Supply chain management is responsible for bringing us the goods and services that we access every day. All the food in grocery stores and products at your local big-box retailers must be planned, sourced, and coordinated from point A (where raw materials are sourced) to point Z (where you can purchase the finished items).
Logistics analysts play a pivotal role in that process by overseeing the entire life cycle of any given product, which could include perishable items, such as produce and meat, or nonperishable items, such as electronics and toiletries. Using their analytics skills, logistics analysts find ways to make the process faster, more efficient, and more cost effective for all links in the chain: manufacturers, shipping companies, and consumers.
Considering the essential nature of the job, you may be wondering how to break into the field of logistics and what the current logistics analyst salary is.
According to May 2021 PayScale data, the median logistics analyst salary is around $58,700. At the top of the scale, logistics analysts are making upward of $83,000 per year.
The median annual salary for logisticians in general is $76,270, according to the U.S. Bureau of Labor Statistics, which projects the number of jobs in that category to increase 4% between 2019 and 2029.
As it does with most positions, a logistics analyst salary depends on several factors, including your experience, education, region, and employer. A larger company responsible for several lines of production flow is likely to pay its logistics analysts more than a smaller enterprise. Apple, Amazon, and Walmart are examples of recognized leaders in supply chain management — and therefore more likely to pay on the higher end of the logistics analyst salary scale.
As evidenced by the projected 4% increase in the demand for logisticians, becoming a logistics analyst is a promising career path. New jobs are opening up as current logisticians retire or change careers. Companies need new logistics analysts who can step in to help efficiently move their products and identify cost-saving measures along with other areas of improvement.
The job market for logisticians and logistics analysts will be driven by forward thinkers who can adapt to new technologies. For instance, Amazon is already testing drone delivery service as part of a cost- and time-saving measure for its supply chain process. Drones are likely to change the landscape of logistics over the next several years, so new and established logisticians and analysts will need to keep up with these and other emerging trends.
You now know what supply chain management is, the role it plays in getting products onto shelves, the job outlook, and what your salary expectations should be. Let’s dig a little deeper into the core competencies of a logistics analyst.
Aspiring logistics analysts need expertise in the following five key components of supply chain management:
● Planning. In the planning stage, the logistics analyst assesses a manufacturer’s supply versus customer demand and plans accordingly.
● Sourcing. Once it’s been determined how much of a given product the customer wants, the materials must be sourced (often from multiple places). The logistics analyst determines which sources are high quality, reliable, and cost effective.
● Manufacturing. At this point in the process, the raw materials are accepted from several different sources to make the final product. During manufacturing, products are tested for quality before being packaged for delivery to retail outlets and other points of purchase.
● Delivery and logistics. The logistics analyst coordinates customer orders and schedules deliveries using trucks or other methods of transport. Customers are then invoiced for those products.
● Returns. Logistics analysts also create systems for returning products in the event they are defective, deemed unfit for use, or shipped in excess of the quantity needed or ordered.
Employers also expect their logistics analysts to continually look for ways to refine and improve processes. That could include finding better sources for raw materials or figuring out cost-saving opportunities in the manufacturing process. This type of innovative thinking can positively affect a logistics analyst’s salary in the long term as they continually demonstrate their value.
A bachelor’s degree is typically required to enter the field of supply chain management as a logistics analyst. However, some companies require only an associate degree if you have relevant experience. The required education is entirely dependent on the company, its geographic location, and the supply of candidates versus the demand for that particular job.
Many logistics analysts have a bachelor’s degree in supply chain management, since that is the area of study most relevant to their field. Undergraduate courses commonly cover global supply chain management, logistics management, planning and control systems for supply chain management, supply chain strategy, and research and negotiation.
Keep in mind that educational background plays a role in determining a logistics analyst’s salary. If you hope to become a logistics analyst, earning a bachelor’s in supply chain management can help position you as a qualified candidate in the eyes of prospective employers. Alternatively, some logistics analysts pursue bachelor’s degrees in business or systems engineering and then obtain a certification specific to supply chain management.
What certifications can a logistics analyst get?
Certifications aren’t required to enter the field of logistics. However, some employers prefer applicants who hold certifications because it shows their commanding knowledge of the industry.
Logistics analysts, as well as general logisticians, can pursue certifications with the Association for Supply Chain Management (ASCM) and the International Society of Logistics (SOLE). Both of these global nonprofit organizations are recognized as leaders in the world of supply chain management. Receiving one or more professional certifications can boost your resume, which may increase your logistics analyst salary.
Logistics analysts and logisticians play an essential role in supply chain management. Every cell phone, bag of groceries, or article of clothing you’ve ever bought can be traced back to the work of a logistics analyst. It’s a career path that benefits billions of people throughout the world. Now that you know the education required and the salary and career outlook of a logistics analyst, you can take the first step toward becoming one.
By earning your degree in supply chain management, you can start building the foundation you need to become a logistics analyst. Our recommendation engine is easy to use and will help you find the program best suited for your learning style and schedule. Begin searching supply chain management degrees now with Pearson Pathways.
Find your path
- Association for Supply Chain Management (ASCM), Endorsement and Certificate Programs
- Houston Chronicle, “What Is a Logistics Analyst?”
- IBM, What Is Supply Chain Management?
- The International Society of Logistics, SOLE Certification and Recognition Programs
- PayScale, Average Logistics Analyst Salary
- Thomas Insights, “The 12 Best Supply Chain Companies of 2020”
- U.S. Bureau of Labor Statistics, Logisticians
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