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Supply Chain & Procurement Market Insights Q1 2017
A subdued retail sector in 2016 and uncertainties about the near future has had a direct impact on hiring decisions of organisations, specifically within supply chain management and operational logistics functions.
This has meant a focus on replacement positions versus new hires, lengthening of application processes, companies being more selective and following more rigorous screening procedures. However, in terms of hiring activity and volumes of hires, the last six months of 2016 saw a steady period across supply chain and logistics functions in Hong Kong.
Demand for e-Commerce talent will grow in 2017
On the contrary, in the months ahead, we expect to see a continued growth in e-Commerce, which means companies will be heavily investing in technology, infrastructure and human capital in this area. Professionals with a strong background in e-commerce, contract logistics and warehouse operations will find themselves highly sought after.
Businesses, particularly third-party logistics providers are especially keen on professionals who have experience in setting up an e-Commerce business from ground-up.
Start-ups value hands-on ability and cultural fit of hires
In 2016, we saw start-up companies building good momentum with the increasing trend of hiring activity in the region. Start-ups have very specific recruitment needs and tend to hire talent who are both strategic and capable of handling tactical and operational duties. These businesses also put a heavier focus on cultural fit and often hire people who are entrepreneurial and highly adaptable to change.
While Hong Kong continues to be a key regional logistics hub, for reasons such as cost and quality of talent, we are seeing start-ups gradually moving specific supply chain functions to other parts of the region. China and many Southeast-Asian countries such as Singapore, and recently Indonesia and Malaysia, have been top choices for start-ups to relocate specific functions.
The future is bright for exceptional procurement talent
Demand remains positive for procurement professionals with strong strategic sourcing and indirect procurement experience. This is especially true within the financial services and insurance sectors.
While an increasing number of organisations looking to off-shore their procurement functions, many still see the benefit of having an in-house team. In fact, many businesses are looking to strengthen regional strategic sourcing capabilities by adding new positions across Asia Pacific.
Professionals with strong operational experiences such as vendor sourcing, vendor management and contract negotiations are in high demand. In addition, individuals with regional exposure especially in emerging markets such as India, Vietnam and Indonesia will also be attractive to businesses which are looking to develop procurement hubs in these markets.
Supply Chain & Procurement
Salary Report for Q1 2017*
Commerce & Industry
Years of experience
Annual salary range (HK$)
Supply Chain Management
Head of Supply Chain
Regional Supply Chain Director / VP
Supply Chain Director / VP
Supply Chain Manager
Senior Supply / Demand Planner
Supply / Demand Planner
Logistics / Warehouse / Operations
Head of Logistics / Warehouse Operations
Regional Director / VP
Director / Head for HK & region
Trade Compliance Manager
Director / VP
Officer / Engineer
Quality Assurance / Technical
Head of Quality / VP
Officer / Technician
Manufacturing / Engineering
Product Design Manager
Lean Process Improvement Manager
Engineering Sales Support Manager
*Notes about salary report:
Titles and levels vary from organisation to organisation.
The salary ranges given are only approximate guides. For tailored salary advice, please contact us directly.
12-month base salaries are assumed.
All other benefits and bonuses are in addition to these figures.
Bonus ranges can vary significantly from company to company and will be influenced by market conditions, business and individual performances. Bonus ranges from 1 month at the low end to 100%+ at the upper.
Holiday entitlements range from 12–25 days with senior executives not usually receiving less than 18 days. Less than 15 is very rare and 20 days is becoming the norm.
Healthcare policies are standard.
Pension plans vary with some companies offering greater than the standard contribution. Top up schemes can increase employer contribution levels as much as 15–20% of the base salary for senior executives.
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