Careers in Acquisition/

Supply Chain Management

MVTPC Business Summit

for
High School Teachers

Presented by:
Miami Valley Acquisition Consortium
June 13, 2007
 Careers in Acquisition/SCM
Contents

• 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
 DEPARTMENT OF DEFENSE
(WPAFB)

ACQUISITION LOGISTICS

RIGHT PRODUCT, RIGHT PLACE, RIGHT TIME,

REASONABLE COST
 DEPARTMENT OF DEFENSE
(WPAFB)

ACQUISITION LOGISTICS

RESEARCH,
DEVELOPMENT AND
PROCUREMENT OF
MILITARY SYSTEMS

SELECTION AND TRANSPORTATION,

PROCUREMENT OF WAREHOUSING,
EXISTING ITEMS AND MAINTENANCE, AND
SERVICES THEIR MANAGEMENT
 SUPPLY CHAIN
MANAGEMENT

ACQUISITION LOGISTICS

RESEARCH,
DEVELOPMENT AND
PROCUREMENT OF
MILITARY SYSTEMS

SUPPLY CHAIN MANAGEMENT

 Acquisition/SCM
Objectives
• 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 position
Source: Leenders, Michiel R., Fearon, Harold E., Flynn, Anna E., and Johnson, P. Fraser, Purchasing
and Supply Management, 12th edition, McGraw-Hill, Boston, 2002.
 Acquisition/SCM
Processes

• 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/SCM
Regional 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/SCM
Regional 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/SCM
Regional 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/SCM
Career 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 distribution
Source: 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  Program Management

Business, Cost Estimating,
and Financial Mgt
Contracting
Facilities Engineering  Engineering - Science &
Industrial/Contract Property
Management
Information Technology
Life Cycle Logistics
Production, Quality and
Manufacturing
Purchasing
Systems Planning, Research,
Development and
Technology Manager
Systems Planning, Research,
Development and
Engineering - Systems
Engineering
Test and Evaluation
 Acquisition/SCM
Private Sector Career Fields
Accounts management Operations management
Contracts management Packaging management
Contract negotiation Procurement
Cost projection Product development
Distribution Production management
Facilities management Production planning
Financial management Purchasing
Forecasting Quality control
Inventory management Requirements forecasting
Logistics management Research and development
Maintenance management Supply management
Materials management Transportation
Manufacturing management Warehousing
 Acquisition/SCM
Salary Information - DoD
DoD Acquisition/SCM Positions
Step 1 Step 3 Step 10
Entry Level GS-04 $ 26,170 $ 27,914 $ 34,017
GS-05 $ 29,279 $ 31,231 $ 38,062
Progression GS-07 $ 36,269 $ 38,687 $ 47,150
GS-09 $ 44,364 $ 47,321 $ 57,672
GS-11 $ 53,677 $ 57,256 $ 69,782
GS-12 $ 64,335 $ 68,625 $ 83,639
Management/
Professional GM-13 $ 76,505 $ 81,606 $ 99,459
GM-14 $ 90,405 $ 96,431 $117,524
GM-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 – Purchaser
Private 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: Bachelor: Graduate Degree:
- Business (general) - Business (general) - MBA
- Purchase/Supply Mgt - Purchase/Supply Mgt - MS (technical field)
- Logistics - Supply Chain Mgt - Logistics
- Operations Mgt - Logistics - Law
- Technical - Materials Mgt Combination:
- Distribution - Technical Undergrad
- Transportation w/ Graduate in Bus
- Liberal Arts
- Technical

Source: www/ism.ws/career center

 Careers in Acquisition/SCM
Conclusion

• 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