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Are you ever curious about the process that brings products manufactured halfway around the world—such as clothing, electronics and other consumer goods—to your doorstep so quickly?
Supply chain management is the profession that makes those deliveries possible. This well-paying, quickly growing field is at the forefront of today’s technological innovation, and it requires communication and problem-solving skills as well as big-picture thinking.
In this article, we explain how to become a supply chain manager and present the latest numbers regarding supply chain manager salaries.
What Does a Supply Chain Manager Do?
What is supply chain management? Supply chain managers oversee and organize a business’s supply chain, or its processes for moving goods from supplier to consumer. They manage a given product through its entire life cycle, from sourcing the raw materials needed for its manufacture to its shipment, storage and final delivery.
Supply chain managers’ key responsibilities include finding ways to reduce the costs and/or time needed to move and store products. Supply chain managers rely on specialized software to manage logistical tasks like procurement, inventory management and other supply chain planning and management processes.
Supply chain management is a full-time role that sometimes requires overtime to meet deadlines and keep operations on schedule.
Supply Chain Manager Salary and Career Growth
Payscale reports as of January 2023 that the average annual salary for supply chain managers is around $85,000. Entry-level professionals (those with less than one year of experience) earn an average total compensation of approximately $65,000, while more experienced supply chain managers (those with between 10 and 20 years of experience) earn closer to $94,000.
The U.S. Bureau of Labor Statistics (BLS), which groups logistics and supply chain management together, reports similar salary data for logisticians: a median annual wage of $77,030. The BLS projects employment for these professionals to grow by 28% between 2021 and 2031 (much faster than the average for all occupations), with an average of 24,800 roles opening each year within that time frame.
How to Become a Supply Chain Manager
Earn a Degree
Some employers hire supply chain managers with just an associate degree, but many employers prefer a bachelor’s. Common undergraduate majors for supply chain managers include business administration, supply chain management and systems engineering. Each of these supply chain management degrees provides grounding in the theory (supply chain principles) and practices (operations) underlying the field.
Given the ever-growing complexity of supply chains worldwide and the challenges surrounding sustainability, a master’s degree can help you maintain a competitive edge as a candidate. You can earn a master’s or an MBA in supply chain management, which traditionally takes one to two years to complete. An online master’s in supply chain management typically covers the same core curriculum while offering more flexibility.
Gain Experience
Relevant work experience (typically five years) is an essential next step after the degrees cited above. Logistical support roles—serving as a clerk or dispatcher in the military, for example—can be beneficial. Junior positions and internships in procurement can provide a real-world understanding of some of the common challenges supply chain managers face. From there, you can move along the supply chain career path.
Consider Certification
Certification isn’t required to become a supply chain manager. But certification can be a reliable way to advance your career by offering proof of professional competence and a comprehensive understanding of a specialization within the field. We highlight some of the most common supply chain management certifications below.
Certifications for Supply Chain Management
Certified in Logistics, Transportation and Distribution (CLTD)
Administered by the Association for Supply Chain Management (ASCM), the CLTD program focuses on best practices in distribution, logistics and transportation, making this certification ideal for supply chain professionals whose responsibilities center on returns and delivery.
Candidates need at least three years of professional logistics or supply chain management experience and a bachelor’s degree. Test fees vary depending on whether you’re an ASCM member, but expect to pay at least $475 to take the exam.
Certified Supply Chain Professional (CSCP)
CSCP certification is recommended for general (i.e., less specialized) supply chain careers because it offers an overview of the profession. It’s available from ASCM to applicants with three years of business experience, a bachelor’s degree and an active certification at one of several lower levels, such as the CLTD described above.
Certified Master Logistician (CML)
Offered by the International Society of Logistics (SOLE), the CML is a relatively advanced certification that demonstrates a mastery of logistics. Candidates must have a bachelor’s degree and five years of relevant work experience before they can take the three-part certification exam, which is offered in May and November every year. The application fee is $125 for SOLE members and $275 for nonmembers; check the SOLE website for the latest information.
Certified Professional Logistician (CPL)
Also offered by SOLE, the CPL certification differs from the CML certification by focusing on more specific aspects of logistics, whereas the CML deals with a broader base of knowledge. The exam costs $225 for SOLE members and $375 for nonmembers; visit SOLE’s CPL page for current information.
Frequently Asked Questions (FAQs) About Supply Chain Manager Careers
Are supply chain managers paid well?
Yes. Supply chain managers are well-compensated, earning an average annual salary of around $85,000. Experience and geographical location are factors in determining a supply chain manager’s salary.
What does a supply chain manager do in a day?
A supply chain manager can reasonably expect to perform some of the following tasks in a given work day:
- Communicate with suppliers and distributors, whether they’re overseas or based in the U.S.
- Manage the sourcing, purchasing, shipping and storage of materials.
- Plan and refine transportation routes for maximum efficiency.
- Analyze start-to-finish product life cycles to assess their sustainability and environmental impact.
- Develop reverse logistics programs that allow goods to be disposed of responsibly, recycled or returned.
What are the highest-paying supply chain jobs?
Logisticians who work in the U.S. federal government make a higher median annual salary than their peers in other industries, earning $88,710 per year. Washington, D.C. has the highest average annual salary for these professionals compared to all U.S. states; logisticians in the District of Columbia make $110,400 per year on average.
