Careers in Acquisition/Supply Chain Management

MVTPC Business Summitfor

High School Teachers

Presented by:

Miami Valley Acquisition Consortium

June 13, 2007

Careers in Acquisition/SCMContents

• What is Acquisition/SCM?

• Objectives and Processes

• Regional Needs

• Career Fields

• Salaries

• Skills Needed

• Education Options

What is Acquisition/SCM?

• SCM relates to movement of goods between suppliers, manufacturers, consumers

• Fundamental processes and practices necessary for efficiency

• Goal of SCM:

To positively impact the organization’s bottom-line

while delivering the best goods & service to customers

at the lowest possible cost

• SCM is integral to success of all business operations

• Narrowly defined, Acquisition relates to research, development,

and procurement of military systems

• Broadly defined, Acquisition includes getting the right product,

to the right place, at the right time, at a reasonable cost

ACQUISITION LOGISTICS

DEPARTMENT OF DEFENSE

(WPAFB)

RIGHT PRODUCT, RIGHT PLACE, RIGHT TIME, REASONABLE COST

ACQUISITION LOGISTICS

DEPARTMENT OF DEFENSE

(WPAFB)

SELECTION AND PROCUREMENT OF EXISTING ITEMS AND SERVICES

RESEARCH, DEVELOPMENT AND PROCUREMENT OF MILITARY SYSTEMS

TRANSPORTATION, WAREHOUSING, MAINTENANCE, AND THEIR MANAGEMENT

ACQUISITION LOGISTICS

SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

RESEARCH, DEVELOPMENT AND PROCUREMENT OF MILITARY SYSTEMS

Acquisition/SCMObjectives

• Objectives of SCM:

- Provide an uninterrupted flow of materials, supplies, services required to operate the organization

- Keep inventory investment and loss at a minimum

- Maintain and improve quality

- Find or develop competent suppliers

- Standardize, where possible, the items bought

- Purchase required items, services at lowest total cost

- Achieve productive working relationships with other functional areas within the organization

- Accomplish purchasing objectives at lowest possible level of administrative costs

- Improve organization’s competitive positionSource: Leenders, Michiel R., Fearon, Harold E., Flynn, Anna E., and Johnson, P. Fraser,

Purchasing and Supply Management, 12th edition, McGraw-Hill, Boston, 2002.

Acquisition/SCMProcesses

• Processes for coordinated supplier-to-consumer systems

– Identifying needs for raw materials, supplies,

components, systems

– Developing specifications, performance requirements

– Computing quantity requirements

– Selecting sources and negotiating agreements/contracts

– Acquiring, transporting, and storing inventory

– Managing and maintaining operations

– Managing logistics

Acquisition/SCMRegional Needs

• Regional work force needs driven by private and public

sector influences

• DoD presence at WPAFB

- Requires government employees and support

contractors

- Specialized knowledge of all facets of acquisition

and logistics

• "90 Minute Market" reach of Interstate 70/75 commerce

corridor

- Requires industry specialists

- Expertise in all aspects of supply chain management

Acquisition/SCMRegional Needs (continued)

• Driven by DoD needs, Greater Dayton area has major concentration

- Over 6,000 professionals in various areas of SCM

- Both private and public sectors • Other public agencies, private businesses require SCM

expertise

- Procurement, shipping, trucking, order fulfillment, warehousing

• Ohio has nation’s sixth largest civilian workforce in these professions

- Responsible for procuring goods and services

- Assuring global delivery to the U.S. military whenever needed

Acquisition/SCMRegional Needs (continued)

• DoD data indicate 50% of civilian workforce eligible to retire

- Local market need is critical to train and retain SCM professionals

• Regional economic development associated with I 70/75 commerce

- Drives growth in need for industry SCM specialists

Acquisition/SCMCareer Fields

• Specialized area; growing in importance

- Strategic challenges for businesses

- Consumer expectations, industry advancements, global competition

• Varied duties may include:

- Acquisition of materials, services and equipment

- Planning and policymaking

- Product development and control

- Contract development and forecasting

- Production planning and scheduling

- Warehousing and distributionSource: Burt, David N., Dobler, Donald W., and Starling, Stephen L., World Class Supply Management:

The Key to Supply Chain Management, 7th Edition, McGraw-Hill, Boston, 2003.

