tactics, information and views between Purchasing and Supply Management Professionals teblos

Go Back   Procurementtips.com - Exchanging tips, tactics, information and views between Purchasing and Supply Management Professionals > World Class Procurement Infrastructure > Procurement Organization
User Name
Password
Register Help Members List Calendar Search Top Posts Mark Forums Read

Procurement Organization World Class Procurement Roles, Organisational Design, Competencies, Training, Compensation.

View Poll Results: Do you think procucurement professionals are remunerated fairly?
Yes - Absolutely! 1 1.56%
Yes - Depending on the role played (More strategic roles are adequately rewarded) 25 39.06%
Not sure 15 23.44%
No - But has improved lately 19 29.69%
Not at all! 4 6.25%
Voters: 64. You may not vote on this poll as an unregistered user. To vote on this poll, search the forum and post questions, please register on the Procurementtips.com home page. If you are already registered you may have to log in first.

Reply
 
Thread Tools Search this Thread
  #1  
Old 10-04-2006, 02:32 PM
bernievn's Avatar
Administrator
 
Join Date: Sep 2005
South Africa
Posts: 116
bernievn has disabled reputation
Default Procurement salaries: Role vs Industry vs Qualification vs Country

What do procurement profesionals get paid?

1.Based on their role.
E.g. Compensation package of a senior procument manager, commodity manager, buyers (Junior vs Senior) etc.
2. Based on their industry.
Are there certain industries where Supply Management professionals get paid more than others?
3. Based on qualification.
__________________
Is profit made when you buy or when you sell?

Last edited by bernievn : 10-04-2006 at 02:37 PM.
Reply With Quote

-->
  #2  
Old 10-04-2006, 02:55 PM
HR Guru
 
Join Date: Jun 2006
South Africa
Posts: 2
priscilla is on a distinguished road
Default Re: Procurement salaries: Role vs Industry vs Qualification vs Country

In South Africa the average bands (in some cases / industries the packages are higher) are:

Sourcing Specialists: R280K - R320K ($40k - $52k)
Sourcing Managers: R420K - R450K ($60k - $65k)
Commodity Managers: R420k - R480K ($60k - $70k)
Procurement Specialists: R280K - R320K ($40k - $52k)
Purchasing Managers: R260K - R280K ($36k - $40k)
Buyers: R130K - R180K ($20k - $28k)
Executives: R500K R800K ($72k - $112k)




According to the outcome of salary surveys performed by our company over the last few years, remuneration in the procurement arena is fairly broad.

Huge discrepancies appear between industries and job functions.

Industries in the heavy resources environment, on average pay the best, while the government and retail industries have the lowest salaries.

I think it largely depends on the strategic level procurement plays within the organisation. Qualification is also a major contributing factor, and those positions paying the highest tend to employ candidates with secondary degrees.

I have included a basic guideline above. Priscilla

Last edited by priscilla : 10-04-2006 at 02:58 PM.
Reply With Quote
  #3  
Old 10-05-2006, 08:46 AM
Procurementtips Member
 
Join Date: Oct 2006
South Africa
Posts: 2
naomih is on a distinguished road
Default Re: Procurement salaries: Role vs Industry vs Qualification vs Country

Quote:
Originally Posted by priscilla View Post
In South Africa the average bands (in some cases / industries the packages are higher) are:

Sourcing Specialists: R280K - R320K ($40k - $52k)
Sourcing Managers: R420K - R450K ($60k - $65k)
Commodity Managers: R420k - R480K ($60k - $70k)
Procurement Specialists: R280K - R320K ($40k - $52k)
Purchasing Managers: R260K - R280K ($36k - $40k)
Buyers: R130K - R180K ($20k - $28k)
Executives: R500K R800K ($72k - $112k)




According to the outcome of salary surveys performed by our company over the last few years, remuneration in the procurement arena is fairly broad.

Huge discrepancies appear between industries and job functions.

Industries in the heavy resources environment, on average pay the best, while the government and retail industries have the lowest salaries.

I think it largely depends on the strategic level procurement plays within the organisation. Qualification is also a major contributing factor, and those positions paying the highest tend to employ candidates with secondary degrees.

I have included a basic guideline above. Priscilla
are these packages cost to company?
Reply With Quote
  #4  
Old 10-05-2006, 10:05 AM
Regular Member
 
Join Date: Sep 2006
South Africa
Posts: 30
Izak is on a distinguished road
Default Re: Procurement salaries: Role vs Industry vs Qualification vs Country

Naomi I tak it that these are indeed TCC.
I agree totally Priscilla, the role played by procurement in specific organisation has a lot to do with firstly the importance of the position and then secondly the remuniration recieved.
Reply With Quote
  #5  
Old 10-05-2006, 10:18 AM
Procurementtips Member
 
Join Date: Oct 2006
South Africa
Posts: 3
kaygee is on a distinguished road
Default Re: Procurement salaries: Role vs Industry vs Qualification vs Country

Naomi i have to agree with Izak, those salaries do represent CTC.

