Ensuring Food Security - Logistics Executive - India Salary... · 2017-01-17 · Retail, FMCG, Pharma-Healthcare ... 2012 India Salary Guide, Logistics Exec-utive, in conjunction

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March 2013 Vol. 1—No.2 `150

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In This

Issue

Ensuring Food Security

guru speakAseAn’s Supply Chain Challenge.

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Salary Survey

Report 2013Page...42

Evaluating how Agri Supply Chain can evolve to capture Value for the participant

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In an exclusive to SCMPro, Logistics Executive shares its compilation of Salary Survey Report 2013 that covers the entire spectrum of salary bands

and geographical territories in India.

MethodlogyThe research and information contained within this report has been compiled by Logistics Executive from research undertaken and intelligence gathered in the course of its everyday business activities. Logistics Executive was founded in 1999 and has offices in India, Australia, Singapore, Hong Kong, China and Dubai.

Information contained within this report is compiled from data contained with our extensive database, business acquired in-telligence and regular research surveys, which includes the Global Employment Market Report (now in its 7th year). The Global Employment Market Report is an online survey of approximately 10-15 minute duration and was emailed to more than 55,000 people within the Supply Chain & Logistics Industry in late 2012. About 4,550 respondents completed the survey.

Further to this, Logistics Executive undertook a series of interviews with HRD‘s and HR Personnel validating this data and this information has been incorporated into the final document produced.

Sources for this particular research include:n Human Resource Director Interviewsn Business briefing provided by CEO’s of leading 3PL companiesn Logistics Executive’s Employment Market Report data from late 2012n Logistics Executive’s business intelligence databasen Candidate and Client interviews (conducted by Logistics Executive)Note: The results are purely indicative in terms of overall trends within the industry.

About Logistics ExecutiveLogistics Executive is an International Specialist Executive Recruitment and Business Consulting Company. The company offer market-leading, global connections and drive business performance in the Logistics, Supply Chain, Transport, Freight, Aviation, Manufacturing, Retail, FMCG, Pharma-Healthcare and Resources sectors by providing Executive Recruitment, Interim Management and Business Consulting Services. International Talent engages them as a trusted, networked specialist to find Executive Positions in Sales & Mar-keting, Operations, Procurement, Finance, Human Resources, Logistics and Supply Chain Management. Specialising in Logistics & Supply Chain Executive Recruitment and Training, the company has an active database in excess of 115,000 logistics and supply chain professionals.

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A Quick Insight to Current Salary Trends in India

Logistics Executive is a global Hu-man Resources and Recruitment Consultancy operating in India

since 2010. In the two successful years since, the company has established its place in the Indian market with a pro-fessional reputation and commitment to providing a valued service and expertise in talent management and acquisition strategies for both local and international clients.

Following the inaugural launch of the 2012 India Salary Guide, Logistics Exec-utive, in conjunction with SCMPro have released the second edition of the 2013 salary guide report for the Indian Supply Chain and Logistics market. We thank our clients and the market place as this re-port has been compiled with their good-will, covering a breadth of salary bands and geographical territories in India with a focus on Supply Chain and Logistics. Much of the analysis in this report comes from the Logistics Executive Global Sur-vey, released in February 2013, in-depth interviews with our clients and statistical reference to our candidate database.

Logistics and Supply Chain– India’s future growth driverDespite downwards revisions to India growth projections (now 4.5%) and challenges in the Indian economy seen throughout 2012, the Indian Logistics and Supply Chain sectors continue to forge ahead at growth pace well in ex-cess of its regional neighbors. And with the global economy being re-shaped, so is the distribution of wealth and this is clearly evident in the Indian domestic

economy. And as world trade grows, so do the challenges for the transporta-tion and logistics industry. More people means more production and with global trade in goods and services is likely to rise more than threefold to US$ 27 tril-lion in 2030 India is ideally positioned to be a significant beneficiary.

The Indian RBI certainly thinks so and is actively looking to spur on invest-ment and growth with interest rates re-duced this month for the second time in just three months.

India’s growth has been hurt by a variety of factors in recent months, not least the sharp slowdown in its manufac-turing and services sectors. At the same time, foreign investors have been wary of entering the market amid delays in key reforms all leading to concerns that its growth may slow further in the com-ing months.

The central bank said that creating an environment conducive to investment was key to reviving India’s economy. “The foremost challenge for returning the economy to a high growth trajectory is to revive investment,” the RBI said in state-ment released on March 19.

