When I first entered academia as a supply chain professor 30 years ago, I assumed the ROI on a graduate education in business would fade. MBA degrees tended to be too broad in coverage and there was an oversupply. However, the data indicates that an MS or MBA degree continues to deliver an exceptional ROI. For example, a recent Graduate Management Admission Council (GMAC) report cited that over their lifetime, an MBA graduate can expect to earn $3 million more than someone with only a bachelor’s degree. Over the last three decades, companies started wanting graduate degrees that were more specialized to their core competencies (i.e., SCM). Many started turning to business schools for stronger supply chain managerial talent and business schools responded by developing programs with a greater focus on SCM.
While an undergraduate degree provides foundational knowledge, a master’s or MBA teaches advanced supply chain strategies, industry insights, and leadership skills that have become imperative in the C-suites. A specialized MS SCM program offers a deeper technical and analytical expertise, perfect for becoming a supply chain subject matter expert. While an MBA, with a focus on supply chain, fosters the development of versatile executives, blending broad-based business principles with supply chain proficiency.
The distinction in the MS or MBA usually lies in breadth versus depth. An MBA offers a comprehensive overview of business practices, leadership, and strategic decision-making, alongside supply chain principles. It’s ideal for those seeking leadership roles, requiring a balance of general management prowess and specialized supply chain expertise. Conversely, an MS focuses intensively on supply chain mechanics, technologies, and strategies. It suits those aiming for technical mastery and operational excellence within supply chain functions, preparing them for specialized roles that shape global supply dynamics.
Regardless of degree choice, supply chain managers are now positioned to become the most powerful executives in the world and a graduate degree in such will help them get there.
There will be some redundancies below…
I had a student ask: Shouldn’t I major in Finance or Accounting if I want to become a CEO? I said: Well, being able to talk CFO talk is critical to long term success, but you might want to give this supply chain thing some thought…CEOs Will Come from an Unlikely Place: The Supply Chain…
I am not a huge fan of academic rankings, but then again, I am the first to brag if we get ranked. Tough to argue with this list though, just pay attention to ROI.
Top 10: Supply Chain Schools (graduate degrees):
https://supplychaindigital.com/operations/top-10-supply-chain-schools
Should You Give Up Your Salary and Go to Grad School? Well, that darn MBA degree still has a great ROI…
“Over their lifetime, an MBA grad can expect to earn $3M more than someone w/ only a bachelor’s.” Great ROI!?…At about 98% of universities that offer MBAs, grads typically made more money 2 years out of school than they had borrowed. That stands in contrast to law schools, where roughly 6% of programs had grads w/ higher median earnings than debt in the same time frame. Note, the MBA route requires careful thought. See:
https://lnkd.in/gGAx4QyK
https://lnkd.in/gKhXe8tM
https://lnkd.in/gMd2vC2T
https://lnkd.in/gkN-ecch
Interesting salary & job placement data for USC MS grads. https://lnkd.in/gBm2cSx9. MIT MS SCM grads can be found at: https://lnkd.in/gYimnUkP.
When is the right time for grad school?
Hottest MBA Degree Now? SCM
Forget Finance. SCM Is the Pandemic Era’s Must-Have MBA Degree.
https://lnkd.in/g8VqgK_5
Note, I think the MBA route requires careful thought.
https://lnkd.in/eW_F27BN
https://lnkd.in/eTk-PXPv
https://lnkd.in/e3EYjtsE
https://lnkd.in/eQvfFMc
https://lnkd.in/eX-2GgPp
https://lnkd.in/ejRNPgfq
Great read by Mr. Daniel Stanton:
https://lnkd.in/g54Q6j9j
https://lnkd.in/gkN-ecch (lots of data & links) & https://lnkd.in/gxC7UJDw.
Interesting salary & job placement data for USC MS grads. https://lnkd.in/gBm2cSx9. MIT MS SCM grads can be found at: https://lnkd.in/gYimnUkP. Hottest MBA Degree Now? Supply Chain Mgmt.
What You Can Do With an MBA in SCM? https://lnkd.in/gbfHx84e.
When is the right time for grad school? The avg age is 33. I find the age stat to not be too meaningful. For anyone <33, you will likely be the first centurion generation. That means you will live to 100 & have a 60+ year work career. Just remember, the older you get, the lesser the chances of starting &/or finishing.
