Supply Chain Competency Model - cdn.ymaws.com
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A Supply Chain Competency Model May 2021
Transcript of Supply Chain Competency Model - cdn.ymaws.com
A Supply Chain Competency Model
May 2021
Content:
1. Introduction
2. Competency Framework
3. Supply Chain Competency: A Designation Approach
4. Competency Requirements for a Supply Chain
Executive
2
Copyright © 2021 Competency Worx
All rights reserved. No part of this publication may be reproduced, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the authors.
1. Introduction
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1. Introduction:
Supply chain management is going through times of accelerated change
fuelled by the global COVID pandemic and technology advancements.
Many organisations have gone through change over the last three years
which was not experienced in the previous 20 years.
The 4th industrial revolution is further contributing to this change, it is
estimated by the World Economic Forum that 50% of the current workforce
will require significant reskilling in the next 5 years.
In times like this, constant growth and updating of the skills and capabilities to
stay in touch with the new world of supply chain management will be key.
Attaining a supply chain designation is a key mechanism towards this end.
This designation guide provides an overview of the different designations
provided by SAPICS. The objectives of the designation guide are as follows:
• The competency framework provides an outline of the supply chain
competencies and its interdependencies in an integrated model;
• It provides the definition of the different designations with a high level
definition of the role of that designation in supply chain management;
• The second part provides a detailed outline of the competency
requirements by competency cluster;
The designation guide thus provides the outline of what is expected from the
different designations. The competency assessments are developed based
on the designations guide.
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2. Competency Framework
2. The Supply Chain Competency Framework:
The development of a Competency Framework is a key building block for the
development of supply chain competency. Figure 1 outlines the Supply Chain
Competency Framework which provides the basis for the SAPICS supply
chain competency development and designation assessment.
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Strategic
Sourcing
Strategic
Network Design
Product
Portfolio
Management
Strategic
Demand
Management
DEMAND FULFILMENT STRATEGY
SUPPLY CHAIN STRATEGY
SUPPLY CHAIN PLANNING
PERFORMANCE ENABLEMENT
Demand
PlanningProcurement
Planning
Production
Planning
Supply
Planning
Human
Capacity
Management
Supply
Chain
Analytics
Performance
Improvement
Supply
Chain
Sustainability
Demand & Supply
Balancing
Risk &
Compliance
Management
CU
STO
MER
Global
Trade
Systems &
Technology
Demand
Execution
Management
Operational
ProcurementManufacturing
Transport
&
Distribution
Returns Management
OPERATIONS SCHEDULING
Warehousing &
Facilities
OPERATIONAL EXECUTION
SU
PP
LIER
Fig 1: The Supply Chain Competency Framework
The model consists of four layers:
• The Strategic layer;
• The Tactical layer;
• Operational Execution Layer, and;
• Performance Enablement Layer;
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3. Supply Chain Competency:
A Designation Approach
Designations:
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Supply Chain Management Associate (SCM-A) NQF 4 Endorsed
Supply Chain Management Practioner (SCM-P) NQF 5
Supply Chain Management Advanced Practitioner (SCM-Adv.P) NQF 6/7
Supply Chain Management Executive (SCM-EXEC) NQF 8
Supply Chain Management Leader (SCM-LEAD) Conferred
1
2
3
4
5
Lev
el
SAPICS offers designations across the following five levels:
• Level 1 – Supply Chain Management Associate;
• Level 2 – Supply Chain Management Practioner;
• Level 3 – Supply Chain Management Advance Practitioner;
• Level 4 – Supply Chain Management Executive;
• Level 5 – Supply Chain Management Leader.
Designation profiles define the different roles in the supply chain and
represent a potential growth path for individuals during a career in supply
chain management. The more detailed outlined of the designation
profiles are outlined in the following section.
Table 1: Designation Levels
Designations: The Competency Link
Designation profiles are defined in terms of two key aspects:
• The role of the designation in terms of the nature of the supply chain
aspects that will be influenced directly by that role;
• The second aspect is the scope of the supply chain aspects that will
be influenced by that designation;
This is depicted in the figure 1 outlining the designation based on two
dimensions, firstly the role which ranges from simplistic to complex, and
secondly the scope of supply aspects that are covered. The scope of
supply chain aspects range from narrow to broad. The broader the
supply chain scope, the more global the scope of the designation.
