Supply Chain Manager: Tasks, Skills, and How to Become One

Key takeaways

Supply chain managers help businesses overcome logistical challenges by driving efficiency and lowering manufacturing and distribution costs.

• Supply chain managers earn a median annual salary of $80,880 and expect a job outlook of 17 percent from 2024 to 2034 [1]. 

• As a supply chain manager, you manage distribution, negotiate with suppliers, vendors, and customers, and use data analytics for forecasting. 

• You can become a supply chain manager by earning a bachelor’s degree in a relevant field and gaining experience in entry-level roles.

Gain insight into this high-growth job and learn how to become a supply chain manager. If you’re ready to start building skills to become a supply chain manager, try the Unilever Supply Chain Data Analyst Professional Certificate to learn more about the role, how to find costs and improve efficiencies, and how to work with data. 

What is a supply chain manager?

Supply chain managers oversee the different stages in the supply chain lifecycle, including planning, sourcing, manufacturing, delivery, and returns. At larger companies, they may be tasked with focusing on just one or two stages.

Supply chain managers typically work in an office environment where they can oversee day-to-day operations, either at a company’s headquarters (with other departments) or near the production facility itself. They may occasionally travel to other manufacturing sites or visit new vendors to find raw materials suppliers.

How much does a supply chain manager make? 

Supply chain manager salaries will depend on the amount of experience you have, your location, and the industry you specialize in. The annual media salary for supply chain managers is $80,880, according to the US Bureau of Labor Statistics, and job growth for this role is much higher than average at 17 percent [1].

What does a supply chain manager do?

As a supply chain manager, you’ll manage teams and lead the strategy toward more efficient, cost-effective production timelines. Here’s what you can expect your day-to-day tasks to be:

• Managing the manufacturing and distribution processes

• Working with procurement managers, buyers, and vendors to source the right materials or products

• Negotiating contracts with suppliers, vendors, contractors, and customers

• Utilizing software to track goods from the factory to the warehouse

• Using data analytics to forecast demand for inventory, analyze the performance of products, and measure against the economy (and other factors)

• Cutting costs at every level while maintaining quality and meeting sustainability targets

• Developing new and existing relationships with suppliers and partners

• Innovating the supply chain process and efficiency

• Staying abreast of trends and developments in the sector and technologies

Skills to be successful in supply chain management 

Keeping a supply chain functioning optimally requires a combination of skills, including forecasting to predict customer demand and customer service to ensure their needs are met. The following skills can help you build relationships, monitor supplies, streamline processes, and improve the company's profitability.

1. Negotiating

A big part of managing a supply chain is negotiating with suppliers, vendors, and other parties to secure the best product and material prices, time scales, and profit margins. One way to hone your negotiating skills is by planning and implementing an effective negotiation process. This allows you to practice managing tension so you develop and maintain a positive relationship with third parties. You also may find it helpful to practice your negotiation skills by role-playing real-world scenarios with colleagues.

2. Accounting and budget management

A supply chain manager must keep on top of costs to make sure financial targets are met and the business turns a profit. To do this, you set budgets, keep accounts to track profits and waste costs, and ensure you purchase products and materials at a price that gives a good profit margin. Being able to demonstrate that you know how to budget and manage accounts is an important part of securing a role as a supply chain manager.

3. Economics

Managers of all types must have a good basic understanding of economics to be effective and competitive. You'll need to keep up with industry trends to stay ahead of market demands and meet customer needs. You can do this by discussing the current market with other professionals in your industry, reading industry websites and publications regularly, and even keeping up with the general news daily. 

4. Logistics

To work in supply chain management, you must demonstrate your understanding of logistics. Logistics relates to coordinating the movement and storage of goods and often involves analyzing data to maximize profit. You can make your organization's supply chain more efficient by using analytical thinking and technology tools.

5. Communication

Because supply chain management is a collaborative role that involves many moving parts, communication skills are essential. You're often responsible for providing information for your vendors, customers, and colleagues. This often means explaining complex processes so that anyone can understand them. 

You'll want excellent written and verbal communication skills, including presentation skills, group discussions, and one-on-one conversations.

