Changing Economic Conditions and Improving Productivity

(1)

Contact Hudson Supply Chain & Procurement Matt Warder T:0131 555 9833 E: matt.warder@hudson.com Jacqui Paterson T:0141 227 9126 E: jacqui.paterson@hudson.com uk.hudson.com

Supply Chain & Procurement

2014 Salary & Employment Insights

The Rocky Road to Recovery

(2)

2014 Salary & Employment Insights

Supply Chain & Procurement

UK Overview

3 – Adapting to the changing economic conditions 4

– The rocky road to recovery 5

– Uncertainty versus the upturn 7

– The ticking time bomb – The employer/employee disconnect 9

About Hudson Supply Chain & Procurement

10 Market Overview

11 Salary Tables

13 – Procurement 13

– Supply Chain 23

(3)

uk.hudson.com Matt Warder T:0131 555 9833 E: matt.warder@hudson.com

Contact Hudson Supply Chain & Procurement Jacqui Paterson T:0141 227 9126 E:jacqui.paterson@hudson.com

UK Overview

Welcome to the Hudson Supply Chain & Procurement Salary

and Employment Insights Review for 2014. The document

begins with an overview of the UK recruitment market as a

whole, before focusing in more detail on the supply chain

and procurement market. As your recruitment partner and

adviser, we take great pride in our in-depth knowledge of

the marketplace, and also the factors currently affecting it,

including general economic conditions and the expectations

of organisations and their people. We hope you will find this

review both interesting and useful in terms of planning and

implementing recruitment activity in the year ahead.

Jacqui Paterson

Managing Consultant

Matt Warder

(4)

2014 Salary & Employment Insights

Supply Chain & Procurement

UK Overview

Adapting to the changing economic conditions

After a number of challenging years for the UK recruitment sector caused by

difficult economic conditions, there were signs of an upturn in many areas

during 2013. These improvements were not spectacular - indeed the general

mood could best be described as one of cautious optimism - but there were

encouraging indications that businesses were more willing to invest in new

talent, and that candidates were adopting a rather less risk-averse approach to

seeking out and considering new opportunities.

The exact nature of the improvements varies by sector and by geographical area, and for some

companies it will take a lot more than a glimpse of the much-vaunted ‘green shoots of recovery’ to

persuade them to abandon the rigorous focus on scaling back and cost cutting which has been the

prevailing corporate culture for so many organisations in recent times. The evidence we are seeing is

that many companies now realise that, in business development terms, standing still is only an option for

a limited period, while other organisations already need to staff up to service project wins in the light of

general improvements in market conditions in their particular sector.

Against this background, there are two key questions for 2014 and beyond. The first is are employers

ready - in recruitment terms - to adapt to the changing economic conditions and equip themselves with

the people they need for the next stage of their development? The second is are employees ready - and

willing - to take advantage of the new opportunities that a recovering economy will create?

69%

of respondent’s

workloads have been

redistributed among the

remaining team members

72%

of respondents said that

colleagues are being

‘always’ or ‘mostly’ replaced

when they leave a company

(5)

UK Overview

The rocky road to recovery

Hudson conducted our in-depth survey of what companies and candidates

think of the changing economic environment, and its likely impact on them.

We looked at its effect on work practices, compensation and benefits and,

equally importantly, on employee engagement, morale, loyalty and job

seeking behaviour.

Our findings overall suggest that, recruitment wise, the road to recovery could be rather a rocky one

for employers. The evidence is that while many businesses are focused on what the revival could

mean to them in terms of increased revenue and profits, they have taken their eye off the ball where

staff morale and retention issues are concerned. At the same time, employees are beginning to look

for other jobs because they have more confidence in the market. And our survey has also revealed a

fundamental difference between the retention strategies that organisations feel will work effectively,

and what employees are actually looking for.

