Exploring The Supply Chain Management Salary In US
A supply chain manager controls the coordination and management of tasks relating to the creation and delivery of products or services to an end user.
This involves managing the planning and execution of every process linked to the flow of goods or services. Whether it’s information, funds, raw material purchasing, or delivering the final product or service, a supply chain manager is intimately involved in making sure everything runs smoothly.
To retain top talent, companies must ensure that their supply chain manager remuneration packages are competitive. And, with companies realizing that their competitive advantage relies on a well-trained, skilled, and experienced supply chain manager, salaries are rising.
If you’re considering a career as a supply chain manager or curious about what the salary is in 2023, the information below should provide some clarity.
With demand for experienced managers outstripping supply, earnings in this field are increasing across the nation. As more experienced staff members leave on reaching retirement age, vacancies are opening up from entry-level right through to senior managers.
We’ve researched your most pressing questions and concerns regarding supply chain managers’ salaries, as well as where the highest and lowest paid jobs are located.
Factors Affecting Supply Chain Management Salaries
To ensure the efficient delivery of products and services, a supply chain manager oversees a diverse range of activities from procurement and production to transportation, warehousing, inventory, and account management.
Demand planning has become an essential skill, as it impacts customer service and, ultimately, competitiveness and profitability.
A supply chain manager who tackles these diverse functions successfully directly impacts the value of a business.
Combining this with the demand for a supply chain manager within an industry at any given time and the geographic location of a business, you can see how salaries will fluctuate. Even within businesses with very similar company structures but that are geographically diverse, salaries will differ.
Another factor that lies within your control is your educational background. This includes your choice of degree or educational path, and whether you keep abreast of industry trends, evidenced by relevant certifications combined with years of experience.
If you receive specialized training that is relevant to a specific employer, it will naturally count in your favor. This also gives you more bargaining power when negotiating your salary.
How industry choice affects supply chain management salaries
Your choice of industry will have the most profound effect on your earning capacity as a supply chain manager. For instance, companies in the research and development, manufacturing, and distribution technology fields are currently the most lucrative hunting grounds for supply chain manager jobs.
Companies involved in the following industries require well-managed supply chains to remain competitive:
- Hardware and software
- Internet services
Companies such as Apple, Microsoft, Google, Facebook, Amazon, IBM, and Intel are where you will most likely find excellent long-term supply chain manager jobs.
Healthcare is another sector where supply chain strategy is crucial to the profitability and survival of companies, translating into higher earning potential for supply chain professionals.
According to the latest information from Zippia, the median salary for a Director of Supply Chain Management in the US is $131,875 per year.
The salary range for this job is between $89,000 and $185,000.
How educational background affects supply management salaries
While entry-level supply chain managers’ salaries are good, your educational level will play a significant role in what your starting salary is and how your career will progress.
A supply chain manager who has furthered their education can expect to earn far more than one who has not. A bachelor’s degree is typically a minimum requirement for an entry-level position as a supply chain manager. A master’s degree can usually guarantee that you will secure higher-paying jobs and enjoy accelerated career advancement.
If you acquire a bachelor’s degree in a related field, such as logistics, engineering, or business, you will almost certainly increase your earning potential.
The latest data from theUS Bureau of Labor Statistics show that an Operations Research Analyst can expect to earn a median salary of $82,360 per year.
This means that half of all research analysts in operations earn more than this amount, while half earn less. The usual requirement for this position is a Master of Business Administration.
How location affects supply chain manager salary
Salaries can vary significantly based on the cost of living in any particular location. In urban areas, supply chain managers can expect to earn significantly more than someone in the same role but in a rural setting.
Apart from that, certain regions and cities have a higher demand for supply chain professionals. According to the US Bureau of Labor Statistics, Texas, California, New Jersey, and Virginia have the highest level of supply chain managers.
Why years of experience affect supply chain manager salaries
More experience generally means a deeper understanding of supply management and the problems one can expect to encounter.
Experience is invaluable to an employer, as supply chain professionals with many years behind them are usually responsible for larger teams and managing more complex projects.
How certifications and specialized training affect supply chain salaries
Employers are generally impressed with staff members who keep up to date with the latest industry trends. Not only that, but additional training shows a desire to improve and progress to senior positions with more responsibility.
It also shows that you can take charge of your career and are motivated to develop professionally; characteristics that make for a good manager and an excellent employee.
Supply chain managers who have taken the time to earn their Certified Supply Chain Professional (CSCP) or Certified in Production and Inventory Management (CPIM) certifications tend to earn higher salaries than those without these sought-after certifications.
Specialized training in other areas, such as Six Sigma, Lean, or project management, will almost certainly lead to a higher salary, as most companies place a premium on these skills.
Average Supply Chain Manager Salaries In USA
Taken as a whole, supply management salaries have shown a steady increase year on year. This is primarily due to the growing importance of supply chain management as a driver of profitability due to its effects on efficiencies throughout the value chain.
Based on figures from the US Bureau of Labor Statistics, the median annual wage was $77,030 in May 2021, with the top 10% of supply chain professionals earning above $122,200 each year.
