In our most recent report into the market conditions for procurement professionals published in March we observed the following trends:

A much improved market for permanent roles

A more stable interim market than 2009

The return of the “battle for procurement talent”

Restraint on salary increases

The apparent recovery in certain key sectors e.g. banking & FMCG

The growing demand for leading edge SRM experience

 Now three months later with the election behind us and fresh concerns expressed in the media about the economic recovery, we look at how the market conditions are affecting procurement professionals and their careers:

The improved market conditions for permanent procurement roles that we observed in March have continued and strengthened to a degree during this period.  Demand remains strongest in the middle market (£40-£80k) although there is little evidence of much movement at the most senior end of the scale. It remains to be seen when there will be real movement in the Director of Procurement / CPO market, but with so little activity at that level over the last two years we expect the big roles to be fiercely contested when they do become available, possibly later this year.

 The overall picture across all professions is stronger, with a leading research organisation reporting in May that demand for staff increased for the eighth month in succession, whilst the availability of candidates for permanent roles is down for the first time in two years.

Last quarter we observed some restraint on remuneration increases including bonuses, pay reviews and the increases in salary people seek to negotiate when moving companies.  This remains the case and in the current economic climate we would expect that to continue but there are organisations that are already having difficulty attracting the talent they need because of an inability to pay “market rate” and it will be interesting to see how this situation develops later this year.   

The interim market is currently in a relatively stable condition compared to 2009, but as we publish this report the real effects of the public sector cuts proposed by the new government are yet to be truly felt. There is a very strong suspicion with some early evidence to support it that spending on interim staff will be reduced, and this will be terrible news for the interim market as so many experienced procurement professionals have enjoyed some very lucrative contracts in the recent past on a variety of public sector projects.

Our fear is that the market will be flooded with contractors from the public sector over the next quarter, many of whom will be coming into a private sector interim market that has seen a substantial correction in day rates and margins over the last 18 months. This will lead to excess supply, causing further pressure on day rates and may prompt many career interim managers to consider going back into permanent roles. The early signs are there, and we have had many enquiries already from people concerned about whether their contracts will be extended or even terminated early so we will be watching this part of the market closely.

Most public sector senior managers that we asked for their thoughts on the subject were understandably reluctant to make any comment on the impact of the cuts at this stage, but one said “all recruitment, including approved vacancies, is frozen, and now has to be approved at a level which will inhibit us from even making the request!” We will be monitoring this situation closely and will comment on the impact this is having on procurement in our Q3 update.

In some of the key private sector industries the story is more positive with evidence that banking, retail, FMCG and leisure have continued the encouraging trends we observed last quarter. Furthermore both the technology and consulting sectors which we expressed concern about in our last report are now recruiting more in procurement and we believe this is a very encouraging sign.

Our focus on the SRM world as a result of our research and the growing evidence of a clear trend towards greater emphasis in vendor relations is proving to be very interesting.  As our reputation grows as a specialist recruiter for the discipline, we are engaging with more organisations and leading professionals than ever before and we expect to see more evidence of greater emphasis in this area in the second half of the year.  We remain particularly keen to speak to as many professionals with involvement in the area as possible. For more information please visit: http://www.edburydaley.com/supplier-relationship-management/ or join our network at http://uk.linkedin.com/in/edburydaleyandrew

There has been some further analysis of Supplier Relationship Management (SRM) trends undertaken by our research partners 105 Consulting which is available below.  The findings highlight that whilst SRM is now considered critical to many businesses, it seems value is being ‘left on the table’ through insufficient focus, installation and application of SRM capabilities and practice. To access the report click here: http://www.105consulting.com/main/images/stories/pdfs/srm-practitioner-survey.pdf

Future research projects:

We intend to announce the subject for our next online survey and research report at the end of July and will be inviting you all to contribute later in the summer and autumn.  Our previous reports are available here:

The growing importance of SRM: http://www.edburydaley.com/wp/wp-content/uploads/2010/02/EdburyDaley-SRM-jan-2010.pdf

The impact of the recession on procurement: http://edburydaley.com/wp/wp-content/uploads/2009/04/edbury-daley-the-impact-of-the-current-economic-climate.pdf

Welcome to our latest update on the employment market conditions for Procurement and SRM professionals. Since our last update in January we have observed the following:

The permanent market is much improved for Senior Buyers, Category Managers, Procurement Managers and SRM specialists since Q3 2009. There is certainly more confidence amongst employers and the number of vacancies is up on earlier this year and late 2009.