A key place to begin an analysis of these findings

is the fact that 64 per cent of employers in the

survey said they believe the recruitment market

in 2014 will be more candidate driven. In other

words, the emphasis will move away from the

buyer’s market scenario that has existed in many

sectors in recent years, and it will be more difficult

for organisations to find, attract or retain high

calibre people. At the same time, 40 per cent of

candidates in the survey told us that the economic

upturn is giving them more confidence to look

for another job, with 45 percent anticipating a job

change in the next 12 months and 25 per cent

actively seeking a job at the moment.

25 per cent of employees say they feel insecure

or very insecure in their current position, and

more than half of respondents (55 per cent) said

that they had experienced increased pressure in

the workplace over the last year. Add to this the

fact that a quarter of employees (25 per cent)

said they were having to work more hours than

12 months ago, and 39 per cent were reporting

that workplace morale had got worse over the

same period, and it is clear that there is now some

inherent volatility in the marketplace.

2014

Recruitment

Market

64%

40%

45%

25%

64%

believe the market will be

candidate driven

40%

are more confident in

looking for another job

45%

are anticipating a job change

in the next 12 months

25%

of candidates are actively

seeking a job at the moment

18%

of staff thought that a sound appraisal

system is a good employee retention tool

(6)

2014 Salary & Employment Insights

Supply Chain & Procurement

UK Overview

The rocky road to recovery

In the workplace

of people feel secure or very secure in their current role

49%

of people feel satisfied in their current role

52%

of people feel more engaged with their job

39%

of people feel they would recommend their employer to a friend

61%

of people say that good career progression opportunities are critical

63%

of people would move for a salary increase of

6-10 per cent, without promotion

35%

These figures however don’t tell the whole story,

because in 2012, 48 per cent of employees were

saying morale had got worse in their organisation,

and 40 per cent were actively looking for a job.

In addition, 49 per cent of people in this year’s

survey say they feel secure or very secure in their

current role - 10 per cent more than last year -

and job satisfaction levels have also gone up to

52 per cent from 46 per cent last year.

Furthermore, 39 per cent of respondents also

said they felt more engaged with their job and

workplace, and 61 per cent would actually

recommend their employer to a friend.

Nevertheless, the survey reveals that there is

certainly a significant core group of people for

whom a change of employment status is very

much on the cards within the next 12 months.

This will put pressure on employers to try and fill

vacancies at a time when the market dynamic

could well be changing, with demand starting

to exceed supply in some areas, and shortages

emerging for some of the most in-demand skill

sets. Over time, if people cannot be found for key

positions, this could inevitably have a negative

impact on the ability of organisations to take full

Of course, one course of action that employers

can take to prevent this problem - at least in

part - is to keep hold of their key people by

having effective staff retention strategies in

place. However, our survey has shown that what

businesses are offering in this area is not always

what is most valued by employees.

For example, 63 per cent of employees say

that good career progression opportunities

are the critical factor in them remaining with

an organisation, yet only 26 per cent feel that

their company offers them. There is a very

similar difference of opinion over mentoring

schemes, which are valued by employees but

not as widely available as they would like to

see. Conversely, only 18 per cent of staff in the

survey thought that a sound appraisal system is

a good employee retention tool, yet 55 per cent

of employees offer one.

Of course, most employee decisions on whether to

seek a new opportunity remain salary driven, and

the survey reveals that 35 per cent of candidates

would move for a salary increase of 6-10 per cent,

without promotion.

(7)

UK Overview

Uncertainty versus the upturn

But even in the far from perfect recent economic conditions, 30 per cent of

respondents had still actually received a pay rise of up to 5 per cent in their

existing roles, although 8 per cent had seen their salary decrease. 16 per cent

of employees had not been given a pay rise for two years but, rather more

encouragingly, 56 per cent of people are expecting a salary increase of up to 10

per cent over the next 12 months, significantly up on the 45 per cent who said

the same thing this time last year. Perhaps surprisingly in the light of market

conditions around four in ten employees still received a bonus in 2013, although

mainly of a relatively modest nature in the 1-5 per cent bracket.

