2021 MARKET INSIGHTS | ACCOUNTING & FINANCE
2022 MARKET INSIGHTS
Supply Chain Operations and Procurement. Specialist Recruitment
huntercampbell.co.nz
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Kia ora and welcome to Hunter Campbell’s Market Insights publication. As we reflect on the year that was, we’re profoundly inspired by what we have achieved. Despite the year’s challenges, we continue to build strong networks both in New Zealand and globally. These connections enable us to deliver outstanding outcomes for the people and businesses we work with. Looking to the future, we grow and evolve. We are proud to welcome Hunter Campbell’s Specialist Sales and Marketing Division. Hunter Campbell’s Sales & Marketing division is a strategic addition to our offering. Made possible by our successes, our brand value and our reputation - and driven by our unwavering focus on improvement and growth to best service the needs of the market. As a business, we understand the importance of good chemistry. We create high-level connections through listening and learning, working closely alongside businesses and engaging with the best talent on offer. It’s through these relationships that we recognise the opportunity for a genuine sales and marketing specialist to deliver outstanding recruitment outcomes to the sector. To ensure the success of our new Sales and Marketing division, we’re pleased to announce the appointment of Director, Sindy Ward. Sindy’s appointment is further confirmation of our dedication to bring specialist experience to everything we do. Sindy joins
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Hunter Campbell with eleven years’ experience building and leading teams of up to twenty employees recruiting across sales, marketing, HR, legal, operations and business support. Sindy is extensively networked in the sector and has strong affiliations with the key industry partners and bodies. Sindy is a devoted mother to three and has a varied background setting her up for her successful recruitment career; including eight years media and acting experience. Crowned Miss India World 2005, Sindy has an energy and drive that we know is going to make a huge impact for Hunter Campbell’s clients. Sindy’s understanding and hands-on experience in the sales, marketing and communications sectors will be complimented by the extensive background of Hunter Campbell Founding Partner, John Nevill. John’s impressive involvement in sales and marketing recruitment includes the establishment of a well-know, leading New Zealand sales and marketing recruitment business set up in the early 1990s. We’re excited for the year ahead. As we watch our Hunter Campbell Sales and Marketing division make its mark in the market, we know the possibilities for what may come next, are endless.
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
Contents. 01.
Economic Update - Brad Olsen, Principal Economist Infometrics
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02.
Recruitment Trends
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03.
Debunking Market Myths
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04.
The New Zealand Labour Market Landscape
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05.
Tapping into a Global Market Hunter Campbell in the UK
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06.
A word from Founding Partner Ken Webb
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07.
From the desk of Dave Christie Strategic Supply Chain Advisor
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08.
Supply Chain, Operations and Procurement Market Insights
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09.
An enabled, effective and future-proofed Supply Chain Structure
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10.
In Demand Roles and Salaries
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11.
Thanks from us to you
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Economic Update. - Brad Olsen, Principal Economist Infometrics New Zealand continues to maintain strong economic foundations, but headwinds are building that will make it harder, and more expensive, to grow over the next year or two. High inflation and an intensely stretched labour market are chief concerns for the economic outlook, with businesses unsure about how to resource current orders with such scarce and costly resources available. Inflation is at a generational 32-year high of 6.9%pa in the March 2022 quarter, the highest since June 1990. Pricing pressures are broad-based, with domestic spending and overseas disruptions both fuelling the fire. Concerns remain that high inflation now influences higher inflation expectations, with the risk of more persistent price increases sticking around over the next couple of years. Government support to low- and middle-income households in Budget 2022 faces the unenviable task of trying to provide a band aid measure until October 2022, without adding too much more pressure to inflation. The Russian invasion of Ukraine has added extreme pressure to already limited resources and high prices, sending commodity prices for energy, food, and industrial inputs skyrocketing. Shipping prices remain high, and transport costs are now rising again after oil prices increased. China’s continued zero-COVID policy has seen substantial lockdowns across the country, with diminished production and further port disruptions.
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A brain drain has emerged, with young Kiwis aged 20-29 leading the talent outflow. Over the last year, a net 7,000 more people left New Zealand than moved here, and expectations are for that outflow to continue. Infometrics estimates that around 40,000 New Zealanders who usually would have left, didn’t during the 2020 and 2021 years, and are looking to make up for lost time. Inward migration appears limited, with other parts of the globe reopening sooner and locking in talent ahead of New Zealand’s reopening. Immigration New Zealand visa processing timeframes also threaten to remain a key limitation on sourcing overseas talent. Pay increases are coming through as businesses seek to retain and attract staff but are still lower than inflation. Both Treasury and the Reserve Bank have highlighted that current demand levels in the New Zealand construction industry far outstrip the supply of materials and people, which is putting pressure on achieving economic growth
The workforce is severely stretched, with the unemployment rate remaining at a record low of 3.2%. Short-term, there are concerns around worker burnout, with considerable numbers of workers off with COVID-19 or as isolating household contacts, leaving other staff to pick up the slack.
and forcing prices higher. To dampen demand, the
Businesses are reporting the most difficult period on record to find workers, and the highest levels of job poaching since at least the 1970s, as competition for talent remains intense. Job advertisements remain 15% higher than a year ago, with the workforce wanting to increase by at least 1% from its current high level immediately, if there were people available. Yet the workforce is severely limited, with a 0.2% fall in the working age population over the year to March 2022.
rise, with sales volumes sharply lower, and house prices
Reserve Bank is lifting interest rates at pace, with the Official Cash Rate (OCR) rising to 2.0% in May 2022. The pathway ahead shows continued rate rises as the Bank plays catch-up and frontloads increases to limit demand. Housing activity has slowed markedly as interest rates falling over the last five months. There is a swiftly emerging risk of a recession, which now seems inevitable. Attempts to secure a “soft landing”, although admirable, are seldom successful. After frontloading considerable spending over the last two years to support the economy during COVID-19, there’s not a lot left in the tank for the next couple of years ahead.