6. Decision-making

Management roles are responsible for making important decisions, and supply chain management is no exception. The role involves making big decisions that can impact the entire business, and you need excellent problem-solving skills to support the decision-making process. Using available data, you'll also need to make quick decisions. Developing good decision-making skills in this role involves:

• Identifying supply chain problems

• Thinking of potential solutions

• Analyzing data

• Considering laws and regulations

• Paying attention to competing priorities

• Collaborating with colleagues, stakeholders, and third parties

7. Time management

Managing supply chains requires someone who is organized, efficient, and has excellent time management skills. With various processes involved, you must manage your time well, know how to prioritize, and keep deadlines. It's also important to ensure products arrive within a specified timeframe, which incorporates logistics as well. Setting goals and breaking large tasks into smaller ones will help you achieve this.

Popular supply chain manager tools

Supply chain managers rely on a diverse stack of tools to oversee the movement of goods from raw materials to the final consumer. This can include:

Enterprise resource planning (ERP) systems

ERPs are the "central nervous system" of a company. They integrate various departments—finance, HR, and sales—with the supply chain.

Common tools

• SAP

• S/4HANA

• Oracle NetSuite

• Microsoft Dynamics 365

Warehouse management systems (WMS)

WMS tools optimize everything that happens inside the four walls of a warehouse or distribution center.

Common tools:

• Manhattan Associates

• Blue Yonder

• Fishbowl

Transportation management systems (TMS)

These tools focus on the movement of freight. SCMs use them to find the most cost-effective and timely ways to ship products.

Common tools:

• Oracle TM

• MercuryGate

• Kuebix

Demand planning and forecasting software

SCMs use these to predict how much product they need to produce or order to meet future customer demand without overstocking.

Common tools:

• Kinaxis

• Logility

• Relex

Data analytics tools

Because supply chains generate massive amounts of data, managers need tools to turn that data into actionable insights.

Common tools:

• Tableau

• Power BI

• Qlik

Digital transformation in supply chain management

Digital transformation is a hot term in supply chain management. Consultants may be hired to conduct an audit and craft a customized roadmap toward digital supply chain management. Check out the course Digital Transformation from the University of Virginia's Darden School of Business and Boston Consulting Group.

How to become a supply chain manager

If you're interested in a career as a supply chain manager, follow the steps below to get started.

1. Build a foundation in business or analytics.

While 70% of supply chain managers hold a bachelor’s degree, the field has shifted toward data-heavy disciplines [2]. Degrees in supply chain management, logistics, or industrial engineering are standard, but degrees in data science or business analytics are becoming increasingly competitive.

2. Master key tools.

Supply chain management is increasingly about managing data. Focus on familiarizing yourself with the specific tools that drive the modern lifecycle:

• ERP proficiency: Gain exposure to systems like SAP or Oracle.

• End-to-end analytics: Learn to use Power BI or Tableau to visualize supply chain bottlenecks.

• Excel mastery: Advanced functions (PivotTables, VLOOKUPs, and Macros) remain the industry's "language" for quick modeling.

3. Gain experience.

While possible, it's rare to begin as a supply chain manager. Instead, you must prove you understand the physical and digital flow of goods. Look for entry-level roles, like supply chain analyst, that offer more exposure to the entire process:

• Supply chain analyst: Focuses on the data and identifying inefficiencies.

• Procurement specialist: Focuses on the buy side and vendor relationships.

• Logistics coordinator: Focuses on the move side and transportation.

4. Consider earning a certification.

In this line of work, earning a supply chain certification is often a smart investment, verifying your skills and adding a valuable credential to your resume.

• APICS: The CPIM (Certified in Planning and Inventory Management) is the gold standard.

• Six Sigma: A Green or Black Belt proves you can eliminate waste and improve process ROI.

• CSCMP: The SCPro certification covers the end-to-end global supply chain.

5. Strategize for promotion.

Moving from an individual contributor to a manager requires a shift from simply executing tasks to optimizing them.

• Quantify impact: Document the different impacts you've had across the lifecycle. For example, how you reduced lead times by 15 percent or saved $50,000 in shipping costs.

• Internal networking: Build relationships with cross-functional teams like finance and sales. A supply chain manager's success depends on how well they communicate with departments outside of logistics.

Explore our free resources for supply chain professionals

Subscribe to our Career Chat newsletter on LinkedIn for industry insights, career tips, and skill-building resources. Then, explore our free resources for supply chain professionals:

• Build new skills: Data Analysis Terminology | Coursera 

• Take a quiz: Microsoft Excel Skill Assessment 

• Watch on YouTube: Exploring the Supply Chain Career Path: From Entry-Level to Senior Roles

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