What is Supply Chain Management? Roles, Salaries, and Career Insights

Key takeaways

• Supply chain management is the coordination and oversight of the production, distribution, and delivery of goods and services to customers.

• Supply chain management is also centered around sourcing materials, identifying manufacturing partners, and coordinating deliveries and returns.

• Supply chain management jobs include supply chain manager, logistics manager, materials manager, buyer planner, and sourcing manager.

Supply chain management software includes Automatic Requisition Tracking Management Information System (ARTMIS) and various artificial intelligence (AI) tools. Discover what supply chain management is, why it's essential, and how it works. Also, explore jobs in the field, learn some of their salary expectations, and find suggested cost-effective courses that can help you advance your professional goals.

If you’re ready to build your skills for a job in supply chain management, consider enrolling in the Unilever Supply Chain Data Analyst Professional Certificate. In just four months, you’ll have the opportunity to learn about supply chain systems, data analysis, predictive analytics, and more. By the end, you’ll have earned a shareable career credential for your resume and LinkedIn profile.

What is supply chain management?

Supply chain management refers to coordinating and overseeing various activities involved in producing, distributing, and delivering goods or services from their source to the end consumer. It entails everything from sourcing the raw components for a product to delivering the final result directly to the consumer.

Part of working in supply chain management involves figuring out how your company can maximize productivity, sustain production, grow within the market, and provide the best possible convenient customer experience.

What is the concept of supply chain management?

In short, supply chain management is the complex framework and interconnected systems that ensure goods and services get where they need to go. It encompasses a broad range of activities, from harvesting raw materials to delivering finished products, and requires various parties to work together.

Supply chain managers have two key responsibilities:

1. Ensure that customers can obtain products.

2. Ensure the manufacturer can obtain the materials needed to create the product.

The consumer market can be competitive, so it's important for businesses to make sure they have products in stock when consumers want to purchase something. In addition, if a customer orders an item online and it takes too long to arrive (or worse, it never arrives), they may not order from the same company again.

To keep employers and customers satisfied, supply chain professionals must source materials, locate manufacturing partners, coordinate delivery services, and offer convenient methods for returns. Having a supply chain that maximizes productivity and efficiency gives the company opportunities to expand and keeps revenue flowing.

Read more: What Is the Product Life Cycle? 4 Stages + How to Manage Them

Why is supply chain management important?

Effective supply chain management matters for all companies that manufacture and distribute goods, services, and products because, if not managed well, supply chains can quickly break down and delay production. Delays can create internal stress and a loss of revenue. They can also lead to a detrimental loss of customers and a lower company reputation. Certain suppliers and manufacturers care about the types of companies they work for, so having a solid company reputation with reliable key players can help secure beneficial supply chain partners.

What are the key responsibilities of supply chain managers?

As a supply chain manager, you promote business sustainability and positive experiences for customers, activities essential for the business's productivity and the company's success. Supply chain management plays a key role in staying on top of the market and sustaining a loyal customer base. Trends impacting supply chain management include AI and automation, cybersecurity and risk management, and human-machine collaboration.

What are the 5 basic steps of supply chain management?

Supply chain management typically includes five critical steps: planning, sourcing, organizing, delivering, and managing. Each step has specific tasks for the supply manager.

1. Planning the supply chain network

Before solidifying any contracts with suppliers or putting the product on the market, you carefully plan each “link” in the chain. You want to ensure a seamless transition between steps and that every stakeholder knows their responsibilities. Efficiency also matters. If one component of the supply chain lags behind the others, it creates a “kink” in the chain and slows the entire production. It can also delay the product's arrival at consumers and create downstream difficulties in production.

2. Sourcing materials

The next component, sourcing the materials needed for the product or service, involves determining the supplier, figuring out how much of the supply to order, keeping track of the supply, and paying the suppliers.

You also want to see that your supplier meets the regulations needed to continue producing the product and ensure its safety for the consumer. To keep product prices within the anticipated range, supply chain managers pay attention to any price changes and monitor the pricing of alternative suppliers.

