Supply chain salaries rise
If there was any doubt, APICS confirmed recently that supply chain workers are well-compensated and enjoy what they do overall.
The 2018 Supply Chain Compensation and Career Survey Report, the first in a series of annual reports, found that nine out of 10 survey respondents saw a raise of 3 percent or more in 2017, with the average salary for supply chain professionals adding up to $85,210. That’s one of the reasons why 96 percent rated their jobs at 8.4 out of 10 on a satisfaction scale.
Factors that impact salaries in supply chain
Based on the self-reported employment data they collected, APICS also created an interactive salary calculator that supply chain professionals can use to find out how adjustments to their job title, tenure, education, certification, and other factors impact earning potential.
For example, the survey found that high demand for recent supply chain graduates was driving up average salaries for straight-out-of-college hires to the point that they now exceed salaries of workers with one to three years of tenure. Two factors that have an even more significant impact on earnings, though, are leadership abilities and certifications.
Supply chain professionals who have risen to a position where they either directly or indirectly supervise at least 50 individuals take home a base salary around 82 percent higher than front-line workers. Beyond that, completing just one certification provided a salary boost of around 19 percent on average. Two certifications correlated to a 39 percent increase and three certifications raised base salary averages by 50 percent.
Data applications in supply chain
The survey results and the calculator data have much wider applications than just offering encouraging news to supply chain workers. This is precisely the kind of long-range planning data that can prove to be invaluable for any company as it maps out the potential impacts of changes to supply chain personnel.
Data from HR can feed into enterprise forecasting and planning software for what-if testing and scenario planning, improving the quality of management decisions. This data can also help collaborative teams balance the optimal skill sets on a team with project budget limitations.
What millennials want from supply chain
From another perspective, the APICS’ data suggests that smaller, niche players in supply chain can attract top talent with benefits other than big supply chain salaries.
APICS reported that millennials enter supply chain looking for the best training grounds, with 65 percent saying they intended to take classes or adult education within the next 12 months. While only 39 percent said they felt it was important to work for a prestigious company, more than two-thirds (69 percent) said that they prioritized working with the latest technology in the supply chain field.
The number one takeaway is that demand is high for younger supply chain professionals, and that their prospects for being well-paid and happy with their jobs are good. Pay isn’t the only thing they care about though, and niche players with great training programs and the latest technology tools can still command the attention of first-class professionals in the field.
About Vanguard Software
Vanguard Software introduced its first product for decision support analysis in 1995. Today, companies across every major industry and more than 60 countries rely on Vanguard Software’s Integrated Business Planning (IBP), forecasting and advanced analytic cloud platform. Vanguard Software is based in Cary, North Carolina.