The Wall Street Journal reports that companies are starting to pay more for employees that have supply chain skills that can help offset growing freight and raw materials costs.
According to the Institute for Supply Management, the average salary for supply chain professionals rose 4.1 percent over the last year. The Wall Street Journal reports that salaries could rise faster in the coming years as the U.S. faces key trading partners such as China and businesses grapple with inflation.
Rising fuel and transportation costs have been carving into companies' profit margins. This amplifies the role of supply chain executives as the rising costs is getting the attention of senior corporate leaders. The Wall Street Journal reports that the c-suite is becoming more concerned with making sure that there's no disruptions in the supply chain.
ISM found that half of the supply management professions that were polled earned $100,000 or more in 2017, up 47 percent in 2016. Average compensation was around $117,425.
IT skills have also become an important skill to have as more business move toward automated supply chain processes, test out artificial intelligence and blockchain. Salaries will have to reflect the need for business experience, as well as IT.
As of recent, companies are quick to pick up recent supply chain graduates, and demand for experienced candidates will increase as more people retire. Companies are dealing with relocation costs and signing bonuses, making new hires expensive.