Careers in Acquisition/SCM Contents

1. Careers in Acquisition/SCMContents • What is Acquisition/SCM? • Objectives and Processes • Regional Needs • Career Fields • Salaries • Skills Needed • Education Options

2. What is Acquisition/SCM? • Movement of goods between suppliers, manufacturers, consumers • Fundamental processes and practices necessary for efficiency • Goal of SCM: - To positively impact the organization’s bottom-line - While delivering the best service to customers - At the lowest possible cost • SCM is integral to success of all business operations

3. Acquisition/SCMObjectives • Objectives of SCM: - Provide an uninterrupted flow of materials, supplies, services required to operate the organization - Keep inventory investment and loss at a minimum - Maintain and improve quality - Find or develop competent suppliers - Standardize, where possible, the items bought - Purchase required items, services at lowest total cost - Achieve productive working relationships with other functional areas within the organization - Accomplish purchasing objectives at lowest possible level of administrative costs - Improve organization’s competitive position Source: Leenders, Michiel R., Fearon, Harold E., Flynn, Anna E., and Johnson, P. Fraser, Purchasing and Supply Management, 12th edition, McGraw-Hill, Boston, 2002.

4. Acquisition/SCMProcesses • Processes for coordinated supplier-to-consumer systems • Identifying needs for raw materials, supplies, components • Developing specifications • Computing quantity requirements • Selecting sources and negotiating agreements • Acquiring, transporting, and storing inventory • Managing and maintaining operations • Managing logistics

5. Acquisition/SCMRegional Needs • Regional work force needs driven by private and public sector influences • DoD presence at WPAFB - Requires government employees and support contractors - Specialized knowledge of all facets of acquisition and logistics • "90 Minute Market" reach of Interstate 70/75 commerce corridor - Requires industry specialists - Expertise in all aspects of supply chain management

6. Acquisition/SCMRegional Needs (continued) • Driven by DoD needs, Greater Dayton area has major concentration - Over 6,000 professionals in various areas of SCM - Both private and public sectors • Other public agencies, private businesses require SCM expertise - Procurement, shipping, trucking, order fulfillment, warehousing • Ohio has nation’s sixth largest civilian workforce in these professions - Responsible for procuring goods and services - Assuring global delivery to the U.S. military whenever needed

7. Acquisition/SCMRegional Needs (continued) • DoD data indicate 50% of civilian workforce eligible to retire - Local market need is critical to train and retain SCM professionals • Regional economic development associated with I 70/75 commerce - Drives growth in need for industry SCM specialists

8. Acquisition/SCMCareer Fields • Specialized area; growing in importance - Strategic challenges for businesses - Consumer expectations, industry advancements, global competition • Varied duties may include: - Acquisition of materials, services and equipment - Planning and policymaking - Product development and control - Contract development and forecasting - Production planning and scheduling - Warehousing and distribution Source: Burt, David N., Dobler, Donald W., and Starling, Stephen L., World Class Supply Management: The Key to Supply Chain Management, 7th Edition, McGraw-Hill, Boston, 2003.

9. DoD Acquisition Career Fields

10. Acquisition/SCM Private Sector Career Fields

11. Acquisition/SCM Salary Information - DoD DoD Acquisition/SCM Positions Step 1 Step 3 Entry Level GS-04 $ 25,797 $ 27,516 GS-05 $ 28,862 $ 30,786 Progression GS-07 $ 35,752 $ 38,135 GS-09 $ 43,731 $ 46,646 GS-11 $ 52,912 $ 56,439 GS-12 $ 63,417 $ 67,646 Management/ Professional GM-13 $ 75,414 $ 80,442 GM-14 $ 89,115 $ 95,056 GM-15 $104,826 $111,814 Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans Source: www.fedjobs.com/pay/pay 2007 General Schedule Base Pay + Locality

12. Acquisition/SCM Salary Information - Private Sector Acquisition/SCM Professionals Average SalaryTop 20 % $ 78,470 $100,000 or > Average SalaryExperience $ 65,389 1- 5 years $ 67,996 6 - 10 years $ 77,187 11 - 20 years $ 95,900 21 + years Plus very attractive benefits packages, including health and life insurance, education and training, leave, retirement savings plans Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

