A supply chain manager is responsible for the smooth running and optimization of all value and supply chains. They take care of the entire process: from the procurement of raw materials, production and logistics to cost calculations and delivery to the end customer.
Supply Chain Manager. Key Facts
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Education
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Hard Skills
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Further training
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Soft skills
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Salary
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Related professions
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What is a supply chain manager? Definition
To answer this question, we must first ask: "What is supply chain management?" This term comes from the English-speaking world and roughly means "value chain management". In other words, a supply chain manager is responsible for all supply chains: from the procurement of raw materials, through production and logistics, to delivery to the end customer.
A supply chain manager (SCM manager) also has the responsibility of creating comprehensive analyses of market developments, evaluating collected information, knowing customer requirements and conducting negotiations with suppliers. They also work across all sectors within a company and must keep an eye on all costs.
Good to know:
A supply chain manager is not a logistician. In addition to logistics, they are responsible for numerous other areas such as marketing, production, controlling and management. They also have a great deal of responsibility - they must always think and act efficiently and economically.
What does a Supply Chain Manager do? Tasks
A supply chain specialist has to keep an eye on the big picture: This includes the internal coordination of departments, the extensive analysis of market and customer data or the optimization of workflows and processes along the value chain.
Its aim is to plan and secure the entire flow of goods, including:
- Procurement: The organization and delivery of raw materials plus materials of the right quality
- Purchasing: Monitoring and management of strategic and operational purchasing
- Storage: Optimizing the storage of various materials
- Transportation and logisticsPrecise scheduling of processes ( "just-in-time delivery") and compliance with legal requirements, such as for freight transportation or customs formalities
- Market analyses: Comprehensive analyses with regard to corporate goals, market and improvement potentials
- Process and concept development: with the aim of reducing costs and optimizing processes and logistics
- Accounting: Cost calculations in various areas
- Negotiation and communication: negotiating contracts with suppliers and customers and maintaining relationships with each other
- Analysis, research and development: using process analyses, efficiency improvements and data collection to increase the company's added value
However, the tasks of the supply chain manager depend on several factors. The industry, size of the company, professional experience or specialization play a major role. In summary, the following activities are important:
- Planning of all processes to secure the flow of goods
- Analysis of work processes, market and customer data and development of strategies and concepts for an optimized approach
- Support and contract negotiations with customers and suppliers
- Training and education for employees
- Compliance with legal regulations, environmental guidelines and safety regulations
- Preparation of cost forecasts for materials etc.
What skills does a supply chain manager need?
The SCM profession entails a great deal of responsibility. In addition to coordinating and organizing numerous different areas, you have to understand all processes within the flow of goods and always manage them with a view to increasing the company's profitability. But soft skills such as good communication skills and the ability to work under pressure are also essential in this job.
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Hard Skills
A supply chain management expert must have impressive technical and analytical skills. The following skills are essential:
- Know-how in the area of supply chain management
- Organizational and coordination skills
- Problem-solving, entrepreneurial and strategic thinking
- Professional expertise and a high level of technical understanding
- Global thinking and a feel for cultural differences
- Basic legal understanding
- Qualities in project management
- Leadership qualities
- Confident handling of IT programs such as SAP and Excel as well as tracking tools
- Foreign language skills and business fluent English
Soft skills
In addition to hard skills, soft skills such as strong communication skills or a confident manner are important, as an SCM is in constant contact with employees, customers or suppliers. The job description in supply chain management also depends on the following:
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- Communication and negotiation skills
- Ability to work in a team
- Time management
- Stress resistance and assertiveness
- Flexibility in task processing and quality awareness
Supply Chain Manager: Education & Training
There is no one right way to work as a supply chain manager. Nor is there one course of study or special training. However, many years of professional experience is desired in most companies. What is important, however, is the willingness to continue training and attend seminars.
Training as a Supply Chain Manager
A degree in economics, industrial engineering, business mathematics, logistics management or similar is an advantage for this profession. There are also specialized courses, such as "Supply Chain Management", which teach the most important basics in addition to several years of professional experience. You can specialize in these areas, among others:
- Project and process management,
- Distribution,
- Procurement,
- Logistics,
- Controlling or
- supply chain.
Supply chain managers can also be career changers. However, in most companies you first have to climb the career ladder, starting with a trainee position, for example. Alternatively, you can also advance to SCM with a commercial apprenticeship, in which case further training is also an advantage.
Further training - Supply Chain Manager
Continuous further training is not only an added bonus, but also very helpful in order to be able to overcome all challenges in your day-to-day work, to introduce new approaches or to gain additional experience in employee management. Courses in these areas will take you further in supply chain management:
- Change management
- Supply Chain Controlling
- Management and leadership qualities
- Digital supply chain
- Personnel responsibility
- Planning and controlling logistics networks
- Project and process management
- Personal and social skills
- Sustainability in supply chain management
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Supply Chain Manager: Salary
The average salary is around 60,000 euros gross per year. A Junior Supply Chain Manager usually starts at 47,600 euros gross per year, while a Senior Supply Chain Manager can earn up to 68,000 euros gross. However, the salary depends on several factors, such as company size, industry, location and area of responsibility.
How do you become a Supply Chain Manager?
Supply chain managers are needed in a wide range of industries. In addition to the ever-increasing demands of customers for individual products and the shortest possible delivery times, the SCM profession plays a key role in the economic success or failure of a company. There are various ways to work in this profession, whether with a degree, as a career changer or with commercial training.
In addition to professional qualifications, a supply chain manager must also have personal and social skills. Establishing long-term business relationships, communication within the company and a professional and confident manner also play a major role in this job.
Good to know: According to a study by Gartner, the proportion of women among supply chain managers is 19%. Compared to 2021, this is an increase of 4 percent: the rate is growing slowly but steadily.
Supply Chain Manager: Jobs of the Future – Haufe Akademie
Digitalization, modern blockchain technologies and artificial intelligence show that supply change management has exciting trends and new strategies in store. Not only for this reason, but also because the demand for SCMs has risen sharply, this profession is more in demand than ever before. If you too would like to train as a supply chain manager or keep up to date with the latest developments, our seminars and courses are the ideal preparation for you.
For reasons of better readability, the article does not use female and male language forms simultaneously and uses the generic masculine. All personal designations apply equally to all genders.
FAQs: Supply Chain Manager
What do you do in supply chain management?
The term supply chain management comes from the English-speaking world and means something like "value chain management". A supply chain manager is responsible for all supply chains and ensuring that everything runs smoothly. This includes the procurement of raw materials, production, logistics and delivery to the end customer.
What is a supply chain?
A supply chain refers to the entire supply chain: from ordering, through the supply of raw materials and the functioning of logistics, to delivery to the end customer. The aim is to increase efficiency, customer satisfaction and optimize all processes.
How much does a Supply Chain Manager earn?
The average salary is around 60,000 euros gross per year. A Senior Supply Chain Manager can earn up to 68,000 euros gross. However, the salary depends on company size, location, industry and area of responsibility.
How much in demand are supply chain managers?
Supply chain managers are in high demand in many different industries. Especially due to the ever-increasing demands of customers (fast delivery times and individual products) and the use of modern technologies. They also play a key role in the success of a company.