Benefits packages, bonus payments and pensions remain the most valued ‘extra’ with employees,

followed in order of importance by health benefits, flexible working arrangements and above-average

annual leave. Our survey responses from employees reinforce the general impression of an upturn in the

recruitment market in 2013, with 41 per cent of people saying they had seen an increase in headcount in

their workplace over the past 12 months, compared with a figure of 33 per cent in 2013.

Equally encouragingly, almost three quarters of respondents (72 per cent) said that colleagues are being

‘always’ or ‘mostly’ replaced when they leave the company. However, when people are not replaced, the

burden can fall on their previous colleagues. In 69 per cent of cases their workload was redistributed

among the remaining team members, according to respondents.

41%

of people say they had seen

an increase in headcount in

their workplace over the

past 12 months

(8)

2014 Salary & Employment Insights

Supply Chain & Procurement

UK Overview

Uncertainty versus the upturn

Looking at career development and planning,

64 per cent of employees had been in their

permanent role for less than two years. However

10 per cent of people in a contracting or interim

position had actually been in the same role for

more than two years!

In terms of the optimum time to stay in a role

2-3 years was the most popular period with

respondents (34 per cent) followed by 3-4 years

(21 per cent), 1-2 years (16 per cent) and 4-5

years (13 per cent). 15 per cent of employees

thought more than 5 years was best. Meanwhile,

company responses to the survey reveal that

49 per cent of employers believe that there

has still been uncertainty in the market in their

particular sector. As a result, 13 per cent said they

had implemented a freeze on new hires for all

roles, although this figure has gone down from

18 per cent last year.

Rather more encouragingly, 47 per cent of

companies had increased headcount in the last

12 months, 10 per cent more than last year. 30

per cent had seen employee numbers remain the

same, and only 23 per cent had seen a decrease.

Where headcount went up, 81 per cent of firms

said it was due to ‘genuine growth’, with 58

per cent of employers believing there is further

growth potential in their businesses over the next

12 months. Overall, 49 per cent of companies

said their total headcount will increase in 2014,

compared with 37 per cent who were of the

same opinion this time last year.

In terms of remuneration packages, 84 per cent

of companies said they had awarded pay rises

within the last two years, although 3 per cent

admitted that it had been more than five years

since they last gave a rise. 81 per cent expected

to award rises when they next review pay.

Optimum time to stay in a role

34%

3 ye

ar

s

21%

4 ye

ar

s

16%

2 ye

ar

s

13%

5 ye

ar

s

15%

th

an

5 ye

ar

s

(9)

UK Overview

The ticking time bomb – The employer/employee disconnect

There is a clear difference of opinion between employers and employees

on the reasons for salary increases. 52 per cent of employees believe they

deserve a rise to maintain their standard of living, however only 9 per cent of

employers cite this as the reason they do it. Instead, 69 per cent of companies

say they award rises in order to keep hold of high performing staff. Perhaps

reflecting something of the same impetus, 58 per cent of businesses plan to

award bonuses in the next 12 months, up from 47 per cent last year.

However, once again the survey provides evidence of a disconnect between employers and employees

in terms of overall benefits packages. While 75 per cent of companies believe they are offering

appropriate reward and recognition to staff, only 51 per cent of employees believe this to be the case.

Clearly, this and other similar issues highlighted by the survey need to be addressed, because as

market conditions continue to improve, it is vital that the expectations of organisations and candidates

are closely aligned to ensure maximum business development and growth and the continued revival in

the fortunes of the UK economy.

Key priorities for employers in 2014 and beyond will include developing staff retention strategies

that are more valued by employees, and also increasing investment in training and development

programmes to enable them to become more self-sufficient in the key skills they require in the future.

Methodology

The Hudson salary survey of employers and employees was conducted online over a three-week

period in December 2013. Current salary information has been obtained from Hudson’s internal

database and quality checked against survey data. In-house recruitment specialists and company

directors were interviewed to obtain their experiences of current market trends in order to compile

the regional and sector-specific market overviews.

