Procurement Sector Commentary
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The procurement market proved its
resilience over the past 12 months as
businesses recognised the profit
contribution attainable through a quality
procurement strategy. Recruitment activity
was strong within the FMCG,
pharmaceutical and public sectors, but
weakened in mining and construction.
Many international businesses
circumvented recruitment constraints
through long-term (12 months or more)
temporary assignments. A healthy number
of entry-level roles were available for those
commencing their procurement careers.
In order to recruit successfully at the
executive level, employers need an in-depth,
well-structured campaign. Candidate
attraction strategies are still required at all
levels, with a secure company and career
progression essential components.
Demand increased for roles aligned to
supply chain, including demand planners
and supply planners. Strategic level
procurement officers, particularly those
with contract administration experience,
are also in demand, most notably in
Western Australia and Queensland. Senior
specialists are required as procurement
strategies are developed, as are category
managers with high level expertise in large
indirect spend categories.
The use of temporary assignments has
increased, driven largely by the public sector
as particular categories and supply models
are analysed on a case-by-case basis.
In the public sector, specialists are required
to establish Greenfield sites and assist with
business transformation change projects.
State and federal investment into public
infrastructure delivered interesting and
exciting opportunities, and attracted broad
candidate interest. Like the private sector,
an efficiency drive has created vacancies in
areas where cost savings can be achieved.
Salaries normalised in most job categories
this year following very solid increases in
previous years. Interestingly, candidates
were accepting of this stability and the
employer and opportunity rather than any
possible increase in salary now motivates
their job search.
The few exceptions to overall salary
stability occurred in Perth and Brisbane.
Typical salaries increased in Perth for
contract administrators (by 20%), category
managers (11%), senior purchasing
officers (8%) and strategic sourcing
managers (4%). Brisbane’s typical salary
rose for procurement managers (17%).
Candidates should maintain currency with
the industry to develop innovative ways to
add value to an organisation. Professional
qualifications, especially MCIPS or other
APICS qualifications, are highly valued,
particularly when combined with
demonstrable success in your recent
experience. Global sourcing, specifically
low cost country sourcing, risk
assessment and strong negotiation skills
should be training priorities.
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