Supply chain management is the process of planning, coordinating, and executing the flow of goods and services from suppliers to customers. This includes operations such as procurement, production, stock management, logistics, and distribution.
To optimize supply chain operations, Supply Chain Analysts play a critical role in supply chain management by using data analysis and other tools. This optimization of the supply chain can result in reducing costs for businesses, enhancing efficiency, and better meeting customer demand.
As such, Supply Chain Analysts must keep up with the latest trends and technologies to remain effective in their roles.
Table of Contents:
Who is a Supply Chain Analyst?
A Supply Chain Analyst is a professional who uses data analysis, logistics management, and various business strategies to optimize the supply chain operations of a company and meet customers’ demands.
They are in charge of gathering and analyzing information about various aspects of the supply chain, including inventory levels, production plans, and transportation costs. By analyzing these data, the Supply Chain Analyst identifies inefficiencies and then recommends areas of improvement.
The expanded globalization of the supply chain has increased the demand for Supply Chain Analyst professionals. They mainly work in various industries, including manufacturing, logistics, retail, transportation, etc.
What Does a Supply Chain Analyst Do?
For any business operation, supply chain management plays an important role. Furthermore, in this field, the job role of the Supply Chain Analyst ensures the efficient flow of products and services from suppliers to end-users. As a Supply Chain Analyst, there are several roles and responsibilities for ensuring the organization’s supply chain is running smoothly.
Roles And Responsibilities of Supply Chain Analyst
After studying multiple job descriptions for the role of supply chain analyst, we have compiled down the key responsibilities and KPIs a Supply chain analyst needs to fulfil:
- Supply Chain Analysts collect, analyze, and interpret data to identify the latest trends and practices, and various business insights utilized to optimize supply chain processes.
- They look into demand forecasts, inventory plans, and production planning to ensure that products and services are available according to customer requirements.
- They are responsible for identifying cost-saving opportunities associated with the execution of tasks such as transportation, warehousing, distribution, and other supply chain operations.
- They monitor supply chain performance metrics and prepare reports on key performance indicators.
- They frequently communicate with stakeholders to ensure that the supply chain is meeting their needs and that the parties are aligned on supply chain processes and goals.
- They use technology to automate processes, gather data, and improve supply chain activities.
- They are responsible for maintaining solid relationships with suppliers and looking after the problems they are facing if any.
- Last but not least, they are responsible for identifying and mitigating risks such as transportation disruptions, product quality issues, demand instabilities, geopolitical events, outside disturbances, etc in the supply chain process.
Key Skills Required For Supply Chain Analyst
Skills required by a Supply Chain Analyst can be classified into two categories: soft skills and technical skills. First, let’s look at the hard skills or the technical skills:
Technical Skills
- Data Analysis: Supply chain management involves heavy use of analytics. Within the planning phase itself, things like market trend analysis, demand forecasting, and logistics route optimization come into play. Since the role of a supply chain analyst would be to help organizations make data-driven decisions to attain supply chain optimization, data analytics becomes a crucial skill.
- Understanding of ERP Systems: Supply chain analysts need to understand ERP systems because these systems integrate and manage core business processes, including procurement, inventory, and logistics.
- Project Management: Supply chain analysts are expected to work on optimizing the entire SCM value chain. This undertaking can become increasingly hectic if an individual lacks project management skills.
- Business and Supply Chain Acumen: To optimize a business process, you must know how the particular business process works. Understanding the nuances of business or supply chain management can boost the understanding of problem statements for supply chain analysts, helping them evaluate data more effectively.
Soft Skills
- Communication Skills: It is essential to have effective communication to collaborate with the various departments and stakeholders involved.
- Leadership: To direct the team towards the business goals and objectives and allocate resources effectively.
- Logical Thinking: The professional responsible for driving key business decisions needs to remain bias-free and logically apt. Decisions must be made by considering the hypothesis and facts figured out while carrying out the analysis.
- Interpersonal Skills: Dealing with numerous stakeholders requires strong interpersonal skills. You need to be an active listener, team player and empathetic.
How to Become a Supply Chain Analyst? – A Step-by-Step Roadmap
Becoming a Supply Chain Analyst requires a combination of various skills, educational qualifications, previous work experience, certifications, etc. In the following points, we will summarize the step-by-step roadmap for you to become a supply chain analyst.
By following these steps, you will be able to build a rewarding career in supply chain management and make a valuable contribution to your career growth or your organization.
1. Fulfil Educational Requirements
Most of the time, it requires a degree in supply chain management, logistics, operational management, or any related field to step into the supply chain management career. Some companies prefer to have a master’s degree to be eligible for the role of Supply Chain Analyst.
2. Gain Work experience
It is necessary to have any previous work experience in the area of Supply Chain Management. You can consider internships, working in operations management, or some entry-level positions in the domain related to supply chain or logistics for gaining industry experience.
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3. Master Critical Supply Chain Analytics Skills
A variety of skills are required for a career as a Supply Chain Analyst, including the ability to solve problems, project management, machine learning, predictive analytics, effective communication skills, business understanding, ERP systems, etc. These skills can be developed through internships, keeping up with current trends and requirements, consulting with supply chain management professionals, and part-time work in the supply chain industry.
4. Take on Certifications
Consider obtaining industry certifications in supply chain management to demonstrate your knowledge and skills in supply chain management. This will help you to crack interviews and get preference over others.
Supply Chain Analyst Salary
The COVID-19 pandemic has had a significant impact on supply chain management, highlighting the importance of effective supply chain planning and management. The disruption brought new opportunities for the job growth of Supply Chain Analysts, due to the expertise they deliver and it impacted the supply chain management salary structure too.
Generally, the salary of a Supply Chain Analyst can vary depending on factors such as location, industry, and level of experience.
- The average salary of a Supply Chain Analyst in India is around ₹6,12,220 LPA. However, the salaries can be ranging from around ₹3,05,500 to ₹15,50,400. Based on factors such as location, years of experience, and the industry, the salaries can vary.
- In Canada, a professional working as a Supply Chain Analyst earns an average salary of CA$62,320 per year. The salaries can range from CA$44,500 to CA$91,690, depending on the location and the level of experience.
- The average base salary of a Supply Chain Analyst in the United States is around US$71,450 per year. However, the salaries can range from around US$52,500 to US$97,150, depending on factors such as location and years of expertise you have in the supply chain industry.
Conclusion
As supply chain management becomes increasingly important in today’s global economy, the demand for skilled Supply Chain Analysts is growing rapidly. This career path offers opportunities for job growth and advancement, as well as the chance to make a significant contribution to the organization’s success.
Becoming a Supply Chain Analyst requires hard work and a commitment to the organization.
So, if you are interested in shaping your career as a Supply Chain Analyst, take your step towards developing the skills, and consider the points that we discussed here in this blog. With dedication and appropriate skills, this career path offers ample opportunities for growth and development in the coming years.