Supply chain management is one of today’s fastest growing fields, but it’s also one of the fields beset by the biggest challenges. CEO Magazine’s research highlights the importance of strategic supply chain management and logistics as a top priority in the C-suite, noting its potential to significantly increase market share and create a competitive advantage. With this growing prioritization of the supply chain comes a myriad of opportunities for management-minded professionals. This field can be highly rewarding, bringing the satisfaction of problem-solving along with numerous opportunities for career growth.
In this guide, we will pull back the curtain on supply chain management and reveal why it’s such a promising occupation. This means answering a few key questions: what is supply chain management and what does a supply chain manager do?
Keep reading to learn what it takes to thrive in supply chain management and how an online supply chain management degree can enhance this already exciting career path.
What Is Supply Chain Management?
Supply chain management provides cross-functional strategies and solutions for handling the flow of goods, extending from raw material acquisition to order processing and product shipment. This field brings structure to complex processes, offering a centralized strategy for streamlining essentials such as sourcing, production, and distribution.
Key Components of Supply Chain Management
Many elements coalesce to form a functional supply chain and, with successful SCM, these components work together seamlessly to promote the big picture of a streamlined and cost-effective flow of goods. Essentials include:
Procurement
Procurement determines how critical goods and services are acquired. This may involve supplier identification and contract negotiation. This plays heavily into the full scope of the supply chain, as procurement determines supply availability and can also have a huge impact on product pricing.
Production
Once necessary supplies have been acquired, products need to be designed, manufactured, and tested. Simply put, the production stage ensures that raw materials become finished products. This phase also encompasses quality control, with inspections and auditing limiting the potential for errors or defects.
Inventory Management
Following product assembly, items may need to be held in inventory before they are ready to ship. Effective inventory management ensures that the right products are accessible at the right times, thereby reducing the likelihood of stockouts. This can be a delicate balance, as there are significant costs associated with keeping items in inventory. Still, there is also a strong need to meet high customer expectations regarding shipping and delivery.
Transportation and Logistics
Supply chain processes call for multiple facilities or locations, each of which serves a distinct function. This includes the acquisition and assembly of raw materials or secure storage within warehouses, and delivery to retail locations or directly to customers. Transportation and logistics determine the movement of critical materials and finished products, ensuring that they get from point A to point B efficiently and in excellent condition.
Demand Planning and Forecasting
Forecasting models make it possible to predict shifts in supply and demand. From there, enterprises can plan accordingly, ramping up production to meet anticipated increases in demand or scaling back as necessary to limit expenses.
Order Fulfillment
The order fulfillment process begins the moment an order is received and processed, with effective fulfillment ensuring that customers receive the right items when and where they’re expected. Picking, packing, and shipping are critical components of order fulfillment.
Customer Service
Optimizing order fulfillment can go a long way toward keeping customers happy, but they should also be given plenty of opportunities to reach out and discuss their concerns. Responsive customer service ensures that inquiries are addressed and resolved promptly. This can have a huge impact on customer satisfaction and may even overcome errors that occur at other points in the supply chain.
Returns Management
Generous return policies can give customers a greater sense of control, but returns must be handled strategically to ensure that customers feel cared for and respected. Successful returns management determines how unwanted items are sent back to the seller and whether customers receive anticipated refunds or exchange opportunities.
The Role of SCM in Business Operations and Customer Satisfaction
Supply chain management plays an instrumental role in shaping customer perceptions and has huge implications from an operational perspective. The positive outcomes of effective supply chain management include:
Efficiency and Cost Reduction
Leaders are always seeking new and effective ways to make the supply chain more efficient. Standardization, automation, and high utilization coalesce to help enterprises do more with less. The result includes dramatic improvements in operational efficiency, leading to higher profit margins.
Quality Control
Through real-time visibility and systematic inspections, enterprises can leverage SCM processes to avoid errors and improve accuracy across all areas of the supply chain. This can boost customer satisfaction, as today’s discerning consumers demand to receive the right items at the right time and in exceptional quality.
Agility and Flexibility
An agile supply chain can swiftly adjust to seemingly sudden changes in demand. Agility also limits vulnerability in the event of large-scale market concerns such as labor shortages or national disasters. SCM promotes agility by facilitating data-driven decision-making, with real-time visibility revealing when new concerns arise and analytics helping leaders pinpoint the most effective solutions.
Timeliness
Today’s consumers expect that orders will be processed and shipped within mere days or even hours. Businesses can only meet these heightened demands if they maintain highly efficient supply chains. Every second saved while picking, packing, and shipping will promote greater satisfaction and a lean, cost-effective supply chain.
Innovation
Supply chain management thrives on innovation, with data-driven technologies entering the field at breakneck pace. Numerous disruptive solutions are initially developed for supply chain purposes before making the leap to industries such as agriculture, healthcare, and even real estate.
Sustainability
Data-driven supply chain processes provide exciting opportunities to limit waste and improve sustainability. Top goals involve reducing natural resource consumption, limiting emissions, and sourcing locally to avoid excessive transport.
Is Supply Chain Management a Good Career?
