Salaries for U.S. supply chain professionals rose 3% year-over-year to a median annual income of $98,570 in 2023, according to a new report from the Association of Supply Chain Management.
The association surveyed approximately 2,000 U.S. professionals in January and February to collect data on supply chain salaries and careers. The report found years of experience and job status both played a role in the size of the increases.
As an example, ASCM found people new to the supply chain profession had a higher salary increase compared to professionals with more tenure in the field.
Professionals with less than one year of experience reported a $65,000 salary in 2023, $5,000 higher than the previous year. In comparison, an individual with 10 to 19 years of experience reported a $100,200 salary in 2023, representing a $200 increase from 2022.
Workers with less tenure got raises more consistently
The push to recruit more talent into supply chain jobs contributed to the gap in salary increases by tenure. As companies sought out talent they wanted to make sure incentives were given for individuals to not only join the company but also to stay long-term, according to ASCM CEO Abe Eshkenazi.
"We're not surprised that we're seeing higher salaries for initial job opportunities," Eshkenazi said in an interview.
Supply chain professionals who changed jobs also got more of a salary boost than those who stayed in place, the report found. Workers who moved onto a new workplace or position saw an average salary increase of 13%, whereas those who kept the same job only saw a 7% increase.
Eshkenazi added that about 85% of turnover in supply chain roles were self-directed, meaning the employee itself decided to leave on their own merit as opposed to being let go.
The survey of U.S. professionals also analyzed the differences in salaries by position and gender. Supply chain directors were among the highest paid positions, commanding salaries of about $180,000. Meanwhile, buyers were among the least paid roles, with salaries as low as $64,000.
Supply chain titles command a wide range of salaries
Eshkenazi also said the industry needs to do more work to ensure gender equality in pay. While the report found women with less than two years of experience had a $7,000 higher salary than similarly-experienced men, data also shows the pay gap inverts over time. In 2023, women with more than 20 years of experience reported salaries of $107,000 whereas men with the same years of tenure made $130,000.
"While we're doing an excellent job at recruiting women, we're not providing opportunities for them to advance or take on different leadership opportunities," Eshkenazi said. "So this is one of the areas that we'd like to see a little bit more focus on, you know, leadership opportunities and professional development for women."