Supply Chain Review - 2012 Career and Salary Guide

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Supply Chain Review magazine's annual Career and Salary Guide published in association with Logistics Executive Group, the world's leading Executive Search organisation for the Logistics and Supply Chain industry.

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Supply Chain Review - 2012 Career and Salary Guide

  1. 1. Career & Salary GuideLifeBloodQueensland Future Leadersaward-winner Nicole Holyerlights the way PLUS: • Exclusive Salary Guide • Hot jobs in supply chain • Grow your talentProudly supported by • RMIT steps up in Asia • settling cultural woes • Planning CEO succession • Ed Frazelle lands in Oz
  2. 2. career & salary guide ANALYSIS Back to BASICS The Australian supply chain and logistics sectors continue to be significantly impacted by the mining and resources boom Employers across Australia are adopting a back-to-basics approach with a focus on core commercial skills when hiring across a wide range of positions. Anna Game-Lopata reports L eaders who can conduct financial and strategic analysis can help companies understand trends impacting the business and make them well placed for expansion. They can also identify cost savings; an activity always on the modern company’s agenda. So it’s not industry has been able to recruit from outside its traditional space. “We’ve been able to introduce excellent candidates from other sectors including the manufacturing, information technology, FMCG and retail sectors where demand has surprising, people with this kind of skill-set are particularly softened over the last 12 months,” Winter says. in demand. “In the last 12 months we made twice as many In Australia, tertiary qualifications including business, placements in commercial, finance and business commerce, economics, and social sciences remain the most improvement positions in Western Australia and almost in-demand credentials for mid to senior level executives. as many on the eastern seaboard as we did in the previous Exclusive market intelligence from leading global year.” recruitment firm Logistics Executive Recruitment Winter also says employers are also looking for (Logistics Executive) points to an increased demand for candidates with analytical skills, proficient in the most commercial roles. popular and up-to-date system and software applications. In addition, Logistics Executive’s 2012-13 Supply “New systems are being rolled out to improve Chain Employment Market Survey, produced annually efficiencies, but many organisations continue to require for SupplyChain Review’s Career and Salary Guide, shows candidates with advanced knowledge of traditional an increased demand for distribution, warehousing, software programs, such as Microsoft Excel, and experience procurement and inventory executives across the extended using enterprise resource planning systems such as SAP supply chain. and Oracle,” he says. In particular, the survey shows the mining, resources, In supply chain and logistics the highest level of demand agriculture, manufacturing, fast moving consumer goods has been experienced in procurement and sourcing in the (FMCG), retail and pharmaceutical sectors are on the hunt mining and resources sector. for business improvement, change management skills and “The retail sector is placing distribution and transport commercial acumen. roles as a priority, whereas the third party logistics and Logistics Executive CEO Kim Winter says building contract logistics space is recruiting CFOs, accountants and talent pools for in-demand roles from within logistics distribution centre managers,” Winter says. ranks continues to be challenging but the good news is the “The pharmaceutical sector is also seeking DCMs, as34 October 2012 Proudly supported by supplychainreview.com.au
  3. 3. salary GUIDE Annual Annual Position Salary ($’000) Position Salary ($’000) SENIOR EXECUTIVES WAREHOUSING Chief Executive Officer 450-1,000+ National Warehousing Manager 150-200+ Chief Operating Officer 300-400 Operations Manager 120-160+ President General Manager 300-450+ Distribution Centre Manager 140-170+ Vice President 220-300+ Contract Manager 180-140+ FINANCE Warehouse Manager 130-140+ CFO- Finance Director 200-500+ OH&S Manager 120-140 Senior/Chief Accountant 110-170 TRANSPORT Financial Controller 125-220+ General Manager Transport/Logistics 00-250+ 2 Treasurer 120-200 National Transport Manager 180-220+ Finance Manager 105-165+ National Compliance Manager 160-180+ Commercial Manager 100-200+ State Transport Manager 130-160 Accountant 80-120 Linehaul Manager 120-150 Credit Manager 70-135 Site Manager 120-140 Business Analyst 70-130 Workshop Manager 100-140 Management Accountant 70-130 Import/Export Manager 70-130 Financial Accountant 70-115 Shift Manager 70-115 HUMAN RESOURCES SALES AND MARKETING Director/VP Human Resources 240-280+ General Manager Business GM Human Resources 170-200+ Development (BD)/Sales 160-230+ Human Resources Manager 120-140+ National Manager BD/Sales 140-190+ SUPPLY CHAIN Sales/Business Development Supply Chain Director/GM 250-350+ Manager 100-140+ National Supply Chain Manager 180-240+ Account Manager 90-130 Project Manager 130-150 Customer Service Manager 80-130 Manufacturing/Plant Manager 120-160 Marketing Manager 70-130 Production Manager 90-130 Sales Executive 60-100 Supply Chain Analyst 80-120 PROJECT MANAGER/INTERIM MANAGER per day LOGISTICS Project Logistics Manager 800-1,500+ GM Logistics 200-280+ Project Implementation Commercial Manager 150-180+ Manager 3PL 800-1,500+ National Logistics Manager 150-180+ Project Implementation Regional Logistics Manager 130-160 Manager WMS/TMS 1,000-1,500+ State Logistics Manager 130-160 Quality/Lean/Six Sigma Logistics Manager 80-120 Implementation Manager 1,000-1,500+ Logistics Analyst 80-120 Inventory Manager 80-100 PURCHASING/PROCUREMENT/PLANNING/ MATERIALS Chief Procurement Officer 220-300+ Group Procurement