Salary, Job Description, How To Become One, and Quiz
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Supply Chain Managers
Supply Chain Managers direct or coordinate production, purchasing, warehousing, distribution, or financial forecasting services or activities to limit costs and improve accuracy, customer service, or safety. Examine existing procedures or opportunities for streamlining activities to meet product distribution needs. Direct the movement, storage, or processing of inventory.
Table of contents
What they do
Supply Chain Managers direct or coordinate production, purchasing, warehousing, distribution, or financial forecasting services or activities to limit costs and improve accuracy, customer service, or safety. Examine existing procedures or opportunities for streamlining activities to meet product distribution needs. Direct the movement, storage, or processing of inventory.
- Determine appropriate equipment and staffing levels to load, unload, move, or store materials.
- Manage activities related to strategic or tactical purchasing, material requirements planning, controlling inventory, warehousing, or receiving.
- Select transportation routes to maximize economy by combining shipments or consolidating warehousing and distribution.
- Define performance metrics for measurement, comparison, or evaluation of supply chain factors, such as product cost or quality.
Typical day
On a daily basis, Supply Chain Managers manage activities related to strategic or tactical purchasing, material requirements planning, controlling inventory, warehousing, or receiving. They select transportation routes to maximize economy by combining shipments or consolidating warehousing and distribution.
A typical day for a Supply Chain Manager will also include:
- Determine appropriate equipment and staffing levels to load, unload, move, or store materials.
- Confer with supply chain planners to forecast demand or create supply plans that ensure the availability of materials or products.
- Design, implement or oversee product take back or reverse logistics programs to ensure products are recycled, reused, or responsibly disposed of.
- Negotiate prices and terms with suppliers, vendors, or freight forwarders.
- Analyze inventories to determine how to increase inventory turns, reduce waste, or optimize customer service.
Other responsibilities
Besides their typical day, Supply Chain Managers also analyze information about supplier performance or procurement program success. They may also monitor suppliers’ activities to assess performance in meeting quality or delivery requirements.
On a weekly to monthly basis, Supply Chain Managers confer with supply chain planners to forecast demand or create supply plans that ensure the availability of materials or products. They might also meet with suppliers to discuss performance metrics, provide performance feedback, or discuss production forecasts or changes.
In addition, they identify or qualify new suppliers in collaboration with other departments, such as procurement, engineering, or quality assurance.
Although specific duties may vary, many of them develop procedures for coordination of supply chain management with other functional areas, such as sales, marketing, finance, production, or quality assurance.
To some Supply Chain Managers, it is also their responsibility to analyze inventories to determine how to increase inventory turns, reduce waste, or optimize customer service.
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What is the job like
Job satisfaction
Is this job meaningful
75% said they were satisfied with their job and 62% said they found their job meaningful.
I am a Senior Supply Chain Planner at Elkay, and I have been in this position since March 2020. Prior to that, I have held a couple different roles at Elkay as I first joined the company as a Global Buyer in 2017, and then became a Global Sourcing Specialist in 2018.
My typical day
As a supply chain planner, my job is to make sure the business establishes appropriate inventory levels to meet sales demand. Every day, we utilize an ERP system and communicate with people from manufacturing and distribution sites and the procurement team to balance the materials inbound, production and consumption. We also develop and maintain different Excel reports to optimize the overall process and mitigate out of stock risks.
When I was a buyer and sourcing specialist, my daily job was to communicate with suppliers, negotiate with them to drive cost savings, monitor purchase order delivery, solve quality issues, and bring in the best qualified suppliers for our new product development projects.
Pros
The main pro of being a Supply Chain Planner is that you grow to understand how a company’s operational system runs thoroughly. This includes understanding how and where the raw material is purchased, how they are manufactured in the factory, how much inventory to stock in the warehouse, and how they are delivered to the customers based on their requests. Each step requires strategic plans to make sure they are aligned with business goals.
Along the same lines, another pro to being a Supply Chain Planner is that it significantly improves your strategic thinking and data analysis skills. Supply Chain Planners need to make a lot of decisions daily that could have a direct impact on multiple teams, such as if we should place a purchase order sooner to avoid a potential shortage, if we should increase work order quantity so we could unitize raw materials and warehouse space, or if it’s time to consider adding more production lines to the manufacturing site to meet increased demand. Since all the ideas require data to transfer them to a more convincible proposal, I’ve also grown familiar with using multiple data analysis tools to ensure our data is accurate, up to date, and easy to read. These data analysis skills can be used cross-functionally, making you an even more valuable asset to your organization.
Cons
Due to the importance of this job function, the heightened stress level that occurs, as a result, is the biggest con. As Supply Chain Planners, we need to make sure we act quickly to the requests from other teams. For example, the manufacturing plant can’t wait too long for a work order since the staff in the factory need the work order to do their job. Also, since we are the ones who calculate and design the inventory level, we need to make sure the data is accurate and consistent. Typically, we need to double-check and confirm before submitting a change proposal, which can take time and create stress. To combat this stress, I’ve found that communicating well and often with my team alleviates pressures that may be felt and results in better business outcomes.
Advice to students interested in this career path
The first thing you want to determine before you decide to pursue this career path is your passion for the supply chain. Without passion, you won’t have the motivation to learn and grow. Students can go about determining this by thinking about it regarding recent events. For example, when you listened to the COVID-19 pandemic news in the past year, did you notice how the pandemic had affected the global supply chain? Were you curious as to why a pandemic could have such an impact on the supply chain? As a Supply Chain Planner, you are focused on numbers and understanding and utilizing analytical tools like Excel and an ERP system. To perform best in this role, you must make sure you are not afraid of using these tools and are willing to learn new technologies as they are introduced. Supply Chain is also the department that connects all other departments, so Supply Chain Planners need to constantly communicate with internal and external customers. Due to this, you also need to have good communication skills to deliver clear messages effectively.