52%

of employees believe

they deserve a pay

rise to maintain their

standard of living

69%

of companies say they

award pay rises in order

to keep hold of high

performing staff

58%

of businesses

plan to award

bonuses in the next

(10)

2014 Salary & Employment Insights

Supply Chain & Procurement

Hudson is a global talent solutions company with expertise in leadership

and specialised recruitment, contracting solutions, recruitment process

outsourcing, talent management, outplacement and eDiscovery. We help our

clients and candidates succeed by leveraging our expertise, deep industry and

market knowledge, and proprietary assessment tools and techniques.

About Hudson Supply Chain & Procurement

With approximately 2,000 people in 20 countries,

and relationships with millions of specialised

professionals, we bring an unparalleled ability

to match talent with opportunities by assessing,

recruiting, developing and engaging the best

and brightest people for our clients. We combine

broad geographic presence, world-class talent

solutions and a tailored, consultative approach to

help businesses and professionals achieve higher

performance and outstanding results.

Hudson Supply Chain & Procurement is one

of Europe’s largest and most effective industry

specialist recruitment teams. Our client portfolio,

spanning SMEs to listed companies and

multinational companies is impressive and ever

growing. We have formed strategic partnerships

with our clients and identify highly commercial

supply chain and procurement candidates to

give our clients competitor advantage in a highly

competitive market.

Our team is enthusiastic, dedicated,

knowledgeable, focused and passionate.

Combined with strong communicative ability,

collaborative style and creative thinking; we are

uniquely equipped to respond to our clients’

diverse requirements. We also strive to provide

high value candidates that can leverage profit

and process, deliver significant returns on

investment and reduce risk and costs.

Our industry-leading consultants’ extensive suite

of innovative recruitment techniques means we

offer solutions that are tailored to meet your

requirements, quickly and cost efficiently. This

includes contingency database assignments

through to high profile advertised, search and

selection solutions. We work proactively to

develop long-term business partnerships through

open and honest communication between client,

candidate and consultant.

(11)

Market Overview

In the challenging economic conditions of recent years there has been

an increased emphasis in organisations of all sizes on the importance of

an effective supply chain and procurement strategy. This is particularly

significant in terms of managing and reducing costs, driving efficiency

gaining competitive advantage and - where applicable - boosting profits.

This is equally true for companies with

manufacturing operations who are keen to reign

in expenditure on the direct costs of raw materials,

as it is for service industry businesses and public

sector organisations reviewing their - often

considerable - indirect costs in areas such as IT,

print, vehicles and facilities management.

Against this background, it is unsurprising

that we saw an upturn in the supply chain and

procurement recruitment market in Scotland in

2013, with hiring levels up across the range of job

roles in this space.

This recovery was spearheaded by activity in

the public sector which accounted for around

a third of all placements during the year. We

saw significant hiring by central government

departments and agencies, local government,

public utilities, the education sector and the NHS.

Busy areas in the private sector during the year

included financial services and fast moving

consumer goods (FMCG), with activity of a less

significant nature in manufacturing, engineering,

construction and pharmaceuticals.

There has been a notable uplift in demand across

our client base for sourcing, supplier relationship

management, category/commodity manager

and contracts manager professionals. Other

placements were spread across buyer, demand

planning, warehouse and inventory roles.

In terms of current niche skill sets there is now an

emerging trend of organisations across Scotland

requesting a high demand for IT category

managers, as well as a significant shortage of

procurement specialist candidates – particularly

apparent within the public sector - in Glasgow

and Edinburgh.

It is also becoming increasingly more

challenging to source skilled people for oil

and gas industry positions from procurement

specialist to commercial procurement manager

level in Aberdeen.

Overall, there was a fairly even split of permanent

and interim hires in this market across 2013

with this trend remaining steady into 2014. The

resulting increase noted within business turning

to the provision of the interim procurement

resource to fill gaps in light of these emerging

skills shortages.

