Just as it sounds, the whole idea of production is for the goods, product, or service to flow from the producer to the end-user which is the consumer. Therefore, supply Chain Managers supervise the process in which materials, information, and finances flow from supplier to consumer. In our world today where the satisfaction of man’s basic needs proves inevitable, the duty of supplying the necessary products and services is on the increase. In this article, the World Scholarship Forum will not only highlight the highest paying Supply chain management jobs, but we’ll also sketch an encompassing overview of Supply Chain Management as a career.
Over the last seven years, Supply Chain graduate placement rates are between 85% to 100%, and, in most cases, graduates are accepting higher starting salaries than Accounting and Finance majors. That being said, the average starting salary for supply chain majors is $53,584, with a median mid-career salary of over $100,000.
In this article, we’ll be stating with clarity the top paying supply chain management jobs, and all you need to know about Supply Chain Management. Stay with me!
- What Is Supply Chain Management?
- How Supply Chain Management Works
- Who Is A Supply Chain Manager?
- What Is The Duty Of A Supply Chain Manager?
- What Are The Importance Of Supply Chain Management
- What Are The Requirements To Be A Supply Chain Manager?
- How Do I Get A Job In Supply Chain Management?
- What Are The Highest Paying Supply Chain Management Jobs
- FAQs On Highest Paying Supply Chain Management Jobs In The World
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What Is Supply Chain Management?
According to Investopedia, Supply chain management is the supervision of the flow of goods and services and includes all methods that modify raw materials into final products. Furthermore, it involves the active streamlining of a business’s supply-side activities to maximize customer value and achieve a competitive edge in the marketplace.
In addition, it represents a deliberate effort by the supply chain firms to promote and run supply chains in the most effective & efficient ways possible. Supply chain activities incorporate everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.
How Supply Chain Management Works
Ideally, Supply Chain Management attempts to generally control or link the production, shipment, and delivery of a product. Through the supply chain, companies are able to reduce excess costs and deliver goods to the consumer faster. This is done by having tighter control of internal inventories, internal production, distribution, sales, and the inventories of company vendors.
Furthermore, SCM is based on the idea that nearly every product that comes to market results from the efforts of various organizations that make up a supply chain. Although supply chains have existed for ages, most companies have only recently paid attention to them as a value-add to their operations.
In SCM, the supply chain manager coordinates the logistics of all phases of the supply chain which consists of five parts:
- The plan or strategy
- The source (of raw materials or services)
- Manufacturing (focused on productivity and efficiency)
- Delivery and logistics
- The return system (for defective or unwanted products)
The supply chain manager tries to reduce shortages and keep costs down. Good supply chain management keeps companies out of the headlines and away from expensive recalls and lawsuits.
Who Is A Supply Chain Manager?
A supply chain manager is someone who is accountable for the management of equipment, hardware, and other logistical details of a company or a company’s division. It is their utmost duty to manage all of the steps needed to purchase raw materials, pass it to various points throughout the business, ensure that the company satisfies the customer’s demand, and deliver the output to the right targets on time.
Supply chain managers work in three key areas:
- Logistics (uniting sales and operations departments to optimize procurement processes)
- Operations (managing product flows, optimizing warehouse processes; restructuring transportation networks)
- Finance (refining budgets to accurately report costs of inventory management; comparing and contrasting different methods of inventory recovery)
What Is The Duty Of A Supply Chain Manager?
It is the duty of the Supply Chain Manager to oversee the following;
What Are The Importance Of Supply Chain Management
The importance of Supply Chain Management is numerous to count. However, they play an integral role in the facilitation and smooth flow of goods from the producer to the end-user through the following ways.
It Boost Customer Service
The customer who is always at the receiving end always expects his or her goods to be delivered on time, in the right shape, and exact location. Therefore, supply chain management boosts customer satisfaction through timely and apt delivery of services.
Decreases Purchasing Cost
Retailers depend on supply chains to quickly deliver expensive products to avoid holding costly inventories in stores any longer than necessary. For example, electronics stores require fast delivery of 60” flat-panel plasma HDTV’s to avoid high inventory costs.
Decreases Production Cost
Manufacturers depend on supply chains to assuredly deliver materials to assembly plants to avoid material shortages that would shut down production. For example, an unexpected parts shipment delay that causes a pharmaceutical plant shutdown can cost $20,000 per minute and millions of dollars per day in lost wages.