It clearly indicates that Procurement/ Purchasing in South Africa is not been used at Strategical level or to its fullest. If it was those salary ranges will be a whole lot higher tha they are..
Reply With Quote
  #6  
Old 10-05-2006, 10:23 AM
Regular Member
 
Join Date: Sep 2006
South Africa
Posts: 30
Izak is on a distinguished road
Default Re: Procurement salaries: Role vs Industry vs Qualification vs Country

Totally agree Kaygee, if you go and do some research on international averages in these fields, you will be shocked!!
I hope my manager sees this!!
Reply With Quote
  #7  
Old 10-05-2006, 10:26 AM
Procurementtips Member
 
Join Date: Oct 2006
South Africa
Posts: 1
LUNEL1 is on a distinguished road
Default Re: Procurement salaries: Role vs Industry vs Qualification vs Country

I would imagine that the actual experience of the incumbent will undoubtedly influence the size of the remuneration package.
Reply With Quote
  #8  
Old 10-05-2006, 12:21 PM
Procurementtips Member
 
Join Date: Sep 2006
Namibia
Posts: 4
omao is on a distinguished road
Thumbs up Re: Procurement salaries: Role vs Industry vs Qualification vs Country

Just a perspective from Namibia:

1. Private sector companies apart from corporate entities and multinationals do not really give so much attention to Procurement, let alone to supply chain management as a core and valued entity within the organization and often the salaries band reveal this. You will notice in smaller organizations that these people are simply called buyers and paid peanuts.

2. Semi-owned government entities (aviation, transport, ports, telecommunications, roads maintenance, finance regulatory authorities etc) usually has better alignment with procurement as a profession and often pay well. Buyers are anywhere in the band of 280K - 420 (procurement specialist to inventory controllers and purchasing managers). Cost to company

3. Often what drives the view of how important supply chain is or procurement in the local parlance is that Purchasing is often lumped with stores in a corner somewhere far away from the Head Office and even executive management really do not acknowledge the leading role played by supply chain. I was once introduced to a new Exco member as: "This is ... who takes care of buying stationery and consumables." Yet I was responsible for capital procurement, managing a budget of +_450million dollars (Namibia that is), led sourcing projects and managed the public bidding process for work for the entire organization, submitted Board approvals of capital projects and presented the empirical data on BEE spend and supplier development.

4. What determines your final pay check is how high the profile of supply chain is within the organization and the understanding of that crucial role by executive management. The zero after the 1 or 2 or 3 is then a formality.

Last edited by omao : 10-05-2006 at 12:24 PM. Reason: important data left out
Reply With Quote
  #9  
Old 10-05-2006, 12:41 PM
Procurementtips Member
 
Join Date: Oct 2006
South Africa
Posts: 3
kaygee is on a distinguished road
Default Re: Procurement salaries: Role vs Industry vs Qualification vs Country

Amoa

I am glad some one sees the point i was trying to make. Companies should stop treating Purchasing as an administration department and realise that we add a lot to company been profitable.

Trend in EU market is that you get a CPO( chief Purchasing Officer) reporting directly to MD not the way we do ..Group Purchasing Manager reporting to Financial director.

Yes Purchasing might have in past fallen under finance but now Purchasing is a stand alone department that adds alot of value to total company strategy.

Finance alone can't make decision on make or buy or even outsource services Purchasing is more equipped to do make such decisions.


If companies don't realise this we they are going to end in sitaution like our leading enerygy company and our public sector where there is shortages of skills( because some of us are moving out of the country to where our skills will be highly appreciated and remunerated) and companies will still post good profits but expenses will keep creeping up.
Reply With Quote
  #10  
Old 10-05-2006, 04:16 PM
Procurementtips Member
 
Join Date: Sep 2006
South Africa
Posts: 17
Graham is on a distinguished road
Default Re: Procurement salaries: Role vs Industry vs Qualification vs Country

As usual South Africa is totally asleep when it comes to International trends (which dictate that Procurement (not purchasing - there's a phenomenal difference) is a major vehicle of company strategy and an integral part of any organisation) Gone are the days when the purchasing function was done from a dingy,smoke filled room - somewhere in the back offices of the firm.
Organisations (i'm generalising) need to take a more pro-active role in the assimilation of this function into their businesses - along with Strategic Logistics Management (which is also left out of the picture) together it can release untold savings for the organisation.

Once companies realise this, they would be able to enjoy the competitive advantage due to them.

There is no excuse for misunderstanding the role that procurement plays...to some we just buy coffee...which is of utmost importance to any organisation!!! - -my 2 cents........

What do you think the role of Strategic Logistics Management should be within the Procurement organisation? Are people aware that there are 13 activities linked to this that could also aid in the firm being 'best in class' Comments please...
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off

LinkBacks (?)
LinkBack to this Thread: http://www.Procurementtips.com/procurement-organization/85-procurement-salaries-role-vs-industry-vs-qualification-vs-country.html
Posted By For Type Date
SmartProcurement.co.za - FREE on-line newsletter for purchasing and supply management professionals: Procurement Professionals happy with Pay. This thread Refback 07-22-2008 03:41 PM


All times are GMT +2. The time now is 10:01 PM.


Copyright 2000-2015, ProcurementTips.com
Single Sign On provided by vBSSO

Content Relevant URLs by vBSEO 3.2.0 (Unregistered)