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
Job advertisements remain 15% higher than a year ago, with the workforce wanting to increase by at least 1% from its current high level immediately, if there were people available
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Recruitment Trends.
To attract and retain the best talent in the market, businesses must tailor their offering to suit employee expectations. This is true now, more than ever. So, what does the best talent expect from their employer? SALARY REMAINS KING FOR THE BEST TALENT. Recent research into candidate-drivers tell us that salary, work/life balance, career development and the organisation itself are the most important factors. Often when we’re speaking with candidates, they talk about culture, working from home and work/life balance as being their primary drivers, which align with this research. However, candidates are often reluctant to admit how important salary is. In this current market, financial gain is indeed an important factor - if not the most important. When people talk about non-financial considerations, they’re generally meaning ‘on-top’ of an increase in salary. It is our experience in these current market conditions that there is no willingness to look at a salary reduction, even if the other drivers are impressive.
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ENTER MASLOW’S HIERARCHY OF NEEDS. The consistent message we are hearing from our candidates is how important a sense of belonging and sense of purpose is. Aside from salary, these are two of the most critical factors that lead to employee retention or attrition. Belonging and purpose is a fundamental human need, featuring in Abraham Maslow’s hierarchy of needs - which according to the American Psychologist, underpins all human motivation. It is related to connection, and in business can be linked directly to culture, leadership and community. Paradoxically, remote working adversely impacts connection and belonging - despite the option of working from home remaining a candidate expectation. For employers, fostering a workplace culture and creating a sense of belonging is challenging to replicate when much of your workforce is remote. We will watch with interest to see if candidates’ expectations will shift to either prioritise other drivers over culture and sense of belonging, or whether eventually the shine will come off remote working when sense of belonging suffers through lack of connection. Maslow’s hierarchy of needs can be applied to other areas of employee engagement. At a very basic level, your salary makes food and shelter possible – which is why it remains a primary motivating factor for most candidates. It can be an interesting and valuable exercise to analyse your offering as an employer against Maslow’s hierarchy to see how your attraction, engagement and retention strategies measure up against the basic drivers for human motivation.
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
Salary remains king for the best talent. 7
Debunking Market Myths.
There’s no doubt that COVID-19 has had farreaching impacts on every aspect of New Zealand’s economy. Our Labour market is no exception. We see sensational headlines every day, many with conflicting messages.
year on year, in February 2022 ad volumes were up 40% and applications down 46%. With more and more baby boomers set to exit the labour market, and with the border re-opening enabling talented New Zealanders to move off-shore, the candidate shortage is having a profound impact on recruitment. Employers are seeing a dramatic reduction in the number of applications to online advertising and are recognising the crucial importance of networks, databases and the search process in their hiring approach.
THE GREAT MIGRATION OR THE BRAIN DRAIN The reconnection of the globe is putting further pressure on our talent short market. We expect to see the recommencement of international movement hit New Zealand’s talent market in the second half of 2022.
‘Candidate Shortage,’ ‘The Great Resignation’, ‘Great Migration’ and ‘Brain Drain’. So, what is actually playing out in the market and what can you expect to see for the remainder of 2022?
New Zealanders could already be getting ready to leave the
Broadly speaking, it’s taking longer to hire because there are
Of course, the opening of the borders conversely means that
working age population) in New Zealand who have not been able to travel for two years. Infometrics forecasts 40,000 country. In addition to this many more will soon head overseas for OEs, or be lured to Australia by higher salaries. Will New Zealand be a successful ‘net importer’ of talent?
significantly fewer candidates to choose from and those who
overseas talent – both relocators and returnees, can now come
are receptive to a conversation are looking for more money than
to New Zealand. However, with the visa application process
ever before. Employers are having to shift their expectations, and
facing the biggest backlog in New Zealand history, the inflow of
retaining the best talent is becoming a top priority for businesses.
talent could be significantly slower than the outflow.
CANDIDATE SHORTAGE
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There are 750,000 people in the 25-35 age bracket (20% of the
It’s also worth reflecting on our pull factors as a location. We need to work on ensuring we are offering better conditions than other countries / regions near us, like Australia and Asia. This
2021 was the year for the job hunter and this has not changed
means facilitating an easy pathway for senior professionals who
in 2022. During 2021 job listing numbers increased by 51%
may have families and their situations to consider.
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
At Government-level, we believe there are things that can be
chain, operations and procurement and sales and marketing - the
implemented to slow the talent drain. Ease of visa application,
sentiment is still that employers will need to have a well defined
longevity of visas issued, ease of access to visas, incentives, time taken to convert to a permanent residency, the tax issues we face compared to Asia on our doorstep, cost of living, and rental access to name a few.
