What is a Supply Chain Analyst and How to Become One?

Making and delivering a product involves a big and complex process. It can be made nearby or come from far away. This journey, from creating the product to getting it to the buyer, is called the supply chain. Many companies and people work together to make this happen. It’s a big process that needs careful attention because different things can mess it up.

When the supply chain gets messed up, it often means prices suddenly change for everyday things. People who study the supply chain, called supply chain analysts, have a tough job. They have to work with many different parts of a company and talk to people inside and outside the company to make sure everything goes well.

Sometimes, problems like political issues or big events, such as wars or the pandemics like COVID-19, can stop or mess up the supply chain. This leads to shortages and makes the prices of things go up. Managing the supply chain is not easy, but it’s important to have smart and experienced people to handle all the challenges and make sure things run smoothly.

A supply chain analyst is vital for a company’s smooth operation. They plan, study, and keep an eye on how products move through the supply chain to ensure they reach their destinations on time and without costing too much.

These analysts usually focus on specific projects, like launching a product in a new country or finding cheaper routes or suppliers. They act as a connection between the company and its suppliers, often located overseas. Their job involves researching fair prices, negotiating deals, and keeping an eye on the amount of products in warehouses using tools like SAP.

Supply chain analysts play an important role in facilitating the procurement of goods from overseas for organizations, overseeing comprehensive projects to ensure a smooth transition of products from one point to another.

Key responsibilities and tasks associated with the role of a supply chain analyst include:

• Monitoring current business operations by overseeing various aspects such as sourcing, warehousing, deliveries, and production scheduling.
• Collecting and examining data to reduce costs and enhance overall efficiency within the supply chain.
• Utilizing tools like SAP to manage and streamline supply chain processes and inventory.
• Cultivating and sustaining professional relationships with vendors, serving as representatives of the company or organization to maintain a positive image.
• Continuously exploring opportunities to enhance supply chain management by assessing approaches, processes, tools, and technology.

Technical and Non-Technical Skills for Supply Chain Analysts

Technical Abilities

Data Analysis

Analyzing data with various software and tools to identify the most cost-effective supply chain routes.

Mathematical Proficiency

Strong mathematical skills, including rapid calculations, are vital for discussions with supply chain stakeholders. Applications include logistics, automation, optimization, predictive maintenance, machine learning, and inventory management.

Quantitative and Analytical Skills

Critical for examining large datasets and deriving actionable insights. The ability to make data-driven decisions is essential.

Project Management

Supply chain analysts manage projects, requiring team leadership, multitasking, and seamless oversight of operations. Strong leadership skills are key to effective project management.

Non-Technical Competencies

Logical Reasoning

Logical reasoning is crucial for unbiased decision-making, assessing the feasibility of proposed changes, and identifying viable alternatives based on factual data.

Interpersonal Aptitude

Strong interpersonal skills, including active listening, empathy, and relationship building, are essential for engaging with stakeholders, authorities, and consumers to understand their challenges.

Communication Prowess

Clear and compelling communication is vital for conveying ideas, suggestions, and improvements, influencing stakeholders with logical and articulate reasoning.

Organizational Skills

Effective organization enables efficient multitasking and collaboration across teams, improving outcomes and managing workloads without burnout.

Team Collaboration

Collaborating on projects, training teams, and working with diverse departments requires adept interpersonal skills, fostering cooperation regardless of personal or ideological differences.

To build a career as a supply chain analyst, candidates should have a bachelor’s degree in Mathematics, Logistics, Business Analytics, or a related field.

Preferably, individuals with prior experience in roles like supply chain analyst, logistics coordinator, or similar positions gained through internships are highly valued. Additionally, candidates should demonstrate proficiency in the following tools and exhibit the specified supply chain analyst skills:

• Proficient in MS Office
• Familiarity with ERP systems, such as SAP, and understanding of supply chain processes and relational databases
• Problem-solving aptitude
• Attention to detail
• Previous experience with SQL analysis tools is advantageous

*payscale.com

As per payscale, an average base salary of ₹549,250 per year. Additionally, the salary range is depicted with a 10% mark at ₹261k (indicating that 10% earn less than this amount), a median point at ₹549k, and a 90% mark at ₹1m (indicating that 90% earn less than this amount). Also, It includes potential additional earnings such as bonuses, ranging from ₹10k to ₹118k, and profit sharing, ranging from ₹15k to ₹102k. The total pay, which combines base salary, bonuses, and profit sharing, ranges from ₹260k to ₹1m.

