By Dr. Robert Gordon, CPC | 08/02/2024
Supply chain management (SCM) knowledge and skills are highly versatile and have applications in a variety of industries. Supply chain management focuses on overseeing the procurement and transportation of raw materials manufacturers use to create their products. In addition, supply chain managers coordinate the transportation of manufactured goods to wholesalers, retailers, and consumers.
The supply chain management field impacts virtually every type of business. Although many people believe the supply chain function only impacts manufacturers and purchasing agents, this situation simply is not the case.
Instead, every organization has some level of involvement with supply chains. For instance, even a service company still needs computers, phones, and other equipment provided to it via supply chains to manage day-to-day business.
What Is Supply Chain Management?
So, what exactly is supply chain management? Supply chain management is the coordination of the complex networks of activities required to manufacture and deliver products to consumers. SCM includes everything from product development, sourcing, production, and logistics to the supply chain information systems needed to coordinate these activities.
Efficient supply chain management ensures the right product reaches the right customer – at the right time and for the right cost. Every time you shop online and receive a package, you’ve experienced supply chain systems at work.
Procurement and Supply Management from the Global Perspective
A quick look at nearly any item will likely confirm it was manufactured overseas. For instance, computer hardware may be labeled “Made in Taiwan.”
The presence of such a label means the item traveled by ship, train, truck, and/or plane to ultimately make its way from Taiwan to you. But in order for Taiwanese manufacturers to produce computer hardware, they must first source raw materials (a task that often involves international transportation), manufacture the product, and get it to end users through the use of a supply chain.
Supply chain management professionals hold key responsibilities that help make manufacturing and global trade possible. Whether a company sells computer hardware, clothing, or coffee pods, its success depends heavily on the business acumen of supply chain managers for a competitive edge.
Supply Chain Management Career Paths
I have held various roles that were not always supply chain-based, so experience and a degree in supply chain management may be helpful for students seeking to enter the supply chain management field. Nevertheless, there are several positions that are typically suited to a skilled person who is interested in SCM.
Supply Chain Manager
Sometimes called a global supply chain manager, purchasing agent, purchasing manager, or procurement manager, a supply chain manager sources and purchases the materials and services that a company needs to operate. Additionally, this type of manager negotiates contracts with suppliers, ensures purchases meet their companies’ quality and cost requirements, and manages vendor relationships.
This role demands strong strategic planning skills, a deep understanding of the market, and the ability to negotiate. This type of manager will regularly assess a company's core competencies and evaluate potential outsourcing opportunities.
Navigating make-or-buy decisions is also a key part of this supply chain role. When you are the manager of a supply chain, your organization will seek guidance from you regarding which tasks should be executed externally versus internally.
Supply Chain Analyst or Logistics Analyst
Sometimes referred to as a “logistics analyst,” a supply chain analyst ensures that a company's supply chain operations are efficient and cost-effective. Professionals in this role use data analytics to identify trends and opportunities to enhance supply chain processes for increased business efficiency.
This role requires attention to detail, the ability to work with large datasets, and strong analytical skills. A supply chain or logistics analyst must be a strategic decision-maker who is capable of planning ahead and comfortable making proactive decisions.
Logistics Coordinator or Logistics Manager
Supply chain logistics coordinators and managers oversee the transportation and distribution of goods. Their job is to ensure customers receive products on time. Logistics professionals manage warehousing operations, which requires them to coordinate with both carriers and suppliers.
A logistics coordinator or logistics manager needs key skills such as strong organizational skills and problem-solving abilities. Equally important is a thorough understanding of the methods through which organizations manage their transportation networks.
Professionals in these logistics roles must be comfortable building and maintaining relationships with third-party transportation and warehousing companies. Both types of jobs also involve managing internal and external freight providers.
Warehouse Manager
Companies that have large-scale warehouse and distribution operations rely on warehouse managers to maintain order throughout their supply chains. Amazon® is a perfect example of an organization where you can find warehouse managers.
The average Amazon fulfillment center comprises nearly 800,000 square feet and employs over 1,500 people, including warehouse managers. Warehouse managers are arguably as essential to Amazon’s business as its own customers, because these managers help to maximize customer value and satisfaction.
Many times, warehouse managers are in charge of individual distribution centers and lead all warehouse operations. These professionals oversee the processes involving how warehouses receive, store, and ship goods. Also, they ensure organizations track inventory levels accurately, manage warehouse staff, and maintain safety and security standards.
Understandably, warehouse managers need strong organizational skills and attention to detail to do their jobs effectively. Warehouse managers typically deal with large amounts of physical inventory.
They also run teams who constantly ship out orders, restock products, and organize items as inventory levels fluctuate. People who work in warehouse management roles must know how to organize and rearrange in-stock items strategically to best align with demand and product turnover rates.
