Supply Chain jobs -prospects, work, glam.

[mcpng]

There seems some hype about Supply Chains where I read. Supply Chain management is one job category and Singapore seems to be trying to become a Supply Chain hub.

But what's a job in supply chain management like? I feel it's only the upper management at directors levels that will actually make real decisions - we'll open a distribution center in Vietnam, we'll follow Dell's model of build-to-order, we'll arrange these global routes as they are efficient and carry the least risk...etc. Yet there are tons of jobs on procurement and supply chain. What do these execs do, and what are the prospects, work description, and pay/glam?

And I mean those jobs NOT for 3PLs, but companies like Apple and even banks!

Hi,

I work in procurement for one of the main contractors in oil & gas. I am not sure about which hierarchy of the supply chain management you want to know but basically in procurement, its about purchasing direct/indirect materials. You also have to engage in negotiations with lots of suppliers as well as liasing with other departments internally and sometimes with client also.

The pay is ok if you ask me, which is in the range of 50-60K per annum and i have 6 years of experience and only a diploma holder.

[mcpng]

50-60k in 6 years with diploma sounds quite good?

Do you mind sharing your story - starting pay, increments, positions held...etc.

Importantly too, do you enjoy the job? I imagine procurement being real fun by "shopping" for good contractors and having meetings with Sales people, including treats to dinners/pubs (not bribes of course! just typical sales techniques). But realistically, a huge oil & gas co. would probably have all their contracts already up, so little need for new ventures with clients?

Did you study engineering to get in procurement?

Hi,

Sorry for the late reply, I only held two jobs before, both are local MNCs. I started as a buyer and holds a diploma in Engineering. I do not think that engineering qualifications are essential for the job as most procurement ppl i know learns from the job even ppl with degree qualification from engineering. But still, there is certain advantage if you have engineering foundation.

Surely it can be fun meeting lots of people, but u must understand that procurement practises in different industries varies. For instance, in oil & gas projects, we worked on tender basis as we are the main contractor while others like subsea manufacturing sources materials based on BOM and runs materials on MRP or on other forms of system. Sourcing for vendors may be minimal.

I hope i answer your queries which are based on my experiences.

Hi,

I've scouted various procurement and supply chain jobs and their minimum req'ments are often diploma/degree.

So what's the starting pay like?

Is there a better or good career advancement path for procurement/supply chain & logistics as compared to engineering?

There are 4 key sub functions in a typical supply chain centre in a global MNC. Most of them are organized along similar lines although naming conventions might differ. They are:

1) Procurement – Essentially buying, tendering and negotiating activities
2) Planning – “Brain” of a supply chain function that co-ordinates schedules between different sub-functions as well as interaction with other departments like marketing, manufacturing etc.
3) Servicing – Looks after transportation side as well as fronting external stakeholders like suppliers and internal customers
4) Excellence – Organized along project basis usually as part of a continuous improvement process to improve efficiency and effectiveness of SC

Among the 4, procurement is perhaps the most well-known and employs the most people. Generally inter sub-function mobility is very common especially when you are at the junior level. When starting out, my recommendation is you be open to all 4 sub functions and look for a bigger co. with an established supply chain process. This will be very helpful in a few years’ time when you want to move and experience between other sub functions.

On your concern that only senior management make the key strategic decisions, all I can say is don’t kid yourself - this happens to all other departments in any company. For the first 10 years at least, you will be the execution “sai gang party” guy for whatever orders given from the top. Any company that tries to sell you a job that sounds very strategic and gives you the impression that you will be empowered to make key directional changes is just being economical with the truth.

On career and pay progression, I’ll be straight with you – SC is not a function for career leaps. It is primarily an OPS function where bottoms up, practical, hardworking and down to earth people are usually appreciated. What this means is that you will notice many SC managers are either long serving staff or have decades of experience, a young 30 year old punk being manager leading a team is very rare.

Typical career path and age:

1) Officer / Administrator / Co-ordinator 1.5 - 2.2k, Up to 30Y
2) Executive 1.8 - 3k, Up to 30Y
3) Senior Executive or Specialist or Team Lead 3K – 5k, 28Y – 35Y
4) Junior Manager 4k – 6k, Above 30Y
5) Manager for sub-function 5 – 8k, Above 35Y
6) SC Department Head 7 – 10k, Above 40Y
7) Senior regional / global roles >10k, Most people won’t reach here lar

So the starting salary is kinda in that range, even for engine grads?

I'm interested in this path, did a stint as a procurement intern during my attachment and liked it, at least I look forward to work.

Where do you think I should start out? And which industry has a strong supply chain demand?
I was in aerospace by the way.