DC VELOCITY's annual salary survey reveals that logistics/supply chain professionals are logging marathon hours on the job. But are they treated right?
Karen Bachrach brings more than two decades' worth of magazine editing and production experience to DC VELOCITY. A veteran of the supply chain field, she has worked at such publications as Purchasing and Logistics Management. She was also part of the launch team behind Supply Chain Management Review, serving as the managing editor from 1997 through 2002.
If it feels like you and your colleagues are working longer and harder these days, it's probably not your imagination. In the logistics and supply chain world, the 40-hour workweek is clearly a thing of the past. Only one in five of the readers who took part in DC VELOCITY's third annual salary survey worked 45 hours or less during the average week. A whopping 72 percent said they routinely logged somewhere between 46 and 60 hours a week (including time spent working outside the office). Another 9 percent appear to be stuck on a frenetic work treadmill that rarely shuts down; they're spending more than 60 hours a week on the job.
It's not just harried executives who are tethered to their work. The same thing is happening down on the DC floor among supervisors, operations managers, and shipping/receiving coordinators. If you haven't seen it in your own operation yet, chances are you will. The marathon workweeks are being reported across all industries—from food and grocery to lumber and wood products. They're being logged in companies of all sizes. And they're taking hold in facilities from coast to coast.
What's behind the epidemic of long work hours? It's partly that people in this field simply have more to do. Seventy-one percent of the 1,230 survey respondents reported that the number of functions they manage has increased over the past three years. (Another 25 percent said their responsibilities had stayed the same, and 4 percent reported a decrease.) The typical reader is no longer responsible for just, say, transportation management or fleet operations. He or she is likely overseeing warehouse/ DC operations or import/export activities as well. On top of that, professionals in this field typically manage a lot of people; 63 percent of the survey respondents have five or more direct reports.
It seems clear enough that readers are working hard for the money, but are they treated right? Our survey didn't measure job satisfaction, so it's tough to say. But if compensation is any indication, logistics and supply chain professionals have little to complain about. Our survey showed that the average salary was comfortably in the six figures—$105,834, to be precise. The median salary was somewhat lower, at $89,000. But that's still more than two and a half times the median U.S. salary, which the Bureau of Labor Statistics put at $33,634 in 2006 (the most recent year for which data are available).
As for salary trends, 78 percent saw their salaries increase in the past year, 19 percent said their pay had stayed the same, and 3 percent reported that they had taken a hit in salary. The respondents whose pay had risen reported an average increase of 9.6 percent over the previous year, which easily outpaced the 4.4 percent rise in the Consumer Price Index during the same period. We should note here that the pay increases reflected more than just annual raises. Two-thirds of the respondents reported that at least some percentage of their total compensation was based on performance.
It's all about the title
Given the broad range of titles and responsibilities among our survey respondents (see sidebar), it's probably no surprise that the latest study found a significant range in salaries. The highestpaid respondent, the president of a company in the wholesale/retail sector, earned $955,000. The lowest earner, a supervisor working in the pharmaceuticals field, brought home $25,000.
That $930,000 differential is less a reflection of pay scales in the wholesale/retail and pharmaceutical sectors than a reflection of the respondents' titles and responsibilities. When it comes to salaries, it's not what you do—or where you live or even what you know—that matters. It's what you're called. As our salary surveys have consistently shown, job title is the biggest factor in determining what you earn.
So which titles bring the highest pay? This year, it was the senior vice presidents who topped the salary charts. The median salary for the senior VPs who participated in our survey was $200,000—11 percent higher than the median salary of those next in line, corporate officers. Those corporate officers, in turn, made $20,000 more than executive vice presidents, who made $22,000 more than "plain" vice presidents. Presidents and directors came next, with median salaries of $120,000 and $110,000, respectively.
At that point, the gap began to widen. Managers made $35,000 less than directors, and supervisors earned $20,000 less than managers. Exhibit 1 shows the median salary and average salary for each title (we've used the median numbers, rather than the averages, as the basis for comparison because they are less likely to be skewed by outliers, or statistical extremes).
By the numbers
Job title may reign supreme, but there are still many other factors that influence how much a given logistics or supply chain professional makes. Where you work (geographic region), how much schooling you've had, and time spent in the trenches typically have a significant effect on salaries.
Take geography, for instance. As Exhibit 2 shows, there was wide variation in the median salaries reported in the different regions of the country. This year, the highest median salary was found in the Mid-Atlantic states, where the median pay was $104,000. From there, the median salary dropped by $13,000 to $91,000, which was reported in the West. Managers working in the Lower 48 did better than their counterparts in Hawaii, Alaska, Puerto Rico, and the U.S. Virgin Islands, where the median salary was $62,000. The lowest median salary of all, $56,250, was reported by respondents working outside North America.