A warehouse manager must also prioritize efficiency. One way to increase efficiency in a warehouse setting is to employ a well-thought-out strategy for organizing products. The faster employees can package each order, the more orders an organization can fulfill each business day.
Ideally, team members need easy access to frequently purchased items. Warehouse managers use their advanced knowledge and skills to ensure inventory is organized with efficiency in mind.
Inventory Manager
The main responsibility of inventory managers is to maintain optimal inventory levels so organizations can meet customer demand. They use production and inventory management systems to track stock levels, forecast demand, and plan replenishment. At the same time, inventory managers always look for opportunities to minimize costs.
This role involves balancing analytical skills with practical knowledge of supply chain dynamics. Materials management is another key aspect of an inventory manager’s job, especially when working in a manufacturing environment. Lack of sufficient material can shut down production and create delays, ultimately wasting time and money for the organization.
For example, my first full-time role in supply chain management was the role of inventory manager. The job seems easy to the outside world, but there was always the pressure to make sure that sufficient inventory was available.
I was once responsible for the warehouse for a dozen restaurants. I had to envision what stock would need to be available in the future and not rely on what stock was already there.
I would open our large walk-in freezer and I would see two pallets of French fries, but we only had French fry deliveries twice a week. I would order two pallets because I knew that by the time the next order came in, we would be almost out of French fries. I had to make sure to plan ahead, so that the warehouse supply of fries would never run out over the weekend.
Operations Manager
Operations managers oversee the production processes within a company, ensuring goods are produced efficiently and in alignment with quality standards. In addition to leading production planning, these professionals also manage staff and focus on process improvement as a part of their operations management role.
As a key member of organizational management, this type of manager must demonstrate strong leadership skills. Furthermore, this supply chain role necessitates a solid understanding of manufacturing processes and a commitment to excellence.
Although a supply chain management degree may help prepare you to become an operations manager, there are other disciplines you can study to pursue this line of work. For example, seeking a business degree in management may equip you with equally relevant skills to seek opportunities as an operations manager.
Transportation Manager
Transportation managers are supply chain management professionals who focus on the logistics that specifically impact shipping. These individuals share similar priorities with logistics coordinators and logistics managers, but this role has a narrow focus on transportation.
If you choose to pursue career opportunities in supply chain transportation management, you can expect to spend your workdays selecting carriers, negotiating rates, and monitoring transportation performance. Aside from strong negotiation skills, transportation managers need to have a knack for staying organized, as they are responsible for managing complex logistics.
Supply Chain Director/Vice President
An organization might refer to its supply chain leaders as “directors” or “vice presidents,” but both titles refer to professionals who oversee supply chain operations. Directors and vice presidents may report to a chief supply chain officer.
Nevertheless, these supply chain professionals hold important leadership positions. Consequently, they must develop and implement strategies that align with overall business objectives. All major aspects of the supply chain, including procurement, logistics, and inventory management, fall under the domain of supply chain directors and vice presidents.
As with all leadership roles, a supply chain director or vice president must have extensive experience and unsurpassed management skills. The ability to drive strategic initiatives is fundamental in this supply chain role. Having been in this role many times, I've discovered that the hardest part is to make permanent changes in any organization.
Supply Chain Consultant
For many companies, I have filled this role many times. For instance, I have helped multiple new cruise companies set up their global supply chain operations.
Supply chain consultants work with organizations to improve their supply chain operations. They analyze existing processes, identify inefficiencies, and recommend solutions to enhance performance.
This role often involves working on a project basis with multiple clients. It requires excellent communication skills, a deep understanding of supply chain principles, data analysis skills, and the ability to develop customized solutions.
Consider a Future in the Supply Chain Management Field
If you are interested in becoming a certified supply chain professional, a supply chain management degree can be a practical choice. Whether you prefer analytics, procurement, logistics, operations, or sustainability, pursuing a supply chain management degree can provide you with professional skills and knowledge that could be applicable to the entire supply chain. From wholesale trade to consumer goods, seeking a supply chain management degree may even give you a whole new appreciation for global business operations.
Supply Chain Management Degrees at AMU
Wherever you are in your academic journey, American Military University offers a supply chain management degree suited to your educational goals. Supply chain management students at AMU may pursue any of three degrees:
- An online associate degree in supply chain management
- An online bachelor’s degree in supply chain management
- An online master’s degree in supply chain management
In AMU’s courses for the supply chain management degree, students will learn from faculty members with real-world experience. They will also have the chance for networking opportunities so that they can learn from other professionals. In addition, students can work with AMU's Career Services team to discuss which potential supply chain management careers are most suited to their professional goals and personal interests.
AMU’s supply chain management degree programs are accredited by the Accreditation Council for Business Schools and Programs (ACBSP®). This accreditation means that these degrees are held to high quality standards.
For more information about AMU’s management degrees, visit our program page.
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ACBSP® is a registered trademark of the Accreditation Council for Business Schools and Programs.