UPWARD PRESSURE ON SALARIES From retail, hospitality, farm workers and picker-packers, right through to the professional services market – everyone is calling out for workers. At Hunter Campbell, we are seeing a lot of businesses we work with attracting graduates with sign-on bonuses, offering a retention bonus for returning parental leave or long-service workers, providing incentives (even in non-sales roles) and offering significant pay rises above CPI. Pre-pandemic, people were moving for flat salaries or slight increases. Today, we’re regularly seeing 20-25% shifts in salaries for in-demand areas. The question is, how long can this go on? Such upward salary pressure will have a drawn-down effect at some point, as productivity outputs will have to rise along with the cost increases to business - and that’s not sustainable. We’re already an expensive country to do business in, and if you add in 20% increases in labour costs, large multinationals will start looking at the cost of hiring in New Zealand relative to other countries.
strategy around their EVP and an ability to meet or in fact exceed market rates to attract the best talent throughout 2022.
THE GREAT RESIGNATION The Great Resignation refers to a pandemic-driven market shift experienced in the USA and Europe which has seen a change in priorities and a drive to strike a more harmonious work/life balance. Though predicted to take hold in New Zealand, the actual impacts have been much less drastic. Recent reports state “the New Zealand workforce is generally satisfied with their work lives”. However, this needs to be tempered with this same workforce believing they have “solid job opportunities in the market”. You can infer from this that movement in the market is not driven from dissatisfaction in their current role, but the lure of greater opportunities available in the market. It’s not too different from a peak or trough in any economic cycle. We’re in a boom market because confidence returned with a huge spike after two difficult years globally. People came up for air looking for jobs after many lockdowns and market uncertainty. We’re seeing that as confidence has returned, people are prepared to look for jobs and the appetite for change has increased. There is a higher certainty they’ll find a job not
In turn, this will have a flow on effect on hiring processes in
only providing career advancement, but perhaps a significant
the wider sense, how much we manufacture vs. import, how
pay rise. This causes more elasticity in the market. This will
much flexibility a company can really offer while holding people
remain a factor until the borders open and visa protocols are
accountable for outcomes, and so on.
in place for new talent entering the market.
In the markets Hunter Campbell operate in; middle market to
The Great Resignation won’t last, as the salary increases that
top end qualified professionals in accounting & finance, supply
it brings are not sustainable long-term.
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The New Zealand Labour Market Landscape. Effect of these factors on the Labour Market.
Employees seriously considering their current remuneration and using market pressures to maximize their employment.
Business Impacts.
Wages have risen by 7.6%. Minimum wage is now 74% of NZ’s median wage.
Business pressure to increase wages in an already stretched environment
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Continued wage growth as cost-of-living increases allow employees to apply pressure for market wide pay increases.
Business is optimistic that border openings will alleviate some of the strain. Visa applications processes risk this.
Employers prioritising retaining staff
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Big pay rises are concentrated to specialised roles in talent short markets where the balance of power sits with the employee.
03. Job advertising is less effective, networks and databases are crucial to finding talent.
04.
Govt. Initiatives
Unemployment Record low at 3.2%
Global ‘great resignation’ trends starting to impact the NZ market.
“In the current market employers are having to change their expectations and recruitment processes.”
Increase between 4.8% - 5.4%
Inflation
Supply Chain Disruptions
Visa Processing Delays
At a three decade high at 5.9%
Impacting consumer goods availability and costs.
Hampering immigration, backlog of resident applications is largest in NZ’s history.
Change in expectations. Less willing to travel to work, flexibility & WFH options are the norm.
Employers are using counter offers to try and retain staff. Multiple offers are common place in the market.
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Household Living Costs
Increase minimum wage, additional sick leave and stat holidays.
More roles than candidates – in 2021 job listing numbers increased by 51% vs. 2020.
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
Macro factors impacting the labour market.
Candidates are not moving for the same money, but for increases at a minimum of 5% but up to 50%.
Employers are having to incorporate WFH and flexible working into their proposition.
06. There are 750,000 people in the 20-30 age bracket who may be considering their OEs as borders open.
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08. Expect less applications and shortlisted candidates, application processes need to move fast and best offers need to be put forward upfront. 11
Tapping into a global market. Hunter Campbell heads to the UK. Matching true talent with the right team and culture requires proactive agility. By responding quickly and seizing opportunities, we put you and your business ahead of the game. That’s why this year, Hunter Campbell will again be heading over to London to host a series of events to connect with the best and the brightest people looking to return, or relocate to New Zealand. We’re anticipating we’ll have face-to-face time with over 200 New Zealanders across ten-days.
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2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
In the UK, Hunter Campbell enjoys a solid reputation as the preferred New Zealand recruitment agency of choice. That’s evidenced in our unrivaled returnee-talent pool. On this trip, we’ll aim to further reinforce this reputation, ensuring the businesses we work with have access to true talent – whether they’re based at home, or abroad. Our partnership with CAANZ and INFINZ gives us access to a wide network and we look forward to hosting events in partnership with these respected industry bodies. Following our last recruitment drive in London, we supported over thirty candidates in their journeys to employment in New Zealand. When you’re connecting people with opportunities on the opposite side of the globe, good chemistry is vital. We combine specialist expertise, deep understanding, strong relationships and hands-on experience to make magic happen. The work we do is meaningful and rewarding.
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A word from Founding Partner Ken Webb “I am exceedingly grateful to our exceptional team for their hard graft, and the lasting relationships we’ve built.” 14
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
The blend of unique market conditions throughout 2021/2022 produced one of the most challenging recruitment markets that I have seen in my career. Supply chain has come in from the cold and is now part of the daily lexicon of economists, politicians and CEOs. Industry leaders in NZ now want and need to re-examine how they can use their supply chains to sustain and optimise their businesses. This against a backdrop of unemployment at an all-time low and moving lower, continuing border closures are adversely impacting the candidate market, and the ongoing effects of the pandemic are impacting how, when and where we can operate. Despite this, Hunter Campbell thrives. It has been the biggest year in our history. We’ve rebranded, moved to stunning new offices, partnered with more incredible businesses and placed more candidates than ever before. I am exceedingly grateful to our exceptional team for their hard graft, and the lasting relationships we’ve built.