As per data from the US Bureau of Labor Statistics, logisticians receive an annual median salary of $77,030. It is noteworthy that the projected job growth for this occupation is 28 per cent from 2021 to 2031, significantly surpassing the average growth rate for all occupations, which stands at 8 %.

The median salaries for supply chain analysts in various industries are as follows

With the growth of e-commerce and rising demand for just-in-time deliveries, the career outlook for supply chain professionals is highly promising.

Guide to Starting a Career as a Supply Chain Analyst

To become a supply chain analyst, a bachelor’s degree is recommended. If you already have one and are transitioning careers, focus on skill development and gaining relevant experience. Below is a step-by-step guide to launch your career.

Obtain a Bachelor’s Degree

A bachelor’s degree, especially in business administration, significantly boosts employability for supply chain analyst roles. According to Zippia, 72.8% of analysts hold a bachelor’s degree, and 15% have master’s degrees. The fast-paced nature of supply chain management demands proficiency in tools like SAP, along with strong business acumen, problem-solving, and quantitative analysis skills.

Working professionals can advance by enrolling in courses like the Advanced Supply Chain Management and Role of Analytics program from IIM Kozhikode, which covers supply chain management comprehensively. For technical skills, master tools like SAP or Excel through guided projects on data sorting, filtering, and creating charts in Excel or Google Sheets.

Apply for Entry-Level Positions

With honed skills, target entry-level supply chain analyst roles at companies aligned with your career goals. Craft a tailored resume and cover letter for each application, highlighting relevant skills and experience. If transitioning careers, update your resume and refine your interviewing skills to reflect your new focus.

Types of Supply Chain Analyst Roles

Supply chain analyst roles vary widely, lacking consistent descriptions. Below are the most common types of positions, outlining their key responsibilities.

Sourcing Analyst

Sourcing Analysts collect and analyze data to optimize sourcing spending. They evaluate supply markets, assess vendors, engage with potential suppliers, and build relationships with buyers to develop effective sourcing strategies.

Materials Analyst/Planner

Materials Analysts ensure raw material availability, coordinating with sourcing, production, and transportation teams to support timely and efficient production of finished goods.

Production Analyst

Production Analysts create production schedules and plans using scheduling tools and forecasting models. Some organizations split this role into production planners and schedulers.

Inventory Analyst

Inventory Analysts set optimal inventory targets for products and locations, balancing low inventory levels with customer service goals while tracking actual inventory performance.

Demand Planning Analyst

Demand Planning Analysts develop and maintain customer demand forecast models, integrating business intelligence from sales and marketing. They collaborate with supply chain teams to create demand planning strategies.

Deployment Analyst

Deployment Analysts ensure optimal product quantities at various locations, working with supply chain teams to meet customer service goals at minimal cost.

Transportation Analyst

Transportation Analysts select and manage carriers for inbound and outbound goods, maintain relationships with customers and carriers, and implement cost-saving transportation initiatives.

Supply Chain Modeling Analyst

Modeling Analysts use advanced analytical skills, such as optimization and simulation, to build mathematical models that enhance supply chain performance.

Other supply chain analyst roles may exist based on organizational needs. Analysts often work across multiple roles before advancing to senior analyst, supply chain manager, or leadership positions, depending on their skills and organizational requirements.

As the demand for skilled professionals in this field continues to rise, it is crucial to cultivate the appropriate skill sets that will set you apart as a standout candidate in the competitive job market. By honing your abilities in problem-solving and data analysis now, you are not only preparing yourself for a rewarding career but also positioning yourself as an invaluable asset in the evolving landscape of supply chain management. Seize the opportunity to become a key player in shaping the future of this dynamic field by focusing on acquiring the right skills today.