Decreases Total Supply Chain Cost
Manufacturers and retailers depend on supply chain managers to design networks that meet customer service goals at the least total cost. Effective supply chains enable a firm to be more competitive in the market place.
Increases Profit Leverage
Firms value supply chain managers because they help check and reduce supply chain costs. This can result in dramatic increases in firm profits. For instance, U.S. consumers eat 2.7 billion packages of cereal annually, so decreasing the U.S. cereal supply chain costs just one cent per cereal box would result in $13 million dollars saved industry-wide as 13 billion boxes of cereal flowed through the improved supply chain over a five year period.
Decreases Fixed Assets
Firms value supply chain managers because they reduce the use of large fixed assets such as plants, warehouses, and transportation vehicles in the supply chain. If supply chain experts can redesign the network to properly serve U.S. customers from six warehouses rather than ten, the firm will not have a need for four very expensive buildings.
Increases Cash Flow
Firms value supply chain managers because they speed up product flows to customers. For example, if a firm can make and deliver a product to a customer in 10 days rather than 70 days, it can invoice the customer 60 days sooner.
Whether dealing with day-to-day product flows or dealing with an unexpected natural disaster, supply chain experts roll up their sleeves and get busy. They diagnose problems, creatively work around disruptions, and figure out how to move essential products to people in need as efficiently as possible.
What Are The Requirements To Be A Supply Chain Manager?
To become a Supply Chain Manager, there are certain qualifications and prerequisites needed to qualify you. They are;
Earn a Bachelor’s Degree
After graduating from high school, enthusiastic supply chain managers will need to earn a bachelor’s degree. While there are bachelor’s programs that focus specifically on supply chain management, several other relevant majors exist finance, business, or even engineering will also be an advantage.
Admissions requirements differ from school to school but generally involve some combination of the following: a competitive high school minimum GPA of 3.0; SAT and/or ACT scores; letter(s) of recommendation; and a personal statement.
In addition to academic-requirements that span across several areas of business, students attend classes such as procurement and supply chain management; procurement contracting; customs, compliance, and security; end-to-end simulation using SCODE; and supply chain decision modeling.
Relevant Work Experience
After earning a bachelor’s degree, aspiring supply chain managers generally need to get early work experience through jobs and internships. This will help sharpen your skills in the system and prepare you for higher roles.
Jobs and internships in supply chain analysis, product distribution, inventory management, and business operations can teach striving supply chain managers about the fast-paced workflow, data-based decision making, and interdepartmental communication that’s vital to supply chain management.
Earn a Master’s Degree
Though this is optional as some SCM get hired with only a bachelor’s degree, the need to acquire a master’s degree is on the increase as employers now request graduate-level education. Dedicated master’s programs exist in supply chain management, but a master’s of business administration (MBA) incorporates the fundamentals of all business processes, while still allowing for specialization in supply chain management or enterprise resource planning.
Entry requirements differ from school to school but generally include some combination of the following: a competitive (3.0 or greater) undergraduate GPA; GMAT and/or GRE scores; work experience; letter(s) of recommendation; and a personal statement.
Consider Professional Certification
While it’s not mandatory, many supply chain managers seek to further their education and add a sleeve in the industry by pursuing professional certification. Offered by peer-led organizations, these certifications show one’s industry expertise and a commitment to the evolving best practices in supply chain management.
The Association for Supply Chain Management (ASCM) offers the Certified Supply Chain Professional (CSCP) designation. Qualification requirements include a bachelor’s degree or three years of relevant work experience. Aspirants need to pass a three-module exam that covers the following areas: supply chain design; supply chain planning and execution; and supply chain improvements and best practices. Exam fees total $965 for non-members.
The Institute for Supply Management (ISM) offers the Certified Professional in Supply Management (CPSM) designation. Candidates require a minimum of three years in a supply chain management role. Eligible candidates must pass an exam in the fundamentals of supply chain management before earning their designation. For non-members, the application fee is $179, and the exam fee is $379.
Lastly, the International Society of Logistics (SOLE) offers the Certified Professional Logistician (CPL) designation. Eligibility requirements include a master’s degree and at least four years of experience in logistics or a bachelor’s degree and at least five years of experience in logistics. Eligible candidates will need to pass an eight-hour multiple-choice exam, which is broken up into four two-hour sessions. Exam fees are $375 for non-members.
