Supply Chain Manager Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a supply chain manager. Feel free to use our supply chain manager job description template to produce your own. We also provide you with information about the salary you can earn as a supply chain manager.
Who is a Supply Chain Manager?
The supply chain manager organizes the activities that are involved in the acquisition, production, and distribution of goods that a company supplies to its customers. The supply chain management process usually begins with the purchase of raw materials and ends with delivery to customers. This field requires a manager to be able to coordinate, communicate and negotiate with service providers and business partners in many sectors, such as manufacturing, transportation, and warehousing. This job also requires information management and distribution management.
Supply chain management is often viewed as important as any other function in a company’s success, including sales, marketing, and finance. Managers must be able to manage limited resources efficiently and effectively by finding the lowest prices for raw materials and buying the required quantities without taking up precious inventory. Supply chain managers must ensure that the company has enough materials and supplies to meet production schedules. A supply chain manager must also ensure that the right quantity of goods is stored in warehouses and delivered to retail outlets promptly so that customers can meet their demands. Low supply can lead to missed sales and increased costs for the company.
These managers may be responsible for managing specific areas of the supply chain, supervising contract development, or playing key roles in product design. They are involved in product development and inventory control. Many supply managers are also responsible for creating policies and making assessments. They are expected to be proactive and proficient in strategic planning, as well as forming partnerships to increase company value. They aim to lower costs and improve efficiency at all stages of the supply chain, without compromising quality or safety.
The supply chain manager job was once a contract management job. It involved supervising, coordinating, and supervising the work suppliers, distributors, dealers, and producers. This position required mainly manual tasks, such as ordering, purchasing, and inventory control. Many of these tasks are now automated. Over the years, the duties of a supply-chain manager have evolved and changed. The responsibilities of those in this role now often depend on how large the company is.
To be able to understand how the company works, a supply chain manager must be proficient in both process management and development.
The manager should be able to bring new ideas to allow the company’s products to reach the market in greater quantities and at a faster pace. These ideas could be as simple as relocating employees in certain areas or bringing in advanced technology to track hundreds of thousands of parts and materials.
Supply Chain Manager Job Description
Below are the supply chain manager job description examples you can use to develop your resume or write a supply chain manager job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a supply chain manager include the following:
- Working with buyers and procurement managers to source the best products
- Negotiating contracts with suppliers and customers
- Controlling manufacturing and delivery processes
- Plan and implement a logistical strategy to meet your targets
- Overseeing product storage, handling, and distribution
- Using computer software to track goods, from origin to delivery
- Managing the costs while maintaining quality
- Making sure you are aware of what’s happening in the supply chain
- Managing and motivating supply chain staff
- Improving the supply chain performance and seeking out any innovations that could be made to improve the process
- Establishing new and ongoing relationships with suppliers
- Managing and minimizing risks that may affect or disrupt the supply chain, such as reputational or operational.
- Using new technologies to stay on top of developments and trends in the sector.
- Assisting with logistics processes for the new products development, inventory maintenance, manufacturing, and shipment, as well as returns of products.
- Maintaining detailed records, creating reports, and preparing presentations to assist management in understanding logistics perspectives.
- Establishing relationships with both internal and external parties such as suppliers and distributors.
- Learning to read and understand legal documents such as contracts, import/export agreements, and other similar items.
- Understanding the principles of finance and accounting.
The following are other important tasks:
- Assessing supply chain strategies
They regularly review the overall strategy to ensure that every aspect of the supply chain runs smoothly and is cost-effective. They look for ways to improve efficiency and maximize productivity.
- Recommendations for improvements
Supply chain managers often present and develop methods to reduce costs, increase business growth, and improve safety. They usually report to the Chief Operations Officer (COO) of an organization.
- Establish business relationships
Supply chain managers need to build and maintain strong relationships with their partners to maintain low costs and high efficiency. This position is a common one for professionals who work with manufacturers, suppliers, delivery coordinators, and return processors to negotiate contracts.
- Training staff
Supply chain managers are often responsible for hiring and interviewing staff. They provide training and development for team members to learn their jobs, improve skills, and move up to supervisory positions.
- Transport
The supply chain manager negotiates rates and contracts with shipping lines, freight forwarders, and customs house brokers. They ensure that employees and contracted service providers comply with appropriate import and export compliance requirements. They are responsible for ensuring that industry standards are followed to improve quality, safety, as well as process improvement. The Export Administration Regulations and the International Traffic in Arms Regulations are important. Supply chain managers make sure that customs house brokers and freight forwarders follow established procedures and processes.
- Planning and Analysis
Supply chain managers create and manage various supply chain strategies and plans. This could include overseeing and coordinating manufacturing operations to meet customer demand and forecast orders. They are responsible for optimizing operational resources and executing cost reductions. They perform monthly capacity and performance analyses to ensure that schedules and forecasts are integrated. They perform demand flow verification, engage in short and long-term planning, and conduct inventory analysis for warehouse utilization and manufacturing coordination. Supply chain managers need to be familiar with enterprise resource planning (ERP), warehouse management systems (WMS), and other tools.
- Inventory Control
Supply chain managers who also have purchasing manager duties are responsible for inventory control. They are responsible for supporting growth goals by developing concise metrics and reporting functions. They conduct risk assessments about product perishability and supply trends. They help reduce product obsolescence by reviewing inventories and rebalancing. They need to keep a cost perspective and adopt a lean manufacturing approach. They need to identify obsolescence drivers and communicate their solutions to third-party logistics providers. They create daily, weekly, and monthly reports that provide insight and actionable data to stakeholders about current stock levels by location and category.
