Students:
These links will take you to salary data at MSU and Indiana. As you can see, your starting salaries are right in line with the Big Ten schools.
MSU 2023 Salary Data (for all business majors):
https://broad.msu.edu/app/uploads/2024/01/Broad-Class-of-2023-UG-Results.pdf
Alert from NACE: Students that get internships (you need to pass a drug test), get more job offers and they earn WAY more:
Indiana University Salary Data 2023:Supply chain and operations management salary statistics, Class of 2023
| Position | Average | Range | Median signing bonus |
| Logistics/Supply Chain | $68,944 | $40,000–$85,000 | $5,000 |
| Consulting | $86,932 | $60,000–$112,000 | $5,000 |
| Finance/Accounting | $74,714 | $57,500–$100,000 | $7,000 |
| Purchasing | $68,396 | $66,000–$75,000 | n/a |
| Overall | $74,625 | $40,000–$112,000 | $5,000 |
| Major | Average Starting Salary | Median Starting Salary | Range | Median Signing Bonus |
| Accounting | $73,630 | $72,300 | $41,600 – $110,000 | $5,000 |
| Business Economics & Public Policy | $83,874 | $83,200 | $55,000 – $112,000 | $10,000 |
| Entrepreneurship & Corporate Innovation | $69,893 | $70,000 | $40,000 – $110,000 | $7,000 |
| Finance (including Real Estate) | $81,898 | $78,000 | $45,000 – $180,000 | $7,500 |
| Information Systems | $79,646 | $80,000 | $55,000 – $112,000 | $7,250 |
| Management | $63,514 | $62,750 | $35,600 – $95,000 | $10,000 |
| Marketing | $66,983 | $65,000 | $40,000 – $112,000 | $5,000 |
| Marketing and Professional Sales | $63,439 | $65,000 | $30,000 – $100,000 | $5,000 |
| Supply Chain / Operations Management | $74,625 | $72,000 | $40,000 – $112,000 | $5,000 |
| AVERAGE | $76,705 | $74,000 | $30,000 – $180,000 | $6,000 |
As of October 1, 2023Source (all majors can be found in left hand column):https://kelley.iu.edu/recruiters-companies/undergrad/statistics/salary-statistics/supply-chain-and-operations-management.html
From Gartner for SCM majors:
Subject: Read: What does a Supply Chain Manager do? The U.S. supply chain accounts for 37% of all domestic jobs and many people in those jobs do not even realize it.
Students:
Remember, if you save your employer $1, then that is the same as giving/adding $1 in pre-tax profit to your employer’s bottom line (it is a 1:1 ratio). Yes, you can help them increase sales revenue by $1, but that might only add a few cents of pre-tax profit to their bottom line (depending on what their margins are). Further, increasing sales might be very hard to do in saturated hypercompetitive non-growth markets like automotive. So, if your employer pays you $80K per year to buy $100M worth of stuff, and you cut those costs by 1%, you just made them $1M in pre-tax profit. Time for a bonus or raise?
Further, when most of the employers that recruit from WMU SCM sell something for $1, $.50 – $.80 (50 – 80 cents) of that dollar is in Direct Material costs/purchases (stuff/parts/material they buy from suppliers). So, most of their cost savings opportunities are not in Direct Labor or Overhead, it is in their Supply Chain. You are majoring in the most opportunistic part of cost savings which is the same as pre-tax profit.
In the very near future, you will start to get a feel for what you are majoring in and just as importantly, what kinds of jobs are in SCM. Here is the good news, no matter what you like and/or are good at, there are jobs in SCM for you. It is actually very broad in scope. The joke goes…In SCM, you have to be a jack of all trades, but you probably are not an expert at any one thing. For example, in SCM you probably need to be solid at: data analytics, technology (AI), negotiation, legal issues, engineering/technical stuff, planning, project management, etc., but no one expects you to be an expert at any one thing. Yes, you have to be able to talk to engineers, understand business law (so you do not get sued by suppliers), make decisions from large data sets, etc., but no one will expect you to actually be an engineer, a lawyer, or a data scientist per se. So, really you are majoring in all things business related. I will say, you do need to learn to become an expert problem-solver. Simply put, you need to get really good at helping your employer do SCM stuff better, faster, and cheaper.
