ISM Issues Report on Salaries of Supply Management Professionals

FOR RELEASE: May 15, 2007

Media Contact:
Jean McHale
ISM Public Relations
800/888-6276 extension 3143

Second annual salary survey by Institute for Supply Management™ yields data on total compensation and confirms education- and gender-based salary differences.

TEMPE, Ariz., May 15, 2007 — The world's largest supply management organization, Institute for Supply Management™, this month releases analysis of its second comprehensive salary survey. The summary report, 2007 ISM Salary Survey Results, is available to the public, and a detailed report is available to ISM members and available for purchase by nonmembers at Select Tools/InfoCenter.

ISM surveyed supply management professionals in the United States during January and February 2007, achieving a 14.5 percent response rate. Information on salary, bonuses and stock options was gathered from a total of 1,155 respondents and examined through multiple breakdowns including job title, years of experience, education level, certification status and buying responsibility.

ISM's salary survey established average salaries (for the 2006 calendar year) for the following job titles:

  • Chief Purchasing/Supply Management/Sourcing; $247,685
  • Vice President, Purchasing/Supply Management/Sourcing; $185,343
  • Director, Purchasing/Supply Management/Sourcing; $124,948
  • Manager, Purchasing/Supply Management/Sourcing; $87,676
  • Agent, Buyer, Senior Buyer, Planner, Purchaser; $61,645
  • Consultant; $107,032

Additional summary report details include:

  • Average annual compensation of supply management professionals for 2006 was $88,380.

  • Women lag behind their male counterparts. The average salary for women was $71,307 and the average salary for men was $98,550.

  • For companies whose gross revenue is lower than $500 million, their supply management professionals make an average of $75,480 or less. For the companies whose gross revenue falls within the range of $500.1 million to $10 billion, supply managers make an average of $90,116 to $93,892. Finally, supply management professionals working for companies with more than $10 billion in revenue bring home approximately $103,486.

  • Bonuses, included in the salary figures, were earned by 61.7 percent of all respondents. On average, bonuses received were $16,118, which was representative of 13.5 percent of total gross salary received. The highest bonus reported was $154,000.

  • Although salary is one vital aspect of a job, job satisfaction was ranked as the most important factor in overall satisfaction of a career. Wages placed second, and work environment came in third. The remaining factors, in order of importance, were pension/retirement plan, health-related benefits, insurance-related benefits and bonuses.

As the largest supply management institute in the world, the mission of Institute for Supply Management™ (ISM) is to lead supply management. By executing and extending its mission through education, research, standards of excellence, influence building and information dissemination — including the renowned monthly ISM Report On Business® — ISM continues to extend the global impact of supply management. ISM is proud to recognize professional excellence in supply management with awards such as the ISM R. Gene Richter Awards for Leadership and Innovation in Supply Management and the J. Shipman Gold Medal Award. ISM's membership base includes more than 40,000 supply management professionals in 75 countries. Supply management professionals are responsible for trillions of dollars in the purchases of products and services annually. ISM is a member of the International Federation of Purchasing and Supply Management (IFPSM).

ISM defines supply management as the identification, acquisition, access, positioning and management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives. Further, supply management is: future oriented, senior-management critical, strategic in relation to the competitive imperatives of the organization, and a significant contributor to marketplace intelligence and profitability. Components included under the supply management umbrella are: purchasing/procurement; strategic sourcing; logistics; quality; inventory control; materials management; warehousing; transportation/traffic/shipping; disposition/investment recovery; distribution; receiving; packaging; product/service development and manufacturing supervision.

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