Supply management may finally be getting its due. Not only is the function being recognized as a strategic corporate initiative, but supply managers are also getting pay hikes.

Results of Purchasing Magazine’s 26th annual salary survey show average compensation for the supply management field rising to $83,205, a 6% boost over last year. (Read Purchasing’s synopsis of the survey here. The full 2006 salary report is available for a limited time if you register.)That’s slightly off pace from last year’s increase, but well above boosts for salaried workers in other professions, such as engineering.

As evidenced in previous Supply Excellence posts, much of the pay hike can be attributed to a simple fact: there isn’t enough supply management talent to go around. Taming today’s uncertain global supply market requires new skills that elude many veteran procurement professionals. New talents, like financial acumen, technology know-how, and engineering skills are high in demand. Other attributes, such as project management and marketing savvy, are also important for managing and selling supply management improvement initiatives. Companies that cannot find these skills on the open market have taken to poaching senior supply management executives. (And, in some cases, they’re poaching entire supply management teams too.)

Studies from The Hackett Group and comments from CPOs draw a clear link between pay levels and the ability to attract and retain top talent.

If you’re a supply manager, develop the above talents to demand a top salary. If you’re a supply management executive, don’t jeopardize sustained supply success by shortchanging your best employees.