Supply chain management skills

By: Ashley Kimler, Edited by: Alec Surmani

Last updated: May 19, 2025

With an education in supply chain management, you can develop the knowledge to optimize processes, reduce costs, and improve efficiency to ensure the timely delivery of goods and services to customers.

Learn more about what supply chain management is, what skills you need to succeed, and where to find opportunities in the field.

What is supply chain management?

Supply chain management involves guiding products from their raw material origins to their final destination in the hands of consumers. Supply chain systems enable companies to source raw materials from multiple regions, produce their goods in different locations, and distribute them worldwide.

The five phases of a supply chain are:

1. Planning
2. Sourcing
3. Production
4. Distribution
5. Returns

A supply chain manager or director manages each phase to help ensure operations run smoothly. Their responsibilities typically go beyond logistics and range from strategic tactical purchasing to performance assessment through the end of the product life cycle.

While a background in business administration or economics can sometimes be enough to get your foot in the door, a master's in supply chain management may lead to opportunities in leadership.

Necessary supply chain management skills

For success in a career as a supply chain manager, focus on developing these fundamental skills:

Enterprise Resource Planning (ERP) software

Proficiency in enterprise resource planning (ERP) systems like SAP, Oracle PeopleSoft, or Microsoft Dynamics can help streamline resource allocation and forecasting in supply chain operations. These tools integrate data across business functions for enhanced decision-making and efficiency.

Materials requirements planning software

Familiarity with planning software like SAP SCM, Oracle e-Business Suite, or Swisslog WarehouseManager is fundamental to supply chain management. These systems track inventory, manage procurement, and help facilitate smooth logistics operations.

Coordination

Effective coordination will help make sure that you adapt your processes to fit the actions of others involved in the supply chain. This can help minimize delays and keep each part of the supply chain running smoothly.

Judgment and decision-making

Strong judgment can help balance cost-efficiency, quality, and customer satisfaction, even in complex scenarios. As a supply chain manager, you'll need to thoughtfully weigh the costs and benefits of your decisions.

Monitoring

Ongoing monitoring across all phases of the supply chain can help businesses anticipate problems and continuously improve. To make sure supply chains stay productive and identify areas for improvement, you'll need to monitor and assess performance metrics over time.

Reading comprehension

In supply chain management, reading comprehension can help you stay compliant, negotiate, and execute strategies. To make sure your processes are accurate and effective, you'll need this skill to understand complex documents like contracts, policies, and operational reports.