DoD Acquisition Career Fields

Auditing 

Business, Cost Estimating, and Financial Mgt

Contracting

Facilities Engineering 

Industrial/Contract Property Management

Information Technology

Life Cycle Logistics

Production, Quality and Manufacturing

Program Management

Purchasing

Systems Planning, Research, Development and

Engineering - Science &Technology Manager

Systems Planning, Research, Development and

Engineering - Systems Engineering

Test and Evaluation

Acquisition/SCM Private Sector Career Fields

Accounts management

Contracts management

Contract negotiation

Cost projection

Distribution

Facilities management

Financial management

Forecasting

Inventory management

Logistics management

Maintenance management

Materials management

Manufacturing management

Operations management

Packaging management

Procurement

Product development

Production management

Production planning

Purchasing

Quality control

Requirements forecasting

Research and development

Supply management

Transportation

Warehousing

Acquisition/SCM Salary Information - DoD

DoD Acquisition/SCM PositionsStep 1 Step 3 Step 10

Entry Level GS-04 $ 26,170 $ 27,914 $ 34,017GS-05 $ 29,279 $ 31,231 $ 38,062

Progression GS-07 $ 36,269 $ 38,687 $ 47,150GS-09 $ 44,364 $ 47,321 $ 57,672GS-11 $ 53,677 $ 57,256 $ 69,782GS-12 $ 64,335 $ 68,625 $ 83,639

Management/Professional GM-13 $ 76,505 $ 81,606 $ 99,459

GM-14 $ 90,405 $ 96,431 $117,524GM-15 $106,343 $113,432 $138,245

Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans

Source: www.fedjobs.com/pay/pay 2007 General Schedule Base Pay + Locality

Acquisition/SCM Salary Information - Private Sector

Acquisition/SCM Professionals

Average Salary Top 20 %$ 78,470 $100,000 or >

Average Salary Experience$ 65,389 1- 5 years $ 67,996 6 - 10 years $ 77,187 11 - 20 years $ 95,900 21 + years

Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans

Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

Acquisition/SCM Salary Influenced by Education

• In general, salary levels increase with educational level

• Bachelor’s degree or higher- Typically higher than overall average - Average - $79,368

• Master’s degree- 25 % higher than Bachelor’s- Average - $99,373

• All degree holders- Average salaries highest in technical degree fields- Average - $93,977

Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

Average Salary – PurchaserPrivate Sector

Purchasers, 3 or < years experience $ 54,600

Purchasers, BS/BA in Business $ 69,000

Purchasers, BS/BA in Technical Field $ 70,900

Purchasers, CPM Certification $ 80,000

Purchasers, MBA $ 91,900

Source: Purchasing, December 2003

Acquisition/SCM Average Salaries - Private Sector

Chief, Purchasing/Supply Management/Sourcing $161,082

VP, Purchasing/Supply Management/Sourcing $158,256

Director, Purchasing/Supply Management/Sourcing $120,401

Manager, Purchasing/Supply Management/Sourcing $ 80,519

Agent, Buyer, Senior Buyer, Planner, Purchaser $ 57,081

Consultant $112,100

Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

Acquisition/SCM Salary Influenced by Certifications

• With one or more professional certifications

- Higher average salary $80,758 vs.

$76,411

• With Certified Purchasing Manager (CPM) certification

- Average salary 10 % higher $83,172 vs. $75,337

Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

Acquisition/SCM Salary Influenced by Location

• Location - Average salaries vary by location

- Wash. D.C. area - average $103,036

- North Carolina area - average $93,791

- Illinois area – average $93,752

- Other states with average > $80,000

Ohio, California, Connecticut, Georgia, Iowa,

Massachusetts, Maryland, New Jersey, New York,

Texas, Virginia

- Other states with average < $60,000

Arkansas, Oklahoma, South Carolina.

Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

Acquisition/SCM Skills Needed

Benchmarking

Contract development

Contract management

Cost/price analysis

Distribution

Economic forecasting

Electronic commerce

Inventory control

Logistics

Purchasing

Negotiations

New technology/software

Performance measurements

Relationship management

Strategic alliances

Strategic planning

Supplier evaluation

Team building

Transportation and traffic

Source: www/ism.ws/career center

Acquisition/SCM Professions - Education Options

Associate:

- Business (general)

- Purchase/Supply Mgt

- Logistics

- Operations Mgt

- Technical

Bachelor:

- Business (general)

- Purchase/Supply Mgt

- Supply Chain Mgt

- Logistics

- Materials Mgt

- Distribution

- Transportation

- Liberal Arts

- Technical

Graduate Degree:

- MBA

- MS (technical field)

- Logistics

- Law

Combination:

- Technical Undergrad

w/ Graduate in Bus

Source: www/ism.ws/career center

Careers in Acquisition/SCMConclusion

• Valuable career opportunities in Acquisition/SCM

• Increasing demand in both public and private sectors

• Attractive salaries and benefits

• Opportunities for continuing career advancement

• Wide variety of associated specialty skills areas

• Numerous educational options availabl

• For more information contact:

Bob Sheehan (937) 512-5161

robert.sheehan@sinclair.edu