Not withstanding the events of 2012, the demand for skilled talent in the Sup-ply Chain and Logistics sector remain high. With an emphasis on improving supply chain efficiencies and eliminat-ing waste, the need for a higher level of skilled Supply Chain professionals has continued to drive up the top end of sal-ary bands with limited supply of interna-tionally experienced change-agents.

However, this trend is not consistent

across all functions and positions.In 2011-2012, we saw that despite a

mild slow down in the rate of economic growth, there had been significant in-creases in salaries, much of which cre-ated pain for organisations as employees jumped for sizable increments.

Fast forward a year and with continu-ing mild growth being experienced and a degree of uncertainly many parts of the Supply Chain and Logistics sector, the heat is coming off salaries and employees are starting to place a greater level of im-portance on career development and the company they choose to work for.

It’s a welcomed development, al-though the sector is still losing out in the attraction stakes.

The starting position of transporta-tion and logistics companies couldn’t be better. Offering varied types of work, often in international and cosmopolitan working environments with the ability to transfer those skills offers employees truly global career prospects. In real terms, that should translate into popu-larity with job seekers. But the reality is somewhat different.

The transportation and logistics indus-try is confronted with an image that’s less than ideal. Work in warehouses, on ships or in trucks and trains tends to be associ-ated with unpleasant working conditions and a less than attractive career path.

Human Resources must play a leadership roleThere is no doubt that good employee’s aren’t just a commodity anymore; they’ve become a scarce resource.

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Supply Chain & Logistics 2013 India Salary Survey Report 2

