Machine learning (ML) is rapidly expanding the scope of what supply chain professionals can achieve, especially regarding material acquisition. Additionally, a McKinsey & Company study found that most companies want to improve their supply chains but lack the employee talent to do so, signaling a need for supply chain professionals. These two factors contribute to abundant career opportunities for rising graduates looking to enter supply chain management (SCM). For example, the U.S. Bureau of Labor Statistics (BLS) reports that logistician job openings will grow by 18% by 2032, much faster than the average of all occupations.
Management roles in this field currently earn an average annual salary of $126,281, according to Salary.com (as of July 29, 2024) Candidates familiar with cutting-edge technologies will likely be able to secure roles on the higher end of this range. This is one reason so many young professionals pursue a Master of Science (MS).
Some advanced programs, such as the MS in Supply Chain Management online program from Florida Institute of Technology (Florida Tech), equip graduates to oversee all of the responsibilities associated with SPC – making them attractive candidates in the job market.
Machine Learning and Material Acquisition
Machine learning is increasingly valuable in supply chain management, especially for material acquisition. GEP — a leader in AI-powered procurement — outlines five ways machine learning helps companies improve their supply chains when it comes to material acquisition:
- Demand forecasting and inventory management: digesting large datasets related to factors like market trends, weather or economic indicators, allowing ML systems to generate demand forecasts that are far more precise than manual methods
- Supplier evaluation and selection: streamlining the traditionally laborious supplier evaluation process by analyzing supplier data — like delivery times, quality metrics or pricing history — to choose the best option
- Procurement spend analytics: categorizing and analyzing procurement spending datasets to uncover insights previously hidden within immense datasets
- Vendor negotiations and contract management: analyzing lengthy contracts to identify the key facets such as terms, dates and obligations, as well as monitoring contacts over time to ensure compliance and provide timely alerts for critical milestones
- Real-time visibility: leveraging GPS trackers and sensors to help companies monitor goods at each point throughout the supply chain, allowing management to anticipate delays and know when to reorder goods
Machine learning is key for companies looking to enhance the efficiency of their supply chain and achieve cost savings.
Machine Learning and Cost Efficiency
Machine learning plays a crucial role in helping companies monitor inventory levels. As SCM professionals know, having too much product on hand is expensive. However, having too little means that you may be leaving money on the table. Machine learning helps companies manage inventory with pinpoint precision. This includes:
- Investigating trends: analyzing current and historical market trends to gain insights into customer habits
- Identifying disruptions: recognizing disruptions like shipment delays or supply shortages and making adjustments instantly
- Gaining broader insight: accessing your suppliers’ inventory and customer demand levels to help you find the right balance
For emerging graduates, understanding the nuances of machine learning will be critical for the long-term success of their careers. Additionally, understanding how to incorporate this cutting-edge tech could give younger professionals a competitive advantage. Again, this is why many graduates choose to pursue an advanced degree.
Earn a Supply Chain Management Master’s Degree Online From Florida Tech
Emerging graduates can set themselves apart by securing an advanced degree specializing in supply chain management. For example, Florida Tech’s online MS in Supply Chain Management program provides students with a comprehensive skill set necessary for a career in SCM. This includes the following:
- Managing the flow of materials
- Developing logistics strategies
- Merging transportation policies with production and marketing tactics
- Analyzing and planning the supply chain on a global scale
Florida Tech’s program also goes one step further by offering a Materiel Acquisition Management course, which examines the process of materiel acquisition, systems management and the latest machine learning techniques. Students can expect to gain relevant experience by working through case studies and projects throughout the program.
Learn more about Florida Tech’s online Master of Science in Supply Chain Management program.
