Michael Page Procurement & Supply Chain Road Ahead Presentation

26TH FEBRUARY, 2014

PRESENTED BY RICHARD DUNLOP AND CHRIS CLARKE

AGENDA

PageGroup Overview

Areas of Specialisation

The Decade in Review

What Did We See in 2013?

Current Industry Trends

Salary & Employment Forecast 2014

Has the Recruitment Landscape Changed?

Summary

PAGEGROUP OVERVIEWGLOBAL COVERAGE

PAGEGROUP OVERVIEWASIA PACIFIC COVERAGE

PAGEGROUP OVERVIEWAUSTRALIA & NEW ZEALAND COVERAGE

PAGEGROUP OVERVIEWPROCUREMENT – CAPABILITY AT ALL LEVELS

LEADERSHIP

MANAGEMENT

SUPPORT

PAGEGROUP OVERVIEWSUPPLY CHAIN & LOGISTICS– CAPABILITY AT ALL LEVELS

LEADERSHIP

MANAGEMENT

SUPPORT

THE DECADE IN REVIEWTHE AUSTRALIAN ECONOMY

Annual GDP Growth

THE DECADE IN REVIEWANNUAL EMPLOYMENT GROWTH

THE DECADE IN REVIEWANNUAL EMPLOYMENT GROWTH

NSW & Australia (2004-2013)

WHAT DID WE SEE IN 2013?

The demand for Procurement professionals declined sharply in Q1 and did not lift again until Q4

Demand across Supply Chain and Logistics remained steady throughout 2013

Subdued domestic market influenced by mixed global economic conditions

The promise of post-election movement is still yet to be fully realised

Organisations remained focused on the ‘bottom line’

The importance of Procurement and Supply Chain as strategic functions continued you to grow

Employers demanding greater depth/diversity in skill sets

IS THE CURRENT MARKET THE “NEW NORMAL”?

There are no forecasts for a large spike in the market

Tier 2 & Tier 3 organisations investing more heavily in systems, process, frameworks and governance

Businesses are generally more positive about the outlook for 2014

Lack of growth focus is good news for Procurement and Supply Chain

Increase in restructures within management teams

Delayered teams place a premium on retention of best talent

INDUSTRY TRENDS

Procurement

Continued strong demand for highly technical candidates

Early resurgence in market has highlighted need to continue to focus on cost base, to ensure profit rises

Salaries are still above market rate – retention & attraction strategy?

Supply Chain

We tend to see very few requirements for supply chain talent in Financial Services, with the exception of specialised logistics services and management consultancy

FINANCIAL SERVICES

INDUSTRY TRENDS

Procurement

Specific experience highly valued: Software, Services, Hardware or Infrastructure. More focus on non-IT Indirects

Continued off-shoring of operational functions places higher emphasis on regional procurement experience

ERP platforms are becoming more user friendly across organisations. This has been in large part due to the influence of procurement functions

Supply Chain

Generally well developed outsourced supply chain management functions. Current focus on driving commercial value through 3PL/4PL partners

The growth in this sector has been in supply chain analysis

IT & T

INDUSTRY TRENDS

Procurement

Swing towards FMCG, Food & Personal Care in terms of demand. Pharmaceutical and Healthcare flat.

Low cost country sourcing highly valued, even more so in finished goods.

Professional, business & corporate service categories becoming more important to the executive management group

Supply Chain

In the Supermarket industry suppliers have had to upskill and grow their supply chain capability in collaboration with the retailers

Organisations with traditional focus through the grocery channel are now increasingly driving growth through alternative markets, eg Online

CONSUMER GOODS

INDUSTRY TRENDS

Procurement

Tough year in 2013 – two speed economy no longer exists.

QLD seeing greatest growth in industrial sector with LNG, resource & construction projects leading the way

Mix of centralisation & decentralisation of procurement functions is sending mixed messages to the market

Supply Chain

Import and distribution functions are becoming more critical in Australia with manufacturing moving overseas

Managing 3PL contracts has become a challenging and niche skill set requirement

With the mining sector steadying, there has been an increase in recruitment for supply and demand planners

INDUSTRIAL

SALARY & EMPLOYMENT FORECAST 2014SALARY & REMUNERATION

SALARY & EMPLOYMENT FORECAST 2014RECRUITMENT ACTIVITY

SALARY & EMPLOYMENT FORECAST 2014ATTRACTION & RETENTION

SALARY & EMPLOYMENT FORECAST 2014ATTRACTION & RETENTION

HAS THE RECRUITMENT LANDSCAPE CHANGED?

Employees struggling to see career progression, causing staff turnover

Companies are short-term focused in their replacement strategy

This is in-line with a shorter term goal focus / cost focus in a challenging economy

Candidates become more specialised – less breadth of skills/industry knowledge

Creation of perpetual ‘job recruitment’ rather than career development

Often outside the control of staff retention strategies if the next step isn’t realistically available

THE EFFECT OF STRUCTURAL EFFICIENCIES

HAS THE RECRUITMENT LANDSCAPE CHANGED?

Group Discussion

Has the current economic environment impacted your approach to recruitment?

THE EFFECT OF STRUCTURAL EFFICIENCIES

HAS THE RECRUITMENT LANDSCAPE CHANGED?THE EFFECT OF STRUCTURAL EFFICIENCIES

HAS THE RECRUITMENT LANDSCAPE CHANGED?

Access to candidates is now far

easier

Job boards provide an

un-targeted approach

Aggressive LinkedIn campaigns

can have a detrimental effect

Greater sophistication is

essential in effective candidate

management

MANAGING THE CANDIDATE MARKET

The difference between passive and active candidates is evaporating

Active Passive

SUMMARY

The employment market proved to be inconsistent throughout 2013

Should we accept the current market as the ‘new normal’? The outlook for 2014 continues to be cautious with some level of

optimism

Companies continue to be bottom line focused – good news for Procurement and Supply Chain professionals

There are longer term effects of efficiency restructures With greater access to a broad candidate pool, correct candidate

management is crucial for an efficient recruitment process and company EVP

THANK YOU

Any questions?