84%

of companies said they had awarded

pay rises within the last two years

(12)

2014 Salary & Employment Insights

Supply Chain & Procurement

Market Overview

We have tracked little overall change in salaries

or contracting rates during 2013. Although as the

case is with all high calibre skill sets within high

demand niche areas, such as IT or oil and gas,

candidates can expect to be able to command

a premium.

It is anticipated that further steady growth will

be apparent in supply chain and procurement

recruitment in Scotland in 2014 with more

emphasis on the major contribution this function

can make to business performance.

Towards the end of 2013 there was further

evidence in Scotland of some of the main

UK-wide trends in the sector. These include

more businesses outsourcing their procurement

function, or engaging larger numbers of

contractors to help run cost-saving projects. We

are noting a rise in the outsourcing of inventory

and warehousing, and remote planning in

manufacturing.

Looking to the future, if market conditions

continue to improve and skills gaps become

further widespread, businesses will need to devote

time and resources to upskilling current talent

pools, utilising graduate interns and developing

effective staff retention strategies. This coupled

with an investment in training and development

programmes will enable businesses to hold a

more robust succession plan within their supply

chain and procurement functions.

It is felt that professional careers within supply

chain and procurement are very much in an

exciting growth phase. The future of supply

chain and procurement recruitment shows new

talent pools coming to market via graduate level

recruitment, internships and those changing

careers from finance, engineering and legal

vocations. More individuals currently within the

profession are choosing, or being encouraged, to

gain Chartered Institute of Purchasing and Supply

(CIPS) qualifications. Over time, we are also likely

to see the increasing importance of the function

being reflected in more board level procurement

director appointments.

77%

of professionals expect a salary

increase in the next 12 months

(13)

Procurement

Salary Tables

uk.hudson.com Contact Hudson Supply Chain & Procurement Matt Warder T: 0131 555 9833 E: matt.warder@hudson.com Jacqui Paterson T: 0141 227 9126 E: jacqui.paterson@hudson.com

(14)

2014 Salary & Employment Insights

Supply Chain & Procurement

Scotland — Central Belt Salary Tables

Scotland — Central Belt

Procurement

Permanent (£ Per Year) Contract/Temporary (£ Per Day)

Role Minimum Maximum Average Minimum Maximum Average

Chief Procurement Officer 75,000 100,000 87,500 550 900 725

Head/Director of Procurement 70,000 85,000 75,000 400 700 550

Commercial Manager 50,000 70,000 60,000 300 550 425

Strategic Sourcing Manager 40,000 55,000 45,000 250 500 375

Procurement Change Manager 50,000 65,000 55,000 300 550 425

Procurement Transformation Manager 55,000 75,000 60,000 350 600 500

Category Manager 40,000 55,000 48,000 300 500 400

Contract Manager 40,000 60,000 50,000 350 500 450

Supply Relationship Manager 40,000 55,000 45,000 350 500 450

Procure 2 pay Specialist 45,000 65,000 55,000 350 550 450

Procurement Specialist 35,000 60,000 47,500 350 500 450

Senior Buyer 30,000 42,000 35,000 150 250 200

Buyer 22,000 30,000 25,000 80 200 140

(15)

Aberdeen — Oil & Gas

Procurement

Chief Procurement Officer 150,000 275,000 175,000 850 2,000 1,200

Head/Director of Procurement 100,000 155,000 120,000 600 1,500 1,000

Head/Director of Commercial Management 105,000 220,000 130,000 650 1,500 1,100

Contracts Engineer 35,000 50,000 42,500 300 600 450

Senior Buyer 35,000 57,000 45,000 300 500 400

(16)

2014 Salary & Employment Insights

Supply Chain & Procurement

Aberdeen — Commerce & Industry Salary Tables

Aberdeen — Commerce & Industry

Procurement

Head/Director of Procurement 75,000 110,000 95,000 650 1,000 850

(17)

