Average salary with an MBA in supply chain management
The globalization of the economy is impacting all aspects of business, including supply chain management. For example, a 2018 supply chain failure at KFC led to a widespread chicken shortage at some of its overseas restaurants. The shortage was so significant that KFC closed more than two-thirds of its locations in the United Kingdom and Ireland until it could make different arrangements.
If the idea of helping businesses manage and maintain critical operations excites you, earning an advanced degree, such as a Master of Business Administration (MBA) in supply chain management, can help you achieve your professional goals. MBA graduates also enjoy higher earning potential, as May 2021 data from PayScale shows the average salary with an MBA in supply chain management is approximately $22,000 more than the salary with a bachelor's degree alone.
What are supply chain management professionals responsible for?
Professionals in supply chain management — generally referred to as logisticians — work within or oversee various systems that move products through all stages of development, from supplier-provided raw materials to manufactured components to finished items for consumers. The field of supply chain management is broad and includes a variety of positions, such as buyers, demand planners, cost estimators, and operations analysts.
Individuals in these roles may source materials, monitor internal production, implement quality assurance practices, and work with sales in shipping and fulfillment. Additionally, supply chain management professionals must anticipate and resolve problems, such as material shortages and delivery issues, and adjust logistics plans as needed.
Where do supply chain management professionals work?
Supply chain management is a key function in almost every industry, including aerospace and defense, manufacturing, and retail. Whereas some professionals work in an organization’s logistics department, others work for companies that specialize in supply chain logistics, such as freight-shipping companies. Most professionals in this field work full time, Monday through Friday; however, some may work overtime and/or weekends to ensure operations stay on schedule.
The U.S. Bureau of Labor Statistics (BLS) reports that as of 2019, the largest employers of logisticians included manufacturing companies (24%); the federal government (18%); professional, scientific, and technical services organizations (11%); and wholesale trade companies (9%).
Average MBA in supply chain management salary
PayScale reports that as of May 2021, the average salary for professionals with an MBA in supply chain management was around $86,800, although earners in the top 10% reported salaries of more than $177,000. However, MBA in supply chain management salary ranges can vary widely based on several factors, such as the company and industry, the geographical region in which the position is located, and your experience level.
Here are some higher-level positions you might pursue with an MBA in supply chain management, with their approximate average salaries as reported by PayScale:
● Supply chain manager $84,000
● Director of purchasing $96,400
● Logistics director $100,900
● Senior supply chain manager $114,000,
● Director of supply chain management $123,000
● Director of strategic sourcing $139,000
Qualifications to work in supply chain management
The complexity of supply chains and logistics means that most positions require a bachelor’s degree in a related field, such as business, supply chain management, or systems engineering. Earning one or more specialized certifications, such as planning and inventory management or logistics, transportation, and distribution, can help improve your job prospects and earning potential.
You can get certified through the Association for Supply Chain Management (ASCM) or the International Society of Logistics; however, you must meet minimum educational and work experience requirements to sit for each certification exam. The 2020 ASCM salary survey found that APICS-certified professionals earned up to 21% more than their non-certified peers.
A master’s degree in supply chain management can be particularly beneficial if you’re interested in an advanced role or a management position. Completing an MBA in supply chain management gives you a focused education in areas such as procurement, transportation, and supply chain sustainability, alongside the knowledge you’ll gain through general business administration and management courses. With an MBA, you’ll likely be more competitive for upper-level positions than those with less education.
Supply chain management job outlook and growth
The BLS projects the employment of logisticians to grow 4% between 2019 and 2029. Companies rely heavily on supply chain managers to track and manage the movement of their products, and their need to move goods more efficiently at controlled costs will continue to drive employment in this field.
Additionally, candidates who have an advanced degree (such as an MBA in supply chain management), along with experience using logistics software and/or working in military logistics, are expected to have the best job prospects, according to the BLS.
Your path to a career in supply chain management
The first step toward pursuing a career in supply chain management is to complete an education. Whether you’re considering a career move or you’re an existing supply chain professional interested in earning an MBA in supply chain management salary by pursuing more advanced roles in the field, we can help you find your path forward. Check out our recommendation engine or compare programs to find the best option for you.