Supply Chain Salaries Rise in 2015, ISM Survey Shows

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Salaries for supply chain management professionals were up in 2015 compared with 2014, according to ISM’s 2016 Salary Survey. Average overall compensation grew 7.9% last year, reaching $109,961, compared with the average $101,944 supply chain and procurement professionals were making a year earlier. More supply chain managers are also making $100,000 or more than in previous years, with 44% compared to 38% in 2014.

The average salaries for the top 10% and 5% grew even more between 2015 and 2014, the survey showed. The top 10% of earners received an average salary of $266,166 a year, an increase of 8.2% from 2014. The top 5% saw their annual salary grow to an average of $331,604, up 1% from 2014.

The majority, 85% of survey participants, reported an increase in their base compensation in 2015. Just 5% of supply chain professionals reported a drop in their salaries during 2015.

Salaries for Different Levels of Management

As expected, the more experience supply chain managers or procurement professionals have, the more money they make. Practitioners that may be more new to the field — indicated in the ISM report as those with one to four years of experience — earned an average salary of $77,758 in 2015. Those with 20 or more years in the field, however, made an average of $124,493 in 2015.

Professionals at the chief level, say a chief procurement officer or chief supply chain manager, made an average of $241,902 in 2015, according to the survey. Vice presidents made an average of $199,583 and directors made an average of $155,103 per year in 2015.

Industry Differences

Supply chain professionals in the apparel, leather and allied products industry earned the highest salaries in 2015, with an average of $164,600. That is up 106% from 2014, the biggest increase of any industry. Those in petroleum and coal production came in second as far as highest salaries, earning $150,165 on average in 2015 and those in real estate, rental and leasing earned $148,286.

The lowest earners were those in the furniture and related products industry, with an average salary of $73,327 in 2015.

Gender Differences

Men earned an average of 24% more than female counterparts in 2015, up from the 11% differential in 2014, ISM reported. Men earn more for supply chain positions than women at every level except the executive level. For instance, men in vice president of procurement, supply management or sourcing positions made nearly 25% more an average than women. The average salary for men at this level received $205,974 a year compared to women who earned an average salary of $156,801.

However, when reaching the chief procurement or chief supply chain manager levels, women earned more on average in 2015. The average salary for a woman at this level was $251,427 in 2015. For men, it was $228,358, about 10% less than female counterparts.

Men also were paid more than women when both genders had the same years of work experience. For example, according to the ISM survey, male supply chain professionals who had 9-14 years of experience made an average salary of $106,589 while women with the same number of years experience received an average salary of $89,428 per year, 16% less than men.

The average salary for women in 2015 in the supply chain field actually fell 3%, ISM pointed out.

Wages Remain Important

Supply chain professionals indicated wages as the number one consideration when evaluating employment opportunities, with 92% of ISM survey respondents indicating this as important. Job satisfaction came in second, with improved work/life balance, benefits package and financial stability of the organization also ranking high.

The least important factors for supply chain management professionals when it comes to employment opportunities was an organization’s commitment sustainability or social responsibility programs. Health and wellness programs and educational opportunities are also not as important, according to the ISM report.

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