Aberdeen — Public Sector

Procurement

Commercial Director 62,250 145,000 92,000 675 1,250 925

Procurement Change Manager 45,000 88,000 60,000 500 1,000 775

Procurement Transformation Manager 45,000 92,000 65,000 500 1,000 725

Senior Buyer 35,000 48,500 42,000 300 500 400

(18)

2014 Salary & Employment Insights

Supply Chain & Procurement

Financial Services Salary Tables

London & Home Counties — Financial Services

Procurement

Head/Director of Procurement 100,000 155,000 120,000 600 1,500 1,000

Head/Director of Commercial Management 105,000 220,000 130,000 650 1,500 1,100

Contracts Engineer 35,000 50,000 42,500 300 N/A 450

Procure 2 pay specialist 50,000 80,000 65,000 400 750 550

Senior Buyer 35,000 57,000 45,000 300 500 400

(19)

London & Home Counties — Commerce & Industry

Procurement

(20)

2014 Salary & Employment Insights

Supply Chain & Procurement

Public Sector Salary Tables

London & Home Counties — Public Sector

Procurement

Senior Buyer 35,000 48,500 42,000 300 500 400

(21)

The Midlands — Public Sector

Procurement

Senior Buyer 35,000 48,500 42,000 300 500 400

(22)

2014 Salary & Employment Insights

Supply Chain & Procurement

The North West & The North East Salary Tables

The North West & The North East

Procurement

Chief Procurement Officer 75,000 140,000 110,000 1,000 2,000 1,500

Senior Buyer 30,000 41,000 37,000 200 350 275

Buyer 24,000 32,000 29,000 100 200 150

(23)

Supply Chain

Salary Tables

uk.hudson.com Contact Hudson Supply Chain & Procurement Matt Warder T: 0131 555 9833 E: matt.warder@hudson.com Jacqui Paterson T: 0141 227 9126 E: jacqui.paterson@hudson.com

(24)

2014 Salary & Employment Insights

Supply Chain & Procurement

Scotland Central Belt Salary Tables

Scotland Central Belt

Supply Chain

Supply Chain Director 70,000 90,000 80,000 500 850 675

Head of Supply Chain 60,000 75,000 67,500 400 700 550

Supply Chain Manager 45,000 60,000 52,500 300 550 425

Sales & Operations Planning Manager 45,000 55,000 50,000 300 550 425

Demand Manager 35,000 55,000 45,000 250 500 375

Demand Planner 25,000 45,000 35,000 80 160 120

Supply Manager 35,000 55,000 45,000 250 500 375

Procurement Project Manager 35,000 50,000 42,500 250 500 375

(25)

Aberdeen

Supply Chain

Supply Chain Director 90,000 250,000 165,000 600 1,500 1,050

Head of Supply Chain 70,000 150,000 115,000 500 1,500 850

Demand Manager 40,000 65,000 50,000 250 500 400

Demand Planner 30,000 48,000 37,000 120 180 160

Supply Manager 40,000 55,000 45,000 250 450 375

(26)

2014 Salary & Employment Insights

Supply Chain & Procurement

London & Home Counties Salary Tables

London & Home Counties

Supply Chain

Supply Chain Director 90,000 250,000 165,000 600 1,500 1,050

Demand Manager 40,000 65,000 50,000 250 500 400

Demand Planner 30,000 48,000 37,000 120 180 160

Supply Manager 40,000 55,000 45,000 250 450 375

(27)

The Midlands

Supply Chain

Supply Chain Director 80,000 150,000 85,000 1,000 2,000 1,500

Demand Manager 35,000 50,000 42,000 250 450 350

Demand Planner 25,000 40,000 35,000 100 160 130

Supply Manager 35,000 50,000 42,000 250 450 350

(28)