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Supply Chain Scope
Fo
cu
s o
f th
e
Desi
gn
ati
on
Associate
(SCMA) NQF
4
Practioner
(SCMP) NQF
5
Advanced
Practitioner
(SCMS) NQF
6/7
Executive
(SCMPro)
NQF 8
Leader
(SCMLed)
Conferred
Narrow Broad
Simplistic
Complex
Figure 1: Dimensions of Designation Roles
Following the definition of the two aspects on which a designation profile
is based, the role of the designations can be defined in more detail.
Figure 2 outlines the role of the different designation in more detail based
on the dimensions defined in figure 1.
Designations: The Competency Link
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Level 1 Level 2 Level 3 Level 4 Level 5
Supply Chain ScopeNarrow Broad
Impact part of a supply chain
function
Impact a supply chain function in a
business
Impact multiple supply chain functions in a
business
Impact multiple supply chains
across industry in a single country
Impact multiple supply chains
globally
Figure 2: The Role of Different Designations in the Supply Chain
The designation profiles can now be defined at a next level of detail based
on the these high level definitions. This is defined in table 2 which outlines the
different aspects of supply chain in more detail.
Designations: The Role in The Supply Chain
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Job Content:
Supply Chain Focus:
Impact part of a supply chain function
Strategic Vision Developing the strategic vision of the supply chain shapes
the strategic direction of the supply chain in all aspects.
Strategy development Strategy development translates the vision into an action
plan which determines the planning and actions at
different levels.
Partnerships Partnership development will determine which partners will
be selected and what type of partnerships will be
developed.
Design The design of the supply chain define all aspects of the
supply chain, from strategic level to operational levels
Processes Supply chain processes involve the design and operation of
the processes from a strategic to an operational level.
Assets & Infrastructure Assets and infrastructure also involves either design or
operating as the two opposites of the impact.
Resources The impact of resources is based on the extent to which
supply chain resources are committed which translated
into a direct impact on the operating cost of the supply
chain.
Planning Involvement in planning ranges from strategic planning to
operational planning and at the lowest level execution of
operational planning.
Integration & Optimisation Integration and optimisation ranges from strategic design
to operation or implementation.
Procedures Procedure are either designed, implemented or adhered
to.
KPI’s & Performance
Improvement
KPI’s and performance improvement ranges from design
and development, to implementation and measurement.
The last aspect of defining the designation profiles is to identify the impact on
specific aspects of the supply chain. This is outlined in table 2, with the first
column identifying the aspect of supply chain, and the second column
defining the impact on that aspect on the supply chain:
Table 2: Aspects of Supply Chain Impact Defining the Role of a Designation
Designation Profile: Supply Chain Associate
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Job Content:
Supply Chain Focus:
Impact part of a supply chain function
Strategic Intent/Vision No involvement in developing the strategic intent
Strategy development No involvement in strategy development, part of strategy
implementation
Partnerships No involvement in partnership development, operate within
established partnerships
Design No involvement in design of the supply chain or parts of the
supply chain
Processes Execute part of a process
Assets/Infrastructure Utilise an limited part of assets, limited impact
Resources Limited impact, use small part of departmental resources
Planning Limited impact on planning, execute planning
Integration/Optimisation Limited integration with other stakeholders, execute
optimisation
Procedures Follow procedure, ensure compliance
KPI’s & Performance
Improvement
Small impact on performance, measure KPI’s on a small
scale
The role of a Supply Chain Associate is defined as:
Designation Profile: Supply Chain Practioner
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Job Content:
Supply Chain Focus:
Impact a supply chain function in a business. Playing a senior role in a
supply chain function. Part of the functional management team.