13. Acquisition/SCM Salary Influenced by Education • In general, salary levels increase with educational level • Bachelor’s degree or higher - Typically higher than overall average - Average - $79,368 • Master’s degree - 25 % higher than Bachelor’s - Average -$99,373 • All degree holders - Average salaries highest in technical degree fields - Average - $93,977 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

14. Average Salary – PurchaserPrivate Sector Purchasers $ 67,300 Purchasers, 3 or < years experience $ 54,600 Purchasers, BS/BA in Business $ 69,000 Purchasers, BS/BA in Technical Field $ 70,900 Purchasers, CPM Certification $ 80,000 Purchasers, MBA $ 91,900 Source: Purchasing, December 2003

15. Acquisition/SCM Salary Influenced by Certifications • With one or more professional certifications - Higher average salary $80,758 vs. $76,411 • With Certified Purchasing Manager (CPM) certification - Average salary 10 % higher $83,172 vs. $75,337 Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

16. Acquisition/SCM Salary Influenced by Location • Location - Average salaries vary by location - Wash. D.C. area - average $103,036 - North Carolina area - average $93,791 - Illinois area – average $93,752 - Other states with average > $80,000 Ohio, California, Connecticut, Georgia, Iowa, Massachusetts, Maryland, New Jersey, New York, Texas, Virginia - Other states with average < $60,000 Arkansas, Oklahoma, South Carolina. Source: Institute for Supply Management Salary Survey, Jan/Feb 2006

17. Acquisition/SCM Skills Needed

18. Acquisition/SCM Professions - Education Options

19. Careers in Acquisition/SCMConclusion • Valuable career opportunities in Acquisition/SCM • Increasing demand in both public and private sectors • Attractive salaries and benefits • Opportunities for continuing career advancement • Wide variety of associated specialty skills areas • Numerous educational options available • Contact MVAC for more information

20. MIAMI VALLEY ACQUISITION CONSORTIUMCHARTER Vision: The Miami Valley Acquisition Consortium (MVAC) is a joint academic, government, and industry partnership preparing the Miami Valley workforce for the challenges of tomorrow. Motto: Preparing the right workforce for tomorrow. Mission: To provide a collaborative organization that will continuously assess the workforce needs and capabilities of the Miami Valley, and promulgate programs that will advance leadership and operational strengths.

21. Goals The MVAC seeks to develop initiatives designed to: • Complement, support and strengthen leadership development opportunities; • Facilitate entry pathways to career development; • Set forth plans for development and advancement programs for career professionals; • Identify lateral training for professionals affected by industry reorganization or change; •  Provide reference data relating to affordability and value of programs; •  Serve as the conduit for the exchange of beneficial information.

22. Focus Public and Private Sector Personnel: Logistics, Procurement, and Supply Chain Management (SCM) Specialists. Department of Defense and Defense Support Contract Personnel: Acquisition, Technology & Logistics (AT&L) Workforce.

23. MVAC MembershipAcademia • Cedarville University • Central Michigan University • Central State University • Clark State Community College • Defense Acquisition University • Edison Community College • Embry-Riddle Aeronautical University • Indiana Wesleyan University • Sinclair Community College • University of Dayton • Wright State University • Wittenberg University • Miami Valley Tech Prep Consortium

24. Government and Industry • Aeronautical Systems Center • Miami Valley Regional Planning Commission • Dayton Area Chamber of Commerce • Dayton Development Coalition

25. MVAC Stakeholders Academia: All MVAC College and University members. Government: Virtually all Government agencies involved in Acquisition, Technology, and Logistics (AT&L) and/or Supply Chain Management (SCM).   1. Federal Government a) Department of Defense b) Environmental Protection Agency c) Other Agencies   2) State of Ohio a) Ohio Board of Education b) Ohio Board of Regents

26. Stakeholders Continued 3) Ohio Counties 4) City Governments Industry:Virtually all business involved in Procurement and Supply Chain Management (SCM).

27. Related Professional Organizations • Chambers of Commerce • Association for Operations Management (APICS) • Dayton Business Partnerships • Institute for Supply Management (ISM) • International Society of Logistics Engineers (SOLE) • National Association of Purchasing Management (NAPM) • Supply-Chain Council (SCC) • Many other key disciplines