supply chain management salary

supply chain management salary

The Impact of Supply Chain Management on Salary Growth

1. Introduction to Supply Chain Management

This paper begins with an overview of supply chain management, and it describes basic models, assumptions, and inherent trends. It looks at issues and functions, and then moves on to managerial practices. After discussing what pay is and the implications of the present value of money, the paper provides literature references about supply chain management salaries, before examining statistics to be used for forecasting supply chain salaries. It then applies regression analysis to develop a model of supply chain salary growth. Finally, the paper provides some observations before presenting conclusions.

Every organization frequently is confronted with situations where it requires buying items, shipping goods, and receiving services. A supply chain is a network of businesses connected through resource and procurement processes that significantly contribute to the activities and functions within an organization. Supply chain management is the challenge of managing the functions and variables present within the realm of supply chains, for businesses and industries to run efficiently and competitively. Most operational activities, including manufacturing, procurement, sales, service, R&D, and finance, have input into the supply chain. Individuals have some responsibility in the supply chain. Goods are available for use, but in a competitive market, businesses that are able to manufacture and satisfy demand with goods through the supply chain have the competitive advantage.

2. Factors Influencing Salary in Supply Chain Management

This data was then treated as a dependent dataset, and a unique subset of actual salary data by position, education, and experience was generated using compensation mechanisms that have been suggested in the literature. Then, a multiple regression analysis was conducted using the panel data and actual salary data to evaluate the model. Each potential factor was then individually tested in this exploratory salary model, except that long-term career growth, supply chain solutions or professional retention strategy, benefits, and area pay differentials were not examined because there were no historical compensation data to support these inquiries. In addition, hypotheses were developed accordingly, and for those contributing factors that were consistent with hypothesis predictions, the results are of practical significance to employers and designed to further stimulate discussion concerning the impact and forecasting of supply chain management applicants’ retention, wage compression, and pursuing supply chain management as a career.

As pointed out in Chapter, a wealth of research initiatives exists that examine salary determinants in the literature. Following this tradition, a wealth of supply chain management (SCM) studies have been reported that identify SCM education, experience, and certification as important applicants’ general qualifications. On the other hand, we have previously asserted that although these SCM credentials should have influenced job placement, packages, and candidates’ salary growth in SC-related occupations, at this point no research has been undertaken to cover these important research gaps. Utilizing a unique empirical approach, this study established an exploratory, SCM-specific salary model in order to assess what factors influenced salary growth during a period of overall national salary decline (October 2007 to October 2008). To do that, international supply chain management candidates placed in the United States were identified by a leading SCM recruitment firm, and a unique prospective dataset was collected that contained the individual candidates’ required SCM credentials, the SCM position information (salary and year, education, experience, and certification required), the potential salary range candidates were seeking, and relevant personal information.

3. Trends and Innovations in Supply Chain Management

1.2 Collaborative Solutions Technological progress, particularly in what concerns ICT and AI, has permitted and enabled a more and more widespread diffusion of supply chain management. This, along with other factors, such as the increased complexity of sourcing strategies versus efficient responses for demand satisfaction, has led to an evolution of the supply chain management concept. The growing importance of suppliers and, in particular, the increasing relevance covered by the relationships with suppliers themselves, enabled the development of the concept of supplier relationship management.

1.1 Integrated Solutions Supply chain management is more than the mere coordination or incorporation of different trading partners. It also includes the integrated planning, controlling, and monitoring of all the activities performed by different trading partners. Many recognized tools and methods within the supply chain management itself represent integrated solutions that should ideally be followed by the entire network of partners. So, the planning of resource needs at the different operational levels, the distribution planning, and some inventory management models include all the negative externalities arbitrated among different network trading partners.

4. Case Studies and Success Stories

In these cases, we define a strategic revitalization of a traditional manufacturing function overlooking contract manufacturing operations, a union of two companies with differing philosophies, a corporate opportunity to apply an exceptional IT resource, and the establishment of a powerful channel for communicating corporate strategy. Because lecturers in this area are limited in their discussion of this function to a variety of traditional functions, it is easy to assume that very little that is new has developed in this area. The strategic situation began back as many as 25 years ago when the International Sales function had increasing difficulties achieving the precise on-time-in-full delivery demands of the newer, smaller, and often more Asia-based customers more cost-efficiently than other identified sources.

In this section, we present five real-world supply chain management situations. All people growth and salary increase used original data collected by a consulting company. “The more interesting to explain the cases or outcomes was that the reason supply chain management caused salary rate growth varied significantly. The variety of these cases also suggests that while better than average salary increases occur most frequently for those who various successful supply management models a broad range of approaches may be utilized. So the one-size-fits-all description of supply management could be somewhat more nuanced to avoid raising false expectations.”

5. Conclusion and Future Outlook

Results revealed that the knowledge and skills are the most critical factors on the salary of a supply chain professional in this country. However, it is seen that there is an experience-based premium effect; there is a stronger demand for the supply chain professionals with more certification and experience, as they will have more skill and knowledge. On the other hand, weak results have been obtained from the industry-based antecedents. In conclusion, employer’s concentration and working in a developing industry are negatively related to the SCM salaries. Future works can include other antecedent variables or can use VAR modeling method to measure the relationships between salary and these antecedent variables. A measurement of the functional independence variable can be examined with a variety of variables on different levels for employer’s concentration and government support reducing its decision contributing capability.

The supply chain management profession is a continuously growing profession. Therefore, we have to take a holistic approach to any topic concerning the SCM profession to manage this profession in an effective and efficient manner. The main objective of the study is to analyze which factors affect the salary in the supply chain management profession and assist future supply chain professionals in increasing their personal benefits. For this purpose, we have used several variables as antecedents. Besides the basic human capital variables, we have enriched the basic occupational data with several other impacts such as skills, knowledge, experience, and knowledge-related certification of the individuals. The constructed model is then applied to a unique sample of individuals from a European country.