Industry / Supply Chain Management

Position Mumbai Chennai Delhi Bangalore Pune Hyderabad

MD / GM Logistics 75 - 95 75 - 85 75 - 95 75 - 80 75 - 80 50 - 75

Supply Chain VP / Director 45 - 80 30 - 50 40 - 75 25 - 35 22 - 45 24 - 45

Logistics Director 22 - 60 30 - 45 30 - 65 25 - 40 25 - 50 25 - 35

Operation / Warehousing

Regional Logistics Manager 18 - 24 7 - 18 17 - 22 14 - 18 8 - 18 8 - 18

Warehouse / DC Manager 6 - 12 5 - 8 5 - 12 5 - 8 4 - 10 5 - 8

Warehouse/Operations Executive 2 - 6 2 - 5 2 - 6 2 - 5 2 - 6 2 - 4

Lean / Quality / Six Sigma Manager 8 - 16 8 - 15 9 - 17 6 - 11 6 - 15 8 - 12

Logistics Specialist 5 - 8 4 - 6 5 - 8 3 - 6 3 - 6 2 - 6

Procurement / Purchasing

Procurement VP / Director 40 - 75 30 - 45 40 - 75 25 - 50 25 - 50 25 - 40

Senior Procurement Manager 12 - 20 10 - 15 12 - 18 10 - 15 10 - 14 9 - 14

Senior Quality Manager 8 - 20 8 - 12 8 - 20 9 - 18 8 - 13 8 - 13

Sourcing Manager 7 - 15 6 - 14 8 - 15 7 - 11 5 - 10 5 - 9

Purchasing Manager 5 - 9 5 - 9 5 - 9 5 - 9 5 - 8 5 - 7

Purchasing Officer 2 - 5 2 - 4 2 - 5 2 - 5 1 - 4 2 - 4

Inventory, Planning & Demand

Demand/ Supply Planning Head 25 - 35 18 - 25 22 - 30 20 - 25 16 - 25 18 - 25

Supply Chain Manager 12 - 20 12 - 16 12 - 20 10 - 17 10 - 15 7 - 11

Planning / Forecast Manager 7 - 12 5 - 9 5 - 12 6 - 9 5 - 7 7 - 9

Planner 5 - 9 5 - 8 5 - 9 5 - 7 5 - 7 5 - 7

Commodity Manager 8 - 12 6 - 9 8 - 12 8 - 12 9 - 10 8 - 10

Inventory Manager 5 - 7 3 - 5 5 - 7 3 - 5 5 - 7 3 - 5

Inventory Controller 3 - 7 1 - 5 3 - 7 2 - 6 2 - 5 2 - 5

Consulting &Project Management

Supply Chain Consultant 12 - 35 12 - 30 15 - 35 15 - 25 8 - 15 8 - 15

Project Implementation Manager 12 - 19 7 - 14 10 - 19 13 - 18 9 - 14 10 - 14

Project Manager 12 - 20 14 - 16 13 - 20 12 - 15 10 - 12 10 - 13

Transport

General Manager Transport 20 - 35 18 - 25 20 - 30 20 - 30 15 - 20 15 - 20

National Distribution Head 25 - 50 22 - 35 23 - 45 14 - 26 15 - 25 15 - 25

Zonal Distribution Manager 12 - 16 9 - 12 10 - 14 9 - 12 11 - 14 11 - 14

Transport Controller 5 - 7 5 - 7 5 - 7 4 - 6 2 - 5 2 - 5

Sales & Marketing

Sales Director 30 - 75 30 - 50 30 - 75 30 - 45 25 - 40 25 - 40

Area Sales Manager 12 - 15 10 - 14 12 - 16 12 - 15 9 - 11 9 - 11

Regional Brand Director 15 - 35 15 - 30 15 - 35 15 - 22 13 - 22 13 - 22

Regional Brand Manager 15 - 25 14 - 22 15 - 25 10 - 20 13 - 17 10 - 15

Territory Sales Manager 7 - 12 6 - 10 7 - 12 5 - 9 6 - 9 5 - 8

Salary data is shown as a range from low – high and is displayed as an Annual Base Salary in Lakhs Per Annum. Additional benefits such as annual bonus, company vehicles or travel allowances may apply. (Cr) = Crores.


Industry / Supply Chain Management


MD / GM Logistics 75 - 95 75 - 85 75 - 95 75 - 80 75 - 80 50 - 75

Supply Chain VP / Director 45 - 80 30 - 50 40 - 75 25 - 35 22 - 45 24 - 45

Logistics Director 22 - 60 30 - 45 30 - 65 25 - 40 25 - 50 25 - 35

Operation / Warehousing

Regional Logistics Manager 18 - 24 7 - 18 17 - 22 14 - 18 8 - 18 8 - 18

Warehouse / DC Manager 6 - 12 5 - 8 5 - 12 5 - 8 4 - 10 5 - 8


Lean / Quality / Six Sigma Manager 8 - 16 8 - 15 9 - 17 6 - 11 6 - 15 8 - 12

Logistics Specialist 5 - 8 4 - 6 5 - 8 3 - 6 3 - 6 2 - 6

Procurement / Purchasing

Procurement VP / Director 40 - 75 30 - 45 40 - 75 25 - 50 25 - 50 25 - 40

Senior Procurement Manager 12 - 20 10 - 15 12 - 18 10 - 15 10 - 14 9 - 14

Senior Quality Manager 8 - 20 8 - 12 8 - 20 9 - 18 8 - 13 8 - 13

Sourcing Manager 7 - 15 6 - 14 8 - 15 7 - 11 5 - 10 5 - 9

Purchasing Manager 5 - 9 5 - 9 5 - 9 5 - 9 5 - 8 5 - 7

Purchasing Officer 2 - 5 2 - 4 2 - 5 2 - 5 1 - 4 2 - 4

Inventory, Planning & Demand

Demand/ Supply Planning Head 25 - 35 18 - 25 22 - 30 20 - 25 16 - 25 18 - 25

Supply Chain Manager 12 - 20 12 - 16 12 - 20 10 - 17 10 - 15 7 - 11

Planning / Forecast Manager 7 - 12 5 - 9 5 - 12 6 - 9 5 - 7 7 - 9

Planner 5 - 9 5 - 8 5 - 9 5 - 7 5 - 7 5 - 7

Commodity Manager 8 - 12 6 - 9 8 - 12 8 - 12 9 - 10 8 - 10

Inventory Manager 5 - 7 3 - 5 5 - 7 3 - 5 5 - 7 3 - 5

Inventory Controller 3 - 7 1 - 5 3 - 7 2 - 6 2 - 5 2 - 5

Consulting &Project Management

Supply Chain Consultant 12 - 35 12 - 30 15 - 35 15 - 25 8 - 15 8 - 15


Project Manager 12 - 20 14 - 16 13 - 20 12 - 15 10 - 12 10 - 13

Transport


National Distribution Head 25 - 50 22 - 35 23 - 45 14 - 26 15 - 25 15 - 25

Zonal Distribution Manager 12 - 16 9 - 12 10 - 14 9 - 12 11 - 14 11 - 14

Transport Controller 5 - 7 5 - 7 5 - 7 4 - 6 2 - 5 2 - 5

Sales & Marketing

Sales Director 30 - 75 30 - 50 30 - 75 30 - 45 25 - 40 25 - 40

Area Sales Manager 12 - 15 10 - 14 12 - 16 12 - 15 9 - 11 9 - 11

Regional Brand Director 15 - 35 15 - 30 15 - 35 15 - 22 13 - 22 13 - 22

Regional Brand Manager 15 - 25 14 - 22 15 - 25 10 - 20 13 - 17 10 - 15

Territory Sales Manager 7 - 12 6 - 10 7 - 12 5 - 9 6 - 9 5 - 8


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Logistics Service Providers (LSP/3PL’s)