We have invested in our nurturing junior talent through to assisting with major supply chain restructures. In addition, we have continued our investment in London events which has created an un-rivalled pipeline of relocators and returnee talent – we strive to deliver excellence to match the demand in the market. We consult and collaborate with our clients. We work tirelessly to understand their business, and by sharing our expertise we’re able to provide valuable insight and advice around attracting the best talent through tailored benefit and pay packages, professional development and flexible working initiatives. It’s my opinion that challenging market conditions will persist for the next 12 -18 months. We begin the new year stronger, even more energized and delighted to be welcoming a specialist Sales and Marketing Division to our offering.
“At Hunter Campbell, the future is bright.” Whether you’re reading this as a business looking to connect with the best talent, or a leader looking for
In the face of challenging market conditions, we’ve
your next opportunity - we’re honoured that you chose
worked harder than ever before. We’ve not wavered
to be a part of our journey.
from our mission to create good chemistry by matching the best talent with the right teams, and we’ve done
Ken Webb
this through innovation, agility and collaboration.
Founding Partner
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From the desk of Dave Christie - Strategic Supply Chain Advisor
SUPPLY CHAIN – THE NEW STRATEGIC IMPERATIVE Only two years ago in a pre-pandemic world, businesses could focus
This drove a significant increase in demand for the movement of
on revenue generating activities - growing markets, customers and
‘stuff’ around the globe. With most airfreight carried in the belly of
products, without having to worry about the global supply chain.
passenger planes but no-one flying, there was effectively no air
This was predominantly because there was surplus capacity
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freight capacity at all.
throughout the supply chain – especially in sea and air freight.
Global sea freight capacity was also compromised, with the demand
However, with the pandemic-led restrictions to travel, people spent
higher than available sea freight capacity. Shipping lines were saying
most of their time at home and their discretionary income was spent
every vessel that could be in service was – as long as they could find
online buying products and goods, rather than services and tourism.
the resources to crew it.
Supply chains relate to the network of businesses and entities involved in creating and moving a good or service from its original source, all the way down to the end consumer. As a large commodity exporting country, many of New Zealand’s businesses grow produce or animals on our land and send the
Stated another way, Reliability and resilience (i.e., having the right stock at the right place and being able to get it to the customer in the right quantity, right quality and at the right time to meet their expectations) is also becoming more strategically important for businesses, in order to deliver on their customer commitments and support their sales growth strategies.
THE OUTLOOK
finished goods (beef, lamb, milk powder, fruit, wool, wood) to
The pressures and disruptions across the global supply chain
customers in offshore markets.
are projected to remain relatively consistent for the remainder of this year. There may be some easing of air/sea freight
Yet, many of the inputs to making these goods are imported
capacity constraints and costs as people start travelling
from overseas (ingredients, animal feed, fertiliser, farm
again. However, given the significant backlog of goods that
machinery, packaging). This reliance on imported inputs is even greater in consumer goods and technology products. Most New Zealand businesses, even if they only sell in the domestic market, are interconnected and exposed to the global supply chain disruptions.
ARE NEW ZEALAND BUSINESSES MORE EXPOSED TO GLOBAL SUPPLY CHAIN DISRUPTION? Simply put – yes! New Zealand’s remoteness and small-scale volumes mean we are a very small fish in a big pond. Yet, because of the interconnectedness of the global supply chain, when there is a disruption somewhere offshore, like the
need to be moved through the global supply chain, it could
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
SO, WHAT HAS THE GLOBAL SUPPLY CHAIN GOT TO DO WITH NEW ZEALAND BUSINESSES?
take 6-12 months to clear.
“Businesses need to better prepare and plan for these global disruptions.” This, coupled with a more challenging economic outlook in New Zealand, will drive heightened levels of cost, uncertainty and risk across businesses’ supply chains through 2022. A recent McKinsey article predicted that there will be a
ship getting stuck in the Suez Canal, the Ukrainian war, or the
significant disruption to the global supply chain every three to
severe lockdowns in Shanghai, it has a pronounced impact on
four years.
the flow of goods into and out of New Zealand.
IMPACTS ON NEW ZEALAND BUSINESSES
TIME TO THROW OUT THE RULEBOOK? There are many strategies, tactics and actions businesses
The most immediate and direct impact from the global supply
can take to simplify their supply chains, minimise cost
chain disruptions has been the inability to secure transport
increases, mitigate their key risks and ultimately deliver on
capacity, and the relative cost of moving goods into or out of
their customers’ expectations. However to identify, work
New Zealand, especially for SMEs.
through and validate the right approach, requires significant
However, this isn’t the only impact. We are in a period of high inflation. This will drive significant increases to the costs of doing business, especially in areas of: •
sourcing raw materials, ingredients, component parts, goods and packaging
•
producing the finished goods
•
moving these goods to market and customers
•
inventory holding costs
supply chain experience, skills and capability. Capability many businesses, especially SMEs’ don’t have. The normal management maxim is ‘strategy before structure’, but if a business doesn’t really understand their supply chain and how it can enable their business performance and growth, how can they develop the right supply chain strategy? At pivotal historical moments such as these, maybe it’s time to throw out the book and rapidly adapt to the market pressures by hiring or engaging supply chain expertise - across the
Prior to Covid – cost was the #1 priority across supply chains.
business, within the executive team and around the board
Now, securing the necessary transport and supply capacities
table. Then figure out how best to redesign your business
and ensuring reliable delivery performance (in from suppliers
supply chain, so you can compete and win, not just in
and out to customers) are taking a higher priority.
