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Career-46 : Career in Supply Chain Management I How E-Commerce supply chain works || Career Clinic
Introduction
The evolution of logistics and supply chain management has become a crucial component in the functioning of various industries, especially with the rise of e-commerce platforms like Amazon and Flipkart. These platforms boast an impressive ability to deliver products to consumers within just a few days, demonstrating a highly organized logistics and distribution system. This system allows products to be manufactured in different cities, yet reach consumers seamlessly.
Overview of Logistics and Supply Chain Management
Many people think that a career in logistics and supply chain management is exclusively for MBA graduates. However, this field is open to engineers as well. In upcoming discussions, we will explore the various career options within logistics and transport. There is a wealth of information regarding the various roles in this exciting sector.
Supply chain management involves managing the flow of goods and services from the procurement of raw materials to the end user. For instance, consider a clothing brand like Zara, which meticulously structures its supply chain to ensure efficient production and global distribution. Similarly, fast-food chains like McDonald's showcase distinct flavors and outlets, primarily due to their organized logistics and distribution frameworks.
Roles and Responsibilities in Supply Chain Management
The roles within supply chain management can vary significantly depending on the industry. Companies from various sectors—such as hotels, FMCG (Fast-Moving Consumer Goods), retail, healthcare, and manufacturing—require effective supply chain strategies tailored to their specific needs.
For example, an engineering company like L&T, which might receive a contract for building a refinery, will need to procure various equipment like reactors. The procurement process begins with technical specifications, followed by getting quotes from suppliers who meet those specifications. After thorough discussions and negotiations regarding pricing, delivery, quality inspections, and other parameters, a purchase order is finalized.
Skills and Educational Path
Successful professionals in supply chain management need to possess strong analytical skills, attention to detail, and proficiency in software solutions like SAP for managing supply chain and inventory. Educationally, aspiring candidates can pursue a degree in engineering or any field, followed by a Master’s in Supply Chain Management or Logistics.
Salary and Market Outlook
The salary in the supply chain management field can significantly vary based on the organization. Entry-level positions may offer salaries around ₹3 to ₹4 lakhs per annum, but as one progresses, opportunities in major companies can lead to salaries ranging from ₹40 lakhs to ₹1 crore for managing high-value purchase orders.
The global supply chain management market is expected to grow from USD 29 billion in 2022 to USD 45 billion by 2027, with a CAGR of around 9.4%. This growth is driven by increasing demands in retail and e-commerce, as well as advancements in technology, providing better transparency and tracking throughout the supply chain process.
Conclusion
In conclusion, a career in supply chain management offers dynamic opportunities across various sectors, sustaining an evergreen demand in today's economy. If you found this overview insightful, consider subscribing to stay updated on future discussions regarding careers in this field.
Keywords
- Supply Chain Management
- Logistics
- E-commerce
- Procurement
- FMCG
- Engineering
- SAP
- Salary
- Global Market Growth
FAQ
1. What is supply chain management?
Supply chain management involves overseeing the flow of goods and services from obtaining raw materials to delivering the final product to consumers.
2. Do you need an MBA to work in supply chain management?
No, a career in supply chain management is open to individuals with engineering degrees and other educational backgrounds, not just MBAs.
3. What industries require supply chain management?
Industries such as FMCG, retail, healthcare, manufacturing, and construction all require effective supply chain management strategies.
4. What skills are important for a career in supply chain management?
Analytical skills, attention to detail, and proficiency in software like SAP are essential for success in supply chain management roles.
5. What is the salary range in supply chain management?
Entry-level positions typically offer salaries ranging from ₹3 to ₹4 lakhs, while experienced professionals can earn between ₹40 lakhs and ₹1 crore depending on their role and company.