2014 Salary & Employment Insights

Supply Chain & Procurement

The North West & The North East Salary Tables

The North West & The North East

Supply Chain

Supply Chain Director 80,000 150,000 85,000 1,000 2,000 1,500

Demand Manager 35,000 50,000 42,000 250 450 350

Demand Planner 25,000 40,000 35,000 100 160 130

Supply Manager 35,000 50,000 42,000 250 450 350

(29)

Scotland Central Belt

Logistics

Logistics Logistics Director 70,000 100,000 80,000 800 2,000 1,400 Head of Operations 50,000 70,000 60,000 500 700 900 Logistics Manager 40,000 60,000 48,000 300 500 400 Contract Manager 40,000 60,000 45,000 250 450 350 Implementation Manager 45,000 60,000 50,000 350 600 450

Solution Design Manager 35,000 50,000 40,000 250 450 380

Logistics Analyst 28,000 35,000 30,000 100 175 150

Transport

Distribution Director 70,000 120,000 85,000 800 2,000 1,400

Head of Distribution 50,000 70,000 60,000 500 700 600

Regional Transport Manager 45,000 60,000 55,000 300 500 400

Transport Manager 30,000 55,000 45,000 150 350 250

Planning Manager 40,000 45,000 45,000 150 350 250

Transport Shift/Team Manager 28,000 37,000 34,000 100 200 150

(30)

2014 Salary & Employment Insights

Supply Chain & Procurement

Scotland Central Belt

Logistics Continued

Warehouse

Operations/Business Unit Director 70,000 120,000 95,000 800 2,000 1,400

Regional General/Operations Manager 50,000 80,000 60,000 400 700 550

General Manager 45,000 75,000 55,000 350 600 475

Warehouse Manager 30,000 50,000 45,000 300 500 400

Operations Manager 30,000 45,000 45,000 250 400 325

Inventory/Stock Manager 30,000 45,000 38,000 200 350 250

Shift Manager 28,000 40,000 35,000 100 200 150

(31)

Aberdeen

Logistics

Permanent (£ Per Year)

Role Minimum Maximum Average

Logistics Logistics Director 60,000 125,000 92,500 Head of Operations 60,000 120,000 90,000 Logistics Manager 40,000 70,000 55,000 Contract Manager 30,000 70,000 50,000 Logistics Analyst 25,000 50,000 37,500

Solutions Design Manager 45,000 80,000 62,500

Transport

Distribution Director 70,000 120,000 95,000

Head of Distribution 60,000 115,000 87,500

Regional Transport Manager 50,000 75,000 62,500

Transport Manager 30,000 60,000 45,000

Planning Manager 25,000 55,000 40,000

Transport Planner 25,000 50,000 37,500

Warehouse

Operations/Business Unit Director 80,000 125,000 92,500

General Manager 60,000 90,000 80,000 Warehouse Manager 40,000 50,000 45,000 Operations Manager 50,000 65,000 55,000 Shift Manager 30,000 35,000 33,000 Inventory Manager 35,000 45,000 40,000 Stock Manager 22,000 35,000 28,500

(32)

2014 Salary & Employment Insights

Supply Chain & Procurement

London & Home Counties Salary Tables

London & Home Counties

Logistics

Permanent (£ Per Year)

Role Minimum Maximum Average

Logistics Logistics Director 60,000 125,000 92,500 Head of Operations 60,000 120,000 90,000 Logistics Manager 40,000 70,000 55,000 Contract Manager 30,000 70,000 50,000 Logistics Analyst 25,000 50,000 37,500

Solutions Design Manager 45,000 80,000 62,500

Transport

Distribution Director 70,000 120,000 95,000

Head of Distribution 60,000 115,000 87,500

Regional Transport Manager 50,000 75,000 62,500

Transport Manager 30,000 60,000 45,000

Planning Manager 25,000 55,000 40,000

Transport Planner 25,000 50,000 37,500

Warehouse

Operations/Business Unit Director 80,000 125,000 92,500

(33)

The Midlands

Logistics

Transport

(34)

