Purchasing, Operations Managers Top Supply Chain Pay Scales

If you want to maximize your supply chain earnings, become a purchasing manager.

That is one of the highlights of a recent analysis of data conducted by Zetwerk, a global manufacturing network offering various manufacturing capabilities to businesses. The company analyzed Bureau of Labor Statistics and O*Net OnLine data to identify trends among supply chain wages and employment in the U.S.

Purchasing managers had the highest median salary of the jobs studied, at a $131,350 average. The overall median salary was $90,812. Logisticians have a 10-year projected growth rate of 18% and the highest salaries can be found in New Jersey, New York and Washington.

“Understanding supply chain job market trends helps professionals and businesses adapt to changing demands and seize emerging opportunities,” the company said in the report, which can be found here.

While logistician, industrial engineer (12%) and project management specialist (6%) had the highest 10-year growth rates, several positions are expected to see negative job growth. Those are procurement clerk and buyers/purchasing agents at negate 2% and cost estimator at negative 3%.

Thirteen different job functions were examined. The most popular supply chain job is that of general/operations manager, with 2,013 roles per 100,000 workers as of May 2022. Those jobs paid a median annual wage of $98,100. Other high-paying jobs include industrial production manager ($107,560), transportation/storage/distribution manager ($98,560) and supply chain manager ($98,560).

The lowest-paying positions were production/planning/expediting clerk ($50,630), quality control analyst ($50,290) and procurement clerk ($45,240).

While logistician, industrial engineer (12%) and project management specialist (6%) had the highest 10-year growth rates, several positions are expected to see negative job growth. Those are procurement clerk and buyers/purchasing agents at negate 2% and cost estimator at negative 3%.

The salaries compare to a previous survey conducted by the Association for Supply Chain Management (ASCM) earlier in 2023. Its 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.

In the U.S., total compensation ranged 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%).

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).

Zetwerk broke the data down by state, with New Jersey ($116,356), New York ($108,966), Washington ($105,545), Colorado ($105,225) and Massachusetts ($105,152) the top states for salary while North Dakota ($80,863), Iowa ($80,102), Vermont ($78,771), Mississippi ($76,667) and Idaho ($73,470) comprising the bottom five states.

In terms where the jobs are, general/operations manager saw the most job openings listed online at 35,129 followed closely by industrial engineer at 31,500. Procurement clerk, at just 207 openings, saw the fewest job opportunities.

In terms of states with the most openings per capita, Vermont, at 72.6, topped the list, followed by Wyoming (70.5), North Dakota (65) and Minnesota (62.8).

Zetwerk wrote in the report:

“Our findings illustrate a dynamic job market in supply-chain-based industries. Purchasing managers appeared to be at the apex in terms of earnings, while logisticians stood to see significant job growth in the coming years. General and operations managers held the most ubiquitous roles, showing the highest numbers in job availability. This provides a dual view of present conditions and future possibilities to guide career-focused individuals working in the supply chain sector and businesses looking to harness the best opportunities in these fields.”