4 Myths About Procurement And Supply Chain Careers – Solved
Supply chain management and procurement are fields commonly misunderstood by many. The contribution of these fields to any business or their perception as a career option is governed by many misconceptions.
In this article, some of the common myths about supply chain management and procurement will be explored. The purpose of this is to get rid of the common myths around these fields and to help you get a better understanding of the profession.
Myth 1: Cost-Cutting is the Main Objective of Supply Chain Management and Procurement
One of the major misconceptions around supply chain management is that it is only about saving costs and finding the cheapest suppliers. The fact is that the supply chain’s main objective is to have a more holistic, value-based approach with emphasis on improving profits rather than just reducing costs.
Instead of simply reducing costs, there are many faces to supply chain management. For example, improving the overall revenue and profits is an important factor. This is done by reducing delivery lead times, expanding to new markets, taking up corporate social responsibility (CSR) goals, gaining access to a better tech stack, accelerating product launches and more.
Looking up new ways for innovation, using analytics to optimize courier services, and exploring digital supply chain functions are other ways supply chain managers are improving the revenue and profitability of businesses.
The same misconception goes for procurement as well. Procurement is not just about finding the cheapest suppliers. A lot goes on behind the scenes, such as vetting different suppliers and building relationships. Negotiating with the suppliers and striking the best, most profitable deal and effective onboarding is also a part of the procurement process.
Myth 2: Supply Chain Management and Procurement are Entirely Technical
Yes, supply chain management and procurement are very technical fields. The process involves getting adept with new technologies. It also involves exploring huge chunks of data and analytics to drive game-changing business decisions.
But the myth to be busted here is that supply chain management and procurement are entirely technical fields. This is far from the truth. Supply chain management and procurement also require other important soft skills such as good communication, negotiation skills, and building relationships with stakeholders and suppliers to name a few.
Myth 3: Supply Chain Professionals are Only Focused on Purchasing
This is, again, a common misconception about supply chain professionals that is far from the truth. There are numerous other important functions that supply chain professionals have to be experienced in.
For example, functions such as project management and risk management are an important part of any supply chain manager’s job. Supply chain professionals also have to be skilled at understanding customer expectations with respect to the supply chain in order to stay ahead of competitors and improve company profits.
Managing collaborations with other supply chain managers, external stakeholders and suppliers is also a part of supply chain professionals’ jobs. Moreover, they also must work on coming up with innovative solutions and adapting emerging technologies to ensure maximum efficiency and productivity in the supply chain.
Myth 4: Supply Chain Management and Procurement are not Lucrative Career Options
The notion that supply chain and procurement are boring career options is another common myth among young college students and business professionals. This misconception stems from the fact that many people don’t understand what supply chain and procurement really are.
The truth is that supply chain management and procurement are fields that are close-knit with the business model. These are strategic fields that require much more than just managing costs and finding the cheapest suppliers.
The supply chain has a lot more to offer than that. This career path consists of many business challenges to tackle, great exposure to tools and technologies, interesting internal and external collaborations, and good compensations.
The supply chain is a trillion-dollar industry with great scope for professionals looking for viable career opportunities with competitive pay. There is a lot to learn in these fields and a good scope for growth by taking up advanced roles. According to the latest data, the average salary of supply chain managers is $111,280 (at the time of publication), with the typical range between $97,256 and $127,814.