Careers in Acquisition/ Supply Chain Management MVTPC Business Summit for High School Teachers...
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Transcript of Careers in Acquisition/ Supply Chain Management MVTPC Business Summit for High School Teachers...
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