Hottest MBA Degree Now?
https://lnkd.in/g8VqgK_5
Forget Finance. SCM Is the Pandemic Era’s Must-Have MBA Degree.
https://lnkd.in/gfd2NFQR
Most of our students start their careers in a job rotation for 1-3 years (https://lnkd.in/e3EYjtsE). If I was 25 & just came off of a job rotation, I would start thinking about a grad degree (part time & let my employer cover it).
Of course, do what is rewarded in the culture of your org. Look at your boss’s resume & your boss’ boss’ resume (https://lnkd.in/eQvfFMc). In general, I would not do a general MBA or even an MBA w/ a SCM concentration (especially if I had an undergrad in SCM). I like certs associated w/ ISM, APICS/ASCM, CSCMP, etc., but I suspect that I would not actually learn much from the process of getting certified (assuming I had an undergrad in SCM). These certs however would externally validate you as a subject matter expert & that is worth a lot in industry (especially if you are trying to get your foot in the door for a SCM job & do not have a SCM background).
I would consider a degree in something that is quicker than the traditional 12 classes (i.e., a mini MBA or MS). I would also get it in something I am weak in & is likely to be important. So as of 2022, what would I do? I would do something like a mini MBA or MS (9 classes, not 12) at a high profile SCM school (i.e., Big 10, massive network) in “Digital” SCM (assuming I was weak in this area).
Interesting salary & job placement data for USC MS grads:
https://lnkd.in/gqganwJw
A nice career guide from Harvard to help with resumes, interviewing, getting offers, etc. For more help, pasted below are links from Yale, MIT, & WMU (112 pages of ideas). Should college grads negotiate a job offer (i.e., a higher starting salary)? Yes, but only if you know how to negotiate. My thoughts: https://lnkd.in/gCFxVvQQ.
Salary Data:
https://lnkd.in/evxDb7Kw
Grad school advice:
The “Digital” transformation is getting VERY popular these days. We have heard of Industry 4.0 (https://lnkd.in/eZfHNqy), but in reality it is SCM 4.0. For digitization to work, manual processes have to be digitized/automated & eventually analyzed. Converting manual to digitized versions requires someone with a good knowledge on systems analysis & design, data storage & information retrieval. A lot of orgs have gone past this stage, but they are facing the next problem – data analysis. Data are collected, but no one knows what to do with it. That’s where our Business Analytics minor comes in as an undergrad. If you lack these skills, go get your MS in Data Analytics.
As a new field like SCM digitization evolves, people are still trying to figure out the essential parts that characterize it. This is the reason that certs/degrees in digital SCM exist in all kinds of flavor.
In conclusion, get a grad degree because the data says it will make you more successful. I would do it in something that you are bad at & will be very important. SCM Finance (https://lnkd.in/e2TztjY) will always be important. In the near term, Industry 4.0 will transform SCM orgs & the skills req’d of them (Big Data).
Demand for People With Supply Chain Management Education
A salary and career report published this year by the Association for Supply Chain Management reveals that overall compensation in the field increased by 12% between 2020 and 2021, and the median salary among supply chain managers with Master of Arts, Master of Science or Master of Business Administration degrees was $108,000 in 2021.
Great read about getting into supply chain management with no SCM background:
https://www.wsj.com/articles/career-reboot-a-music-director-gets-an-m-b-a-to-land-a-job-at-ford-11618747200?st=tijpntxij08lmyp&reflink=article_email_share
https://fortune.com/education/business/articles/2022/01/27/big-consultings-big-payday-200k-starting-packages-await-northwestern-mbas/
In 2021, MBA graduates earned a median salary of $115,000—which is 77% higher than workers who hold only a bachelor’s degree, according to the Graduate Management Admission Council’s 2021 Corporate Recruiters Survey. Graduates of the Kellogg School of Management at Northwestern University fared even better—they reported a median base salary of $145,000, which doesn’t include any bonuses or benefits.
Industry Certifications & Associations for Various Business Majors… Data shows that people earn more & have more job security if they become engaged members of their professional discipline. One way to do that is to join industry specific associations related to your majors. Further, these associations often have certifications with them that externally validate you as a subject matter expert ($$$).
https://www.simecurkovic.com/2022/10/16/industry-certifications-associations-for-various-business-majors/
https://www.wsj.com/articles/elite-mba-harvard-stanford-wharton-11635270641
The MIT SCM Micro Masters would be so darn appealing:
https://www.linkedin.com/posts/conmak_supply-chain-analytics-activity-7016520475489046528-CwVb?utm_source=share&utm_medium=member_desktop
Great Read: Some applicants to graduate programs in the School of Business struggle to decide which kind of academic degree they should pursue.