CEO / MD / Country Manager 75 - 2.0 (Cr) 50 - 1.5(Cr) 75 - 2.0 (Cr) 50 - 1.5 (Cr) 50 - 1.0 (Cr) 50 - 1.0 (Cr)

General Manager 22 - 35 22 - 30 20 - 35 22 - 30 20 - 30 20 - 30

Regional Manager 16 - 20 12 - 16 14 - 20 10 - 14 8 - 16 9 - 12

Branch Manager 6 - 10 4 - 7 5 - 8 6 - 8 6 - 8 5 - 7

Sales & BD

VP / GM / Sales Director 41 - 50 25 - 35 35 - 45 35 - 45 30 - 35 25 - 28

National Sales Manager 30 - 35 17 - 24 30 - 35 17 - 35 18 - 23 25 - 28

Regional Sales Manager / Territory Manager

18 - 22 12 - 15 18 - 20 11 - 15 13 - 15 7 - 10

BD Manager (3PL) 12 - 15 8 - 12 10 - 15 8 - 12 8 - 12 8 - 10

BD Manager (Freight) 7 - 15 6 - 13 7 - 14 7 - 12 6 - 12 6 - 11

Key Account Manager 6 - 13 7 - 9 8 - 13 8 - 13 6 - 10 3 - 6

Sales Executive 4 - 7 3 - 6 3 - 6 4 - 5 2 - 5 3 - 5

Marketing Manager 4 - 7 4 - 7 3 - 5 4 - 7 2 - 5 3 - 5

Operations

3PL Contract Manager 30 - 45 25 - 30 35 - 40 22 - 32 20 - 30 18 - 30

Warehouse/Operations/DC Site Manager

8 - 15 5 - 8 5 - 12 6 - 10 4 - 9 4 - 8


Import/Export Manager 3 - 8 3 - 5 3 - 7 2 - 5 2 - 5 2 - 5

Air Freight / Sea Freight Manager 10 - 16 6 - 10 6 - 14 6 - 9 6 - 9 5 - 8

Shipping Clerk 2 - 4 2 - 4 2 - 5 2 - 3 2 - 4 1- 3

Project Manager


Project Manager – WMS/TMS 18 - 22 14 - 19 14 - 20 12 - 15 10 - 12 12 - 14

Transport


National Transport Manager 25 - 35 25 - 30 25 - 35 20 - 30 20 - 30 20 - 30

Line-haul Manager 18 - 25 15 - 20 15 - 24 12 - 18 15 - 20 12 - 15

National Compliance Manager 8 - 12 6 - 10 6 - 10 5 - 8 5 - 8 5 - 8

Site Manager 9 - 15 8 - 1 2 8 - 14 7 - 10 7 - 10 7 - 10

Fleet Manager 7 - 10 6 - 8 6 - 8 5 - 10 5 - 7 5 - 8

Workshop Manager 4 - 6 3 - 6 3 - 6 3 - 5 3 - 5 2 - 5

Disclaimer: Logistics Executive is committed to the highest standard and quality of information and every attempt has been made to present up-‐to-‐date, accurate information. The information contained herein is general in nature and is not intended as, and should not be construed as professional advice provided by Logistics Executive to the reader. While every effort has been made to offer current and accurate information, errors can occur. Much of this information is obtained from records that for reasons of privacy are confidential. This information is provided as is, with no guaranty of completeness, accuracy, or timeliness, and without warranty of any kind, expressed or implied, including any warranty of performance, merchantability, or fitness for a particular purpose. In addition, changes may be made in this information from time to time without notice to the user. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of additional factors if any action is to be contemplated. The reader should contact a professional prior to taking any action based upon this information. Logistics Executive assumes no obligation to inform the reader of any changes in law, business environment, or other factors that could affect the information contained herein.


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So it becomes a question with stra-tegic implications for every aspect of the business. That’s why the first prior-ity needs to be making sure that hu-man resource management is a strategic partner of the C-suite, rather than a sup-porting function.