Examples, picking manager, distribution supervisor, senior planner,
procurement functional lead
Strategic
Intent/Vision
No involvement in developing the strategic intent, participate in the
implementation of strategic intent
Strategy
development
No involvement in strategy, starting to understand unit’s role in the
broader supply chain strategy
Partnerships No involvement in partnership development, collaborate within the
partnership approach already designed
Design Limited involvement in design, provide input towards the design of
unit/ area of responsibility
Processes Execute the broader supply chain processes, but staring to identify
improvement opportunities in processes in the area of responsibility
Assets/Infrastructure Use and impact on infrastructure expanded. More infrastructure are
being used, more external infrastructure is impacted
Resources Low to medium impact on resources, resource planning covers own
area but also starting to impact others areas
Planning Low to medium impact on planning, develop planning for section of
a function
Integration/Optimis
ation
Low to medium impact on integration with other stakeholders,
determine optimisation in selected area
Procedures Identify opportunities for improvement of related procedure, ensure
compliance with broader procedures
KPI’s &
Performance
Improvement
Low to medium impact on the measure of sectional KPI’s provide
direction on the calculation and reporting of KPI’s
The role of a Supply Chain Practioner is defined as:
Designation Profile: Supply Chain Advance Practitioner
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Job Content:
Supply Chain Focus:
Impact multiple supply chain functions in a business. This can
typically be a manager of a major supply chain function,
procurement manager, warehousing manager, transport manager, a
planning manager or customer service manager.
Strategic
Intent/Vision
High impact on the strategic supply chain vision for the business.
Responsible for determining the supply chain vision.
Strategy
development
High impact on strategy development, drive supply chain strategy for
the business. Drive integration with the overall business strategy
Partnerships High impact on the development of partnerships, provide strategic
direction for partnership development of the business
Design High impact on the design of the supply chain of the single business.
Also drive the design of extended supply chain.
Processes Provide direction of what processes are required, and what process
performance is expected.
Assets/
Infrastructure
High impact on assets utilisation of the single supply chain, drive the
process of ensuring asset utilisation
Resources High impact on resources, responsible for resource planning and
optimisation. Drives costing and resource budgeting
Planning Plays a key role in supply chain planning of the business, also the
integration of planning across supply chain partners
Integration/Optimis
ation
High impact on integration of the supply chain in the business. Need
to drive integration and optimisation
Procedures Provide direction on what type of procedures are required. Ensure
that procedures are aligned with strategy
KPI’s &
Performance
Improvement
High Impact on the measure of sectional KPI’s provide direction on
what should be measured and what the standard should be
The role of a Supply Chain Advanced Practioner is defined as:
Designation Profile: Supply Chain Executive
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Job Content:
Supply Chain Focus:
Impact multiple supply chains across different industries in a single
country. Understanding for different types of supply chains in different
industries. Capable of integrating different types of supply chains
from different industries.
Strategic
Intent/Vision
Create a unified supply chain vision across different types of supply
chains.
Strategy
development
The alignment of supply chain strategy with different types of business
models. Develop different supply chain strategy models.
Partnerships Partnership models will be different across different industries and
different types of supply chains. Provide strategic direction for the
design of these different models.
Design Design different supply chain models for different industries and
different supply chain requirements
Processes Provide direction for different types of supply chain processes, or
different focuses of supply chain processes in different business
environments
Assets/Infrastructure Create assets and infrastructure models for different supply chain
models
Resources Develop different resource models for different supply chain
environments.
Planning Designing different types of planning systems that are aligned with
different supply chain models
Integration/Optimis
ation
Strategic impact on integration and optimisation across different
types of supply chain models
Procedures Provide direction of the different types of policies required in different
types of supply chains
KPI’s &
Performance
Improvement
Defining KPI’s that are aligned with different types of supply chain
models across different industries
The role of a Supply Chain Executive is defined as:
Designation Profile: Supply Chain Leader
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Job Content:
Supply Chain Focus:
Impact multiple supply chains globally. Understanding for different
types of supply chains operating across different continents. Capable
of integrating regional structural differences into the design and
management of global supply chains.
Strategic
Intent/Vision
Formulate a global strategic supply chain vision.
Strategy
development
The alignment of supply chain strategy with different types of
continental business models. Aligning strategy with strategic global
business intent.
Partnerships Developing global partnerships with different types of partners in
different parts of the world playing different roles in a global supply
chain. Developing global sourcing models is an example.
