Careers in Acquisition/SCMContents

• What is Acquisition/SCM?

• Objectives and Processes

• Regional Needs

• Career Fields

• Salaries

• Skills Needed

• Education Options

What is Acquisition/SCM?

• 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 service to customers

- At the lowest possible cost

• SCM is integral to success of all business operations

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

– Developing specifications

– Computing quantity requirements

– Selecting sources and negotiating agreements

– 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

Entry Level GS-04 $ 25,797 $ 27,516GS-05 $ 28,862 $ 30,786

Progression GS-07 $ 35,752 $ 38,135GS-09 $ 43,731 $ 46,646GS-11 $ 52,912 $ 56,439GS-12 $ 63,417 $ 67,646

Management/Professional GM-13 $ 75,414 $ 80,442

GM-14 $ 89,115 $ 95,056GM-15 $104,826 $111,814

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 $ 67,300

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 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 available

• Contact MVAC for more information

MIAMI VALLEY ACQUISITION CONSORTIUM

CHARTER

Vision: The Miami Valley Acquisition Consortium (MVAC) is a joint academic, government, and industry partnership preparing the Miami Valley workforce for the challenges of tomorrow.

 

Motto: Preparing the right workforce for tomorrow.

 

Mission: To provide a collaborative organization that will continuously assess the workforce needs and capabilities of the Miami Valley, and promulgate programs that will advance leadership and operational strengths.

 

GoalsThe MVAC seeks to develop initiatives designed to:• Complement, support and strengthen leadership development

opportunities;• Facilitate entry pathways to career development;• Set forth plans for development and advancement programs

for career professionals;•  Identify lateral training for professionals affected by industry

reorganization or change;•  Provide reference data relating to affordability and value of

programs;•  Serve as the conduit for the exchange of beneficial

information.

 

 

Focus

Public and Private Sector Personnel:

Logistics, Procurement, and Supply Chain

Management (SCM) Specialists.

 

Department of Defense and Defense

Support Contract Personnel:

Acquisition, Technology & Logistics (AT&L) Workforce.

MVAC MembershipAcademia

• Cedarville University• Central Michigan University• Central State University• Clark State Community College• Defense Acquisition University• Edison Community College• Embry-Riddle Aeronautical University• Indiana Wesleyan University• Sinclair Community College• University of Dayton• Wright State University• Wittenberg University• Miami Valley Tech Prep Consortium

Government and Industry

• Aeronautical Systems Center

• Miami Valley Regional Planning Commission

• Dayton Area Chamber of Commerce

• Dayton Development Coalition

MVAC StakeholdersAcademia: All MVAC College and University members.

Government: Virtually all Government agencies involved in Acquisition, Technology, and Logistics (AT&L) and/or Supply Chain Management (SCM).

  1. Federal Government

a) Department of Defense

b) Environmental Protection Agency

c) Other Agencies

  2) State of Ohio

a) Ohio Board of Education

b) Ohio Board of Regents

 

Stakeholders Continued

3) Ohio Counties

4) City Governments

Industry: Virtually all business involved in Procurement and Supply Chain Management (SCM).

 

Related Professional Organizations

• Chambers of Commerce• Association for Operations Management (APICS)• Dayton Business Partnerships• Institute for Supply Management (ISM)• International Society of Logistics Engineers (SOLE)• National Association of Purchasing Management

(NAPM)• Supply-Chain Council (SCC)• Many other key disciplines