Supply chain leaders might be shocked to learn that the percentage of women in the workforce has decreased since 2021. In that year, women constituted 41% of the total supply chain workforce. Today, that number has dropped to 39%. In this respect, it seems like the industry is regressing rather than progressing.

While there’s been a slight improvement in the number of women in mid-level positions (first-line managers, senior managers and directors), a closer examination of the corporate hierarchy shows a decline in the number of women in leadership positions –—vice presidents, senior directors, and C-suite executives. The number of women in vice president and senior director roles in supply chain has dropped from 28% in 2019 to 21% in 2022.

Many women might find themselves the only female in the boardroom. The outlook is even bleaker for women of color, who constitute only 14% of the overall supply chain workforce. Moving up the corporate ladder, those numbers dwindle further: 7% are directors; 5% are vice presidents, and a mere 1% are chief supply chain officers.

Why the Scarcity?

Following are some factors contributing to the scarcity of female leaders in the supply chain industry.

Lack of career advancement opportunities. Mid-career women are leaving their organizations in droves. The reason is a lack of advancement opportunities.  

This issue manifests in various ways. For instance, women may be overlooked for promotions and development opportunities because of a perceived lack of confidence, even when they possess the necessary skills and qualifications.

Likewise, when women lack a strong network, they miss out on opportunities. They need mentors and sponsors to guide their career path.

The pay gap. Despite progress, certain systemic issues still need to be addressed, such as pay disparity. In the supply chain, a woman in the same position and with the same responsibilities as a man earns just 87 cents. Additionally, one of the main reasons women are leaving the supply chain industry is competitive compensation. A staggering 43% of survey respondents reported that they left their company due to lack of competitive pay.

Work-life balance and flexibility challenges. Although traditional roles have evolved, women are still often regarded as the primary caregivers in families, bearing the brunt of domestic care responsibilities. Both genders might start in the same organizational role, but family life, children and other obligations can prevent women from accessing the same opportunities as men.

The pandemic further exacerbated this issue. As schools and offices closed, children and parents were confined to their homes. With the blurring of boundaries between work and home, parents struggled to balance professional responsibilities with childcare. By May 2021, about 400,000 more women than men left the workforce since the start of the pandemic to take over childcare duties.

What Should Organizations Do?

Following are some steps that organizations can take to empower women in supply chain.

Provide training and development opportunities. In recognition that women often face more hurdles, such as stepping away from the workforce or prioritizing family and domestic responsibilities, organizations should provide additional mentorship, training and career guidance for them. This approach offers two key advantages: inspiring younger women to enter the industry by increasing the number of female leaders, and encouraging mid-career women to pursue higher positions and promotions. Recognizing the inherent inequality in supply chain opportunities is the first step toward establishing a path to equality.

Bridge the pay gap. Organizations should reevaluate their compensation strategies, beginning with offering competitive pay and addressing gender pay disparities. Pay discrepancies persist for women regardless of marital status or parental responsibilities. In collaboration with Human Resources, organizations should analyze the reasons behind pay inequities and identify solutions. As women may be less assertive during pay negotiations or salary increments, companies should provide resources to help them communicate their salary expectations effectively.

Implement diversity, equity and inclusion (DE&I) initiatives. While global organizations are making progress in representing women in supply chain, medium-sized and large organizations often lag due to a lack of specific goals or programs promoting women. Companies should establish DE&I objectives and implement initiatives that specifically promote women in the workplace. Creating safe spaces and communities for women within organizations allows them to voice concerns, discuss challenges, and collaborate on solutions. In proactively hiring and retaining women, particularly those in mid-career, companies can incorporate flexible and inclusive policies that consider the unique challenges women face. Offering flexible work hours and remote work options, for example, can help them to continue their career progression.

What Can Women Do?

Following are some actions that women can take to encourage change.

Build confidence and communicate priorities. Sometimes women can be their own worst enemies.  Low self-esteem and confidence can hinder them from advocating for themselves. Often women are reluctant to speak up in meetings, ask for promotions and be bold in the workplace. To embrace self-confidence, they need learn to communicate effectively about their needs and priorities. To ensure that their personal and professional lives are aligned, they need to advocate for themselves, not only in the workplace, but also by communicating openly about their passions and goals outside the office.

Take accountability for their careers. Women should outline their goals, values and strengths; assess current skills and experiences, identify growth areas, and set clear and achievable career objectives. They can foster career growth by pursuing additional education, training and leadership roles.

Build a network of supply chain superheroes. A strong community is essential for personal and professional success. Women should cultivate a network of mentors, sponsors and champions who genuinely support their success. Seeking mentorship from respected industry leaders can provide valuable insights and skills development. Ideally, these mentors should be women who are currently in the position they want to be in five or 10 years down the line.  

Pass the ladder down. Women need to lean on each other to move forward. Those in leadership positions can help others by mentoring and guiding them in the right direction. Connect them with the right set of resources and training to help them advance their careers. The sharing of experiences, lessons learned and advice can serve as a playbook for others who find themselves in similar situations.

While much work remains to be done, organizations and women can collaborate to create an equitable industry that values both male and female leadership. By working together and lifting one another up, the industry can pave the way for the next generation of female supply chain leaders.

Harshida Acharya is chief marketing officer of Fulfillment IQ.