Critical to this will be ensuring that we attract the inflows of talent needed to sustain the growth of this valuable sector –and much of this rests with addressing the image problem. The sector’s poor im-age came up again and again in the re-sponses from our EMS Report.

According to the National Skill Devel-opment Organisation of India, the trans-portation and logistics sector employed around 7.3 million people in 2011. But the number is expected to increase to about 25 million by 2022. Transporta-tion and logistics companies will need to find more than 17 million more workers over the next 10 years. That’s an enor-mous challenge, particularly considering that the logistics sector is already strug-gling to find workers with the requisite skills to handle the entire supply chain.

With many transport jobs considered to be low-paying jobs. Higher skilled lo-gistics roles with good pay and advance-ment potential don’t even make the radar screen of many talented graduates.

Training integration and investment is criticalThe problem is compounded by a dearth of training programmes in many areas and an insufficient focus on learning and development within individual compa-nies. There is a greater need for integrated talent and training programs. This was a key driver behind Logistics Executive partnership with MILE Academy offer-ing the ability to manage the full life cycle of gradate talent on behalf of companies.

There’s no doubt that investments and commitment will be needed. Logistics companies in India need to invest heavily in training, development and education for their young workforce. Long term the impact of this investment will be to increase the pool to talent and reduce salary inflation.

Staff turnover still too highA consistent finding in the Logistics Ex-ecutive Salary Report compared to last year is that staff turnover continues to rise and employers are battling to keep their best talent.

This manifests in companies battling each other for skilled candidates often leading to inflated salaries. Going for-ward, companies are starting to under-stand the importance of taking a blended workforce approach investing in pro-grams to better retain and attract talent at all levels.

Geographic breakdownA consistent finding in the Logistics Ex-ecutive Salary Report is that the Salary Structure across the four Metros, for a similar type of role and responsibility, varies although the gap is closing as cost of living pressure equalize. Mumbai con-tinues to commands the highest salaries (particularly in mid to senior tier) where high cost of living in drive salaries up-wards. Delhi, Bangalore, Chennai and Kolkata follow this trend in that respec-tive order. From a corporate perspective, this highlights the need to appreciate lo-cal disparities and have a certain amount of decision-making in local markets, backed by a uniform top-down ap-proach. Moving job roles or industries geographically may also be another strat-egy to address the issue of rising salaries and workforce expectations. In this re-spect companies with a wider footprint have an advantage as they have more ca-pacity to move their employees around with the incentive of offering them new opportunities.

Embrace DiversityIncreasing the size of the available tal-ent poor is another critical initiative that needs to be tackled if we are to reduce future salary pressures. There is an over-whelming need to expand the talent pool to non-traditional sources. This may in-volve setting up schemes that offer more roles to women and education programs for unskilled workers.

Attracting more women to the male

dominated transportation and logistics sector won’t be easy, but companies that succeed will have access to a rich new la-bour pool. Gender and cultural diversity can pay off in other ways too, for example by sparking creativity and enhancing in-novation. And companies that make sure to include women in top roles may find that profits increase too.

Collaboration with universities and other community organizations can fa-cilitate training to ensure that the cor-rect skill gaps are being addressed and companies are getting the skills that they need out of their new graduates. Oth-erwise they may need to continue to source their key skill-gaps from overseas in areas such as leadership and technical disciplines.

ConclusionThe good news for India is that the em-ployment outlook for 2013 and beyond remains positive. The salary outlook remains bright although the average increments experienced in the past few years will flat out to more sustainable pay increases.

On the flipside this is with the Na-tional Skill Development Organization’s projection the struggle for qualified tal-ent is not likely to decrease anytime soon. As we have seen a long term a salary in-flation war is unsustainable and posses a real threat to this employment growth continuing at the same rate.

Thus the ominous is on the Human Resources function takes up the chal-lenge of redefining company culture as a way of improving the total Employee Experience, enaging sepcialist partners and activity investing in talent develop-ment programes. In partnering with their Human Resources teams, Executives will recognize the broader role these teams can play in achieving commercial success and be better equipped to manage future workforce demands.

All of this certainly paints an interest-ing picture for 2013, in year where India has a change to emerge from recent set-backs and find it true position as a poten-tial factory to the world.

Documents

Ensuring Food Security - Logistics Executive - India Salary... · 2017-01-17 · Retail, FMCG, Pharma-Healthcare ... 2012 India Salary Guide, Logistics Exec-utive, in conjunction