How Do I Get A Job In Supply Chain Management?
If you’re interested in logistics and operations, chances are you’ve come across the concept of a supply chain. To activate a career in supply chain management, you need to do the following;
What Are The Highest Paying Supply Chain Management Jobs
Here are five high-paying job opportunities of which you might not have been aware, within the supply industry:
8. Logistics Coordinator
Logisticians analyze and coordinate an organization’s supply chain—the system that moves a product from supplier to consumer. They manage the entire life cycle of a product, which includes how a product is acquired, distributed, allocated, and delivered. They earn an average salary of $46,000.
7. Procurement Agent
Procurement agents buy products and services for organizations to use or resell. They evaluate suppliers, negotiate contracts, and review the quality of products. They go home with a yearly salary of $68,000.
6. Fleet Manager
A fleet manager works for commercial shipping business, supervising the maintenance and scheduling concerns of the company’s motor vehicles, and ensuring compliance with all Department of Transportation regulations. Instead of being hands-on, the fleet manager is largely bureaucratic, making sure that every driver is able to get to where they need to be at the right time. Logistical skills are needed for this position, and a relevant degree can help with elevating that optimum starting salary of a little more than $71,000 per year.
5. Business Operations Specialist
This career path incorporates a broad range of occupations and skillsets, any of which are improved through the existence of a strong logistical focus. A specialist in business operations may be in charge of planning business strategies, consulting with customs officials on behalf of an international corporation, implementing security standards, or auditing the efficiency of a business’s sustainability initiatives. With a related logistics degree, the professional operations specialist can expect to demand a starting salary of $74,000 or more per year.
4. Distribution Center Manager
Ideally, commercial distribution companies don’t move goods from point A to point B directly. Instead, they pass through hubs, which organize and filter the process. These distribution centers demand a strong background in logistics and materials handling and may maintain a wide range of businesses.
A distribution center’s manager ensures that things stay organized on-site and also handles the plant’s day-to-day operations. This is a very challenging but rewarding position, with an opening salary expectation of about $80,000 per year.
3. Supply Chain Consultant
This position is a technical subject matter expert of the JDA system and acts as the system liaison with IT. He/she is also responsible for partnering/supporting the implementation and integration of the system enterprise-wide, and then for continuous systems improvements. Furthermore, a supply chain consultant advises and educates business users about system functionality. A Supply Chain Consultant must be analytical and possess good data mining skills to search for relationships between different parameters and present/validate findings. A supply chain consultant earns $81,000 annually.
2. Senior Level Landman
At the pre-administrative level, this job grants a median salary of approximately $115,000 per year. It is concerned with land rights, including the existing ownership of places of interest, and their availability for purchase or lease. A landman is also accountable for negotiating agreements for land use, and for the extraction of valuable resources. At the senior level, this position fuses the assurance of compliance with all relevant government agencies; this is approximately halfway up the career ladder, with additional steps incorporating a higher salary and greater responsibility.
1. Configuration Analyst
In engineering, a configuration analyst manages changes to relevant technical documents for high-tech equipment. They are often responsible for the timely completion of important projects, within established budgetary constraints. Furthermore, this job requires both logistical skills and the relevant technical skills of the industry concerned. It is a fast-track to an administrative position, which adds the responsibility of establishing standards and protocols by which complex engineering procedures may be changed (as opposed to implementing changes). As a configuration analyst, you can expect a median salary of more than $120,000 per year.
When it comes to thriving in business, efficiency is key. As companies increasingly source their products along a multi-national pipeline, they’re in greater need of supply chain managers who can optimize that pipeline. These experts, in turn, define the growth and promotion of a particular business venture.
FAQs On Highest Paying Supply Chain Management Jobs In The World
What is supply chain management?
Supply chain management is the supervision of the flow of goods and services and includes all methods that modify raw materials into final products.
What is the duty of a supply chain manager?
Supply chain managers must oversee the import or creation of raw materials to be used by the company. They must be able to track the materials as they are combined, shaped, and altered to form new products. They must be able to monitor these items all throughout the product development process in order to ensure that adequate supplies are on hand. Lastly, they must develop a delivery system that will ensure maximum product creation and optimal shipments to customers or other manufacturers for further use
What are the requirements to be a supply chain manager?
To become a supply chain manager, you need to earn a bachelor’s degree and relative work experience.