2014 Salary & Employment Insights

Supply Chain & Procurement

The Midlands Salary Tables

The Midlands

Logistics Continued

Warehouse

General Manager 55,000 75,000 65,000 350 600 475

(35)

The North West & The North East

Logistics

Transport

(36)

2014 Salary & Employment Insights

Supply Chain & Procurement

The North West & The North East Salary Tables

The North West & The North East

Logistics Continued

Warehouse

General Manager 55,000 75,000 65,000 350 600 475

(37)

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Aberdeen

4–5 Golden Square

Aberdeen

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Glasgow

130 St Vincent Street

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10 Lower Mount Street

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The Chancery

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Hudson is a premier destination for talented candidates and clients committed to

Changing Economic Conditions and Improving Productivity

Supply Chain & Procurement

2014 Salary & Employment Insights

The Rocky Road to Recovery

Contents

2014 Salary & Employment Insights

Supply Chain & Procurement

UK Overview

3

– Adapting to the changing economic conditions 4

– The rocky road to recovery 5

– Uncertainty versus the upturn 7

– The ticking time bomb – The employer/employee disconnect 9

About Hudson Supply Chain & Procurement

10

Market Overview

11

Salary Tables

13

– Procurement 13

– Supply Chain 23

UK Overview

Welcome to the Hudson Supply Chain & Procurement Salary

and Employment Insights Review for 2014. The document

begins with an overview of the UK recruitment market as a

whole, before focusing in more detail on the supply chain

and procurement market. As your recruitment partner and

adviser, we take great pride in our in-depth knowledge of

the marketplace, and also the factors currently affecting it,

including general economic conditions and the expectations

of organisations and their people. We hope you will find this

review both interesting and useful in terms of planning and

implementing recruitment activity in the year ahead.

Jacqui Paterson

Managing Consultant

Matt Warder

2014 Salary & Employment Insights

Supply Chain & Procurement

UK Overview

Adapting to the changing economic conditions

After a number of challenging years for the UK recruitment sector caused by

difficult economic conditions, there were signs of an upturn in many areas

during 2013. These improvements were not spectacular - indeed the general

mood could best be described as one of cautious optimism - but there were

encouraging indications that businesses were more willing to invest in new

talent, and that candidates were adopting a rather less risk-averse approach to

seeking out and considering new opportunities.

The exact nature of the improvements varies by sector and by geographical area, and for some

companies it will take a lot more than a glimpse of the much-vaunted ‘green shoots of recovery’ to

persuade them to abandon the rigorous focus on scaling back and cost cutting which has been the

prevailing corporate culture for so many organisations in recent times. The evidence we are seeing is

that many companies now realise that, in business development terms, standing still is only an option for

a limited period, while other organisations already need to staff up to service project wins in the light of

general improvements in market conditions in their particular sector.

Against this background, there are two key questions for 2014 and beyond. The first is are employers

ready - in recruitment terms - to adapt to the changing economic conditions and equip themselves with

the people they need for the next stage of their development? The second is are employees ready - and

willing - to take advantage of the new opportunities that a recovering economy will create?

69%

of respondent’s

workloads have been

redistributed among the

remaining team members

72%

of respondents said that

colleagues are being

‘always’ or ‘mostly’ replaced

when they leave a company

UK Overview

The rocky road to recovery

Hudson conducted our in-depth survey of what companies and candidates

think of the changing economic environment, and its likely impact on them.

We looked at its effect on work practices, compensation and benefits and,

equally importantly, on employee engagement, morale, loyalty and job

seeking behaviour.

Our findings overall suggest that, recruitment wise, the road to recovery could be rather a rocky one

for employers. The evidence is that while many businesses are focused on what the revival could

mean to them in terms of increased revenue and profits, they have taken their eye off the ball where

staff morale and retention issues are concerned. At the same time, employees are beginning to look

for other jobs because they have more confidence in the market. And our survey has also revealed a