New Zealand, but on the global stage.
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We are your specialist Supply Chain, Operations and Procurement search and recruitment partners. These are our insights. 18
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
A GLOBAL SUPPLY CHAIN UNDER PRESSURE The global supply chain has been thrown into the media and political spotlight in New Zealand. Our location at the bottom of the world, together with our small economy means regardless of whether it be imports or exports, global macro-economic factors will have a major impact on our value chains here in New Zealand. We’re seeing many businesses reorganising their supply chains to be able to better react and plan for the constant array of problems they are facing.
TALENT SHORTAGE HITS SUPPLY CHAIN PROFESSIONALS
Partnership and Potential. With some economic commentators forecasting supply chain issues will continue into 2023, businesses with foresight are looking to mitigate this ongoing risk by upskilling their supply chain teams.
Often this means employing new talent with the right skills. However, recruiting supply chain professionals in the current market is tough. Hunter Campbell has experienced an increase in demand for all supply chain, procurement and operations positions.
and potentially leading to lost sales, businesses are holding inventory ‘just in case’ they can’t get supply to meet their customers’ demands. This has a downstream effect for warehousing and distribution. More inventory means there is a requirement for more warehousing space, and better overall control of inventory and distribution. Clients are demanding more from their 3PL providers and supply chain managers are demanding their distribution and warehouse managers find more space in already constrained distribution centres.
DIGITAL SAVVY WAREHOUSE AND DISTRIBUTION CENTRE MANAGERS Once again, these changes have seen an increase in the demand for skilled warehouse and distribution centre managers who understand space management, have great relationships with their freight providers, are digitally savvy and can stay on top of millions of dollars of working capital tied up in inventory. Businesses looking to future-proof their workforce are seeking candidates with skills and experience in automation, in order to help circumvent future labour shortages and rising labour costs.
Hunter Campbell is abeen people business that understands the business of Whilst supply chain issues have predominantly influenced by global factors, the availability of candidates A SUPPLY people. This by enables us to do much moreDESIGNING than simply recruit CHAIN for roles. has been impacted other compounding factors including STRUCTURE FORinsights THE FUTURE New incredibly low to unemployment rate, currently We Zealand’s add real value the conversation, share unrivalled across sitting at 3.2%. Interestingly, oneand of theteams key trendswill we have seen is our network, and better understand which people create Border closures for more than two years have resulted in a businesses reviewing the ‘current state’ of their supply reduction of available talent all markets. Large numbers thechains good chemistry – for and in turn, deliver bestwith results. the aim of designing a ‘future state’ that is fit of 20-30 year-olds are expected to head overseas in the next 6+ months - futher compounding the shortage of skilled supply chain professionals. We take a fresh approach to recruitment, viewing each role as an opportunity to transform the function and enhance THE RISEperformance. OF THE PLANNER
for purpose. Often one of the first things that businesses realise is that no one person has responsibility for, or finance team. We collaborated to ensure a highly control of, the end-to-end supply chain function across capable team was in place to support both the the business. CFO and ensure the business could respond to this Thisgrowth has resulted extreme phase.in an increased demand for qualified As thiscurrent Kiwi success story discovered, working withis In the environment, if your planning function supply chain managers who can implement a supply Hunter Campbell is far moreissues than working with just a not performing, your supply will be exacerbated. This chain involved mapping out the financefunction function, roles the strategy, drive the planning across recruitment partner. As a result, we have seen an uplift in the requirement for and responsibilities and seniority of talent required. whole business, and ensure a cohesive inbound, inventory talented planners. management and distribution model. The broader involvement of Hunter Campbell in THEdemand EVIDENCE This is across all levels and functions of planning the curation of the Finance and Senior Leadership and includes supply, production, and demand planners. ENGAGING THE EXPERTS Over the pastfunction four years, this centralised global business has The planning is often and is managed team has meant we have a thorough understanding been on a and highoperations growth trajectory, than tripling or an of the team capabilities and culture, and can select by a sales planningmore (S&Op) manager There has been an uplift in businesses seeking guidance revenue through organic growth acquisitions. integrated business planning (IBP)and manager. candidates who will compliment andtoadd to this from Hunter Campbell on how design an high enabled supply performing team. This in-depth knowledge allowed chain. The questions we’re often asked are: Since 2019, the company has completed multiple FROMacquisitions, JUST INexpanding TIME, TO us to tell the company’s brand story to candidates; bolt-on the JUST product offering, • What does anthem enabled supply chain structure and placing the business in a leadership position in all engaging and exciting about the journey ahead, look like? IN CASE core markets. • What are the key functional roles within ensuring they were invested in the role right fromthe thestructure? 18 months ago, everyone was talking about just in time (JIT)beginning. • What are their responsibilities and deliverables? To sustainmanagement this pace of -growth thefor ability inventory where and raw ensure materials production to deliver the strategic plan, the company has afor or finishedon goods for distribution arrive just in time Underpinning the entire process was the idea Hunter Campbell has provided supply chain advisory real focus on in great people. production or continued distributioninvestment to customers, and no sooner. that drives thetonature of business – creating good with the services a number of businesses, assisting the power of us,ofthe of you and and designIt’s and development anpower enabled, effective Hunter Campbell partnered with the CFO In today’s challenging environment, JIT haswho beenwas replaced chemistry. charged shaping future structure of the erratic supply chain structure. who future-proofed we connect together. with ‘Justwith in Case’. Withthe supply being increasingly
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An enabled, effective and future-proofed Supply Chain Structure.
