ASCM: Supply chain pay gap closes in under 40s
The pay gap between men and women working in supply chain under the age of 40 has finally reached parity, according to the Association for Supply Chain Management’s latest annual Supply Chain Salary and Career Report.
The gender pay gap in this age group had been narrowing over the past two years, the ASCM’s previous surveys show, and in 2021 has closed entirely. Women report a median salary of $81,000 annually, while men earn a median annual salary of $79,000. Across all age brackets, men report a median salary of $82,000 and women $80,000.
Other highlights from the ASCM report
- 95% of supply chain professionals kept their job through the pandemic
- The typical starting salary for a supply chain professional is $60,000
- 48% of supply chain professionals now work from home
- 88% of survey respondents find supply chain a fulfilling career path
But there is still work to be done in closing the divide in those over the age of 40. Older men are still earning far more than their female peers, with a discrepancy of between $12,000 and $23,000 annually. ASCM’s report does not definitively conclude why this disparity remains, but says women who began their careers several decades ago may have started out on lower salaries. They may also have missed out on steady wage increases and career development after taking time away from work to have and raise families.
It is also likely that the pay gap in over 40s is affected by a lack of women in executive leadership positions. A recent Gartner study found that, while women now represent 41% of the supply chain workforce - a five year high - only 15% of executive level positions are held by women. That figure is a decline of two per cent on 2020.
Supply chain’s racial pay gap remains
For the first time, ASCM’s annual survey also looked into the pay gap between ethnicities, finding that the median salary for black professionals was 12% less than their white peers, and Latinos earned on average 14% less. That represents a divide of between $9,000 and &10,000 in real terms. Asian professionals earned a median salary of $80,000, compared with the $83,000 for white professionals.
Abe Eshkenazi, the ASCM chief executive, said reporting on and acknowledging lingering wage disparity was not enough: “Supply chain organisations must lead the way by creating environment where diverse talent is valued, included and developed. The need for supply chain professionals has never been greater, so now is the time to expand the aperture to include diversity of thought, influence and input — particularly for women and people of colour.”
Read the full report: ASCM 2021 Supply Chain Salary and Career Report
DHL partners with Riversimple in sustainability move
Riversimple Movement, a Welsh hydrogen vehicle manufacturer, has found a new partner in the world's 11th largest employer: DHL Supply Chain. The two companies, who have recently signed an MoU, pledge to bring sustainable zero-emission vehicles to the UK, and their targets don’t stop there. The duo looks to be busy, with their sights set on developing sustainability initiatives, securing the necessary finances required to achieve the volume production of hydrogen vehicles, and designing and subsequent trialling of zero-emission transport.
DHL has already begun assisting its new partner in preparing for its first full-scale manufacturing facility, which will house the production of hydrogen-electric vehicles.
“It’s exciting to be partnering with a highly innovative company like Riversimple, which has sustainability at the heart of its mission,” says Managing Director of DHL Manufacturing Logistics UKI, Mike Bristow. “As the world’s leading logistics company, it is our responsibility to guide the industry to a sustainable future.”
DHL has recently launched “The Sustainability Playbook”, designed to create a roadmap to implement the next generation of global supply chain.
“Excellence. Simply delivered. In a sustainable way.”
As one of the leading drivers in global trade, DHL claims to be aware of its immense responsibility to steer innovation. Conscious of the impact their global operations have on the environment, the company initiated “Strategy 2025” - delivering excellence in the digital world. The goal: to focus increasingly on harnessing the potential for sustainable long-term growth and expanding the already-underway digital transformations within the business.
“Strategy 2025” aims to cumulatively invest €2bn in digitalisation through to 2025, in the hope that this will enhance customer experiences. They also predict a €1.5bn yearly run rate by FY’25.
Currently, DHL boasts a large green logistics portfolio, including carbon offsetting, green optimisation, and clean fuel and energy products, all as available ways to make the supply chain industry more sustainable.
“We have repeatedly redefined logistics, from introducing the industry’s first green product to becoming the first logistics company to commit to a zero-emissions target,” says DHL.
“In the past 15 years, we have continuously improved our carbon efficiency while introducing innovative green logistics solutions to make supply chains more sustainable and help our customers achieve their environmental goals.”
DHL move to lead supply chain sustainability
As the world’s 11th largest employer, and with around 570,000 employees worldwide, DHL is in a position to lead the supply chain towards a greener future. Its recent partnership with Riversimple hopes to inspire other companies within the industry to follow.
Hugo Spowers, Founder and Managing Director of Riversimple, acknowledges DHL’s commitment to sustainability.
“We’re very pleased to be collaborating with DHL to help us achieve mass production in the UK in the near term, and hopefully partner with us on a global level as we deliver our goal of systematically eliminating the environmental impact of personal transport.