As you might expect, our survey also found a strong correlation between earnings and education. As Exhibit 3 shows, the median salary for respondents with only a highschool diploma was $71,500. The professionals at the other end of the scale, those who have earned a doctorate, take home 50 percent more, with a median salary of $110,000.
Experience in the field also counts when it comes to earnings (see Exhibit 4). The median salary of newcomers to the field (those with five or fewer years of experience in logistics) was $66,500. Those at the other end of the range (respondents with more than 25 years' experience) command a significant premium for their expertise. With a median salary of $102,000, the veterans out-earned the newcomers by a little over 50 percent.
Mind the gap
What other factors have the potential to affect salary? Our survey showed that a respondent's age and gender, the size of the company he or she works for, and his or her tenure with the current employer can play a role.
Take age, for example. It will probably come as no surprise that median salaries increased with age—but only up to a point. As Exhibit 5 shows, that point occurs somewhere around age 60. The median salary for respondents aged 55 to 60 was the same ($100,000) as it was for those over 60. Our survey also revealed a yawning salary gap between respondents who are under 35 and their elders. The median salary for the younger workers was $69,635; the median salaries for the other groups ranged from $90,000 to $100,000.
Just as younger workers lag behind their older counterparts when it comes to paychecks, females working in the field lag behind males. As Exhibit 6 shows, the gap in median salaries this year was 25 percent. (That may indicate that women are gaining on men; last year's survey showed a gap of 31 percent.) The salary gap seems to be at least partly a matter of experience. The female survey respondents have less experience than the males on average: 51 percent of the women have 15 years' experience or less, compared to 46 percent of the men. Similarly, 21 percent of the men who responded have more than 25 years' experience in logistics, compared to 8 percent of the women.
As Exhibit 7 shows, our survey also found a correlation between salaries and company size. As you might expect, the bigger the company, the higher the salary—with one exception. The median salary for companies with 1,001 to 5,000 employees was slightly lower than the median salary at companies one step down in size, those with 501 to 1,000 employees.
As for salaries by the respondents' tenure with their current companies, our survey found only a very weak correlation. As Exhibit 8 shows, the median salaries for employees with six to 20 years' tenure with a company clustered in the low $90,000s. From there, the median salary jumped to $100,000 for those with 21 to 25 years' tenure, but dipped slightly for employees who had been with the company for more than 25 years.
Charting a course
In the end, of course, there are countless other variables that might enter into any given person's salary—job performance, departmental budget, and perks and benefits, to name a few. But generally speaking, the primary factors in determining salary are title, geographic region, education, experience, age, company size, and gender.
What does that mean for those eager to boost their earnings? Well, there's not much you can do about your age or gender. But if you suspect your location or a lack of schooling might be holding you back, you can think about moving to a different part of the country or going back to school.
But be careful what you wish for. A bigger paycheck will almost certainly be accompanied by more responsibilities and longer hours. In the logistics and supply chain world, there's no getting around it: You'll work hard for the money.
about our survey
DC VELOCITY's third annual salary study was based on the responses of 1,230 readers who completed a 20-question survey during the first half of February. Of those respondents, 5 percent identified themselves as corporate officers (CEOs, COOs, CFOs); 4 percent as presidents; 12 percent as vice presidents, senior vice presidents, or executive vice presidents; 22 percent as directors; 46 percent as managers; and 11 percent as supervisors.
The survey respondents came from a broad swath of industries—including wholesale/retail (21 percent), third-party logistics services (13 percent), and food and grocery (8 percent). They represented companies of all sizes as well. Twenty percent were employed by companies with fewer than 100 employees, 25 percent by companies with 100 to 500 people, 9 percent by companies with 501 to 1,000 employees, 17 percent by companies with 1,001 to 5,000 people, and 29 percent by companies with more than 5,000 employees. Those companies were scattered throughout the United States, as well as Canada and Mexico. Only 1 percent of the survey respondents worked outside North America.
Our survey asked respondents to identify the functions they managed. As it turned out, only 22 percent of the respondents named just one function. The rest of the survey-takers indicated that they had multiple areas of responsibility (including 79 who said they were responsible for all of the functions listed). Warehouse and/or distribution center management was the most frequent response, cited by 74 percent of the respondents. That was followed by logistics management (63 percent), supply chain management (55 percent), transportation management (53 percent), import/export operations (28 percent), and fleet operations (22 percent).