As experts in Supply Chain we are available to assist in the redesign of your function for optimal performance and recruit the talent to support the structure.
To support the Supply Chain Operations Reference (SCOR) model the Hunter Campbell Supply Chain Operations & Procurement team have developed the Supply Chain Series. A highlight of this is outlined with ‘In- demand roles and salaries’ and the Supply Chain Series can be viewed on the Hunter Campbell website. With no-one-size-fits-all solution a good place to start is
Contact Ken Webb for a consultation.
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the Supply Chain Operations Reference (SCOR) model.
STRATEGY SUPPLY CHAIN MANAGER/GM •
Develop and execute the Supply Chain Strategy
•
Lead end-to-end supply chain activities across procurement, shipping, planning, transport, warehousing and distribution
•
Drive service, efficiency, quality, sustainability and cost performance improvements across all supply chain functions
•
warehouse(s) and with transport operations
Develop and maintain agreed standardised Kpi’s covering; customer service, inventory management, DIFOT, customer service, efficiency and productivity in the
•
Develop the sales and operations process within the business
•
Establish a team culture whilst identifying and developing high potential individuals
•
Operational management of distribution networks
•
Lead a health and safety ethos across the extended supply chain
•
Reports to the CEO
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
Enabled Supply Chain Structures – Using Supply Chain Operations Reference (SCOR) Framework
PLANNING S&OP/IBP MANAGERS •
Implement and drive end-to-end S&Op process
•
•
Optimise revenues and costs through better trade-off decisions
Alignment of internal business processes with external customer goals and service levels
•
•
Manage inventory levels and stock turns
Manage (from a supply chain perspective) new product introductions and deletions
SUPPLY PLANNERS
DISTRIBUTION/LOGISTICS PLANNERS
PRODUCTION PLANNERS
•
Take the demand plan and turn into buying pattern
•
Plan production and manage capacity
•
Manage lead times and MOQs
•
•
Adjust plan to meet changes in demand
•
•
Liaise and work with the suppliers’ demand planners
•
Ensure all RMs and packaging available for production
Plan and co-ordinate the movement of imports and exports
•
Optimise throughput/costs/ WIP inventory/yield /quality
Analyse/adapt the plan for demand and supply variations
•
Liaise and work with key contacts in 3PLs and FFs
•
Drive CI programmes across
DEMAND PLANNERS •
Review sales forecast and turn into demand plan
•
Challenge the forecast and accuracy
•
Plan for promotions/ seasonality, redundancy/NPD
3PLs and FFs
SOURCE
MAKE
MOVE
SELL
PROCUREMENT AND CATEGORY MANAGERS
MANUFACTURING, OPERATIONS AND PRODUCTION MANAGERS
WAREHOUSE AND DISTRIBUTION CENTRE MANAGER
CUSTOMER SERVICE MANAGERS
Procurement and Category Managers Manage/set up PSAs across direct and indirect channels such as fleet, telco, RM and packaging Cost-out models/cost to serve models/cost avoidance Contract management/vendor management
Increase throughput and yield Drive CI – efficiency, quality, waste reduction
Manage all activities of products from inwards goods through to distribution
Drive customer ethos and needs back into business
Adherence to production plan
Ensure pick and pack accuracy
Develop strong and trusted relationships with customers
Proactive management of maintenance plan
Efficient throughput of orders
Drive customer satisfaction
Inventory management
Capacity and labour management
Cost management i.e., labour and demurrage
Manage and monitor customer orders/transactions
INVENTORY ANALYSTS AND MANAGER
TRANSPORT AND FREIGHT MANAGERS
Supplier relationship management PURCHASING
Purchase goods as set out by the supply planner and raise POs
Inventory record accuracy (IRA)
Maintain relationships with suppliers
Reduce capital held in inventory
Ensure quantity, quality, costs, timing and sourcing of products
Reduce SLOB stock Balance just in time vs customer needs Stock integrity and reporting
Optimise all deliveries and delivery routes Optimise cost vs service Manage 3PL service provider relationships Ensure best health and safety practices on loading/unloading
21
In-demand roles and salaries.
Supply Chain Manager
Supply Chain Manager (SME)
Chief Procurement Officer
Junior
$80,000 – $100,000
Head of Procurement medium sized business
$170,000 – $200,000
$180,000 – $250,000
Intermediate
$100,000 – $120,000
Head of Procurement medium- large business
$180,000 – $300,000 +
Senior
$120,000 – $140,000
Chief Procurement Officer – large corporate
Supply Chain Manager
$130,000 – $165,000
GM Supply Chain
Director Supply Chain
Procurement Category Manager
Procurement Specialist/ Junior Category Manager
$85,000 – $110,000
$220,000 – 280,000
Intermediate
$120,000 – $140,000
$280,000 – $320,000
Senior
$150,000 – $180,000
COVID-19 has highlighted the fragility
The recruitment outlook for Supply
Chief Procurement Officers (CPOs)
In 2021, the demand for Procurement
of some global Supply Chains. This has
Chain professionals remains
now operate in an environment of digital
Category Managers, particularly within
emphasised the need for planning and
buoyant. While the importance of Big
change and advanced analytics. The
the IT and Digital sectors increased from
risk mitigation across the supplier base
Business in New Zealand is not to be
ability to identify new and improved
the levels we saw in 2020.
and logistics networks. Many businesses
underestimated, arguably SME’s are the
technologies and harness them to
realise they are overexposed and under-
backbone of the economy.
provide advanced analytics gives a
Interestingly, while there were inevitably
resourced.
