How to hire a skilled supply chain manager and build a resilient supply chain

Today, customers expect their deliveries to arrive as soon as possible: Almost half of US buyers are willing to wait only up to two days for a delivery [1].

Companies from every industry face a lot of competition – and one of the best ways to make customers loyal to your brand is to provide faster and hassle-free delivery. 

The supply chain process is essential to most organizations that sell physical products, including resellers. If you’re in the business of sourcing, creating, or manufacturing products to sell, you need to also ensure you’re able to ship them to your customers – fast. 

Once you reach a certain volume of sales (which will vary from company to company), it’s only logical to hire a supply chain manager who can effectively coordinate different departments and help you ensure you’re able to serve your customers well.

Filtering your candidates can be a challenge, however, especially if you only count on resumes to help you identify the right people to interview. Candidates frequently stretch the truth or even lie on their resumes to appear more qualified.

Streamlining your hiring process with the help of skills testing will help you hire the best person for your organization. 

If you’re wondering how to hire a supply chain manager who has all the right skills, you’ve come to the right place. In this article, you’ll learn more about: 

• The responsibilities of the role

• The hard and soft skills you should look for

• How to use pre-employment skills testing to assess them objectively

• How to source qualified candidates 

• What the average salary of a supply chain manager is

What is a supply chain manager?

A supply chain manager oversees and coordinates the entire supply chain process of an organization. This means that they make sure there is an efficient flow of goods, services, and information from the supplier to the end customer. 

Supply chain managers keep track of products through their entire life cycle before they reach buyers, from sourcing raw materials for manufacturing to proper storage and successful delivery.

Some of the key duties of a supply chain manager include reducing costs and time for product storage and shipment. They also deal with a variety of logistical tasks, such as inventory management, tracking deliveries, procurement, and returns. They can focus more on certain parts of the job and sometimes act more as logistics managers.

To succeed, supply chain managers need to work with stakeholders, suppliers, and sometimes customers, as well as to communicate frequently with different departments of your company, such as finance, production, or your legal team. Negotiating more favorable supplier terms for your company is another important part of their job, as is managing processes related to returns from customers.

Strategic planning is necessary for optimizing transportation and other core elements of the supply chain process. A qualified supply chain manager can streamline this effectively and give you an advantage in any competitive marketplace. 

Analyzing data is another important task that a supply chain manager must perform, so they can make data-based decisions in areas such as demand forecasting and production planning.

To sum up the job role, a supply chain manager has five main tasks:

• Develop and implement supply chain strategies

• Source raw materials

• Oversee storage and shipping

• Optimize distribution

• Manage returns

If you need to hire staff for other related roles, like a purchase manager, you can read more about them in our supply-chain hiring guide.

What hard skills do supply chain managers need?

Here are some of the necessary hard skills every supply chain manager needs to be successful:

Business analysis

Being able to collect and evaluate insights and use them for business analysis and recommendations is vital for supply chain managers. This skill means they can translate business requirements into effective solutions and find ways to optimize the process that they’re in charge of. 

People who excel at business analysis have strong critical thinking and sound knowledge of the organizational structure and functions of businesses. 

Supply chain strategy

A supply chain manager must know how to build and implement efficient strategies to keep the whole chain going. 

For this, they must be able to plan ahead, foresee potential outcomes, and prepare practical solutions that can advance your company’s objectives, regardless of any challenges you might have to overcome along the way.

Market knowledge

To provide the right solutions and stay ahead of the competition, any supply chain manager worth their salt should have a thorough understanding of the current economic factors that impact the supply chain.

A skilled supply chain manager always looks for ways to update their knowledge of customer and supplier behaviors and keeps track of market trends. They research the potential risks and weaknesses of each strategy so they can execute proper risk management procedures. 

Business operations and project management

Supply chain managers must be able to work with suppliers, vendors, stakeholders, teammates, and clients. To succeed in this role, they must have strong project management skills and be able to oversee a process all the way through. 

Business operations management refers to the ability to control the production process and all the business operations that are required to keep it running smoothly. This means balancing operating costs, maximizing profit, and maintaining the highest level of efficiency in every layer of the supply chain.

Tech skills

Automating the supply chain process can be quite helpful. If your supply chain manager stays up to date with recent technology developments, this guarantees that the supply chain process in your organization will be as efficient as possible. 