The answer to this question largely depends on your personal qualities and professional priorities, but, from the standpoint of demand and earning prospects, the answer is a definite “yes.” Supply chain management can be a wonderful career path that includes opportunities for advancement. Below, we’ve highlighted a few of the most compelling reasons to pursue a career in supply chain management:
High Demand for SCM Professionals
There is significant demand for supply chain management (SCM) professionals, driven by several key factors:
- Globalization and E-commerce Expansion: The e-commerce sector’s exponential growth is driving demand for efficient supply chain management (SCM).
- Business Operations Necessity: SCM is essential for enhancing operational efficiency and improving customer satisfaction, offering one of the most cost-effective methods to gain a competitive edge.
- Resilience and Risk Management: Recent supply chain disruptions underscore the importance of having responsive and robust systems. SCM professionals are increasingly valued for their ability to manage risks and maintain operations under challenging conditions.
Diverse Career Paths
Supply chain management is a diverse field that provides many ways for professionals to leverage their unique skills and passions. While it is common to frame career planning by asking “What is a supply chain manager?” there are several ways to make a difference in supply chain management and logistics. Compelling job opportunities include:
- Supply chain analyst
- Procurement specialist
- Operations manager
- Quality assurance coordinator
Advancement Opportunities in the Field of SCM
With the right skills, experience, and credentials, SCM professionals can quickly climb the career ladder, moving into compelling specialty or management positions such as:
- Supply Chain Manager
- Director of Operations
- Chief Supply Chain Officer
How to Become a Supply Chain Manager
Because there is such high demand in supply chain management, this is an excellent time to enter the field and make the most of emerging job opportunities. Follow these suggestions to streamline your career path and capitalize on professional development and networking opportunities.
Pursue the Relevant Education
It takes a comprehensive skill set to succeed in SCM. This is best obtained while completing a supply chain management program online.
Any program that touches on managerial accounting, project management, and change management will prove valuable. Still, the targeted Bachelor of Business Administration in Supply Chain Management provides an even better opportunity to develop relevant skills and enhance your resume.
Develop Key Skills
Supply chain management calls for a unique blend of soft, technical, and leadership skills, along with the ability to apply these skills in a variety of challenging or high-pressure situations. Skill development will ideally occur under the guidance of a targeted supply chain degree program, which should touch on managerial accounting, project management, process mapping, and decision modeling.
Gain Practical Experience
Practical experience allows aspiring SCM professionals to synthesize newly developed management and technical knowledge, revealing how this plays out in real-world business operations. For some students, this is best achieved through internship experiences, which provide an up close and personal look at the field of supply chain management and function as amazing networking opportunities.
Earn Professional Certifications
Degrees provide a solid start, but professional certifications are also important for conveying competence. Many top certifications are granted by the American Society of Supply Chain Management. Examples include:
- Certified Supply Chain Professional
- Certified in Logistics, Transportation, and Distribution (CLTD)
- Certified in Production and Inventory Management
Rigorous SCM coursework provides ample preparation for the most challenging certification exams, although self-study will also prove necessary.
Online Supply Chain Management Degree Programs
The Bachelor of Business Administration in Supply Chain Management provides an excellent opportunity to break into an exciting field. However, depending on your schedule or location, conventional in-person programs may not be realistic. Thankfully, it is possible to develop crucial skills while maintaining a desirable school-life balance. The secret? Pursuing an online supply chain management degree.
Program Outcomes
A bachelor’s degree in supply chain management equips students with a comprehensive understanding of management concepts essential for success in the supply chain field. This well-rounded education prepares aspiring SCM professionals to manage and execute critical processes, from procurement to order fulfillment, effectively. Upon graduating, students should understand how to facilitate an efficient supply chain while also aligning SCM processes with corporate objectives.
Core Business Courses
Like most Bachelor of Business Administration programs, the BBA in Supply Chain Management provides a comprehensive overview of fundamental concepts and practices, such as accounting, business analytics, and organizational behavior. Spanning 54 credit hours, these core courses provide a solid foundation, including transferable skills that help supply chain professionals thrive in a variety of fields.
Supply Chain Management Courses
In addition to completing foundational business courses, pursuing a supply chain degree online means diving into career-centric concepts like procurement, quality controls, and lean systems. Major-specific courses provide 36 hours of focused, career-driven study, along with a myriad of opportunities to apply critical skills through compelling projects and hands-on learning experiences. These courses include:
- Fundamentals of Project Management
- Manufacturing, Planning and Control
- Procurement and Supply Chain Management
- Decision Modeling in Supply Chains
Business Electives
Depending on your interests or career plans, you may feel drawn to these electives that align with your unique goals. Look for a program that provides the freedom to pursue specialized coursework, such as:
- Introduction to Entrepreneurship
- Web Design and E-Commerce
- Industrial Organizational Psychology
Get Started with a BBA in Supply Chain Management at Baker
Are you ready to make your mark in the growing field of supply chain management? Prepare for a rewarding career as you pursue your Bachelor of Business Administration. Reach out today to learn more about the supply chain management program at Baker College.