Design Designing the global supply chain, integrating structural, time zone,
infrastructure and cultural differences
Processes Integrating different process models from different parts of the world
into a single supply chain
Assets/Infrastructure Create assets and infrastructure models for different supply chain
models with different asset and infrastructure options
Resources Develop different resource models for different supply chain
environments in different countries
Planning Design and manage global supply chain planning, integrating
planning across trading zones and regulatory constraints
Integration/Optimis
ation
Global supply chain integration and optimisation taking into account
regional and cultural differences in different time zones
Procedures Provide direction of the different types of policies required in different
global supply chains across different continents
KPI’s &
Performance
Improvement
Defining KPI’s that are aligned with different types of supply chain
models across different continents and time zones
The role of a Supply Chain Leader is defined as:
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4. Designation
Profile:
Supply Chain
Executive
Competency Cluster 1:Product Portfolio Management
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Product Portfolio Management1
Product Portfolio
Management
Product/Service
Development
Omnichannel
Marketing
Product Development
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Executive
COMPETENCY 1.1
PRODUCT DEVELOPMENT
Definition:
Product development can be defined as follows: Aspects such as design of products to not
only optimise the product but also optimise the supply chain cost during the life cycle of
products are addressed. Product development can be organised into five basic
management processes (plan, research, design, integrate, and amend) that provide the
organisational structure of the DCOR-model. It is useful to distinguish between the three
process types in the model: plan, execute, and enable. A planning element is a process that
aligns expected resources to meet expected design requirements. Planning processes
balance aggregated demand across a consistent planning horizon. Planning processes
generally occur at regular intervals and can contribute to design chain response time.
Execution processes are triggered by planned or actual demand that changes the state of
products. They include scheduling and sequencing, researching and design, materials and
integrating product, and amend. Enable processes: prepare, maintain and manage
information or relationships upon which planning, and execution processes rely.
Should be able to:
• Review and reformulate supply chain principles applied to the development of multiple
products for across different businesses and industries
• Provide direction to the process of designing different types of products for improved
supply chain performance
• Design collaborative product design processes across industries with supply chain partners
• Improve the principles of product portfolio management to reduce supply chain
complexity and improve supply chain performance across different industries
Portfolio Management
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Executive
PORTFOLIO MANAGEMENT
Definition:
Managing the product portfolio can be defined as follows: Portfolio management focuses on
the alignment between optimising the product portfolio and supply chain performance.
Aspects such as design of products to not only optimise the product but also optimise the
supply chain cost during the life cycle of products are addressed. Product profitability and
the contribution towards supply chain complexity are considered.
Should be able to:
• Should be able to:
• Design and improve the application of the principles of product portfolio management to
a portfolio of products across different businesses to improve supply chain performance
• Evaluate the product portfolio of companies across different supply chains and identify
the opportunities for improvement
• Design the application of product portfolio management strategies in different industries
based on cause-and-effect understanding
• Provide direction for the development and implementation of a strategy to optimise
product portfolios across different supply chains
Omnichannel Marketing
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Executive
COMPETENCY 1.3
OMNICHANNEL MARKETING
Definition:
On-line shopping and social media have experienced significant growth in recent times.
Customers interfacing with a supply chain across multiple channels, called omnichannel
marketing is becoming the norm. Omnichannel marketing is changing the traditional
concept of marketing channels to customers interfacing across multiple channels. As a result
connecting to the customer is now going through multiple interfaces which needs to be
coordinated from a customer service perspective. The growth of-online shopping which is
part of this trend, also creates a set of unique supply chain challenges. The objective of the
competency is to create understanding for the challenges and implications for supply chain
management of this trend.
Should be able to:
• Co-direct defining the concept of omnichannel marketing channels
• Co-direct the process of identifying the challenges in managing the customer interface
through omnichannels across supply chains
• Co-direct identifying the supply chain implications of fragmented customer interfaces
across channels and supply chains
• Co-direct defining the supply chain implications of increased on-line shopping
• Co-direct identifying the potential impact of omnichannel marketing for supply chain
processes and operations across supply chains
• Co-direct the process of identifying the potential risks of omnichannel marketing for supply
chain processes and operations and development of mitigation strategies
Competency Cluster 2:Supply Chain Strategy
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Supply Chain Strategy
Developing
Supply Chain
Strategy
Different
Supply Chain
Models
Demand
ManagementStrategic
Sourcing
Demand
Fulfilment
Strategy
2
Demand Management Strategy
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Executive
COMPETENCY 2.1
DEMAND MANAGEMENT STRATEGY
Definition:
Demand management strategy development is the process of analysing the key trends and
dynamics in the industries and markets. The objective of this analysis is to identify cost trends,
technology trends, potential structural changes in the market and risk factors. This analysis will
provide direction for the design of supply chain strategies.
