Updated December 6, 2024
Supply chain management (SCM) plays a critical role in modern industries, impacting everything from holiday gift deliveries to the functioning of healthcare systems. As the field evolves, it not only ensures business efficiency but also creates diverse career opportunities for innovative and well-prepared professionals. This article explores the multifaceted nature of SCM, its impact on businesses and society, and the field’s thriving job market.
What Is Supply Chain Management (SCM)?
According to the Council of Supply Chain Management Professionals (CSCMP), supply chain management includes any step involved with the maintenance of supply chains, which are “made up of all the companies that participate in the design, assembly, and delivery of a particular product.” Depending on the industry, SCM may include individuals who oversee the:
- Growing, harvesting, mining, or other procurement of raw materials
- Creation of products
- Transportation of products
- Storage of products in warehouses
- Purchasing of products based on forecasted sales
- Shipping of products to consumers
- Storage of product surplus and/or returned merchandise
The goal of careers in supply chain management is to create more efficient processes to facilitate the creation and movement of products. By doing so, effective SCM strategies can lead to lower prices, consistent supply, and increased profits.
However, supply chain management jobs are about more than improving a corporation’s bottom line – in times of natural and human-made disaster, SCM can make a big difference for those impacted. For example, unexpected pressures placed on global supply chains due to the COVID-19 pandemic led to shortages and inflated costs between 2020 and 2022. Basic items like groceries became more expensive, and some medical supplies became more difficult to find. Today, industries are working to diversify suppliers and increase supply chain monitoring for better resilience.
Supply Chain Management Processes
For SCM to work smoothly, professionals in many different supply chain management jobs need to perform their roles well. Activities in SCM are highly collaborative and build off each other; if one part breaks down, the whole project can be undermined.
CSCMP identified the following processes in SCM:
- Planning: Create effective long- and short-range supply chain strategies. Supply chain leaders need to consider strategies from the design of the supply chain network to the prediction of customer demand.
- Procurement: The buying process focuses on the purchase of required raw materials, components, and goods.
- Production: This process involves the manufacturing, conversion, or assembly of materials into finished goods or parts for other products. Supply chain managers support production and ensure that key materials are available when needed.
- Distribution: Manage the logistical flow of goods across the supply chain. Transportation companies, third-party logistics firms, and others ensure that goods are flowing quickly and safely toward the point of demand.
- Customer Interface: The demand process revolves around issues that are related to planning customer interactions, satisfying their needs, and fulfilling orders perfectly.
Impact of Supply Chain Management
Individuals working in supply chain management jobs can heavily impact the business sector, but SCM also plays an essential role in enabling societies to run smoothly. CSCMP details the overall importance and impact of SCM in both spheres as summarized below:
| Primary Business Impacts | Primary Society Impacts |
| Human Survival:
Quality of Life:
Cultural Freedom and Development:
|
Careers in Supply Chain Management
Choosing to pursue jobs in supply chain management can lead to a rewarding career with a high salary as well as stability. According to the U.S. Bureau of Labor Statistics (BLS), management occupations are expected to grow faster than the average for all occupations this decade, with about 1.2 million openings projected each year. Several supply chain management jobs in particular are projected to grow much faster than average, with openings for logisticians expected to increase by 19% and transportation managers by 9% through 2033 (BLS).
Explore specific careers and potential supply chain management salaries in the section below.
Supply Chain Management Jobs
- Industrial production managers supervise the operations in manufacturing plants with the goal of meeting overall production needs. These professionals earn a median salary of $116,970 per year (BLS).
- Logisticians analyze an organization’s supply chain, recommend improvements, and coordinate changes. This occupation has a median salary of $79,400 per year (BLS).
- Purchasing managers are responsible for evaluating, negotiating, and buying the products and services that their organization resells. They earn a median salary of $77,180 per year, and this occupation is expected to grow 7% by 2033, which is faster than average (BLS).
- Supply chain consultants help an organization increase revenue by reducing supply costs and implementing more efficient business practices. According to Payscale, supply chain consultants with 1-4 years of experience earn an average of $83,654 per year.
- Transportation managers oversee and coordinate the movement of goods between facilities and to the consumer. Professionals in this occupation earn a median salary of $99,200 per year (BLS).
Required Skills for Jobs in Supply Chain Management
SCM professionals need diverse expertise to manage the wide range of tasks involved with their industry. That’s why AU Online prepares business students with foundational knowledge in critical business topics through courses focused on areas such as business innovation and design thinking, strategic management, budgeting and financial management, and operations management.
While responsibilities will vary for each individual position, the following skills will serve you well in most supply chain management job scopes:
- Budgeting
- Communication
- Conflict resolution
- Cost estimation
- Data analysis
- Decision making
- Employee development
- Negotiation
- Prioritization
- Problem solving
- Project management
- Record keeping
- Resource allocation
- Strategic management
- Team building
- Technological proficiency
Advancing Your Business Career
Aurora University’s online business administration degree and online MBA program help students develop the knowledge and skills needed to lead others and advance their careers. Students receive instruction in current business practices from faculty members with real-world experience. Each program takes place in a fully online learning environment.
