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Supply Chain Management Jobs Salary Expectations

Supply Chain Management Job Roles

Supply chain management (SCM) applicants are finding plenty of opportunities across the globe right now for SCM positions. However, it is difficult to determine what exactly each position entails as there are a number of different types of jobs in a number of different management levels. Pay can also vary based on position, location, experience, and company type. If you are looking to explore the SCM industry and are interested in average pay, take the following criteria into consideration and always research the company, the posted position type, their requirements, and your experience.

When you are looking into SCM positions you can break down the application process into two types of positions based on the two types of flows.

First, the physical flow of goods and services is the product that is the purpose of the chain. It is the goal to get that product from one point to another. However, there is another unsung hero in the SCM industry.

Second, the information flow is key to the unified chain of logistics. Unfettered information flow allows a SCM team to manage day-to-day operations and long-term planning. From upstream to downstream, up-to-date information is required for successful application of any SCM planed delivery flow.

Know where you fit in. Know where along the chain your skills place you. The patterned process of the goods or services delivered is the following:

  1. Orders are placed or anticipated
  2. Suppliers are collated for availability
  3. Good or service is prepared and begins the journey
  4. Good or service may have intermediate stops for modification or further builds
  5. Finally the good or service is delivered to the final destination.

Generally, and more academic you can divide it into 6 categories:

  1. Planning
  2. Sourcing
  3. Making
  4. Delivering
  5. Returning
  6. Enabling

Ask yourself:

  • where do you see yourself?
  • Do you deliver goods along the chain?
  • Could you work for an originator of the goods or services?
  • Do you source goods?
  • Plan deliveries?
  • Build management tracking databases?

It may seem odd, but it is a great exercise to write out your dream SCM position.

  • Where are you in the world?
  • What are you doing?
  • What size company are you working for?

All of these answers are consideration for the compensation. The same position may pay differently in different cities across the US and at different sized companies.

 
 

Supply Chain Management Salary & Pay Compensation Ranges

A quick search in Simply Hired for “supply chain management” yields over 8K+ jobs. This doesn’t give a very good indication on what your possibilities are. So, before we jump straight into potential salaries, let’s discuss the main 9 potential positions.

1.  Purchasing Agent (Average Salary $62K)

Purchasing agents are the individuals that buy the goods for the manufacturing process. They produce the order documentation and negotiate the terms. They will execute the contracts and follow the entire lifecycle of the product or service delivery.

2.  Operations Manager (Average Salary $100K)

An operations manager oversees all the aspects of the sales, production, pricing, and distribution of the goods or services that are produced by a supplier. They are responsible for identifying key areas of growth and areas that need improvements across the entire company.

3.  Logistics Analyst (Average Salary $74K)

The logistics analyst is the backbone of the power behind effective SCM. They are in charge of compiling, organizing, and maintaining logistic databases. These databases include costs, locations, delivery times, etc. They also identify areas of improvement based on analytical reports and make recommendations on how to change the operations.

4.  Purchasing Manager (Average Salary $115K)

The purchasing manager oversees the purchasing department. They will represent companies during negotiations and develop corporate policies on purchases and purchasing strategies.

5.  Supply Chain Manager (Average Salary $105K)

The supply chain manager oversees the supply chain process. This position requires forecasting on current and future needs for goods and how to fulfill those needs. They help facilitate efficiencies in cross-division SCM coordination.

6.  Logistician (Average Salary $74K)

The logistician connects the dots in the movements of the goods or services. They integrate with logisticians in other companies to update performance targets and benchmarks. If logistical functions happen on the ground the logistician has a record of it.

7.  Logistics Manager (Average Salary $92K)

The logistics manager oversees the logistics department. It is more than just overseeing the connection to other companies. It is overseeing the application of the logistics data to the corporate goals and the integrations with other departments.

8.  Production, Planning and Expediting Clerk (Average Salary $46K)

The expediting clerk allows for internal corporate efficiencies to remain effective. They are responsible for delivery of goods, services, and information between departments or branches of a single corporation or close partners.

9.  Storage and Distribution Manager (Average Salary $92K)

The distribution manager oversees a corporate office’s warehouse or their version of a warehouse. They make sure products or services are received and sent out on time and on budget.

 
 

Pay for Entry Level Positions

If you are just starting out in SCM then you are most likely going to get hired as an analyst. Regardless of the branch you can bet that they won’t make you a director right out of school or college.

Instead you will need to cut your teeth eating numbers and information for breakfast, lunch, and dinner.

Here are some statistics for supply chain management entry level positions:

  1. Supply Chain Analyst $78K
  2. Industry Analyst $52K
  3. Supply Chain Sales $60K
  4. Supply Chain Consultant $60K

Pay for Intermediate Level Positions

Once you have a few years under you belt you can think about a lateral move or a move up. Usually, if you move, you should be able to negotiate a pay increase.

Know your worth and your value. Your experience matters and count for something. Once you have built an established resume and experience you can think about management.

Here are some statistics for supply chain management intermediate level positions:

  1. Supply Chain Manager $111K
  2. Supply Chain Manager $88K
  3. Supply Chain Manager $62K
  4. Global Logistics Manager $73K
  5. Project Manager $90K
  6. Purchasing Manager $97K

 

 

Pay for Senior Level Positions

Once you have a few years of management level experience under your belt in either a few different companies or in different departments you may be ready to jump to the next level.

Senior level positions in SCM determine the direction of the company as a whole. They are no longer looking at the small sales or even overseeing people that manage the small instances. Instead they are reviewing economic forecasts and potential corporate moves.

At this level you will most likely be internally tapped for a position. Because of this there are fewer available data points to determine compensation.

Here are some statistics for supply chain management senior level positions:

1. Transportation Director $117K
2. Supply Chain Director $152K

Can You Expect this Amount?

No. Sorry to be blunt, but don’t expect these numbers. These are guidelines. Your specific circumstances will determine the value of the position. No company will offer the same job at the same pay. Shop around.

Remember some of the key factors that determine a company’s ability to offer compensation:

  1. Location of the job
  2. Size of the company
  3. Revenue of the company
  4. Size of the department
  5. Type of position
  6. Seniority of position

What Determines Your Pay Value?

Just as a company has factors that determine the compensation, so do candidates. A potential applicant to a job brings to the table many considerations that the company will use to develop a compensation package.

Here are some key features that any corporate entity will being looking for when they are looking at your resume:

  1. Length of Prior Experience
  2. Relevance of Prior Experience
  3. Other Relevant Skills
  4. Education
  5. Personality

Final Delivered SCM Thoughts

Supply chain management jobs are plentiful and varied. You most likely won’t find two similar job posting, even from competing SCM firms. Corporate SCM jobs will drive future industrialism and world connectivity.

Think of the last time you purchased something online.

Think of the last time you drove your car.

Think of all of the hands each part touched before finally arriving at your door.

You may have gas in the tank from the Middle East, steel from Asia, and fabrics from North America.

Here are a few final thoughts when you are ready for a SCM job:

  1. Understanding the industry is critical to success in the industry.
  2. Supply chain management thrives off of big data, and it is only getting bigger.
  3. Supply chain management is competitive for control over goods and services.
  4. You will never be bored in the job as it can be very demanding.
  5. Networking is a highly effective way to find new opportunities and positions.
 

References

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