As for the respondents themselves, 90 percent were male, 10 percent female. Some were newcomers to the workforce (14 percent were under 35 in age); others were veterans. The largest share of the respondents (71 percent) fell into the 36-to-55 age range. Thirteen percent were 56 to 65, and 2 percent said they were over 65. When asked about the highest level of education they had completed, 27 percent said high school, 54 percent had a bachelor's degree, 18 percent had a master's degree, and 1 percent had earned a Ph.D.
The majority of the respondents were seasoned professionals. When asked how many years they've worked in logistics-related jobs, only 15 percent said that they'd been in the field for five years or less. Another 16 percent have worked in logistics for six to 10 years, 18 percent for 11 to 15 years, 19 percent for 16 to 20 years, 12 percent for 21 to 25 years, and 20 percent for more than 25 years. And they're not job-hoppers: A full 62 percent said they had been working at the same company for six years or more.
Sometimes, all you need is the right partner to solve your logistics problems.
In 2021, global paint supplier Sherwin Williams faced driver and hazardous material (hazmat) capacity constraints: There simply weren’t enough hazmat drivers available in its fleet to maintain the company’s 90% fleet utilization rate expectations for key partner store deliveries while also meeting growing demand for service. Those challenges threatened to become even more acute in the future, as a competing paint supply company began to scale back its operations in the Pacific Northwest, leaving Sherwin Williams with an opportunity to fill the gap.
The paint supplier needed a logistics partner that could help it overcome the shortage of hazmat drivers while also helping to manage its West Coast trailer pools, out-of-region runs, and ad-hoc freight. It also needed a solution that would meet quarterly and annual fleet budgets.
SCALING UP
Enter ITS Logistics, a third-party logistics service provider (3PL) that offers supply chain solutions for drayage, network transportation, distribution, and fulfillment across North America. ITS proposed a combined owned-asset and asset-light approach that would provide Sherwin Williams with the equivalent of 21 additional drivers. The 3PL would leverage its carrier network to overcome the shortage of hazmat capacity while also certifying its own drivers via a three-month process. Further, ITS would help manage Sherwin Williams’ trailer pools and coordinate carriers, providing the paint company with a single point of contact for transportation.
The project would address cost concerns as well: “ITS Logistics aligned its solution with Sherwin Williams’ budgetary cadence and offered a quarterly business review to align on price structure, adding a level of transparency and trust to the relationship,” according to a case study the partners released earlier this year.
The companies soon sealed the deal and launched the program.
Not long after that, Sherwin Williams began to feel the effects of the anticipated challenges in the Pacific Northwest—but the company was prepared. When the competing paint supply company shuttered its operations, causing demand for Sherwin Williams’ products to spike, ITS injected a blend of owned trailers and carrier power to alleviate equipment challenges, cover all locations and regions, and help the paint supplier scale to meet volume.
CLOSING THE GAPS
The project has helped Sherwin Williams rapidly scale its capacity, meet fleet utilization requirements, manage trailer pools, coordinate carriers, and flex to meet spikes in regional demand.
And the results speak for themselves.
“ITS integrating themselves into our fleet was instrumental in helping increase our outbound volume by 18.4 million pounds [year over year] in the last seven months of 2023,” said Ted Taxon, regional transportation manager at Sherwin Williams, in the case study. “This equated to approximately 460 truckloads of extra freight, a large portion of which ITS [handled] on an ad-hoc basis with no operational constraints or quality issues.”
The partnership also helped Sherwin Williams maintain a 90% fleet utilization rate with big box retailers—an increase from less than 70% prior to the partnership’s launch.
Robots are revolutionizing factories, warehouses, and distribution centers (DCs) around the world, thanks largely to heavy investments in the technology between 2019 and 2021. And although investment has slowed since then, the long-term outlook calls for steady growth over the next four years. According to data from research and consulting firm Interact Analysis, revenues from shipments of industrial robots are forecast to grow nearly 4% per year, on average, between 2024 and 2028 (see Exhibit 1).
EXHIBIT 1: Market forecast for industrial robots - revenuesInteract Analysis
Material handling is among the top applications for all those robots, accounting for one-third of overall robot market revenues in 2023, according to the research. That puts warehouses and DCs on the cutting edge of robotic innovation, with projects that are helping companies reduce costs, optimize labor, and improve productivity throughout their facilities. Here’s a look at two recent projects that demonstrate the kinds of gains companies have achieved by investing in robotic equipment.
FASTER, MORE ACCURATE CYCLE COUNTS
When leaders at MSI Surfaces wanted to get a better handle on their vast inventory of flooring, countertops, tile, and hardscape materials, they turned to warehouse inventory drone provider Corvus Robotics. The seven-year-old company offers a warehouse drone system, called Corvus One, that can be installed and deployed quickly—in what MSI leaders describe as a “plug and play” process. Corvus Robotics’ drones are fully autonomous—they require no external infrastructure, such as beacons or stickers for positioning and navigation, and no human operators. Essentially, all you need is the drone and a landing pad, and you’re in business.