Continued Supply Chain disruption
competitive edge.
This presents career opportunities for
and the value of a good Supply Chain
When used intelligently, it allows
importance of the Procurement function
Supply Chain practitioners in both the
is increasingly recognised, we are seeing
procurement to interpret information and
to organisations.
corporate and SME environment.
the demand for experienced
challenge previously held assumptions
Supply Chain professionals continue
with clear and concise data. However,
As global Supply Chains broke down
to remain strong.
to manage this increase in data and advanced analytics, CPOs must ensure support with the right tools and budgets to implement relevant staff training to maximize the benefits available. Supply assurance became top of mind for CPOs as the pandemic swept the globe during 2020 and is still front of mind. As a result, CPOs need to further strengthen third-party risk management.
remained largely intact, reflecting the
and lockdowns continued, Category Management professionals managed risk at much higher levels. We predict that this will continue. Businesses are seeing that they can benefit from adopting Category Management to reduce Supply Chain risk, and minimise cost. As a result, we see that Procurement professionals will remain in demand, and we expect the market to grow - putting additional
The major constraint for CPOs or
pressure on Businesses looking to
aspiring CPOs in New Zealand is the lack
secure talented individuals.
of industry to support the function on any scale. This results in career focused talent often heading offshore in search of opportunity.
22
redundancies - Procurement teams
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
Purchasing Officer
Grad/Entry
Intermediate
Advanced
$55,000 – $65,000
$65,000 – $80,000
$80,000 +
Sales & Operations Planning Manager
Demand Planner
$110,000 – $130,000
Intermediate
Intermediate
Advanced
National/ Regional
$130,000 – $165,000
$170,000 – $220,000
Advanced
Leadership
Production Planner
$85,000 – $90,000
Junior
$65,000 – $75,000
Intermediate
$80,000 – $95,000
Advanced
$100,000 – $120,000
Leadership
$120,000 – $130,000 +
$100,000 – $120,000
$120,000
Larger companies often diversify
The Sales and Operations (S&Op)
Demand Planner positions are becoming
Production Planners who can accurately
the purchasing function more than
process has existed globally for over
harder to fill as our Supply Chain evolves
and efficiently manage plans, remain in
smaller companies. Larger companies
30 years. However, it is a relatively new
and becomes more complex.
high demand. The impacts of COVID-19
generally have purchasing officers that
function in New Zealand businesses. The
have shown us how critical it is to have
are category-specific, whereas smaller
pandemic has exposed issues around
Businesses are becoming more
companies may have one person who
forecasting and organisations’ ability
purchases everything.
to react quickly to changing customer
Career progression can see purchasing
demand.
officers move into a range of different
concerned with Supply Chain risk,
accurate forecasting for demand and
and feedback points to an increased
supply.
demand for specialists who offer sound
The role of the Production Planner is vital
decision-making, mitigate risk, improve
to ensuring the right quantities are being
As a result, businesses are refining their
performance, and use big data to
produced, at the most efficient lead
roles within the supply chain or
planning and forecasting models to
forecast and plan accurately for future
times - reducing waste of raw materials
operations space.
alleviate risk.
demand.
to save costs.
Purchasing officer career progression
With executive teams demanding total
We expect businesses will aim to
With more companies also investing
could see individuals moving into a
visibility across the organisation - often
augment their current team and
in their ERP/MRP systems, we are
purchasing manager role or procurement
down to individual SKU levels, and
capability with Demand Planners and
seeing demand for candidates who
role where the focus becomes less
customers driving the need to react
specialists in S&OP and Integrated
have expertise with these systems, and
transactional and more strategic.
quickly with faster planning cycles, S&Op
Business Planning (IBP) who have
advanced Excel skills to ensure their
Salaries of purchasing officers vary
Managers fulfill a vital role.
demonstrable experience and ability.
planning is accurate.
depending on the level of experience
Through a well organised process, a
Companies are also increasingly
and the responsibilities within a role.
S&Op Manager provides visibility across
turning to new technology and analytics
the value chain, helping to mitigate risk
software to maintain efficient demand
and provide information for forward
planning processes needed to remain
decision-making.
competitive in today’s marketplace.
Companies are employing skilled S&Op Managers to lead a complex process and use the analytical tools to deliver precise information to assist in decision making at an executive level.
23
In-demand roles and salaries.
Production Manager
Junior
Intermediate
Maintenance Engineer
$70,000 – $100,000
Intermediate
$80,000 – $90,000
Advanced
$100,000 – $120,000
$100,000 – $150,000 Leadership
Senior
$150,000 – $250,000
Senior Leadership
Reliability Engineer
Lean Professional
Junior
$80,000 – $110,000
Intermediate
$110,000 – $140,000
$120,000
$140,000
Senior
$140,000 – $180,000
Graduate and entry level role with up to two years’ experience
$60,000 – $75,000
Junior
$75,000 – $90,000
Intermediate
$100,000 – $120,000
Senior
$120,000 – $150,000
Management/ Leadership
$150,000 +
We believe the quality of Production
The need for specialists who can
The recruitment outlook for engineering
Businesses are increasingly aware
Managers in New Zealand is outstanding.
maintain machinery is constant.
professionals remains strong,
of the importance of minimising risk,
Our Kiwi ‘hands-on DIY’ attitude lend
Many Businesses such as food
especially within FMCG production and
and safeguarding their future through
itself to this career, especially within the
manufacturers, were able to keep
manufacturing. This demand is only
reducing waste, improving productivity
primary industry sector in the regions.
working at even the highest alert levels
going to increase for the foreseeable
and ensuring optimal customer service
We are always coming across top
during the pandemic lockdowns. And
future with the talent pool from offshore
and delivery.
with the increased demand for product,
greatly impacted.
ensuring the machinery was fully
Experienced and qualified Lean
As the desire for improved performance
professionals are relatively scarce in
and out of plant equipment continues,
New Zealand, and with limited ability to
talent, which makes the job market very competitive. With the continuation of Manufacturing onshoring due to global
operation was critical.
