03/05/2025
What is Supply Chain Management?
According to The Association for Supply Chain Management, Supply Chain Management (SCM) is defined as "the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally."
It's a vital organizational function with a goal to improve efficiency, reduce costs, increase customer value and enhance the performance of the whole supply chain operations.
Supply chain management is a critical business function. It involves coordinating processes and leveraging technology to streamline the distribution of goods.
Supply chain management encompasses various functional areas, including strategic sourcing, global procurement, contract management, inventory control and business performance improvement.
Key parts of SCM may include:
- Procurement: Sourcing materials or components for production.
- Production: Managing the overall process of turning raw materials into the finished products.
- Logistics and distribution management: Overseeing transportation and storage of the goods to the right location at the precise time.
- Inventory management: Monitoring stock to meet demand without overstocking or running short of items.
- Demand planning: Predicting customer demand to make sure supply can meet it efficiently.
- Supplier and partner management: Working with suppliers, vendors and business partners to ensure smooth operations.
- Technology and information systems: Utilizing software and technologies to manage and oversee the flow of goods and track inventory.
Benefits of a Supply Chain Management Degree
A supply chain management program may be a way to distinguish you in the marketplace and prepare you for a career in SCM. We outline a few personal and professional benefits of pursuing a supply chain management degree:
- Career demand: SCM professionals may be in high demand depending on the industry, its location and position type. Note: Demand for SCM professionals can vary by industry, location, and position type. Economic conditions and regional factors may lead to fluctuations over time.
- Career advancement: Graduates with a supply chain management degree may pursue roles such as sourcing manager, logistics planner, or supply chain analyst, depending on their qualifications, experience, and market demand.
- Global career prospects: Many supply chain management companies operate on a global scale and skills learned in a SCM program may transfer internationally. This may open up more opportunities for those looking to work for multinational companies.
- Problem-solving and strategic thinking: A SCM degree program may offer core classes where they must solve complex problems, manage operations and think strategically about improving processes which may prove to be helpful in a business setting.
- Diverse industry opportunities: Supply chain professionals may apply to numerous types of industries like healthcare, automotive, technology, consumer goods and more.
Supply Chain Management Degree Programs
There are many degree types that work well for those with an interest in supply chain management.
- Associate degree: Associate of Arts of Associate of Science
- Bachelor's degree: Bachelor of Business Administration, Bachelor of Science, or Bachelor of Arts in Supply Chain Management
- Master's degree: Master of Science or Master of Business Administration
- Doctoral degree: Research-focused, often Ph.D. or DBA
- Certifications, online degrees or dual degrees are also available
Common Core Course Offerings for Supply Chain Management
A supply chain management degree program may include courses in introduction to supply chain management, operations management, inventory management, procurement and sourcing, supply chain analytics, supply chain field, and logistics and transportation.
Others may include:
- Global supply chain management
- Demand planning and forecasting
- Supply chain risk management
- Sustainability in supply chain management
- Supply chain information systems
Supply chain management students may also learn about the concepts of supply chain management, including its importance, critical components of supply management, and various stages from procurement to distribution.
Other related courses may include supply- chain management majors, technologies, six sigma, and business performance improvement.
Typical Career Paths for Supply Chain Managers
Supply chain management may offer many different career paths within a wide range of industries. Common career options may include:
- Logistics management
- Procurement or purchasing manager
- Inventory management
- Supply chain analyst
- Supply chain planner
- Warehouse management
- Supply chain consultant
- Operations management
- Sustainability manager
- Chief supply chain officer
Skills and Qualities of Successful Supply Chain Managers
Supply chain managers need to have a diverse set of skills, including negotiation, planning project management, and strategy development.
- Leadership and management: Lead teams and driving improvements across the supply chain.
- Analytical and problem-solving: Ability to analyze data and resolve issues quickly.
- Technology proficiency: Familiarity with enterprise resource planning (ERP) systems, data analytics, and supply chain software.
- Negotiation and communication: Effective communication with suppliers, customers, and internal stakeholders.
- Global awareness: Have the ability to understand international trade regulations, cultural differences, and global supply chain challenges.
Choosing A Supply Chain Management Program
Just like any other undergraduate degree program for supply chain management students, be sure to evaluate several different factors before taking the next big step. Here are a few things to consider:
Clarify your career goals: Figure out whether you’re more interested in the operational, strategic, technological, or international aspects of supply chain management.
Research thoroughly: Compare various programs on factors such as accreditation, reputation, faculty, internship opportunities, and alumni success. Look for programs that offer experiential learning opportunities, such as internships and capstone projects.
Sustainability in the Supply Chain
Sustainability is an integral part of supply chain management, considering waste management and energy use in daily company functions and supply chain activities.
Supply chain managers and must understand that a company’s impact goes beyond the business goals of maximizing return on investment capital.
A successful full supply chain strategy takes the full breadth and depth of a company’s impact into consideration from the outset. However, challenges such as cost, complexity, and resistance to change may be addressed through careful planning, collaboration with industry leaders, and investment in innovation.
Some key components of sustainability in a supply chain may include:
- Environmental sustainability: This may look like reducing energy consumption in manufacturing, minimizing waste from techniques, reducing greenhouse gas emissions by sourcing materials sustainably.
- Social sustainability: This may include fair labor practices like fair wages, community engagement, encouraging a diverse workforce, providing clear information about labor conditions and sourcing practices.
- Economic sustainability: This may look like balancing sustainable initiatives with profitability, diversifying suppliers to reduce dependence on single sources, or moving away from a traditional linear model.
Industry Connections and Experiential Learning
Industry connections and experiential learning may enhance an educational experience and provide students with hands-on learning, advanced knowledge and a deeper understanding of industry practices.
Look for degree programs that offer industry connections and experiential learning opportunities, such as internships and capstone projects. Consider programs that have strong ties with the Supply Chain Executive Consortium or other industry organizations.
Preparing for a Career in Supply Chain Management
To prepare for a career in supply chain and logistics management, consider higher education, developing practical skills and industry experience.
- Pursue relevant education
- Develop key skills
- Practical experience
- Stay current with industry trends
- Build a professional network
- Consider specializing within supply chain management
- Consider global opportunities
- Set long-term career goals
A supply chain management degree may lead to a rewarding and challenging career in SCM.
When choosing a supply chain management program, consider the curriculum, industry connections, and experiential learning opportunities.
Develop the skills and qualities necessary to succeed as a supply chain manager, take required courses and consider earning professional certifications to advance your career.