There are many software solutions that can make the job of a supply chain manager easier. This includes:

• Enterprise resource planning (ERP) software like Oracle NetSuite and SAP Business One

• Business intelligence (BI) technology like Tableau and Microsoft Power BI

• Cloud-based supply-chain applications like SAP Supply Chain Management (SCM) and Oracle SCM Cloud

What are the essential soft skills of supply chain managers?

A supply chain manager has to manage a large variety of processes, each one involving many people with diverse personalities and behaviors. To be able to work with everyone efficiently and achieve positive outcomes, a supply chain manager must have excellent interpersonal skills. 

That’s why soft skills matter just as much as hard skills for this role. Here is a list of the most essential ones:

Communication

Supply chain managers must able to communicate effectively, both verbally and in writing, with:

• Vendors and suppliers

• Manufacturers

• Retailers and distributors

• Other teams and departments

• Stakeholders

• Customers

Strong communication and relationship-building skills are essential for that. 

And indeed, Mind Tools for Business surveyed more than 15,000 managers and nearly 80% of them confirmed that the ability to build relationships effectively is the most important skill for any person in a leadership position. 

Time management

Time management is the skill of organizing your time well and in alignment with the tasks at hand. In supply chain management, the effective scheduling and monitoring of processes and tasks is a condition for success.

Supply chain managers with strong time-management skills can prioritize tasks effectively and meet deadlines, guaranteeing optimal satisfaction with your supply chain.

Negotiation

A big part of the job of a supply chain manager is to negotiate the costs, timeframes, and other conditions for every element of the supply chain process. 

To do that, they must be persuasive and able to adapt to every situation. Negotiation skills can also help your supply chain manager to motivate employees to go above and beyond – and increase customer satisfaction.

Problem solving

Essentially, the work of a supply chain manager boils down to solving problems. Once a supply chain strategy has been built, their main objective would be to solve potential problems that may hinder its success. 

Any successful supply chain manager should be able to:

• Identify problems 

• Come up with solutions 

• Assess and compare different approaches to find the most effective one

• Execute it effectively

How to test supply chain manager skills

Supply chain recruitment can be difficult. Hiring the right person to be in charge of the entire process is even more challenging. 

Sifting through resumes is not enough, especially if your candidate selection relies entirely on resume screening. 

Instead, we advise implementing pre-employment skills testing in your hiring process. This can give you more accurate insights into your candidates’ skills and provide you with data that can help you personalize your interview questions, so you can learn more about each person’s strengths and weaknesses. 

Pre-employment skills testing is a standardized and objective way to explore your candidates’ skill sets, professional values, and personality traits, as well as their motivation for the job and how aligned they are with your company’s mission.

Recommended tests for supply chain managers

With TestGorilla, you can build an assessment of up to five skills tests. Pick the tests that are most relevant to your open position and compare candidates’ results to identify the most promising talent. 

Here are our top picks: 

• Supply chain fundamentals: Evaluate a candidate’s knowledge of supply chain management and their ability to apply it in their job. 

• Business operations management: This test assesses a candidate’s ability to organize and execute business operations. 

• SAP Ariba: This test will identify candidates who have practical knowledge of the SAP Ariba app.

• Transport coordinator: Evaluate candidates who can manage the logistics of coordinating transportation costs and timelines effectively.

• Project management: Get data-driven insights into your candidates’ skills in project management. 

• Communication: Find strong communicators who know how to relate to others and transmit information effectively. 

• Problem solving: Make sure applicants are able to identify, define, and solve problems effectively. 

• Negotiation: Find out whether candidates have the right skills and experience to find mutually beneficial solutions in any situation.

• Time management: Efficient time-management skills are essential for the successful management of supply chains. 

Supply chain manager interview questions

Skills tests enable you to quickly evaluate applicants’ skills and identify the most promising talent – but to gain in-depth understanding of your top candidates’ skills, interviews are invaluable.

Here’s our selection of interview questions you can ask to find your future supply chain manager:

1. What made you choose a career in supply chain management?

2. What are the primary components of a supply chain?

3. Describe a time when you had to collaborate with other departments to tackle a supply chain issue. 

4. What are the most important key performance indicators (KPIs) for supply chain management? How do you track them?

5. What is just-in-time (JIT) inventory? Can you list a few of its advantages and disadvantages?

6. Describe a time when you handled a difficult negotiation process successfully. How did you ensure the best outcome for your company?