In this blogpost, Rudy Watson, and I have some advice on:
Choosing between a management master’s and an MBA
https://lnkd.in/gPCsCadJ
hashtag#umgc hashtag#mba hashtag#management hashtag#mastersdegree hashtag#business hashtag#school
https://www.linkedin.com/posts/ravi-mittal-umgc_choosing-between-a-management-masters-and-activity-7016492106944839680-Hm9z?utm_source=share&utm_medium=member_desktop
Lastly, and yes, I am repeating myself:
If I was 25 and just came off of a job rotation in a full time role, I would start thinking about a graduate degree (assuming I had an undergrad degree in SCM with already a strong data analytics foundation via a Business Analytics minor). Of course, do what is rewarded in the culture of your organization. Look at your boss’s resume and your boss’ boss’ resume. In general, I would not do a general MBA or even an MBA with a general SCM concentration. I like certifications associated with ISM, APICS/ASCM, CSCMP, etc., but I suspect that I would not actually learn much from the process of getting certified. These certs however would externally validate me a SCM subject matter expert and that is worth a lot in industry.
However, I would get a graduate degree in something that is quicker than the traditional 12 classes (i.e., a mini MBA or MS degree). I would also get it in something I am weak in and is likely to be important. So as of 2021, what would I do? I would do something like a mini MBA (9 classes, not 12) at Rutgers (high profile SCM school, great brand) in “Digital” Supply Chain Management.
Note, their mini MBA has an entire course dedicated to SCM Finance. Good luck climbing up the corporate ladder if you cannot talk to your CFO. I like SCM Finance so much, I encourage my students to get a graduate degree in Finance if they already have world class technology skills. The “Digital” transformation is getting VERY popular these days. We have heard of Industry 4.0, but in reality it is Supply Chain 4.0, because nothing happens without the supply chain HEAVILY involved. For digitization to work, manual processes have to be digitized/automated and eventually analyzed. That is what companies are doing right now. Converting manual to digitized versions requires someone with a good knowledge on systems analysis and design, data storage and information retrieval. These are the topics usually covered in IT/CIS/CS majors. A lot of companies have gone past this stage, but they are facing the next problem – data analysis. Data are collected, but no one knows what to do with it. That’s where our Business Analytics minor comes in as an undergrad. If you lack these skills, go get your MS in Data Analytics before you miss the boat. These skills would include: big data/analytics, database management, data mining, project management, SQL, Python, PMO, Tableau, Power BI, etc. Fortunately, most of my undergrads walk away with these skills. Just like AI, the boundaries of what is and what is not Industry 4.0 (supply chain 4.0, digital transformation, digitized supply chain, etc.) is quite blurry. These days any product with even a tiny element of AI/ML is claimed to be an AI product.
As a new field like supply chain digitization evolves, people are still trying to figure out the essential components that characterize it. This is the reason that people offer certificates in digital supply chain in all kinds of flavor. For example, Rutgers takes a high-level managerial approach, Missouri S&T takes an ERP+BI+PM approach, and NUS takes an analytics+strategic planning approach. One issue with the mini MBA in the Digital Supply Chain at Rutgers is not their high level managerial approach per se, but perhaps the usefulness on what they predict will be super useful. They could be wrong for example on dedicating an entire course to Robotic Process Automation.
This reminds me a lot about the Business Process Reengineering or Business Process Automation course that people used to offer years ago. On RPA for example,… • Will there be a continuous or frequent demand for RPA at a company? • Will new RPA need to be created or existing RPA need to be tuned often? • What kind of robots are involved? Consumer robots, manufacturing robots, or a mixture of both? • Will the course need to teach realistic applications or BPR? What technologies? What kind of robots and for what purpose? If the answer is no and no to the first two questions, the skills will likely be taught and then forgotten. This is not to say that there is no environment that needs a constant or frequent RPA design and tuning, but I wonder what kind of environment that would be and how much a company would sustain doing that for long. If the RPA is done once in a few years for example, I am not sure of the utility/usefulness of such a graduate course other than showing people that they are teaching leading-edge topics.
In conclusion, get a graduate degree because the data says it will make you more successful (in general). I would do it in something that you are bad at and will be very important. SCM Finance will always be important. In the near term, Industry 4.0, Supply Chain 4.0, and Supply Chain Digitization will transform SCM orgs and the skill sets required of them.
hashtag#mba hashtag#gradschool hashtag#supplychainmanagement hashtag#careers