It appears that the battle for talent that was a key feature of the pre recession market is starting again although there appears to be more restraint on salary increases at present. The busiest area is the £50-£70k bracket.

The interim market has stabilised after a difficult period last year. There remains pressure on both day rates and recruiter’s margins but the number of interim procurement specialists looking for a contract is certainly down from Q3 2009.

In both markets there are encouraging signs that some industries which suffered the most last year are beginning to look forward again and make key appointments. The sectors include banking, retail, leisure and FMCG.

 Back in Q1 2009 and through our research into the impact of the recession on procurement (see link below) we predicted that there would be a significant rise in demand for experienced staff from procurement consultancies. They anticipated a busy year as potential clients looked for quick wins and specialist advice on cost base reduction.  This demand hasn’t materialised as much as we anticipated as some potential clients decided against engaging consultants to the extent that had been hoped. 

The technology sector remains quite cautious with a number of hiring freezes still in place and the demand for IT and Telco category specialists from end users has not recovered to the extent seen in other areas.

As we expected in our recent research into SRM (link below) there appears to be a growing demand for specialists with experience of developing and implementing leading edge supplier management strategies. We anticipate demand outgrowing supply in the next 12 months as numerous organisations have realised the value and potential competitive advantage that lies in more productive relationships with key suppliers, particularly as a result of the impact of the recession,  a trend observed last year in the research mentioned above.

We have been contacted by a lot of jobseekers with SRM experience and are in the process of developing a specialist recruitment practice to focus on this area.  You can join the SRM networking group we  have set up here: http://www.linkedin.com/groups?gid=2837993&trk=fulpro_grplogo

Would you like to comment on any of the issues addressed here? Join the discussion here: http://www.edburydaley.com/wp/2010/03/19/procurement-market-update-–-march-2010/

Links to research reports

The growing importance of SRM: http://www.edburydaley.com/wp/wp-content/uploads/2010/02/EdburyDaley-SRM-jan-2010.pdf

The impact of the recession on procurement: http://edburydaley.com/wp/wp-content/uploads/2009/04/edbury-daley-the-impact-of-the-current-economic-climate.pdf

We welcome your comments on how useful you find our research here: http://www.edburydaley.com/wp/2010/02/24/the-growing-importance-of-supplier-relationship-management/

January Bulletin – The market for procurement professionals

 The final quarter of last year saw a noticeable improvement in the market conditions for procurement professionals after a period of uncertainty created by the credit crunch.  The early signs this year are that this should continue and we believe the following factors have contributed:

• Improvement in a number of key economic indicators leading to better confidence in the economy
• Procurement’s unique ability to make a case to overcome “hiring freezes” in major organisations
• Greater urgency from clients to make appointments, especially where previous restrictions have applied
• Use it or lose it – a desire to spend budget before the end of the financial year
• A willingness to “get on with it” after a period of uncertainty
• Greater demands from senior management on procurement to deliver results  

The interim market also improved after a quiet summer with less availability of candidates than the first half of the year, although there remains some pressure on both contractors pay and recruiters margins.  The recovery in the interim market is due to:

• The need for additional resource when permanent head count is restricted
• The flexibility interim managers offer in uncertain market conditions
• The success many organisations have had in “squeezing” interim costs

At EdburyDaley we have been particularly active in the recruitment of senior category roles, head’s of function, vendor management/SRM and several international leadership appointments on both an interim and permanent basis during this time. If you have a key role in your team that needs a high calibre candidate then please talk to Andrew Daley, Charlie Bolam or Hannah Jackson.  Contact details here: http://www.edburydaley.com/contact2/

News

The latest EdburyDaley research project into The Importance of Supplier Relationship Management will be published next week.  With analysis from the Director’s of 105 Consulting we are confident that it’s the best survey we’ve produced yet. There are some fascinating comments on the subject and significant evidence that the standard of SRM capability can be improved upon in several different ways.

To register to receive a copy of the survey results, please e mail info@edburydaley.com

“Supplier relationship management (SRM) is suffering an “identity crisis” as buyers struggle to agree a definition, a study has revealed.”

That was the view of Supply Management magazine when they exclusively reported on our research recently.