7. What software do you use to optimize supply chain processes?

8. Explain how you would handle a sudden increase in demand for a product.

9. How would you handle a situation where a key supplier faces significant production issues?

10. What are your strategies to reduce the ecological impact of supply chains and make them more sustainable?

11. How do you handle conflicting demands from different departments?

12. Explain how technologies like AI, IoT, and blockchain have impacted supply chain management in the past few years.

13. How do you help the members of your supply chain team upskill and grow?

14. What's your approach to inventory management? How do you align it with demand forecasting?

15. What were the most challenging problems you needed to tackle during the Covid-19 pandemic? How did you solve them?

Supply chain manager job description template

Position: Supply chain manager in [your industry]

Location: [City, state or “remote”]

[Your company] is a leader in [industry] devoted to [brief description of your mission]. 

We’re currently on the lookout for a skilled supply chain manager to help us build and execute a resilient supply chain strategy, improve the resilience of our existing supply chain processes, and implement the best practices of supply chain management. 

The role’s responsibilities

To be successful in this role, you’ll need to: 

• Predict product demand to ensure the right products are available at the right time and location

• Identify, vet, and manage relationships with suppliers to ensure consistent supply of high-quality materials, products, and services

• Oversee the storage, distribution, and tracking of goods to ensure optimal inventory levels

• Identify risks and weak points within the supply chain and develop strategies to mitigate them and ensure continuity in production and distribution

• Monitor and control operational costs to improve profitability

• Manage transportation modes and routes, ensuring the timely and efficient movement of goods from suppliers to manufacturing units, distributors, and retailers

• Create strategies to improve the efficiency, sustainability, and resilience of our supply chain

• Implement new technologies and reconfigure the supply chain network as needed

• Help us enter new markets

• Work closely with other teams and departments to align plans, objectives, and strategies

• Review and analyze data, metrics, and key performance indicators (KPIs) to assess performance and identify areas for improvement

Requirements and skills

We’re looking for someone with the following qualifications and skills: 

• A degree in business administration, supply chain management, logistics, or a related field

• [X] years of experience in end-to-end supply chain management

• Knowledge of risk management and quality assurance (QA) procedures in the context of supply chain management

• Proficiency in supply chain management software, such as [list software tools your company is using, such as SAP Aruba, Oracle NetSuite, and more]

• Knowledge of national and international trade and transportation regulations

• Excellent leadership and people management skills

• Strong communication and negotiation skills

Compensation and benefits

We offer the following:

• Salary ranging [from/to + range] based on experience and skills

• Comprehensive health insurance with excellent medical, dental, and vision plans

• A 401(k) retirement plan

• Flexible working schedule with the possibility to work remotely 50% of the time

• [List other benefits you offer here]

Where to find skilled supply chain managers

Before you start looking for your next supply chain manager, it’s best to consider whether you need an in-house employee or a freelancer. 

Larger companies with a big workload usually hire in-house supply chain managers. Freelance work is gaining popularity in the SCM field, however, and some businesses might benefit more from a short-term hire, especially when they need to handle seasonal spikes in demand.

Freelancers and independent contractors might be ideal for: 

• Small-sized companies that don’t have complex supply chain processes

• Organizations that only manage a portion of their supply chain

• Businesses that need consulting about developing a new supply chain strategy

Supply chain labor shortages have resulted in a true staffing crisis. Finding a skilled supply chain manager can be challenging, so it’s best to use as many channels as possible. Some of the platforms where you look are:

• Glassdoor: The platform offers access to a large talent pool and can help you attract top candidates.

• LinkedIn: LinkedIn enables you to search for passive candidates and invite them to apply to your job posting – or also leverage your existing professional network.

• SimplyHired: SimplyHired is a job aggregator with unlimited free postings. 

• Upwork: This platform is ideal for hiring a freelance supply chain manager. 

Check out our guide on how to hire a supply chain specialist for ideas on how to build an effective referral or internal recruitment strategy.

How much does a supply chain manager cost?

According to salary.com, the average salary of a supply chain manager in the US is $122,887/year. Depending on various factors such as additional skills, years of experience, industry, and location, the range may fall somewhere between $108,718 and $139,324.

Hire the best supply chain manager with the help of pre-employment skills testing 

While the shortage of supply chain managers can be a problem, streamlining your hiring process can help you ensure that you’re hiring the right candidate for your company. Using pre employment skills testing will provide the data you need for making informed and objective hiring decisions. 

Sign up now for TestGorilla’s free plan and discover the world of data-based hiring. 

Sources:

1. https://www.statista.com/statistics/561768/fast-online-order-delivery-us-consumers/ - Timeframe willing to wait for fast shipping according to U.S. consumers as of September 2019. Statista. Last accessed on October 19, 2023