The drones use computer vision and generative AI (artificial intelligence) to “understand” their environment, flying autonomously in both very narrow aisles—passageways as narrow as 50 inches—and in very wide aisles. The Corvus One system relies on obstacle detection to operate safely in warehouses and uses barcode scanning technology to count inventory; the advanced system can read any barcode symbol in any orientation placed anywhere on the front of a carton or pallet.
The system was the perfect answer to the inventory challenges MSI was facing. Its annual physical inventory counts required two to four dedicated warehouse associates, who would manually scan inventory to determine the amount of stock on hand. The process was both time-consuming and error-prone, and often led to inaccuracies. And it created a chain reaction of issues and problems. Fulfillment speed is one example: Lost or misplaced inventory would delay customer deliveries, resulting in dissatisfaction, returns, and unmet expectations. Productivity was also an issue: Workers were often pulled from fulfillment tasks to locate material, slowing overall operations.
MSI Surfaces began using the Corvus One system in 2021, deploying a small number of drones for daily inventory counts at its 300,000-square-foot distribution center (DC) in Orange, California. It quickly scaled up, adding more drones in Orange and expanding the system to three other DCs: in Houston; Savannah, Georgia; and Edison, New Jersey. The company plans to add more drones to the existing sites and expand the system to some of its smaller DCs as well, according to Corvus Robotics spokesperson Andrew Burer.
Those expansion plans are based on solid results: MSI’s inventory accuracy was about 80% prior to the drone implementation, but it quickly jumped to the high 90s—ultimately reaching 99%—after the company initiated the daily drone counts, according to Burer.
“We actually had an incident early on where one of the forklift drivers ran into the landing pad, rendering it inoperable for about a week while the Corvus team fixed it,” Burer recalls. “When we restarted the system, we noticed MSI’s inventory accuracy had dropped down to the 80s. But after flights resumed, accuracy quickly improved back to near perfect.” He adds that such collisions are rare as Corvus mounts landing pads high off the floor to avoid impacts but that accidents can still happen.
Overall, the system has helped speed warehouse operations in two key ways: First, the accuracy improvement means that associates no longer waste time searching for missing material in the warehouse. And second, the associates who used to conduct the physical inventory counts have been reallocated to picking and replenishment—creating a more efficient, and optimized, workforce.
A SAFER, MORE EFFICIENT WAREHOUSE
Robot maker Boston Dynamics is well-known for its Stretch and Spot industrial robots, both of which are at work in warehouses and DCs around the world. Earlier this year, Stretch made its debut in Europe, teaming up with Spot at a fulfillment center run by German retail company Otto Group. The deployment marks the first time Stretch and Spot are being used together—in a partnership designed to improve Otto Group’s warehousing operations by increasing efficiency and making warehouse work safer and more attractive to workers.
The partnership is part of a two-year project in which Boston Dynamics will deploy dozens of its warehouse robots in Otto Group’s European DCs. The first location is a fulfillment site operated by Hermes, the company’s parcel delivery subsidiary, in Haldensleben, Germany—a facility that handles as many as 40,000 cartons of goods on peak days.
At the site, Stretch—which is a mobile case-handling robot—autonomously unloads ocean containers and trailers, using its advanced perception system to pick and place boxes onto a telescoping conveyor inside the container or trailer. Spot—a quadruped robot—helps with predictive maintenance by collecting thermal data and performing acoustic and visual detection tasks throughout the facility to reduce unplanned downtime and energy costs. One of Spot’s jobs is to detect air leaks in the facility’s warehouse automation systems; future duties may include conveyor vibration detection, according to leaders at Otto Group.
Both Stretch and Spot will help the Haldensleben facility run more efficiently, especially during fall peak season when volume increases and work intensifies. The addition of Stretch addresses safety and comfort issues as well: Trailer unloading—a process that entails repeatedly lifting and moving heavy boxes inside a trailer, which can be dark, dirty, cold, and/or hot, depending on the weather—tends to be unappealing to workers. Along with reducing the amount of labor required, automating these tasks will have the added benefit for European facilities of helping them comply with EU (European Union) regulations limiting the amount of time workers can spend in those conditions.
Essentially, the robots are making life easier on the warehouse floor and for the company at large.
“Stretch is going to have a ton of benefits for customers here in the EU,” Andrew Brueckner, of Boston Dynamics, said in a recent case study on the project.