- Management
Supply chain managers are responsible for the development and implementation of logistics, warehouse, and distribution solutions. They are responsible for managing labor costs, productivity, inventory levels, and accuracy, as well as stocking strategies and data accuracy. They evaluate and report on departmental activities and their effectiveness. They are responsible for creating and maintaining safe work instructions and standard operating protocols. Supply chain managers create and modify work procedures to meet warehouse demand, production schedules, established workflows, and OSHA safety guidelines. They develop strategies to improve service quality and employee efficiency, equipment performance, interdepartmental communication, and staff productivity.
Supply chain managers are expected to improve warehouse operations using lean enterprise practices. They also need to share warehouse data to improve customer service standards, productivity, and quality.
Qualifications
A bachelor’s degree is required for supply chain managers. They also need technical skills and at minimum five years of experience in the field. Many earn professional certification.
Education
Nearly all employers require supply-chain managers to hold a bachelor’s degree. These are the top majors in this industry:
- Business Administration
Core topics such as cost accounting, and operations management will be covered. Many business administration bachelor’s degree programs allow you to specialize in supply chain or operations management.
- Supply Chain Management
This degree is offered by many universities as a business-focus or independent major. You will learn about inventory monitoring, product lifecycles, and procurement strategies.
- Systems engineering
This degree focuses on systems, structures and can help to master logistics and business processes. This degree will prepare you to learn about statistical modeling, inventory monitoring, and supply chain principles.
- Training
Supply chain managers often receive on-the-job training while working in entry-level positions. Many have at least five years of experience in supply chain, procurement, and logistics management. Some are also military personnel and gain experience as dispatchers or logistic clerks.
Certification
Employers may require additional certification for supply chain managers. These credentials allow supply chain managers to improve their skills and keep up with industry trends and issues.
They include:
- Certified Master Logistician
This credential, which is available from the International Society of Logistics (ISOL), is for specialists in supply, distribution, and systems. Candidates should have a bachelor’s degree, and a minimum of five years of relevant work experience to qualify for this credential. Candidates must also pass the three-part certification exam.
- Certified Professional Logistician
This credential, also available through the International Society of Logistics is for professionals who specialize within the supply chain lifecycle. Candidates must have a bachelor’s degree, five years of experience, and a minimum of two years in the field for qualification. To demonstrate their proficiency in systems design, management, acquisition, product support, and customer service, they must pass this certification exam.
- Certified Supply Chain Professionals
This certification, which is one of the most popular credentials for supply chain professionals can be obtained from the Association for Supply Chain Management. Candidates must have a bachelor’s degree and three years of relevant work experience for qualification. They also need to pass the certification exam.
Essential Skills
These skills are essential to be a successful supply chain manager:
- Computer skills
Standard office software is used by supply chain managers to create reports, track data, and create presentations. Excellence in this role requires knowledge of spreadsheet, word processing, presentation, and database software.
- Customer service skills
Supply chain managers are responsible for developing client lists and building relationships with suppliers. They need to be able to provide excellent customer service skills. When working as a procurement or supply chain manager, you can anticipate customer needs and listen attentively to negotiate effectively.
- Enterprise resource planning (ERP) mastery
This field uses ERP software to manage supply chain management. Managers need to have high-level skills to succeed. ERP software can be learned on the job and through tutorials.
- Leadership skills
Supply chain managers must have excellent leadership skills to manage staff. These skills can be acquired through an internal management program, or by taking on team and project management tasks in junior positions.
- Problem-solving skills
Supply chain managers need to solve problems every day. As a logistics clerk, or supply chain coordinator, you can get experience in evaluating, designing solutions, and recommending strategies.
How to Become a Supply Chain Manager
These are the four steps to consider when you are planning your career in supply chain management.
- Completion of a Bachelor’s Degree Program
First, get a college degree. Many supply chain managers hold degrees in systems engineering, business administration, or supply chain management.
- Gain work experience
You can apply for jobs as a supply chain manager, procurement, or logistics specialist after you have completed your bachelor’s degree. You should look for opportunities to grow in the industry and develop key skills. Supply chain managers typically work for 5-10 years before moving up to management.
- Master important skills
You can improve your technical and soft skills as you gain experience. To be a supply chain manager, you will need to have leadership, customer service, and problem-solving skills.
- Get a professional certification
A professional certification can help you demonstrate your expertise and make yourself a leading candidate in the supply chain sector. You can get the Certified Supply Chain Professional credential by the Association for Supply Chain Management, or the Certified Master Logistician credential by the International Society of Logistics.
- Update your resume
Make sure you have a current resume and list all relevant professional experience, skills, and certifications before applying for supply chain manager jobs.
Where to Work
A typical environment for a supply chain manager is an office, where they can monitor and analyze the day-to-day activities of the company. Managers can be found in business settings with many cubicles and offices, or just a few steps from a manufacturing floor or engineering floor. Managers are often required to be in close proximity to production areas or manufacturing areas they supervise.
If they are part of a company with multiple manufacturing locations, supply chain managers might be required to travel to those sites. They might also be required to visit new suppliers or partners to locate new ways of production and management. This could include finding new raw materials, developing new production floors, or engaging new manufacturers that can work with finished products.
Supply Chain Manager Salary Scale
The average salary for supply chain managers varies depending on their industry, location, and candidate’s education and experience.
The average salary of supply chain managers in the U.S. is $80,134 annually.