3. Organizing manufacturers

The next step involves finding the proper manufacturer for your product. This organization, company, or person turns the raw materials into the end product.

Supply chain managers arrange quality testing to ensure each product meets the expected standard, potentially from an outside organization. The manufacturer takes charge of packaging products and handing them to the delivery service, managing communications between material sourcing, manufacturing, and delivery. These three components need an established flow to keep production moving.

4. Delivery of the product

Supply chain logistics play an important role in managing product delivery. Whether you deliver to retailers or customers’ homes, the delivery service must be reliable and effective. Damaged products, delayed delivery, or incorrect orders can damage the company's reputation and lead to customer losses.

5. Managing return services

If a customer needs to return or exchange a product, it helps to have an effective and convenient return service. It reduces product waste, as other customers can receive the returned items.

Learn more about the importance of supply chain management from experts at Rutgers:

Supply chain management jobs

The modern supply chain is a complex system composed of countless interconnected parts. To ensure the process goes smoothly, management professionals worldwide perform various logistics, planning, and buying duties, often using critical tools like supply chain software to facilitate the process.

Some common jobs you can expect to encounter as you’re exploring a career in the field include:

• Supply chain manager

• Logistics manager

• Materials manager

• Buyer planner

• Sourcing manager

• Master planner

• Master scheduler

What is a supply chain management salary?

Supply chain managers ensure the timely operation of manufacturing and distribution processes worldwide and enjoy strong earning potential for their efforts. According to the US Bureau of Labor Statistics (BLS), logisticians earn an average annual salary of $80,880 [1]. This figure is significantly higher than the mean wage for all occupations in the country, which the BLS estimates at $69,770 [2].

What responsibilities do supply chain managers have?

Supply chain managers have diverse responsibilities and a wide range of job duties. While the exact job description varies depending on the company and type of industry in which you work, vital elements of a supply chain manager career typically include:

• Integrating new information and data into your company’s supply chain processes

• Managing communication between supply chain sectors

• Protecting and managing supply chain data

• Reducing human error with strategic planning

• Planning for future obstacles and developing creative solutions

• Providing accurate information to company employees

• Reducing supply chain costs and maximizing revenue

• Simplifying the supply chain when possible

• Integrating new technologies into supply chain functions

Supply chain management software

Supply chain managers use many types of software to manage different supply chain components and keep things running smoothly. In this career, you have the exciting task of finding new and useful technologies to help the company expand. As the product, market, or company grows, you can integrate more advanced software systems to keep track of large volumes of data. Building your technical skills can help you develop the knowledge base to manage large projects and add value to your company team.

Automatic Requisition Tracking Management Information System (ARTMIS)

Developed by IBM and Chemonics, ARTMIS tracks shipments throughout the supply chain. It allows supply chain managers to schedule shipments up to two years in advance and promotes long-term coordination of the supply chain elements.

Artificial intelligence

Another growing use case of supply chain management involves integrating AI and machine learning. Platforms such as BASF use these concepts to help supply chain managers make informed decisions, improve current systems, and track progress over time.

As a society, we have entered an exciting era of technological development. As your experience in supply chain management expands, you’ll quickly learn to use your creative and problem-solving skills to design innovative supply chain systems that use new technologies to improve function and efficiency. This creative thinking process helps you stay ahead of the competition and keep your organization at the top of the market.

Supply chain management trends in 2026 and beyond

Technological advancements are helping to reshape supply chain management and empower companies across the supply chain to improve request response times, make improved decisions, proactively solve problems, and reduce inefficiencies. Some of the ways emerging technology is impacting the supply chain include:

• Generative AI to enhance workflows and compliance with regulations

• Low-touch planning to reduce manual work and enhance data analysis

• Digital twins and control towers are helping aid in transparency and visibility across the supply chain

Discover free career resources

Visit our Career Resource Hub, where you can explore career paths and assess your skills. You can also check out these free resources as you consider a career in supply chain management:

• Read our Career Chat issue: Setting Your Professional and Development Goals

• Watch on YouTube: What Does an Ethical Supply Chain Manager Do?

• Take a quiz: Career Test: What Career Is Right for Me Quiz?

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