The Impact of Digital Transformation on Supply Chain Management Jobs
Digital transformation has significantly influenced the supply chain industry over the past decade. The implementation of the latest technologies, such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT), enables companies to enhance efficiency, streamline business operations, and gain a competitive edge. Additionally, it has a significant impact on careers in supply chain management.
In this article, we collaborated with Jooble experts to explore the key factors and perspectives for professionals in this field. Jooble, the international job aggregator, also provides an opportunity to discover various career options, whether you are interested in Japanese speaker job openings or supply chain international management careers.
Digital Transformation and Supply Chain Capabilities
In today’s world, digital transformation (DT) is one of the key factors for success and sustainability across the vast majority of industries. One of the main takeaways from the COVID-19 pandemic is that companies that embraced digital technologies not only remained successful but also reached new heights.
In this context, digital transformation has given companies a competitive advantage. It has also had a significant impact on the supply chain industry. Previously, supply chain management was predominantly operational. However, with the advent of Big Data, IoT, 5G, and AI, it has become far more efficient and less prone to risks.
Supply Chain Capability
One of the main factors technology can improve in supply chain management (SCM) is supply chain capability (SCC). It enables a company to work with internal and external information more productively. Some of the aspects that technology can enhance are:
- Supply chain agility
- Adaptability
- Market sensing
- Internal communication
- Process optimisation
Overall, such transformation can improve almost any process in the supply chain industry. According to recent studies, the connection between digital transformation (DT) and the supply chain industry has yielded exciting results:
- DT leads to new directions and perspectives
- DT involves a revolution in business models, services, processes, organisations, and operations
- Although indirectly, DT impacts competitive performance (through information exchange, collaboration, responsiveness, and activity integration)
Boosting Productivity
Another study shows that DT significantly boosts a company’s productivity. The main reason is the ability to precisely match supply with demand and reduce transaction costs. It is now evident that implementing modern technology is highly beneficial for organisations. However, it is essential to explore what such changes bring to industry professionals.
Supply Chain Management Job Market 2024
First of all, careers in supply chain management are available across various industries, which influences the required skills, performance metrics, and salaries. The factors that affect such roles, besides digital transformation (DT), include:
- Country of work
- Industry
- Company size
- Education
- Skills
- Performance and responsibilities
- Risk exposure
- Potential
For instance, a supply chain manager in a company with 30-50 employees will earn less than a professional working for a large corporation. The size of the team you manage, along with the risks and responsibilities, also impacts salary expectations.
Salary Comparisons
Here are some salary comparisons. One of the official websites of the Ministry of Defence, Defence Equipment & Support, offers a starting wage of £27,840. Meanwhile, on the Jooble job aggregator, you can find some vacancies in supply chain management for Aldi supermarkets. The position of National Supply Chain Assistant offers a salary of £36,000 – £40,000 per annum, and the role of National Supply Chain Programme Manager has a salary range of £61,000 – £94,000 per year. Currently, there are around 2,500 vacancies in supply chain management on job posting websites such as Jooble. The average salary for this role in the UK exceeds £40,000 annually.
One of the key ways DT influences jobs in this sector is the constant need to learn and adapt to innovation. Adopting the latest technologies requires a solid understanding of various solutions and a willingness to grow professionally.
Key Technology Proficiencies
Continuous learning and technical skills are becoming increasingly important due to digital transformation. For those aiming to succeed in the field, it is essential to become proficient in some of the key technologies and methods, including:
- Data analytics solutions
- AI
- SAP
- Power BI
- Data Science
- Big Data
It is also crucial to be proactive and open to change. Modern business is highly competitive, and even minor improvements in processes can provide a significant advantage to a company. Therefore, it is vital to seek new opportunities and be ready to embrace them.
The requirements for soft skills remain unchanged. The industry still values leadership, organisational skills, communication, negotiation, and critical thinking.
SCM Careers to Consider
Although technology simplifies and automates many processes, a human manager is still required to oversee them and make data-driven decisions. It is safe to assume that SCM roles will remain as important as ever in the near future.
Some of the most promising careers in this field include:
- Logistics Director
- Procurement Director
- Demand Planning Manager
- Client Relations Director
- Import/Export Team Manager
- Transport Director
Digital transformation makes SCM more agile and dynamic, yet the primary goal remains the same: to optimise the alignment of supply and demand while reducing delivery and transaction costs for maximum effectiveness.
Conclusion
With the adoption of digital technologies, SCM roles demand greater adaptability from professionals, as well as specific technical skills. At the same time, technological advancements enable organisations to reach new heights and gain a competitive edge.
Guarantee success in your supply chain with IoSCM. Find out how our qualifications, resources, support and expertise can help you. Call 0800 1422 522 today.