Anecdotally, I have been hearing of huge increases in the amount being paid to sourcing professionals in recent years. From the top down, that has been true. As you know, we have a Career Network at SIG and I keep a folder of executives looking to move on to other senior leadership roles, so I know what kind of packages they are getting since I do a lot of match-making.
In the last five years, I have seen that starting salaries for a recent college graduate are at least 25% higher in the sourcing industry. It is not at all odd for a person with three years of experience to command a minimum salary of $100,000 a year. Ten years ago, I didn’t have a single CPO making over $500,000, and now that is becoming a possibility for fully-loaded compensation. Of course, talent-level, cost of living, and location make a huge difference in the numbers. At the Midwestern Regional SIGnature Event in March, I confirmed the jump in salaries for sourcing professionals.
A master’s degree intern from a strong supply chain or finance school commands $31 per hour for a paid internship and an undergraduate intern makes about $26per hour. What happened to the free internships we vied for when I was an undergrad? Interns now make the equivalent of $54,000-$64,000 per year as an intern. I know someone that was named “intern of the year” at a high tech company who was offered a starting salary of $85,000 after receiving a bachelor’s degree, and they turned it down - that was four years ago.
It was the very best one-day event I have attended in my life! The Midwestern Regional SIGnature Event, held on March 6 at the Minneapolis Central Library, was attended by 66 extraordinary third-party risk management and sourcing professionals. Not only was the agenda amazing, but every speaker delivered insightful content and engaged the audience. At the Executive Roundtable, we had thoughtful conversations about many issues. Tom Lutz from U.S. Bank led a “day in the life” discussion that lasted almost 45 minutes because so many people wanted to discuss what he was doing, and it prompted other conversations as well.
In our opening session, Linda Tuck Chapman, a Sourcing Supernova Hall of Fame inductee, knocked it out of the park by delivering an interactive workshop on third-party risk management. People said that their two hours of training FLEW BY. When the group joined back together, we had an incredible presentation by Rohan Ranadive from BB&T about building an AI-powered digital workforce which prompted so many questions, I had to stop them to stay on agenda! Then we had an absolutely inspiring one-hour talk by Nancy Brooks, the CPO of Best Buy. Nancy shared that she had declined previous invitations to speak, because she doesn’t care for speaking engagements, but she agreed to speak at SIG’s event because she had a story that needed to be shared about her team. We are thrilled that she joined us. She engaged everyone with Best Buy’s story the entire time and Nancy’s team was so proud to be there.
“Impact sourcing results in a more engaged and motivated workforce for companies, and enables them to increase their global competitiveness.” — The Rockefeller Foundation
You need the work done and there are countries that are disadvantaged, war-torn or underemployed that have motivated, educated workers who can perform the work you need. It truly is the correct choice. Why continue outsourcing to developed countries or countries in which the vast majority of people already have access to the middle class?
Did you know that outsourcing to India is the number one reason it now has a thriving middle class? Are you aware that through outsourcing an entire generation was lifted out of poverty in both China and India? Do you know that when you outsource to a country, it can change the trajectory of people’s lives? In a 2003 speech, Anne Krueger, First Deputy Managing Director of the IMF stated that the impacts of globalization have benefited both India and China by lifting millions of people out of poverty since 1980 and putting tens of millions of people firmly into the middle class. In addition, China has seen their extreme poverty rate fall from 84 percent to about 10 percent largely because of trade, reports the Economist.
Do you ever get that funny feeling in your chest, like butterflies, when you are really excited that something is about to happen? You know, when you can’t help but smile and feel a little giddy? Well, that is happening to me right now and has happened pretty much every single day since we started 2019. I am so excited about all the new changes we are bringing to SIG.
You Spoke, We Listened
I am thrilled to announce that we are going from over 35 live, networking events per year to four one-day events, while still hosting our two Global Executive Summits and Executive Immersion Training Programs (the next one is February 7 in New York City). After two years of going to cities all over the U.S. multiple times a year, you get to know the locals really, really well. And while the nearly three dozen annual events provided incredible benefits to our members, we realized that some of our “regulars” were not attending as frequently.
Shopping, buyers, shopping carts, savings, back office, JUST STOP DUMBING US DOWN!
As many of you know, my passion is to help elevate the sourcing industry to receive the attention, seat, respect (and yes, pay) that it deserves. So why do sourcing professionals keep self-sabotaging by using the term BUYER to describe ourselves? The only time this is a sexy title is perhaps if you are the buyer of fashion who attends runway shows and hobnobs with designers. Buying is what I do when I “shop,” like for groceries. We as sourcing professionals are NOT shopping.
So onto my next pet peeve, why do we have cute little icons that look like grocery carts to check out within our tools? Yes, it makes it seem like an easy process when pushing it out to our internal customers, but it connotes “shopping,” which, as we have just discussed, we are not doing. We are selecting items from a carefully sourced category after a lot of thoughtful processes have taken place. Why can’t we use an icon that better showcases the importance of this role?
I’m proud to say the feedback from delegates on the Fall Global Executive Summit is some of the best I’ve received for any Summit yet. The beautiful Omni Rancho Las Palmas Resort & Spa was the perfect destination to engage with our cutting-edge keynote panelists, along with hands-on learning in how-to labs, breakout sessions and outdoor networking with a breathtaking view of the mountains. But what excited me the most at this Summit was the inaugural Future of Sourcing Awards, where we recognized individuals and teams who are making a transformative impact on the industry.