Manager 200-250+ Data Supplied by Logistics Executive Recruitment Remuneration packages relate to large privately owned or medium-sized Category Manager 140-160 publicly listed companies, include base salary, superannuation and vehicle Category Specialist 110-150 allowance. Packages do not take account of Short Term Incentives (STI) or Long Term Procurement Manager 90-130 Incentives (LTI). Some remuneration packages in small to medium size Purchasing Manager 80-130 companies may be 5–15 percent below those quoted. Materials Manager 80-130 Some remuneration packages in large tier one publicly listed or in Mining/ Resources, companies may be 10-30 percent above those quoted. Planning Manager 80-130 Remuneration packages quoted are based on research, actual placements made Contracts Specialist 80-120 in the past 12 months and customer feedback and are a guide only.supplychainreview.com.au Proudly supported by October 2012 35
  4. 4. career & salary guide ANALYSIS well as a significant number of general procurement staff and managers. “Marine and shipping executives are currently prevalent selections in the oil and gas sector, FMCG companies are seeking operations management and the apparel industry is rapidly hiring operations and distribution leads.” Supply chain analysts, industrial manufacturers, commercial directors and business development managers are highly sought after in the freight forwarding sector while pre-sales and industry management is a hot requirement in the warehouse management and technology space. Winter adds Logistics Executive has also witnessed a lift in requirements for experienced sales and business development people. “Many of our clients see attacking the market with an increased business development presence as the best from of defence in the current economic conditions,” he says. “This increased demand is so marked, we’re building a national database of senior and mid- level sales and In the last 12 months Logistics Executive Recruitment made twice as many business development candidates with transferable skills for placements in finance and business improvement positions clients across a number of similar industry verticals.” Another significant trend is the increased use of high- candidates giving consideration to family continuity over level supply chain and logistics industry contractors and remuneration and even enhanced career prospects when consultants in interim roles to assist companies improve considering opportunities in WA. efficiencies and reduce costs. “We’ve also noticed a drop off in the level of interest “Many organisations are relying more heavily on project in lucrative [fly in, fly out] roles due to the disruption of professionals as they undergo significant periods of change, family life,” he says. restructure or transformation such as business systems Despite this observation, the Australian supply chain implementation and process improvement,” Winter says. and logistics sectors continue to be impacted by the mining “We’ve seen a noticeable increase in the demand for six and resources boom, driving higher salaries in WA and the sigma or lean executives to work on transformation and Northern Territory. implementation projects.” “There’s no doubt salaries in Australia’s west and north While the logistics sector commenced the 2011-12 are still firmer than the east coast due to higher demand for financial year with most roles in high demand, the wet a wide range of roles including supply chain, performance summer in 2012, strong Australian dollar and east coast improvement, heavy transport, fleet utilisation, operations floods contributed to a slight decline in industry activity. and finance,” Winter says. “This resulted in a softening in demand and salary levels A lack of specialist skills within the Australian workforce leading into 2012,” Winter explains. is also forcing companies to turn to the global labour “The early 2012 strength of the mining and resources market. sector has begun to taper off easing salary level pressure “To compete with the compensation packages offered generally nationally although demand for transport, project throughout the mining and resources industry, many logistics and 3PL experience remained firm.” companies are offering career development opportunities, There is also evidence candidates are unwilling to move higher education, training packages, work-life balance to WA for employment. benefits, even e-tags, sports club and gym memberships,” “We’re receiving significant feedback from major WA- Winter says. based customers and large numbers of candidates from our For the remainder of the 2012-13 financial Winter 40,000-strong Australian database indicating job seekers predicts an increase in demand for executives with 3PL, are indisposed to taking work in the west,” Winter says. 4PL, business improvement and change management skills This view is supported by new research from Edith as many manufacturers and FMCG companies look to Cowan University, which backs resources industry claims improve their business results. that a temporary intake of migrant workers will be essential “Indictaions are that salary levels will remain firm for to meeting local skills needs. distribution, warehousing, procurement and inventory “We identified cases where recently retrenched workers positions and roles with commercial qualifications,” he says. [in the eastern states] declined to relocate to WA, due to a “Salary levels across the wider market will remain range of reasons from social and family commitments to static on the west coast and in the north and soften to the cost of living and a lack of infrastructure in some areas,” some degree in the east until the second quarter of next Researcher Dr Susanne Bahn says. year when we expect the employment market to firm Kim Winter points to an increasing number of senior nationally.”36 October 2012 Proudly supported by supplychainreview.com.au
