Supply chain director roles see 17.4% pay rise

1 February 2019

Supply chain director posts have seen the steepest salary increase of all procurement positions, rising 17.4% since 2016.

The 2019 Reed Procurement & Supply Chain Salary Guides, based on advertised salaries, said the steep rise in salaries for supply chain director posts – which now average £74,000 – is due to the increased importance of ethical supply chain management.

Since 2016 supplier relationship managers have seen salaries increase by 14.7%.

Overall, analysis of more than 10m jobs posted since 2015 found that the average advertised salary for the procurement and supply chain profession has increased by 5.4% since the start of 2016.

In 2018 salaries for category managers grew by 3.6%, based on the “continued drive towards category management within procurement [which] is creating limited availability of specific experience”. Senior buyer salaries increased by 3.2%.

Supplier relationship managers now receive an annual salary of £51,500, while advertised salaries for category managers have increased to £49,500.

Chris Harrington, director of Reed Procurement & Supply Chain, said many of the group’s clients were seeking to identify potential risk within their supply chains.

“Problems with sustainability such as labour standards, ethical sourcing or environmental management can have catastrophic effects for the business and its reputation,” he said.

“The issue is so important that many companies are creating more positions for sustainability specialists in their procurement teams to look at the entire supply chain and increase social value.”

Harrington believes many clients are now accepting “the need to hire for attitude and train for skill”, which is also driving salaries up nationwide within this field.

“Brexit will also have a major impact on the market; our clients are watching developments in Whitehall with great interest,” he continued.

“The potential impact of major delays with customs and extra tariffs through the supply chain could create huge problems throughout the industry. Navigating this change effectively begins with having the right skills in your team.”

Geographically, the biggest increase in advertised salaries over the past year was in the East Midlands, where they rose by 2.3%.

Within this area supply chain managers saw the biggest change, with an increase in advertised salaries of 12.3%. Demand, supply and materials manager roles increased by 10.4% in the East Midlands.

Harrington said it was vital for companies to push hard at promoting themselves to candidates, highlighting the opportunities they provide and explaining what impact the candidate could have.

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