Future of Sourcing Awards
The energy at the Future of Sourcing Awards was electric! It was inspiring to be in the presence of both the titans who have helped shape the industry, the leaders who are taking sourcing and procurement to the next level, along with the up-and-coming talent that is our future.
It was my extreme pleasure to present SIG’s original founder, Barry Wiegler, with the Lifetime Achievement Award. Barry gave a moving speech and was even surprised by his daughter and grandson who flew in for the special occasion. There was barely a dry eye in the room.
We just concluded our Washington, D.C. spring Global Executive Summit and it was fabulous. From the beautiful hotel (the Omni Shoreham is a grand old lady) to the incredible speakers and leading-edge content, to wonderful networking and connections made all week long, the Global Summit was incredible. We had leadership keynotes from Steve Ford, son of former President Gerald (Jerry) Ford and David Rowan, editor of WIRED magazine in the UK and columnist for GQ…and industry keynotes on everything from how to incorporate digital technologies into our daily jobs to learning from our successes (and failures). Forty-plus breakout sessions supplemented the plenary events with both groundbreaking ideas and tangible takeaways. And the Wednesday night entertainment was widely touted as being one of the best ever!
This Global Summit was also the kickoff for the SIG Innovation Accelerator where “short-listed” providers presented cutting-edge technologies to a room of 55 buy-side executives. The feedback from those in attendance was phenomenal, with input on how to make the technologies more relevant to those in sourcing/procurement and 59 requests to learn more (many chose more than one). Visit www.SIGInnova.com for more information.
It was Made in America Showcase Week recently, according to the current administration (funny that it also coincided with Russia Week on Stephen Colbert). Anyone, wherever they live, likes to see local people employed. Whether it is an American who likes to see products marked with “Made in America,” a Canadian who swells with pride for “Made in Canada” or a British person seeing “Made in the UK.” The fact of the matter is that very few people are willing to pay more for those items. According to a recent Reuters/Ipsos poll, 70 percent of Americans think it is “very important” or “somewhat important” to buy U.S.-made products.
Despite that sentiment, 37 percent said they would refuse to pay more for U.S. made goods versus imports. Twenty-six percent said they would only pay up to 5 percent more to buy American and 21 percent capped the premium price at 10 percent.
In addition, it is the lowest of wage earners who like “Made in America” and yet they are the least likely to be able to pay the premium. The reality is that most of us feel a patriotism to our own country and kinfolk, yet we are actually beholden to our wallets. The same lower wage earners who say they prefer made in America, and per the Reuters article said, “Indeed, the biggest U.S. retailer is well aware of the priority buyers place on price above all else.” A spokesman for Wal-Mart Stores Inc. said customers are telling them that “…where products are made is most important second only to price.”
When people discuss the Internet of Things (IoT), you often hear them talk about the doomsday aspect of being hacked. I understand their concerns but prefer to see the way my life has become exponentially better with my connected devices. I took a quick inventory—I currently have 44 IoT devices in my house. I was shocked at the number, I thought maybe I had 10—a dozen at most, but when I started counting I quickly realized I had many more. I started with the obvious ones: Amazon Echo (Alexa), three Nest thermostats, three Nest security cameras, six computers—wow, I got to 13 quickly. When I started to really think about it though, I realized I have many more. I also have Alexa-controlled lighting, a web enabled garage door, a Tesla, three televisions, two Apple TVs, three Fitbits, a Fitbit synched scale (Aria), a Sonos system, an Amazon Echo Dot, three iPads, two tablets, three Kindles, five cell phones and even a smart meter for my daughter’s Type 1 Diabetes glucose monitoring and insulin system, and the list goes on. I am waiting for my Spinn coffee maker to come (that will reorder beans when I am low and which I can control from an app while still in bed), and already have four Amazon buttons that reorder everything from laundry detergent to paper towels to dishwashing liquid and cat food. Oh, and how about my ADT security system? Wow…I am overwhelmed by how many ways my life is connected to the internet, and I suspect that I’m forgetting some of my devices.
What does going from three to eight billion connected human beings mean to the global economy? Companies like Facebook (Internet.org), SpaceX, Google (Project Loon) Qualcomm and Virgin (one Web) are in the process of rolling out the connectivity to every human on earth.
They are not rolling it out the way we started either, i.e., with a dial up modem on AOL. Rather, they are providing connectivity to exceed one megabit per second. Imagine when there are more than 5 billion people connected to the internet accessing information on Google, Amazon, artificial intelligence with Watson, cloud, 3D printing and more. Just imagine.
How are they connecting the rest of the world? Through technology, of course…but in ways you may not expect. Project Loon is using a fleet of balloons traveling just inside the edge of space to provide connectivity to remote geographies around the world. “Internet is transmitted up to the nearest balloon from our telecommunications partner on the ground, relayed across the balloon network, and then back down to users on the ground.” The connection speeds are astounding. “Project Loon has taken the most essential components of a cell tower and redesigned them to be light enough and durable enough to be carried by a balloon 20 km up in the stratosphere. All the equipment is highly energy-efficient and is powered entirely by renewable energy - with solar panels powering daytime. Each balloon has a coverage area of 5,000 square kilometers.”