See attached and save it for future classes as it will help you in those classes. It is a little older, but not in the least bit dated. It is still very spot on.
Top 10 Reasons Why Procurement is a Great Career:
The number of US job postings for supply chain managers on LinkedIn more than doubled between 2019 & 2022, according to data shared w/ the Financial Times.
https://www.ft.com/content/37f898e5-7580-44a2-a204-72f9dc72b085
The U.S. supply chain accounts for 37% of all domestic jobs, according to the Harvard Business Review.
https://hbr.org/2018/03/the-supply-chain-economy-and-the-future-of-good-jobs-in-america
A Supply Chain Manager is responsible for overseeing and managing the company’s supply chain and logistics operations to maximize efficiency and minimize costs. Their work involves a lot of planning and coordination between various parts of the supply chain, from sourcing raw materials to delivering the final product to the customers.
So, let’s say you are interviewing at the New Balance shoe company. What SCM jobs might they have and/or need? Some examples:
The process to create, distribute, and sell these sneakers involves a lot of steps and people. This whole process is called the supply chain. For a college grad, there are several different jobs within the supply chain:
Procurement/Purchasing: This involves buying the raw materials needed to make the sneakers, like rubber, fabric, etc. You’d be responsible for finding suppliers, negotiating prices, and making sure the materials are of good quality.
Production/Manufacturing: This involves actually making the sneakers. Jobs in this area could include overseeing the production process, making sure the factory is running efficiently, and ensuring the final product meets quality standards.
Logistics: This involves moving the sneakers from the factory to the stores or warehouses. You could be responsible for coordinating shipments, managing inventory, or selecting transportation methods.
Supply Chain Analyst: This job involves analyzing data from various parts of the supply chain to make it more efficient. For example, you might analyze the shipping process to find ways to make it faster or cheaper.
Operations Manager: This is a more general role that involves overseeing the whole supply chain process. You’d be responsible for making sure everything runs smoothly, from the procurement of materials to the delivery of the final product.
These are just a few examples, but there are many different roles within the supply chain. Each one is important to make sure the sneakers get made and delivered to the stores on time and at the right cost.
Is it starting to click? Many times, these jobs do not require a SCM degree or a SCM background (though it helps, demand vastly exceeds supply).
____
Oddly enough, since we used the New Balance example, NB has almost 200 job postings (and several are in the supply chain):
https://www.linkedin.com/jobs/search/?keywords=new%20balance&origin=SWITCH_SEARCH_VERTICAL
For example:
https://www.glassdoor.com/job-listing/director-us-distribution-operations-new-balance-JV_IC1154598_KO0,35_KE36,47.htm?jl=1009055584441&cs=1_c30def5b&s=21&t=ESR&pos=101&src=GD_JOB_AD&guid=0000018d4d3059ac9e915b28f139bacc&jobListingId=1009055584441&ao=1136043&vt=w&jrtk=5-yul1-0-1hl6j0mkvjkv0800-0ffa67bc49d52616&cb=1706397031348&ctt=1706397278296&srs=EI_JOBS
Director, U.S. Distribution (storing and moving stuff around) Operations:
$138,189/yr (est.)
- Fifteen or more years of experience in retail distribution operations and logistics.
FYI, someone with 15+ years of experience will want close to $200K in base and over a 40% bonus plan. ____
On a day-to-day basis, a Supply Chain Manager might be involved in a variety of tasks such as:
Planning and Forecasting: This involves predicting how much of a product will be needed in the future, and then planning the supply chain activities accordingly. For example, if you expect a surge in demand for your product during the holiday season, you will need to make sure that enough raw materials are sourced, and that the production, transportation, and distribution activities are scaled up to meet the demand.
