PROCUREMENT & SUPPLY CHAIN

SALARY & EMPLOYMENT FORECAST

MARKET OVERVIEW
Employment Conditions Over the last 12 months, hiring activity has increased significantly across the procurement and supply chain sectors. Business confidence is growing again as the demand from both international and domestic consumers continues to rise. Of the companies surveyed for this report, 71% have increased employee numbers over the last six months. As economic conditions improve, more International Purchasing Offices and global sourcing businesses have begun to expand their operations again. This business growth and expansion is increasing the volume of purchasing in mainland China and is driving increased demand for raw materials. There is also a growing requirement for raw materials from local manufacturing operations across all sectors. This activity is resulting in strong employment opportunities across all levels of the procurement and supply chain sectors. Top performers remain cautious about moving companies for a new role, with job security and salary considerations still being a key concern following the uncertainty of the economic downturn period. However, confidence to make a career move is slowly growing as more job opportunities become available. Skills In Demand Indirect/Corporate Procurement Managers are currently in demand as companies increase their focus on controlling corporate spending. Medium to large multinational companies are particularly eager to source these professionals. Supplier Quality Experts and professionals with experience in global sourcing are increasingly required due to the rise of global low cost sourcing in mainland China and the trend toward high quality assurance requirements. Good English language skills, strong supplier knowledge and a technical background are considered particularly valuable. Employers are looking for Supplier Quality Experts with deep industrial/product knowledge and great communication skills to work efficiently with local suppliers and overseas colleagues. Hiring activity in the 3PL market is steadily improving following the difficult operating conditions of the economic downturn. Talented professionals who are familiar with supply chain upstream functions are required to help support manufacturing operations and procurement for clients. Solution Design Engineers are particularly sought after by 3PL companies. Employers are looking for experts with an operations background in either managing warehouses or handling transportation, who are able to integrate theory and practice when generating client proposals. Retail/fast moving consumer goods (FMCG) Industry Logistics Managers are also in high demand. Companies are seeking professionals with hands-on operations experience in import customer clearance and/ or export declaration, as well as a familiarity with distribution centre (DC)/warehouse operations and international and domestic transportation. Professionals with a strong background in 3PL operations are also being considered for in-house logistic roles. Salary Expectations Of the companies surveyed for this report, 89% expect to increase employee salaries in the next six months in order to remain competitive in the market. The average percentage salary increase is most likely to be in the 46% range. Higher increases can be expected for top performers with proven skills in project management, influencing and problem solving, as well as fluent spoken and written English language skills. Employment Outlook The pace of jobs growth across the procurement and supply chain sectors is expected to be steady over the next six months. Some 57% of the companies surveyed for this report will increase employee numbers over this period. Chinese New Year is likely to temporarily slow down hiring activity. However a sharp rise in opportunities is expected after February 2011 as more professionals gain the confidence to make their next move. If the economy continues to strengthen over the next six to 12 months, the demand for middle management roles will increase as companies look for support in managing supply shortages.

ADVICE FOR EMPLOYERS

To attract and retain top performers, employers should: Provide clear career progression opportunities Invest in training and skill development Offer competitive salary rates Regularly review and reward top performance

ADVICE FOR JOB SEEKERS

Job seekers planning to change roles in the next six months should: See if the opportunity exists to expand or upgrade their current role first Ensure they are moving roles for the right reasons Investigate the stability of a potential role/company Consider the non-financial and long term benefits of changing roles

SALARY & EMPLOYMENT FORECAST 2010/2011 | PROCUREMENT & SUPPLY CHAIN | Page 1

PROCUREMENT & SUPPLY CHAIN

SALARY & EMPLOYMENT FORECAST

MARKET RESEARCH RESULTS

SALARY & EMPLOYMENT FORECAST 2010/2011 | PROCUREMENT & SUPPLY CHAIN | Page 2

PROCUREMENT & SUPPLY CHAIN

SALARY & EMPLOYMENT FORECAST

SALARY TABLE
Northern China RMB000
200270 270400 400700 7001.1 million+ 200270 270400 400700 7001.1 million+ 150250 250400 400750 8001.3 million 350700 7001 million+ 400750 250400 400600 600900 600900 800+ 250400 400700 6001.2 million 8001.2 million+ 1.3 million+

ROLE

Experience
23+ years 5+ years 8+ years 12+ years 23+ years 5+ years 7+ years 10+ years 23+ years 45+ years 8+ years 12+ years 46+ years 10+ years 8+ years 34+ years 5+ years 6+ years 78+ years 10+ years 4+ years 68+ years 8+ years 10+ years 12+ years

Eastern China RMB000

180250 270350 400700 7001.1 million+ 180250 250350 400700 7001.1 million+ 130230 230350 350650 7001.3 million 300600 6001 million+ 350650 250400 400600 600900 600900 800+ 230380 380650 6001.2 million 8001.2 million+ 1.3 million+

Southern China (Guangdong) RMB000

200300 300600 600800 8001.1 million+ 200270 270400 400700 7001.1 million+ 200300 300450 450800 8001.3 million 350700 7001 million+ 450800 260330 400600 600900 600900 800+ 250460 460650 6501 million 8001.2 million+ 1.3 million+

PROCUREMENT/PURCHASING
Assistant Manager Manager Senior Manager Director/Vice President

SUPPLY CHAIN
Assistant Manager Manager Senior Manager Director/Vice President

LOGISTICS/WAREHOUSE/DISTRIBUTION
Assistant Manager Manager Senior Manager Director/Vice President

QUALITY CONTROL/ASSURANCE
Manager Director/Vice President Senior Manager

SOURCING/MERCHANDISING
Senior Merchandiser Manager Chief Representative Senior Manager Director/Vice President/General Manager

3PL
Key Account Manager Operations Manager Business Development Manager/Director General Manager Director/Vice President
Please note: 1. Salaries indicated are based on basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information.

SALARY & EMPLOYMENT FORECAST 2010/2011 | PROCUREMENT & SUPPLY CHAIN | Page 3

CONTACT US

Northern & Eastern China Josh Hollway, Manager

t +86 21 6122 6213 e joshhollway@michaelpage.com.cn 601-603 Shanghai Kerry Centre 1515 Nanjing Road West Shanghai, China 200040

Southern China Shenzhen Mark Tibbatts, Senior Manager

t +86 755 3396 0890 e marktibbatts@michaelpage.com.cn Suite 503B, China Resources Building 5001 Shennan Dong Road Shenzhen, China 518001

enquiries@michaelpage.com.cn www.michaelpage.com.cn

PLEASE NOTE The Michael Page Salary & Employment Forecast is a value added service that we offer to our clients and candidates. The data is collected and compiled taking reasonable care, but information contained within this data and our interpretation and commentary should not be taken as conclusive and is to be used as a guide only. This material should not be copied or reproduced in whole or in part except by express and written approval by Michael Page.

SALARY & EMPLOYMENT FORECAST 2010/2011 | PROCUREMENT & SUPPLY CHAIN | Page 4