Supply chain professional salaries up 3%, approaching $100K annually

Supply chain professionals are making an average of nearly $30,000 more per year than the average America, and are generally happy in their careers, according to data included in a new report released this morning by the Association for Supply Chain Management (ASCM).

The report, “The Supply Chain Profession in 2023: Salaries and Careers Across the Globe,” found that the average median supply chain salary is $98,570 (including base and additional compensation), up more than 3% from the previous year’s survey. The average median pay in the U.S. in Q4 of 2022 was equivalent to $56,420 annually, according to data from the Bureau of Labor Statistics.

In the U.S., total compensation ranges from $62,962 to $192,000. The median cash bonus for survey respondents was $8,000, with some as high as $40,000. Seventy-one percent of respondents reported receiving some form of additional compensation. That compensation ranged from cash bonuses (55%), profit sharing (13%) incentive pay (10%), overtime pay (8%) or other cash compensation (6%).
Experience matters

Those with nine or fewer years of service reported receiving pay increases in 2022, but those with 10 or more years of service saw their compensation remain “closer to the previous year’s levels,” the report noted. Nearly half of respondents received a salary increase of 8% or more.

In terms of pay increases, those with between 10 and 19 years of experience saw increases of only about $200 per year, with the median salary rising from $100,000 to $100,200. Fewer years of experience saw increases of between $3,000 and $6,000.

In terms of positions, supply chain directors in the 25th percentile saw a median compensation package of $125,184. That rose to $180,000 for those in the 75h percentile. Managers ranged from $96,000 to $137,000, procurement managers went from $85,700 to $120,000, and logistics managers from $80,000 to $120,000.

At the lower end of the wage scale are production planners ($68,400 to $93,125), buyer-planner ($67,200 to $87,425) and buyer ($64,000 to $83,162).

Forty-eight percent of respondents saw a salary increase greater than 8%, with 16% indicating the increase was more than 15%. Another 43% saw increases of between 2% and 7.9%.

Job stability

While there was employee turnover in the supply chain in recent years, the ASCM survey found that it was not due to people leaving the industry. Rather, it was from those looking for better opportunities. The survey found 27% of people found new employment, but only 4% of those did so as a result of a layoff.

“Furthermore, job changes were rarely the result of employer dissatisfaction, which aligns with this year’s very strong career satisfaction numbers. It is also important to note that job searches were lucrative and relatively smooth: 3% report nearly doubling their salary increase compared to the previous year, and 76% found employment within three months of beginning a search,” the report noted.

The reason cited most often for a job change was a higher salary, noted by 28% of respondents. The average salary increase for job-hopping was 13% whereas those that kept the same job saw an average salary increase of 7%. Another 24% indicated they were looking for more responsibilities or a promotion. Just 15% said they were dissatisfied with their employer.

Overall, 96% of supply chain professionals are planning to stay in the field in the next five years, and 82% take pride in their work.

Public vs. private

The pay gap for men versus women is closing, but it still exists and remains larger at private employers. The survey found that men at private companies earned $8,000 more per year than women ($90,000 to $82,000), whereas the gap as public companies was about than $3,500 ($100,900 to $97,315).

Based on years of experience, women out-earned men in the first two years, with salaries averaged $7,000 more in year one and $5,000 more in year two. That changes in year three, however, with men with 3 to 4 years of experience earning $81,000 to $74,250 for women.

Men outgain women in each additional year, topping out at $23,000 more per year for those with 20 years or more of experience.

Education matters

When looking at salaries based on ethnicity, education likely contributes to the pay disparity, ASCM said. On the surface, the pay gap between white and black workers has closed to 4%, down from 14%, the previous year. Asian people saw an average salary of $100,000, flowed by Hispanic at $94,000, White at $93,330 and Black at $90,000.

However, ASCM noted that of respondents that identified as Asian, 53% hold a master’s degree or higher. That number was 43% for Black respondents, 34% for Hispanic respondents and 26% for White respondents.

ASCM did find that those with a graduate degree earned an average of $113,300 compared to $92,147 for those with an undergraduate degree and $72,000 for those with an associate degree.

Professionals that hold at least one professional credential reported a 16% higher salary, and those with two or more earned 34% more.

ASCM offers APICS certification programs, and the association said those with at least on such certification reported a median salary of $100,000 – 27% higher than those without a certification. Those with a certified supply chain certificate saw a 36% compensation bump; those certified in logistics, transportation and distribution saw a 31% increase; and those certified in planning and inventory management saw a 25% increase.

The report also broke down salaries by region and degree type.

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