  5. 5. Career & Salary Guide MARKET ANALYSIS Board room moves Supply chain executives are optimistic about the future despite a diet of gloom from the media. But given rapid change and ongoing talent shortages, who is closer to the truth? Anna Game-Lopata investigates T here’s a lot of speculation about Australia’s current experienced stable or increased staff levels over the last and future economic fortunes. Much has been 12 months. Last year’s survey shows significant optimism said in the board room, the media, at dinner with 80.1 percent predicting this would be the case. tables, cafes and bars about the lack of confidence we By contrast, the global group surveyed, predominantly have in both the domestic and global economies. But in Asia, India and the Middle East, were more optimistic are Australians too negative? Key business leaders and than the Australians. Eighty-six percent last year commentators agree many of the fundamentals of our predicted their staff would either increase or remain economic base are in good shape by comparison to most constant. Interestingly, just 78 percent report this to have of our trading partners and other countries. been the actual outcome 12 months later. This year’s 2012-13 Employment Market Survey, Meanwhile, this year 76.4 percent of Australians expect produced by leading recruitment firm Logistics Executive the status quo or growth in staffing levels in the next 12 Recruitment (Logistics Executive) reveals well over the months. They are just 10 percent less hopeful than their majority (69.63 percent) of Australian CEOs, directors, global counterparts, 85.6 percent of whom predict no vice presidents and other management people surveyed change or growth.38 October 2012 Proudly supported by supplychainreview.com.au
  6. 6. These figures place Australians as a little less optimistic in so we’ve been very keen to find out just what the impactthan last year, and less positive than their Asian there has been,” he says.counterparts. As we know, Asian and Middle Eastern With inflation near 2 percent, the lowest in 13 years,countries have rapidly growing logistics industries. But unemployment near 5 percent and real wage growth,could the Australian media be over-feeding our negative conditions in Australia seem pretty good.tendencies? “Having spent most of the last six months between our Logistics Executive’s fifth consecutive piece of global Middle East businesses in Dubai, Singapore and Australia,research the 2012-13 Employment Market Survey received I couldn’t help notice the comparisons of positive mediaresponses from 2,830 middle and senior managers in stories in Asia and the Middle East compared to the doom80 countries with the majority (78.6 percent) employed and gloom in the Australian press,” Winter says.throughout Australasia, North and South East Asia,India and the Middle East. Sixty percent are employed “Improving an organisation’sin either supply chain, logistics, transport, procurement,inventory, distribution or warehousing. They represent talent pool is a well-recognised41 industries including third party logistics (3PL), fast- element of the most successfulmoving consumer goods (FMCG), mining and resources,manufacturing, industrial, road and rail transport, oil and companies.”gas and freight forwarding among others. Logistics Executive CEO and founder Kim Winter saysthe survey was conducted against the backdrop of wider “It is clear to me and many Australian executives I’veeconomic troubles in Europe, with unemployment rates spoken to that the current malaise has its origins moreof between 10 and 25 percent in some countries, and in thought than in fact. This year’s survey results supportongoing recessionary conditions in the United States. this view.” “There’s been a great deal of speculation about the However there are always challenges to be managed.effect of Europe and the US on the regions we do business When asked, executives indicate profitability is theirsupplychainreview.com.au Proudly supported by October 2012 39
  7. 7. Career & Salary Guide MARKET ANALYSIS main concern, followed by talent attraction and employees leaving organisations has been to seek a better leadership development. salary,” Winter explains. “Last year, the order of priority was customer “This suggests jobseekers wishing to satisfy career satisfaction, productivity and leadership development aspirations as their priority are in many cases finding suggesting commercial concerns and recognition of advancement too slow in coming at their current the need to attract talent to drive profitability has taken workplace. Possibly financial matters take precedent.” precedence under the prevailing economic conditions,” Frustratingly for the ambitious in this category, the Winter observes. pace of salary increases has slowed considerably. “Continually improving an organisation’s talent pool This year, 34 percent of respondents expecting a salary is a well-recognised element of some of the world’s increase of between 0 to 2 percent received one. But of the most successful companies, much the same as the most 48 percent surveyed last year expecting a 3 to 5 percent successful sports teams succeed through recruitment of salary increase, only 39 percent got one. Just 7 percent top coaches and key players.” were rewarded with a 6 to 8 percent salary increase, even Unfortunately, the survey shows a continuing difficulty though 11 percent were expecting one. recruiting supply chain talent. Career advancement has ranked consistently as the Over the last 12 months in Australia, 64.3 percent second most common reason for leaving employment. say they had found it harder to hire the right people “Last year a lack of employer values ranked as the compared to 61.2 percent last year. third key reason for leaving whereas this year a change of “Just 28.6 percent found it easier to recruit last year industry ranked in that position,” Winter says. and the figure is much the same in this year’s