Distribution Manager: Career Outlook and Salary

Last Updated July 12, 2023

Supply chains are complex, varied and unique to every organization. For any organization that is a distributor or wholesaler of products, overseeing the movement of goods from manufacturer, supplier and eventually point of sale is a crucial part of the business cycle. In overseeing this important aspect of the organization, the distribution manager or director serves in directing the overall warehousing and distribution operation and leading a distribution management strategy that supports organizational success.

Job Description

Distribution managers determine when product is distributed, where it is sent and what volume is to be distributed. This role is a key player in the logistics and supply chain management realm, and leverages information systems and software to enable strong forecasting and effective program implementation.

Ultimately, a distribution manager must balance the business desire to reduce costs and optimize safety with the desire to have product available immediately. Achieving this balance means more than moving products from point A to point B as swiftly and cheaply as possible. It requires careful inventory cost management, detailed planning and execution to minimize challenges, and all while being aware of marketplace dynamics and opportunities for improved competitiveness and greater growth.

Role and Responsibilities

Distribution managers must be prepared to make informed decisions and pursue performance improvement in order to maintain effective operations, often working beyond the product supply chain, overseeing inventory management as well.

A distribution manager’s daily responsibilities can include:

Supporting purchasing managers to achieve optimal re-ordering systems
Coordinating computer systems with suppliers to implement a just-in-time inventory system
Overseeing inventory security
Ensuring the safe transport of product (i.e. that perishables are shipped in a refrigerated environment)
Partnering with suppliers to develop optimal packaging, storage and labeling to support efficiency in inventory handling and storage
Creating, implementing and managing strategies and processes to guarantee all product, incoming and outbound, is sent and received on time
Overseeing forecasting and information flow
Measuring processes and adapting strategies
Training employees who receive, store, test or ship products
Developing and implementing warehouse safety and security programs
Examining vehicle fleets, warehouses and equipment, and scheduling any necessary maintenance or replacements
Championing a culture of measurement

Career Outlook and Salary

The U.S. supply chain contains 37% of all jobs, employing 44 million people, and these jobs account for many of the STEM (Science, Technology, Engineering and Math) related positions and their accompanying innovative activity within the economy, according to a joint MIT-Sloan School of Management and Harvard Business School research report shared by the Harvard Business Review.

High wages coupled with a front row seat to the innovation driving the 21^st-century economy make this important sector rife with opportunity for ambitious professionals. In fact, the Logistics Bureau reported that in a 2017 survey conducted by the Council of Supply Chain Management Professionals, 81% of young professionals in the industry reported being optimistic about their career outlook and opportunities, saying that supply chain was “the right career choice.”

The role of distribution manager is poised to ride this supply chain wave. Job growth between 2018 and 2028 is expected to be average, growing at a rate of roughly 5%, according to U.S. Department of Labor statistics. Considering how large the supply chain sector is overall, that’s a substantial growth in needed positions.

Jobs within the “supply chain economy” also offer higher-than average salaries, as revealed by the MIT-Sloan School of Management/Harvard Business School research: an average of $61,700 within the supply chain sector compared to the overall U.S. average of $47,700.* For distribution managers, the average (mean) annual salary is $102,850, according to Bureau of Labor Statistics figures* for transportation, storage and distribution managers as of May 2018.¹ In a 2019 salary survey conducted by Logistics Management of their subscribers, respondents with the title distribution manager/director reported an average salary of $132,300.*

Education and Training

Most jobs for distribution managers require at least a bachelor’s degree, and aspiring professionals should expect to need several years of work experience, vocational or on-the-job training for this position, which requires extensive preparation and experience in leadership and management as well.

Choosing to pursue a master’s degree can bring value in credibility, additional training and skills development, and lead to a higher salary. In examining data from the U.S. Census Bureau’s American Community Survey, economists with the Bureau of Labor Statistics² found that transportation, storage and distribution managers with a master’s degree earned a wage that was nearly 45% higher than those with a bachelor’s degree.*

MSU’s Master of Science in Supply Chain Management program can support professionals aspiring to a distribution manager or director position by equipping them with an end-to-end understanding of supply chain management and applicable real-world strategies that enable them to lead in the supply chain economy.

Explore the Program

¹Bureau of Labor Statistics, U.S. Department of Labor, Occupational Employment Statistics, Occupational Employment and Wages, May 2018 – Transportation, Storage, and Distribution Managers. https://www.bls.gov/oes/current/oes113071.htm (visited Nov. 13, 2019).

²Elka Torpey and Dalton Terrell, “Should I get a master’s degree?,” Career Outlook, U.S. Bureau of Labor Statistics, September 2015. https://www.bls.gov/careeroutlook/2015/article/should-i-get-a-masters-degree.htm (visited Nov. 13, 2019).

*National long-term projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Information provided is not intended to represent a complete list of hiring companies or job titles, and degree program options do not guarantee career or salary outcomes. Students should conduct independent research on specific employment information.