Should be able to:
• Direct the demand and market analysis for the purpose of development a demand
management strategy for different businesses
• Direct the determining the impact of omnichannel design on market segmentation for
different businesses
• Direct the market segmentation of different businesses and determining the impact on
supply chain management
• Direct the calculation of customer profitability and cost to serve modelling for different
businesses
• Direct the process of target market selection and determine the impact on supply chain
management across different businesses
• Direct the strategic market positioning of different businesses and determine the impact
on supply chain management
• Direct the customer service design, the cost to serve for different businesses and determine
the impact on supply chain management
Understanding DifferentTypes of Supply Chains
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Executive
COMPETENCY 2.2
UNDERSTANDING DIFFERENT TYPES OF SUPPLY CHAINS
Definition:
This involves identification of different supply chain models and the understanding of the
difference in functioning between the different models. The emphasis is on the different
performance objectives, different configurations required, the process requirements and how
technology enablement will differ across different models.
Should be able to:
• Direct a strategic analysis of supply chains across multiple industries to provide a basis for
strategy development
• Direct the translation of business objectives across multiple supply chains into performance
requirements.
• Design the alignment of supply chain strategy across multiple supply chains with business
strategies
• Direct the integration of outbound, procurement, supply chain planning & managing the
customer interface into an integrated strategy across multiple supply chains
Developing Supply Chain Strategy
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Executive
COMPETENCY 2.3
DEVELOPING SUPPLY CHAIN STRATEGY
Definition:
Review an existing or develop a new supply chain strategy that involves the integration of
different elements of supply chain, such as demand strategy, demand fulfilment, sourcing
strategy and supply chain planning, to form an integrated coherent supply chain that can
deliver the required business results. Alignment with business strategy and other functional
strategies such as marketing and manufacturing is also required.
Should be able to:
• Direct a strategic analysis of supply chains across multiple industries to provide a basis for
strategy development
• Direct the translation of business objectives across multiple supply chains into performance
requirements.
• Design the alignment of supply chain strategy across multiple supply chains with business
strategies
• Direct the integration of outbound, procurement, supply chain planning & managing the
customer interface into an integrated strategy across multiple supply chains
Developing a Demand Fulfilment Strategy
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Executive
COMPETENCY 2.4
DEVELOPING A DEMAND FULFILMENT STRATEGY
Definition:
The network includes all facilities in the inbound and outbound supply chain such as sources
of supply and facilities, distribution centres, production facilities, tank depots, customer
facilities, transport routes and modes, and the inventory at the different inventory holding
points across the network. The design and optimisation of the network is focused on achieving
the best performance by optimising cost, customer service and inventory given the network
constraints.
Should be able to:
• Direct the mapping of the network with components such as sources of supply, production
facilities, depots, customer facilities and others that make up a total network for a business
with different types of supply chains
• Direct the development of different inventory positioning strategies for the a business with
different markets and supply chains
• Direct the development of a network model for the quantification of costs, service,
constraints and other performance metrics for the network of different businesses with
different supply chains
• Direct the development of different strategies to optimise the network of the total business
with different business segments and supply chains
• Direct and redesign the application of quantification techniques to optimise the supply
chain network design for different businesses and supply chains
Strategic Sourcing
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Executive
COMPETENCY 2.5
STRATEGIC SOURCING
Definition:
Definition: The process of commodity management focuses on the creation of an approach
that manages procurement commodity groups from a consolidated perspective through the
application of a unique management approach for each commodity group. The objective
of the approach is to achieve the optimal total cost of ownership for each commodity or
commodity group at acceptable levels of supply risk.