Overall, I would say passion, a desire to learn new skills (specifically mathematically oriented skills), and good communication practices would be the top three things you should consider before pursuing a career as a Supply Chain Planner. If you have all those things, this role would be an excellent fit for you!
Pros
Suitable for people who like to start and carry out projects.
Suitable for people who want independence and like to work on their own and make decisions.
This career is perfect for people who love to work indoors.
One of the highest-paid careers in the world.
Cons
Not suitable for people who like to work with designs.
It is hard to get into this career. A considerable amount of work-related skill, knowledge, or experience is required for this career.
Long working hours (More than 40 hours per week).
How much do they make
Average salary
Average hourly wage
Entry-level Supply Chain Managers with little to no experience can expect to make anywhere between $56,970 to $73,700 per year or $27 to $35 per hour.
| Salary by experience | Annual | Hourly |
|---|---|---|
| Highest (Top 10%) | $164,140 | $79 |
| Senior (Top 25%) | $126,560 | $61 |
| Median | $96,390 | $46 |
| Junior (Bottom 25%) | $73,700 | $35 |
| No experience (Bottom 10%) | $56,970 | $27 |
This table shows the top 10 highest paying industries for Supply Chain Managers based on their average annual salary.
| Salary by industry | Annual | Hourly |
|---|---|---|
| Computer and Peripheral Equipment Manufacturing | $178780 | $85.95 |
| Business, Professional, Labor, Political, and Similar Organizations | $151310 | $72.74 |
| Telecommunications | $150240 | $72.23 |
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities | $145930 | $70.16 |
| Scientific Research and Development Services | $143460 | $68.97 |
| Credit Intermediation and Related Activities | $139190 | $66.92 |
| Accounting, Tax Preparation, Bookkeeping, and Payroll Services | $139090 | $66.87 |
| Aerospace Product and Parts Manufacturing | $137950 | $66.32 |
| Commercial and Service Industry Machinery Manufacturing | $137720 | $66.21 |
| Semiconductor and Other Electronic Component Manufacturing | $136610 | $65.68 |
View more salary by industries here.
Where can they work
Where can Supply Chain Managers work? Here is a table showing the top 10 largest employers of Supply Chain Managers including the average salary in that industry.
| Employers | Total Employed | Annual Salary | Hourly Wages |
|---|---|---|---|
| Warehousing and Storage | 13730 | $97720 | $46.98 |
| Truck Transportation | 11140 | $98080 | $47.15 |
| Management of Companies and Enterprises | 8730 | $132660 | $63.78 |
| Federal Executive Branch | 6880 | $107510 | $51.69 |
| Local Government | 5430 | $111300 | $53.51 |
| Merchant Wholesalers, Durable Goods | 5090 | $101590 | $48.84 |
| Merchant Wholesalers, Nondurable Goods | 4930 | $98490 | $47.35 |
| Freight Transportation Arrangement | 4920 | $96540 | $46.41 |
| Couriers and Express Delivery Services | 4450 | $108360 | $52.10 |
| Automotive Equipment Rental and Leasing | 2780 | $81380 | $39.12 |
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What is the work day like
Working hours
Working schedule
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Telephone
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Group discussions
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Public speaking
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Level of competition
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What is the work environment like
Office-style environment
Indoors in an environmentally controlled condition
Warehouse-style environment
Indoors in a non-controlled environmental condition such as a warehouse
Outdoors
Outdoors exposed to all weather conditions
Outdoors – Under Cover
Outdoors but under cover (e.g. structure with roof but no walls)
How to become one
Difficulty to become one
Required level of education
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Relevant work experience
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On The Job Training
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Should you become one
Best personality type for this career
People with this personality likes to start and work on projects. They also like leading people and making many decisions.
People with The Builder personality type likes practical and hands-on work. They prefer working with plants, animals, and real-world materials like wood, tools, and machinery.
People with The Thinker personality likes to work with ideas that require an extensive amount of thinking. They prefer work that requires them to solve problems mentally.
People with The Artist personality likes to work with designs and patterns. They prefer activities that require self-expression and prefer work that can be done without following a clear set of rules.
People with The Helper personality type likes to work with people and in teams. They prefer work that allows them to build relationships with others.
People with The Leader personality likes to start and work on projects. They also like leading people and making many decisions.
People with The Organizer personality type likes to follow set procedures and routines. They prefer working with data and details more than with ideas.
You can read more about these career personality types here.
People who are suitable for this job tend to like starting up and carrying out projects. They like leading people and making many decisions. Sometimes they require risk-taking and often deal with business.
They also like following set procedures and routines. They like working with data and details more than with ideas.
Take this quiz to see if this is the right career for you.
Work Values
Which values are the most important to a person’s satisfaction for this job?
You are someone who is results oriented. You prefer work that allows you to utilize your skills and abilities while at the same time giving you a sense of accomplishment.
You are someone who values job security, steady employment, and good working conditions. You also prefer work that keeps you busy all the time with something different to do every day.
You are someone who values job advancement and leadership roles. You prefer work that receives recognition for the work you do and jobs that are looked up to by others in the company and your community.
You are someone who likes to provide a service to others. You prefer a work environment where you can work with your co-workers in a friendly non-competitive environment.
You are someone who values a company that stands behind their employees. You prefer a work environment where everyone is treated fairly and is being supported by the company.
You are someone who likes to work on your own and make your own decisions. You prefer work that requires little supervision and are allowed to try out your own ideas.
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