The current economic climate has been especially brutal to procurement professionals who have been facing dramatically fluctuating commodities prices and tighter reins on their spending budget. On the flip side of those challenges, however, is the opportunity for buyers to display the importance of their role in a company's business strategy.

Buyers responding to a recent survey by Purchasing magazine said that the economic slowdown has enabled them "to better understand how their own practices match recognized best practices, identify and quantify specific financial opportunities and develop plans of action to create near-term wins and strategic transformation." As such, many have implemented a series of performance audits and other supplier reevaluations as well as materials-needs adjustments and purchasing-budget revisions to cope with the remainder of 2008 and the coming 2009.

Purchasing notes a separate study, by global audit and tax advisory firm Grant Thornton, which showed that 64 percent of respondents are finding credit more difficult to come by. Many chief purchasing officers also see the cost of credit continuing to increase. In response, many of the survey respondents have initiated cost-reduction and cash-control programs.

Additionally, with manufacturing's forecasted downward spiral, Purchasing predicts many buying groups potentially having to adjust their planned purchases in 2009. The Manufacturers Alliance/MAPI Quarterly Industrial Outlook forecasts manufacturing production to fall 4.2 percent in 2009, preceding 0.9 percent growth in 2010, Agence-France Presse reports.

Procurement specialists play a key role in enabling businesses to stay afloat by properly controlling stock, handling various aspects of logistics, and managing suppliers and purchasing contracts. And companies are taking note.

Graham Duncan, founder and director of online recruitment company ProcureNet, tells Logistics (Australia):

It's very difficult to find individuals with high aptitudes in all aspects of the supply chain. Senior procurement staff must concentrate on the longer-term strategic aspects of the supply chain, such as developing supply and service agreements, whereas the more junior roles must manage the day-to-day challenges of meeting immediate customer demands, such as direct purchasing, expediting and stores control.

Because of all the qualifications and characteristics procurement professional require to be successful, companies are paying top dollar to buyers who can influence their business. According to Purchasing's annual salary survey, the average compensation (including bonus) for purchasing pros in 2008 was $88,206, a 4 percent rise from 2007.

In line with Purchasing's salary survey results, the 2008/2009 U.S. Compensation Planning Survey from consulting firm Mercer also shows that purchasing compensation is higher than average, having increased by 3.8 percent in 2008.

Plus, believe it or not, companies plan to keep pay increases for buyers steady for 2009.

That's because companies are recognizing the need for successful procurers. They are looking for purchasing professionals with strong negotiation skills to help them "create win-win contracts in a down economy," Tonia Deal, president of Tonia Deal Consultants, explains to Purchasing.

"One of the positive outcomes of an economic downturn is that purchasing becomes a priority in terms of visibility and resources," adds Kevin Rohan, director of procurement recruiting at J.P. Canon Associates.

Purchasing compensation continues to rise as the value of purchasing skills takes greater importance. The average annual merit increase for procurement pros are expected to be between 3 percent to 5 percent, according to Rohan's personal findings.

Buyers with expertise in re-engineering processes, who use a formal sourcing methodology and e-procurement tools, and manage certain categories of spend (such as energy, chemicals and logistics), are compensated handsomely, Purchasing adds.

Those responsible for indirect spend categories (such as travel) received an average salary of $101,962 in 2008, and those who dealt with commodities earned between $90,468 to $96,713. Purchasing pros accountable for transportation and logistics received an average compensation of $95,804. Moreover, according to Purchasing, 64 percent of respondents got bonuses that average 14 percent of their annual salaries.

Though times may be tough, plenty of opportunities remain for those in the procurement profession.

Earlier: Keeping a Lid on Spending

Resources

Purchasing Raises Beat the Averages
by Susan Avery
Purchasing, Dec. 9, 2008

Liquidity Lock: Buyer's Strategies Key in Surviving the Credit Crunch
by Tom Stundza
Purchasing, Nov. 13, 2008

U.S. Business Leaders' Confidence at an All-Time Low...
Grant Thornton LLP, Dec. 5, 2008

MAPI U.S. Industrial Outlook and Forecast
by Daniel J. Meckstroth
Manufacturers Alliance/MAPI, Dec. 9, 2008

Industry Group Forecasts Manufacturing to Fall 1.4% in 2008 and 4.2% in 2009
Agence France-Presse (via IndustryWeek), Dec. 8, 2008

Procurement Professional Comes of Age
by Anna Game-Lopata
Logistics (Australia), May 21, 2008

Base Pay Expected to Rise More Slowly in 2009 than 2008, Even Among High-Performing Industries
Mercer, Aug. 14, 2008