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What Is the Supply Chain Talent Shortage?

Written by: Appalachian State University   •  Jul 29, 2024

A Supply Chain Manager at Work in Factory

The success or failure of many businesses can often come down to supply chain management. From sourcing materials to assembly and distribution, businesses both large and small can find themselves struggling to earn a profit as small losses add up along the way. With the business landscape constantly changing, and companies adapting to challenges like the COVID-19 pandemic or the rise of online sales, finding skilled supply chain managers able to take on the role has become increasingly more difficult.

Many industries are facing a supply chain talent shortage, resulting in more available jobs for supply chain managers than candidates qualified to fill them. As many businesses are actively seeking qualified candidates, pursuing a degree such as a Bachelor of Science in Business Administration (BSBA) in Supply Chain Management can help future graduates capitalize on the supply chain shortage and build the skills required to help organizations achieve success.

What Is Supply Chain Management?

Supply chain management encompasses the systems a business establishes to manage its flow of goods and services. These systems range from sourcing raw materials to the sales and distribution of the final product, with each step in the supply chain needing to be as efficient as possible for the business to turn a profit. Supply chain managers are the individuals who oversee these systems, looking at both the bigger picture and analyzing operating costs to make the entire chain as effective and productive as possible.

Phases of Supply Chain Management

While every business and industry has different requirements within their supply chain, typically supply chain management can be divided into five main phases:

  1. Planning: Clear and concise planning lays the groundwork for a supply chain, matching supply with demand and predicting what will be required to meet future trends.

  2. Sourcing: The accumulation of individual materials and product costs can sink a business if it doesn’t choose its components wisely or for the correct price. Supply chain shortages can make it difficult for companies to closely monitor these costs or make time to build partnerships with the right vendors.

  3. Manufacturing: The assembly or transformation of raw materials into the desired product is the phase in the supply chain in which a business’s design comes to life.

  4. Delivery: Delivery is a key element in turning a profit — once an item is sold, it must reach the hands of the consumer. The delivery phase of a supply chain ensures the timely and cost-effective transport of a product.

  5. Returns: A reality of business is that not all products or services will meet customer expectations. Having an efficient returns process is key to long-term customer satisfaction.

Experienced supply chain managers can have a significant impact on a company’s success, helping it become a high performer, achieve profit goals and move to the forefront of its industry. For many companies however, the supply chain shortage means it’s hard to find talented individuals able to optimize their business.

Impact of a Supply Chain Talent Shortage

A supply chain shortage can have a far-reaching impact, affecting individual businesses and industries as a whole. With the rise of online sales and the growing pressure for companies to deliver in record time, any hiccup in the supply chain can have a domino effect and send costs skyrocketing across an entire business sector. For modern supply chain management professionals, the challenge of not only optimizing current systems but also finding new and innovative ways to adapt to changes within an industry can be both difficult and rewarding.

With the widespread shortage of supply chain management professionals continuing to grow, as reported by the Association for Supply Chain Management (ASCM), many companies struggle as some or all the phases within their supply chains aren’t operating effectively.

According to the U.S Bureau of Labor Statistics (BLS), the employment of logisticians is projected to grow by 18% between 2022 and 2032, with nearly 22,000 openings on average each year over the decade. These statistics make investing in growing the talent pool essential to the success of multiple industries.

With the right training and experience, supply chain managers can help businesses optimize and become top performers within their industries. Using contemporary innovations, companies have an opportunity to make their products more ethical and environmentally friendly, increase efficiency while cutting costs, and find new ways to eliminate barriers between a product and the consumer.

How to Become a Supply Chain Manager

Candidates from various backgrounds can work toward building a successful career in supply chain management. While employees working their way up in a company may be able to fill some roles, and for other roles, past business experience may be an important foundation, pursuing a higher education, such as a bachelor’s degree that specializes in supply chain management, can be a great first step for future management leaders and career-changers.

Depending on the industry, the knowledge required to tailor management systems to each company can look quite different, making background knowledge of a company’s business sector an important first step in supply chain management. In some cases, the supply chain talent shortage may also open up opportunities for candidates to gain workplace experience while pursuing their education, with some companies choosing to invest in the right person to ensure that they understand the nuances of their field.

Capitalize on the Supply Chain Shortage With a Career in Management

Industries of all sizes rely on talented supply chain managers to help them operate effectively and meet consumer demand. From the initial concept and raw materials to the final product, proper supply chain management can make all the difference in a company’s success. As the supply chain talent shortage grows, ample opportunity exists for talented managers to make their mark in business.

For future leaders in supply chain management, earning a higher education can be a key stepping stone in their success. By pursuing programs such as the BSBA in Supply Chain Management from Appalachian State University, graduates can prepare themselves for the real-world challenges of a career in business.

An online program that focuses on the practical skills required to become a key player in the domestic and global economy, the BSBA from App State was designed to equip students with the knowledge they need to succeed. Discover how you can capitalize on the supply chain talent shortage by building a career in management.

Sources:

Association for Supply Chain Management, “Supply Chain Industry and Academia Partner to Captivate Young Minds”

Association for Supply Chain Management, “The 10 Highest-Paying Supply Chain Jobs”

DHL, Demand for Supply Chain Talent Is at an All-Time High, But Demand Outstrips Supply

IBM, What Is Supply Chain Management?

Indeed, What Is Supply Chain Management and Why Is It Important?

Investopedia, “Supply Chain Management (SCM): How It Works & Why It”s Important”

Microsoft, Solution Overview

U.S. Bureau of Labor Statistics, Logisticians