survey,” “While the survey does not ask which industry Winter says. candidates are leaving for, there is strong evidence “These results support the view of most employers to support the view a significant proportion have that our industry continues to experience ongoing successfully applied for roles in the mining and resources skills shortages across a wide range of vocations such industry.” as business transformation, change management, business development, distribution centre management, “Over the last six years, the commercial management and financial roles.” Although Australia’s supply chain management sector primary reason for employees faces skills shortages, its employers are still the least likely leaving organisations has been to to utilise overseas talent. “The main constraints identified in order of priority seek a better salary.” include visa or work permit issues, followed by concerns about cultural fit and difficulty in evaluating candidates.,” Winter says. When asked to identify the reasons why new This attitude towards overseas talent becomes employees joined their organisation, those surveyed increasingly worrying for Australia’s supply chain listed career advancement, more money, job security and industry’s future given, as a general rule, overseas employer values as the four highest-ranking factors. professionals are 10 percent better educated than we are. “This reflects last year’s survey except that this year Just 78.9 percent of survey respondents hold either job security ranks ahead of employer values. This tends postgraduate or undergraduate degrees or other levels of to support the consistent feedback we have that an tertiary qualification. increasing number of employees are choosing to remain “This percentage has been consistently about 10 with their current employment compared to trends in percent lower than the wider global respondent sample previous years. This is due to the uncertainty around since our surveys began in 2008,” Winter laments. joining another company, an element of ‘better the devil “It highlights a gap in educational levels in Australia you know than the one you don’t’, among other factors.” compared to industry executives offshore and suggests the Like many company movers and shakers, Winter warns disadvantage we have against peers globally. it’s time for companies to see the writing on the wall and “The fact that Australia has dropped from number five respond by building excellence into their teams now. slot up to 10 years ago to 20th position out of 133 in the “What we’re seeing in Australia currently is significant World Economic Forum’s ranking for competitiveness change as many sectors of the economy undergo a major and innovation could also be reflective of substandard shift in the way they operate,” he says. education and should be a wake-up call to government “This has a knock on effect across the wider supply and business leaders if we are to regain ground and chain employment market. One of the best examples of maintain relevance with our higher-ranked global trading this is the mega-shift in the way the consumer products partners,” he argues. market is moving online, forever changing the way The survey also contains clues from the employee consumers behave. It’s having a massive effect on buying perspective, as to possible reasons for recruitment patterns, manufacturing, FMCG operations, warehousing, difficulties. distribution, retailing and employment trends across all of “Over the last six years, the primary reason for these sectors.40 October 2012 Proudly supported by supplychainreview.com.au
  8. 8. “We are noticing two distinct trends in the marketfrom an employment perspective. On one hand, GRAPHScompanies are interpreting the current market dynamicsquickly, taking appropriate actions to get on the front Which statement best applies to your business and hiringfoot, to ensure their survival by ensuring they have the experiences over the past 12 months?appropriate executive team and adequately skilled staffto lead business direction. These organisations have beentaking the hard decisions, actively replacing staff, oftenon professional outplacements programs, not suited forcurrent conditions with the talent they require.“Our industry continues toexperience ongoing skillsshortages across a wide rangeof vocations.” It is becoming It is becoming There has been NO “Our outplacement business has increased three- HARDER to source/ EASIER to source/ CHANGE in the pastfold in the last 12 months as employers adopt an ethical hire quality staff to hire quality staff to 12 monthsapproach to transitioning employees out of their business, meet the business meet the businessproviding professional assistance including job search demands demandssupport, resume writing and interview technique supportto those who are leaving their company,” Winder adds. Please indicate the change in your company’s activities or On the other hand, Winter observes many companiesare failing to realise the magnitude of fundamental growth this financial year compared to last yearchanges taking place. “These companies tend be more traditional in structureand culture, they have typically prospered well with legacybusiness models in stable environments,” he says. “Their executive teams are inexperienced at dealingwith the pace and nature of generational change Australiaand the world is undergoing. “Businesses hesitate at their peril in times of rapidchange.” His view is reflected by Linfox CEO Michael Byrnespeaking recently at a conference. “There are three types of organisations,” Byrneasserts. “Those who make things happen, those whofollow what’s happening and those who wonder what Increased Decreased Remainedjust happened.” the same “Data supplied by Logistics Executive Recruitment” Recruit the right people with TransJobs .com.au Working For Yousupplychainreview.com.au Proudly supported by October 2012 41

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