If you earn a degree in supply chain management, you will learn about everything about what goes into a company’s supply chain: production, shipment, and distribution of products. Supply chain management covers everything from inventory to sales, and is a vital part of any business that makes and sells any type of product. Given that so many companies have operations around the world today, a supply chain professional with this degree will be in great demand.
Sponsored School(s)
To get a better idea of what kind of salary you can earn in this field, this article details the following factors that affect one’s salary in supply chain management:
- Whether you obtain a bachelor’s or master’s degree in supply chain management
- The type of career you select with your supply chain management degree
- How many years of work experience you have
- Industry
- Geographic location
Once you have all this information, you can get a better idea what your potential salary can be with a supply chain management degree.
Featured Online Programs
Online Bachelors of Global Logistics – Arizona State University
- Learn skills needed to develop strategic business processes for logistics management and an understanding of their relationship to the global distribution of goods and services.
- ASU Online Ranked Among Best Online Programs in Nation by U.S. News & World Report.
- 87% of ASU graduates get job offers within 90 days.
Online Master’s/MBA/Bachelors in Operations & Supply Chain – Southern New Hampshire University
- As a private, nonprofit university, SNHU has one mission – to help you see yourself succeed
- Ranked as ‘Most Innovative University” in North by U.S. News
- Centered on nine core business courses and three operations and supply chain management course elective
- No GRE Required for Graduate Admissions
Level of Supply Chain Management Degree
There is ample academic research suggesting that master’s degrees in supply chain management give you a higher salary than with just a bachelor’s degree in supply chain management. According to a 2015 study by Georgetown University, college graduates with a bachelor’s earn an average salary of $61,000 over their entire career, while those with a master’s degree earn $78,000.
That survey also found the following business areas enjoyed higher salaries specifically:
- Finance: $73,000 vs. $101,000
- General business: $65,000 vs. $89,000
- Business management and administration: $62,000 vs. $81,000
- Marketing and marketing research: $63,000 vs. $81,000
The Bureau of Labor Statistics also reports that logisticians – a supply chain management related job – earn a $54,000 median annual wage with a bachelor’s and $82,000 with a master’s. Thus, the evidence suggests that earning a master’s degree in a business related field such as supply chain management can net you a higher salary each year of your career.
One of the more popular options for a degree in this area is an MBA with a concentration in supply chain management.
Types of Supply Chain Management Careers
The occupation you select with your supply chain management degree will affect your salary. Below are some of the common career options with a supply chain management degree and the salary potential for each position.
Supply Chain Manager
A supply chain manager is responsible for the logistical details of a company or division of a company. It is the job of the supply chain manager to manage the many steps needed to buy raw materials, deliver them to various points of the company and to ensure the company has enough product and materials to meet demand.
Supply chain managers are in charge of oversight of the import and/or creation of raw materials that are used by the business. They need to track the materials as they are shape, combined and altered to create products. Also, they need to monitor these items through the product development phases to ensure enough product is available. Supply chain managers also need to develop a system of delivery that ensures that a regular stream of products can be delivered to all different points on the map, according to demand. See 10+ best online supply chain degree programs.
Payscale.com reports the median salary for supply chain managers in the US is $81,414, with a range between $49,000 and $121,000. Factors that influence the range include the company, geographic region, years of experience and degree.
Logistician
A logistician is responsible for analyzing and coordinating the supply chain for a company. A logistician managers the entire life cycle of a product, which includes how it is acquired, allocated and delivered to customers. Logisticians are responsible for the oversight of many important company activities, including purchasing, transportation, inventory, and warehousing. Logisticians also may be responsible for directing how goods, supplies and people are moved from place to place. See 10+ best online logistics degree programs.
Logisticians are trained to use software systems to track and plan how products and materials are moved about. These programs are designed to manage vital logistical functions, such as inventory management, procurement and other supply chain planning.
The Bureau of Labor Statistics reports the median salary for logisticians is $74,500 as of 2017. The top 10% earn $120,000 per year, and salaries break down by industry as follows:
- Federal government: $84,200
- Professional, technical and scientific services: $74,700
- Manufacturing: $74,500
- Management of companies and enterprises: $74,100
- Wholesale trade: $65,400
Operations Research Analyst
Operations research analysts are experts in the use of advanced mathematical and analytical methods to assist companies in solving logistical problems and to make better business decisions that result in making more money.
Operations research analysts are involved in every part of an organization to help managers to determine how to best allocate resources. They also help them to develop production schedules, manage supply chains efficiently and set prices. An operations research analyst may help a supermarket, for example, determine the best ways to organize products in the aisles to increase profits. See 10+ best operations degree programs online.
These supply chain professionals are skilled in the use of computer software to analyze and solve complex supply chain problems.
BLS states the median salary for operations research analysts is $81,390 as of 2017. The top 10% earned up to $134,000. Salaries in various industries break down as follows:
- Federal government: $111,500
- Manufacturing: $90,100
- Professional, scientific and technical services: $85,100
- Management of companies and enterprises: $82,400
- Finance and insurance: $80,800
Supply Chain Management Work Experience
How many years you have worked in an industry will always have somewhat of an effect on your salary. As you work more, you develop more specialized skills and experience that results in higher pay.
For example, Payscale.com reports the following salary levels for supply chain managers based upon years of experience:
- A supply chain manager with less than five years of experience makes an average salary fo $65,000.
- A supply chain manager with five to 10 years of experience makes an average salary of $83,000.
- A supply chain manager with 10 to 20 years of experience makes an average salary of $92,000.
- A supply chain manager with more than 20 years of experience makes an average salary of $93,000.
Supply Chain Industry
The industry in which you work will have an influence on the type of salary you earn. For example, Payscale.com reports the following salary ranges for supply chain managers in companies in different industries:
- US Air Force: $120,000 to $142,000
- Lockheed Martin Corp: $66,000 to $122,000
- Apple Computer: $90,000 to $121,000
- US Marine Corps: $97,000 to $138,000
- Amazon: $90,000 to $135,000
- Dow Chemical: $98,000 to $114,000
- St Vincent Charity Hospital: $53,000 to $63,000
Geographic Location
Where you live in the United States is the last major factor that affects a supply chain management degree salary. Payscale.com reports the median salary for supply chain managers across the US is $83,300. But the pay difference by location can vary widely above or below that median:
- San Jose CA: +42%
- Atlanta GA: +14%
- San Francisco: +11%
- Philadelphia: +10%
- New York City: +6%
- Dallas TX: -2%
- Cleveland OH: -3%
- Denver CO: -4%
- Seattle WA: -11%
- Miami FL: -18%
The information on this page illustrates the vital factors that affect salary leve with a supply chain management degree. Review these different factors with car as you choose your career, and you will have a better idea of your earning power in future years.
References
- The Economic Value of College Majors. (2015). Retrieved from https://cew.georgetown.edu/cew-reports/valueofcollegemajors/
- Should I Get a Master’s Degree? (2015). Retrieved from https://www.bls.gov/careeroutlook/2015/article/should-i-get-a-masters-degree.htm