Supply Chain disruption, we expect to
Both Mechanical and Electrical
so does the demand for Reliability
access overseas talent, Lean Specialists
see a significant uplift in production
Maintenance Engineers are on
Engineers. The Hunter Campbell Supply
are in high demand. We expect this trend
recruitment over the next three to
Immigration New Zealand’s long-term
Chain & Operations Team have recently
to continue for some time to come.
five years.
skills shortage list.
recruited a number of Engineering roles
Lean Manufacturing is essential to
within manufacturing and production
businesses as a process to navigate
across New Zealand and we are
a forever-altered global business
continuing to see demand in this space.
landscape. Utilising Lean in combination with new tools and technologies can help businesses iterate, solve problems and adapt to keep up with the unprecedented pace of change. The increasing emphasis on big data is particularly compatible with Lean; it provides metrics and outcome monitoring and guarantees a more accurate view of gaps and strengths.
24
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
Warehouse Manager
Inventory Manager
Logistics Coordinator
Supply Chain Coordinator
Intermediate
$90,000 – $110,000
Inventory Admin
$60,000 – $75,000
Junior
$55,000 – $65,000
Grad/Entry
$55,000 – $70,000
Advanced
$120,000 – $150,000
Inventory Controller
$65,000 – $80,000
Intermediate
$65,000 – $75,000
Intermediate
$70,000 – $80,000
National/Regional
$150,000 – $180,000
Inventory Manager
$85,000 – $130,000
Advanced
$75,000 – $85,000
Advanced
$80,000 +
The pandemic has highlighted
The demand for experienced
Logistics Coordinators need to be agile
There continues to be a good level of
the importance of having robust
Supply Chain candidates across
in this market. Companies are having to
interest in both experienced Supply
warehousing and distribution operations.
New Zealand remains very strong. The
rework how they can service demand,
Chain Coordinators, and up-and-coming
The demand for Warehouse Managers,
market is incredibly tight in finding skilled
changing or finding additional suppliers
candidates across the market.
alongside the growth of E-commerce is
experience and inventory roles are no
for their raw materials. This means
expected to increase.
different.
Logistics Coordinators are required
As the market continues to improve,
An efficient warehousing operation must
Employers recognise how critical it is
to oversee more suppliers and logistic
accurately pick and dispatch stock to
to manage their inventories efficiently,
movements.
customers on time, every time to keep
whether it be raw materials or imported
The slow movement of goods is
ahead of the competition.
finished goods while working against
currently causing issues for companies.
We expect to see further demand for
shipping challenges and balancing stock
Good communicators and proactive
on hand versus cash flow.
solutions-focused people are essential
quality Warehouse Managers who can establish efficient processes.
we expect that more roles will become available at the Supply Chain Coordinator level.
for these roles.
There is also considerable demand for candidates who have experience working with WMS Systems and RFID scanning, as companies recognise the need for sophisticated technology to remain competitive.
25
Thanks from us to you. At Hunter Campbell we’re inspired by what we do. We’re energised and empowered by the connections we make, and the lives we impact.
While this market insights document contains its fair share of figures, statistics and forecasts, it is people who form the heart of our business - our clients, our candidates, and our outstanding team of specialists. We all face an uncertain year ahead. A stretched labour market, high inflation and continued disruption to the global supply chain will make for challenging conditions. Hunter Campbell is steadfast in our commitment to work with you to deliver best practice consultation, expert advice and valuable insight to help you and your business navigate these complexities. We thank you for choosing Hunter Campbell as your specialist search and recruitment partner. Our team are here to help, and we welcome you to pick up the phone for a chat, whether about the current market, specific recruitment needs or defining a team structure. Together we are stronger.
26
2022 MARKET INSIGHTS | SUPPLY CHAIN, OPERATIONS AND PROCUREMENT
We are the drivers of good chemistry, your specialist Supply Chain, Operations and Procurement Search and Recruitment Partners. We are Hunter Campbell.
Ken Webb
Wayne Fry
Founding Partner
Manager, Supply Chain, Operations and Procurement
kenw@huntercampbell.co.nz 021 486 565
waynef@huntercampbell.co.nz 021 656 502
John Boyle
Lace Tarrant
Senior Consultant, Supply Chain, Operations and Procurement
Associate Consultant Supply Chain, Operations & Procurement
johnb@huntercampbell.co.nz
lacet@huntercampbell.co.nz
021 737 576
021 100 4010
Nick McConnochie
Katherine (Kat) Biggelaar
Senior Consultant, Supply Chain, Operations and Procurement
Consultant, Supply Chain, Operations and Procurement
nickm@huntercampbell.co.nz
katherineb@huntercampbell.co.nz
021 197 9121
021 225 4735 27
Specialist search and recruitment partners. 28
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