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Careers in Acquisition/ Supply Chain Management

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Careers in Acquisition/ Supply Chain Management MVTPC Business Summit for High School Teachers Presented by: Miami Valley Acquisition Consortium June 13, 2007 – PowerPoint PPT presentation

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Title: Careers in Acquisition/ Supply Chain Management


1
Careers in Acquisition/Supply Chain Management
  • MVTPC Business Summit
  • for
  • High School Teachers

Presented by Miami Valley Acquisition
Consortium June 13, 2007
2
Careers in Acquisition/SCMContents
  • What is Acquisition/SCM?
  • Objectives and Processes
  • Regional Needs
  • Career Fields
  • Salaries
  • Skills Needed
  • Education Options

3
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 organizations
    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

4
DEPARTMENT OF DEFENSE (WPAFB)
ACQUISITION
LOGISTICS
RIGHT PRODUCT, RIGHT PLACE, RIGHT TIME,
REASONABLE COST
5
DEPARTMENT OF DEFENSE (WPAFB)
ACQUISITION
LOGISTICS
RESEARCH, DEVELOPMENT AND PROCUREMENT OF MILITARY
SYSTEMS
SELECTION AND PROCUREMENT OF EXISTING ITEMS AND
SERVICES
TRANSPORTATION, WAREHOUSING, MAINTENANCE, AND
THEIR MANAGEMENT
6
SUPPLY CHAIN MANAGEMENT
ACQUISITION
LOGISTICS
RESEARCH, DEVELOPMENT AND PROCUREMENT OF MILITARY
SYSTEMS
SUPPLY CHAIN MANAGEMENT
7
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 organizations 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.

8
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

9
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

10
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 nations sixth largest civilian
    workforce in these professions
  • - Responsible for procuring goods and services
  • - Assuring global delivery to the U.S. military
    whenever needed

11
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

12
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 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.

13
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
14
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
15
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

16
Acquisition/SCM Salary Information -
Private Sector
  • Acquisition/SCM Professionals
  • Average Salary Top 20
  • 78,470 100,000 or gt
  • 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

17
Acquisition/SCM Salary Influenced by Education
  • In general, salary levels increase with
    educational level
  • Bachelors degree or higher
  • - Typically higher than overall average
  • - Average - 79,368
  • Masters degree
  • - 25 higher than Bachelors
  • - 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

18
Average Salary PurchaserPrivate Sector
  • Purchasers, 3 or lt 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

19
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

20
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

21
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 gt 80,000
  • Ohio, California, Connecticut, Georgia, Iowa,
  • Massachusetts, Maryland, New Jersey, New York,
  • Texas, Virginia
  • - Other states with average lt 60,000
  • Arkansas, Oklahoma, South Carolina.
  • Source Institute for Supply Management Salary
    Survey, Jan/Feb 2006

22
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
23
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
24
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_at_sinclair.edu
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