While the past few years of economic pressure are still being felt throughout the industry, supply chain managers in high-demand industries, such as healthcare, technology, and manufacturing, are earning higher salaries than those in lower-demand industries, such as retail.
Average Supply Chain Manager Salary Comparison Table
Position Median Annual Salary (USD)
Logistics Coordinator $56,647
Purchasing Manager $83,728
Supply Chain Analyst $80,785
Materials Manager $82,988
Distribution Center Manager $101,570
Supply Chain Manager $86,042
Operations Director $143,256
Chief Supply Chain Officer (CSCO) $217,500
Supply Chain Manager Salary In Texas
According to the latest information from Indeed, the average salary for supply chain managers in Texas is $78,081 per annum.
However, this figure does not tell the whole story, as the annual salary range starts at around $51, 200 for entry-level roles in Dallas, one of the highest paying cities, and rises to around $135,000 for positions at accounting and auditing firm, PwC.
Flex and Apple pay their supply managers a salary of around $95,498 and $132,292 respectively, while Texas Children’s Hospital and Lockheed Martin’s estimated salaries are in the region of $105,000 and $85,300 respectively.
Supply Chain Manager Salary In California
Indeed gives the average annual salary for a supply chain manager in California as $84,750, with the exact figure ranging from $51,336 to $139,915 per year.
Los Angeles shows a slightly lower median salary at $81,855 per year, but the figure largely depends on applicants’ experience and the size of the company hiring.
There are some companies in California that provide higher-than-average salaries, with both Apple and Walmart offering a salary of approximately $152,000 per year. This is approximately 70% above the national average.
Other companies, such as Stryker and PepsiCo Beverages North America, offer salaries that are significantly below the national average.
Salaries for specialist roles in California are slightly higher than those of supply chain managers, amounting to around $97,325 per annum.
Supply Chain Manager Salary In Michigan
According to self-reported data from Indeed, the average base salary for a supply chain manager in Michigan is around $98,260 per year.
However, this salary level varies according to location, applicants’ experience, and specific industry.
You can expect the average salary in Grand Rapids, MI to be in the region of $58,369 per year; lower than the state average. In Detroit, MI, the average salary is $77,549 per year.
At PwC and LG Electronics, however, the average annual salaries reported lie between $115,500 and $119,000.
Supply Chain Management Salaries In Florida
Despite the more desirable weather and living conditions, the average base salary for a supply chain manager in Florida is $71,507 per year.
However, there is a wide range of salaries, with $53,779 per year in Orlando on the lower end, and $69,091 per year in Tampa.
At Walmart, the average yearly salary is $65,403; approximately 26% below the national average.
The estimated average yearly pay at Refresco is similar to that of Walmart at $64,185, which is roughly 28% below the national average.
Benefits And Perks In Supply Chain Management Jobs
Depending on your employer, the level you have reached within a company, and industry norms, you can expect a range of perks and benefits as your career progresses.
A high priority for employees with families is a health plan, followed by an employer-supported retirement plan and bonuses.
Here are some of the most common perks and benefits you’ll receive in supply chain jobs:
Many employers will offer a comprehensive health insurance plan that covers medical services and operations, dental work, and vision care for your whole family.
Most employers offer retirement savings plans, such as a 401(k), allowing you to save for your retirement.
Paid time off
Paid time off, or PTO, is time that you are given away from work for which you are still paid. This includes sick leave, vacation time, or personal time, and is usually measured in hours.
Flexible work arrangements
As supply chain management usually entails managing complex projects across multiple time zones and locations, many employers offer flexible work arrangements. These include telecommuting, flexible schedules, or compressed workweeks. This helps employees to better balance their work and home responsibilities.
Incentives, bonuses, or profit-sharing may be offered by some employers based on your job or project performance. This involves meeting certain key performance indicators (KPIs) or cost-saving goals.
Professional development opportunities
As ongoing training is crucial when it comes to performance standards, many employers will offer opportunities for you to attend professional development training programs. They may also offer tuition reimbursement for successfully completing courses or degrees. You can even receive time off to attend industry events and conferences.
Depending on the industry in which you work, you may also receive company discounts, access to wellness programs (such as gyms and wellness classes), and time off to volunteer or attend community events.
Many factors impact how much a supply chain manager earns, and salaries vary quite significantly between industries and geographic locations.
Your level of education will also determine how much you earn. Keeping up with the latest trends and industry standards helps to ensure that your performance puts you in line for increases and career advancement.
With the growth of jobs across the US and the currently aging population, salaries should continue to rise, as older employees retire and skilled replacements create more job openings.
How much do supply chain management professionals make in the USA?
Salaries vary quite substantially across industries and geographic locations. However, professionals can expect to earn anywhere between $105,000 and $136,000 per annum.
How can I negotiate my supply chain management salary?
The greater your experience and educational level, the better your chances are of securing an attractive salary package. By concentrating on your successes and highlighting how you have added value, you put yourself in a better position to maximize your salary.
What are some reputable data sources for supply chain management salaries?
The US Bureau of Labor Statistics provides regular updates on salaries, although the information can be slightly out of date. Websites like Indeed and Glassdoor offer you real-time salary information; but once again, these are self-reported figures.