Skill supply chains apply a chain strategy to human resources to make the labor market more efficient. They link the multiple skill levels in a given labor market within a network of recruitment pathways for employers and advancement pathways for workers. Skill supply chains are based on employers' actual skill needs and on the principle that employers' need for labor pulls low-income individuals up from low-wage jobs through the advancement and recruitment pathways created by the supply chain. Local chambers of commerce, industry associations, and other employer organizations can play a pivotal role in the functioning of skill supply chains. Employer organizations themselves benefit from skill supply chains a variety of ways. A national review of knowledge supply chains, job ladders, tiered employment, and similar programs identified the following principles for consideration when planning skill supply chains: (1) employer organizations are important as intermediaries; (2) skill supply chains respond to employer skill needs; (3) effective skill supply chains depend on identification and documentation of transferable skills; (4) the more tiers a skill supply chain has, the more effective it is; and (5) partnerships are critical. Thirty-one specific guidelines regarding planning, developing, operating, and assessing skill supply chains are presented. (MN)