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Working for the Money: ISM Issues Report on Salaries of Supply Management Professionals

FOR RELEASE: May 20, 2008


Media Contacts:
ISM Public Relations
Lindsey Yentes
800/888-6276, extension 3087
lyentes@ism.ws

Jean McHale
800/888-6276, extension 3143
jmchale@ism.ws



Survey confirms professional credentials, gender make a difference.

(Tempe, Ariz.) May 20, 2008 — The world's largest supply management organization, Institute for Supply Management™ (ISM), this month releases analysis of its third comprehensive salary survey. The summary report, 2008 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 www.ism.ws. Select Tools, InfoCenter, and then ISM's Annual Salary Survey.

An article also appeared in the May 2008 issue of Inside Supply Management®.

ISM surveyed supply management professionals in the United States during January and February 2008. Information on salary, bonuses and stock options was gathered from a total of 1,050 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 2007 calendar year) for the following job titles:

  • Chief Purchasing/Supply Management/Sourcing: $128,821
  • Vice President, Purchasing/Supply Management/Sourcing: $210,419
  • Director, Purchasing/Supply Management/Sourcing: $125,833
  • Manager, Purchasing/Supply Management/Sourcing: $90,088
  • Experienced staff member (3 or more years of experience): $68,537
  • Entry-level staff member (less than 3 years of experience): $49,682

Additional summary report details include:

  • Respondents who hold one or more certifications reported an average salary that was higher than those who do not. Overall, those who hold one or more certifications earned an average of $94,648, while those who do not hold a certification earned an average of $89,927. Specifically, respondents who hold the Certified Purchasing Manager (C.P.M.) designation reported earning an average salary that was 7.4 percent higher than those who do not.

  • Average annual compensation of supply management professionals (which includes wages, bonuses and other income received before taxes and deductions) of the supply management professional who responded to the survey was $92,165.

  • The average salary for women was $78,920 and the average salary for men was $100,313. This reflects a 27 percent gap, which is an improvement over the 2006 Salary Survey when the survey reflected that men made 38 percent more than their female counterparts.

  • Bonuses, included in the salary figures, were earned by 59.3 percent of all respondents. On average, bonuses received were $14,874, which was representative of 11.2 percent of total gross salary received. The highest bonus reported was $226,000.

  • Although salary is one vital aspect of a job, job satisfaction was ranked as the most important factor in overall satisfaction of a career. Benefits package placed second, and wages came in third.

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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