“Effective SRM requires installation of competencies, values and behaviours aligned to the delivery against these imperatives and objectives. These competencies and skills are rarely found in the “standard” procurement toolkit.”

David Pomfret – Co-author & Director, 105 Consulting

The data provided by over 300 relevant professionals and subsequent analysis by the Directors of 105 Consulting offers a fascinating view of the subject including:

· What SRM actually means in 2010
· What business leaders expect from SRM
· Who is taking responsibility for SRM in major organisations
· What levels of competence exist across the specialist SRM population

Please read the full report here: EdburyDaley SRM jan 2010

105 Consulting specialises in maximising the value delivered from key suppliers through application of strategic Supplier Relationship Management. It helps clients install and manage the right relationship with new suppliers, maximise the value delivered through existing relationships and, where required, install relationship recovery programmes to improve any poorly performing supplier relationships. Learn more here: http://105consulting.com/105/case-studies

Edbury Daley is a niche recruitment consultancy specialising in Procurement and Supplier Relationship Management appointments. If you would like to discuss SRM career opportunities or need to identify suitable talent for your business please call Andrew Daley (0161 776 4603) or Hannah Jackson (0161 776 4608) or contact us via info@edburydaley.com

We launched our latest survey into “The increasing importance of Supplier Management” earlier in the summer and received our best ever initial response so thankyou to all those who have taken part already.

With such a positive response already we are confident that we can produce some valuable research and aim to complete the report for publication this Autumn.

As ever the value of our research will be greatly enhanced by maximising the number of relevant contributors so if you haven’t had time to do so already, please can you take part by clicking here.

If you have any additional comments please feel free to contribute to the survey blog, or you can e mail us at info@edburydaley.com

In the research we completed earlier this year regarding the impact of the recession on the procurement profession, some key issues were raised around supply chain security and how to deal with it. We concluded that “Around 60% (of responses) advocate the use of more stable suppliers and/or investing in strategic suppliers.”

We also noted in our recent blog that there has been a noticeable increase in the number of specialist Vendor Management roles that we have been asked to recruit for in the recent past, particularly this year.

So in this survey we look at how SRM or VM has risen in importance as businesses increasingly seek value from their suppliers, and we examine how expertise and success in this area enhances procurement and supply chain professionals’ career prospects’

So please do find 5-10 mins to contribute, and we particularly value your input in the “other comments” section. The survey is available here.

Edbury Daley is an executive recruitment company specialising in both interim and permanent appointments. If you are having difficulty finding the procurement talent you need for your business, or are looking for a new role, please mail us at info@edburydaley.com Alternatively you can call Andrew Daley (0161 776 4603), Charlie Bolam (0161 776 4605) or Hannah Jackson (0161 776 4608)

We are delighted to publish the results of our recent research into The Impact of the Current Economic Climate on Procurement which raises some very interesting issues including:

Supplier strategies for dealing with increased risk

The impact on business confidence

The opportunities and challenges for procurement

The issues surrounding professional and career development

With over 100 CPO’s & Purchasing Director’s taking part and some excellent analysis we believe this is the best survey we have undertaken.

Please click here to download the Survey results.

We have created a blog page on our website www.edburydaley.com/blog which is open to everyone who wants to debate the findings and any associated issues. You can also find our previous surveys on Salaries and Career Development there.

We are delighted to publish the results of our recent research into The Impact of the Current Economic Climate on Procurement which raises some very interesting issues including:

Supplier strategies for dealing with increased risk

The impact on business confidence

The opportunities and challenges for procurement

The issues surrounding professional and career development

With over 100 CPO’s & Purchasing Director’s taking part and some excellent analysis we believe this is the best survey we have undertaken.

Please click here to download the Survey results.

We have created a blog page on our website www.edburydaley.com/blog which is open to everyone who wants to debate the findings and any associated issues. You can also find our previous surveys on Salaries and Career Development there.

Thank you for your contribution to the Survey and here is the report which we feel really is quite interesting and we hope you agree.

It raises some points that should help everyone from a recent graduate to a CPO and we welcome any feedback on our findings.

If you did not get a chance to contribute this time, please look out for our next survey which will be launched in the next few weeks.

Please click here to download the survey as an Adobe Acrobat file format.

If you would like to discuss any aspect of the results you can call Andrew Daley on 0161 776 4603 or simply e mail me, andrew@edburydaley.com.