The trucking industry faces a range of challenges these days, particularly when it comes to load planning—a resource-intensive task that often results in suboptimal decisions, unnecessary empty miles, late deliveries, and inefficient asset utilization. What’s more, delays in decision-making due to a lack of real-time insights can hinder operational efficiency, making cost management a constant struggle.
Truckload carrier Paper Transport Inc. (PTI) experienced this firsthand when the company sought to expand its over the-road (OTR), intermodal, and brokerage offerings to include dedicated fleet services for high-volume shippers—adding a layer of complexity to the business. The additional personnel required for such a move would be extremely costly, leading PTI to investigate technology solutions that could help close the gap.
Enter Freight Science and its intelligent decision-recommendation and automation platform.
PTI implemented Freight Science’s artificial intelligence (AI)-driven load planning optimization solution earlier this year, giving the carrier a high-tech advantage as it launched the new service.
“As PTI tried to diversify … we found that we needed a technological solution that would allow us to process [information] faster,” explains Jared Stedl, chief commercial officer for PTI, emphasizing the high volume of outbound shipments and unique freight characteristics of its targeted dedicated-fleet customers.
The Freight Science platform allowed PTI to apply its signature high-quality service to those needs, all while handling the daily challenges of managing drivers and navigating route disruptions.
STREAMLINING PROCESSES
Dedicated fleets face challenges that evolve from day to day and minute to minute, including truck breakdowns, drivers calling in sick, and rescheduled appointment times. PTI needed a tool that allowed for a real-time view of the fleet, ultimately enabling its team to adjust truck and driver allocation to meet those challenges.
The Freight Science solution filled the bill. The platform uses advanced analytics and algorithms to give carriers better visibility into operations while automating the decision-making process. By combining streaming data, a carrier’s transportation management system (TMS), machine learning, and decision science, the solution allows carriers to deploy their fleets more efficiently while accurately forecasting future needs, according to Freight Science.
In PTI’s case, Freight Science’s software integrates with the carrier’s TMS, real-time electronic logging device (ELD) data, and other external data, feeding an AI model that generates an optimized load plan for the planner.
“We’re an integrated data analytics company for trucking companies,” explains Matt Foster, Freight Science’s president and CEO. “We’re talking about AI.”
The benefits of the real-time data are difficult to overstate.
“We’ve been able to execute in the toughest of situations because we’ve got real, live data on how long each event is actually going to take and a system to aid and even automate the decision-making process,” says Chad Borley, PTI’s operations manager. “From what traffic patterns we are battling in the morning and evening with rush hour and things like that, to the impact of additional miles to a route, or even location-specific dwell times, it’s been a huge differentiator for us.”
REALIZING RESULTS
A case in point: the collapse of Baltimore’s Francis Scott Key Bridge in March. PTI was scheduled to go live with a new dedicated account in the area just days after the collapse, which would mean rerouting and the potential for longer transit times. Instead of recalculating based on assumptions or latent data, PTI was able to reroute freight based on real-time information and analytics to give the customer timely updates.
“With the bridge going out, that changed our ability to make as many turns a day as the customer would expect,” Stedl explains. “But one of the things Freight Science could do [was to] quickly [assess] how much of an impact that traffic would have [and] what the turns [would] be based on what’s happening on the ground.
“So we were able to go back to the customer and readjust expectations in a real way that made sense, using data. Now expectations can be reset¾we’re not asking for forgiveness when there’s no reason for it.”
The system’s advanced algorithms make load planning more cost-effective and scalable as well. The platform allows PTI to monitor trucks, trailers, and driver hours in real time, recommending additional loads with remaining driver hours that would otherwise be wasted.
And they’re doing it all with much less. Stedl says tasks that used to require five people and hours of work can now be accomplished by one person in mere minutes, improving productivity and profitability while reducing labor and operational costs.
Terms of the deal were not disclosed, but Aptean said the move will add new capabilities to its warehouse management and supply chain management offerings for manufacturers, wholesalers, distributors, retailers, and 3PLs. Aptean currently provides enterprise resource planning (ERP), transportation management systems (TMS), and product lifecycle management (PLM) platforms.
Founded in 1980 and headquartered in Durham, U.K., Indigo Software provides software designed for mid-market organizations, giving users real-time visibility and management from the initial receipt of stock all the way through to final dispatch of the finished product. That enables organizations to optimize an array of warehouse operations including receiving, storage, picking, packing, and shipping, the firm says.
Specific sectors served by Indigo Software include the food and beverage, fashion and apparel, fast moving consumer goods, automotive, manufacturing, 3PL, chemicals, and wholesale / distribution verticals.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”