Supplier Management: This involves working with suppliers to ensure that they provide the raw materials needed for production, on time, and at the right cost and quality. A Supply Chain Manager might negotiate contracts with suppliers, monitor their performance, and work on building strong relationships with them.
Production Management: This involves coordinating the activities needed to produce the final product. A Supply Chain Manager might work on scheduling production runs, managing inventory levels, and ensuring that the production process is running efficiently.
Logistics and Distribution: This involves coordinating the transportation of goods from the production facility to warehouses, distribution centers, and ultimately to the customers. A Supply Chain Manager might work on selecting transportation methods, optimizing shipping routes, and managing relationships with transportation providers.
Inventory Management: This involves keeping track of the inventory levels at various points in the supply chain, and making sure that the right amount of inventory is kept at each location. A Supply Chain Manager might work on developing inventory policies, monitoring inventory levels, and making decisions on replenishment.
Performance Monitoring: This involves tracking the performance of various parts of the supply chain and identifying areas for improvement. A Supply Chain Manager might develop key performance indicators (KPIs), collect data on supply chain activities, and then analyze this data to identify bottlenecks or inefficiencies.
In summary, a Supply Chain Manager is responsible for planning, coordinating, and monitoring the activities involved in producing and delivering a product to the customers. It is a challenging role that requires strong analytical, planning, and communication skills. But it is also a very rewarding role, as an efficient supply chain is crucial for the success of any company.
Ok, so you just read the above, but what jobs are associated with the above? Here are some examples…
Planning and Forecasting:
Demand Planner
Supply Planner
Supply Chain Planner
Forecasting Analyst
Supplier Management:
Supplier Relationship Manager
Vendor Manager
Procurement Manager
Purchasing Manager
Production Management:
Production Manager
Manufacturing Manager
Operations Manager
Plant Manager
Logistics and Distribution:
Logistics Manager
Distribution Manager
Transportation Manager
Shipping Manager
Inventory Management:
Inventory Manager
Inventory Analyst
Materials Manager
Warehouse Manager
Performance Monitoring:
Supply Chain Analyst
Supply Chain Coordinator
Performance Analyst
Supply Chain Consultant (we have Broncos in consulting):
Trend: My students start their careers in 2-3 year job rotations and they only get a few days to decide on a full-time offer…Exploding job offers: some employers are giving students a few days to make decisions on full time job offers several months before graduation. One student asked if that was ethical or even legal. Exploding job offers & do you want a full time job to begin in a job rotation? https://lnkd.in/ervskG5.
Note, most companies will only give them 1week (or even only a few days!) to decide (way before the career fairs start, hmmm). I think we call that an “exploding” job offer. In other words, either accept now or take your chances with the job market. I am not a huge fan of these offers, but they are perfectly legal and employers seem to think it works to their advantage (they get the talent they want). https://lnkd.in/gmFMJfbC.
Should college grads negotiate a job offer (i.e., a higher starting salary)? Yes, but only if you know how to negotiate. I do have students that get offers in the $60K-$70K range & many successfully negotiate up to $65K-$80K. That is a 10-30% bump before you even start! Many people have to work a few years to get that bump. https://lnkd.in/gMJYNJkh
Many of our grads begin their career in a “Job Rotation”. I used to not be a fan of these job rotations (especially for students with tons of experience), but they have grown on me. See for more details: https://lnkd.in/ervskG5.
In general, firms with a rotational program have nearly a 20% higher first-year retention rate than those without a rotational program. I think that is a good number. After five years, firms with a rotational program saw a 10% higher retention rate than those w/o a rotational program. I am not sure if that is a good number.
Advantages of starting career in job rotation for students:
· Rapidly learn about your industry of interest
· Work on a diverse set of projects
· Find a mentor & learn about your potential career trajectory
· See what makes the company great
The Harvard advice:
https://lnkd.in/ghEYr3Qw
https://lnkd.in/gc4Kd_SE
Ideas from Yale:
https://lnkd.in/gggJFADW
https://lnkd.in/gxkjy3sm
Thank you. Sime