Should be able to:
• Direct the process of strategic sourcing for the development of a sourcing strategy for a
business across industries
• Direct the process of spend analysis to determine commodity groups for a business across
industries
• Direct the demand analysis for different commodity groups or categories for a business
across industries
• Direct the industry & supplier market analysis as part of the strategic sourcing process for a
business across industries
• Direct the process of determining the impact of global economic and trade trends on
strategic sourcing for a business across industries
• Direct the process of calculating the total cost of ownership as part of the strategic
sourcing process for a business across industries
• Direct the process of developing different procurement strategies for different commodity
segments in a business across industries
• Direct the process of developing global strategic sourcing partnerships for a business
across industries
• Direct the tender process with RFI’s and RFP’s for a business across different industries
Competency Cluster 3:Sales & Operations Planning
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Sales & Operations Planning3
Supply
PlanningDemand
Planning
Demand
Sensing &
Shaping
Demand &
Supply
Balancing
Operations
Planning
Demand Sensing and Shaping
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Executive
COMPETENCY 3.1
DEMAND SENSING AND SHAPING
Definition:
Demand sensing and shaping is the process of developing an understanding of the factors
that determine the true demand patterns of customers. This understanding is then used to
implement strategies that influence or shape the demand pattern to improve the profitability
of fulfilling that demand pattern.
Should be able to:
• Direct the analysis the demand pattern for a specific customer and determine the
demand pattern for a business across industries
• Direct the identification of the factors that drive or influence the actual demand pattern of
a customer for a business across industries
• Direct the process of determining demand for the digital products as opposed to physical
products for a business across industries
• Direct the quantification of the impact of a fluctuating demand pattern on the profitability
of fulfilment and the cost to serve for a business across industries
• Direct the process of determining the demand for infrastructure or capital projects for a
business across industries
• Direct the formulation of strategies that can be implemented to improve the profitability of
fulfilling that demand pattern of a business across industries
• Direct the formulation of strategies that can be implemented to improve the profitability of
fulfilling that demand pattern of digital products for a business across industries
Demand Planning
30
Executive
COMPETENCY 3.2
DEMAND PLANNING
Definition:
Demand planning involves the process of identifying, aggregating, and prioritising all sources
of demand for the integrated supply chain of a product or service at the appropriate level,
horizon and interval. The sales forecast comprises the following concepts: sales forecasting
level, time horizon and time interval. The sales forecasting level is the focal point in the
corporate hierarchy where the forecast is needed at the most generic level, i.e. corporate
forecast, divisional forecast, product-line forecast, stock keeping unit (SKU), and SKU by
location. Cross-functional integration as required.
Should be able to:
• Direct the process of identifying the basic economic/market factors that drive demand across
different supply chains
• Direct the process of setting up demand planning which includes the selection of the best
forecasting techniques across different supply chains
• Direct the process of data clean-up and preparation for demand planning across different supply
chains
• Direct the process of creating a baseline sales forecast at the required level of detail across different
supply chains
• Direct the process of incorporating supply chain events into the demand plan across different supply
chains
• Direct the process of collaborative forecasting with selected customers across different supply chains
• Direct the process of aligning the demand plan with the business plan and business objectives across
different supply chains
• Direct the process of creating a consensus forecast through internal collaboration with sales and
marketing across different supply chains
• Direct the process of cross-functional integration and liaison as required for achieving good demand
planning across different supply chains
Supply Planning
31
Executive
COMPETENCY 3.3
SUPPLY PLANNING
Definition:
The process of identifying, prioritising, and aggregating, as a whole with constituent parts, all
sources of supply that are required and add value in the supply chain of a product or service
at the appropriate level, horizon and interval.
Should be able to:
• Direct the process of identification of the basic economic/market factors that drive supply for a
business across different supply chains
• Direct the process of data maintenance and clean-up in preparation of the supply planning process
for a business across different supply chains
• Direct the process of generating a distribution requirements plan based on the consensus demand
plan for a business across different supply chains
• Direct the process of inventory planning based on the distribution requirements plan, which includes
review of inventory levels, safety inventory and re-order levels a business across different supply
chains
• Direct the process of creating a sourcing plan to provide in the requirements of the distribution plan
while sourcing from the different sources of supply, including production and suppliers
• Direct the process of generating a material requirements plan based on distribution requirements
adjusted for inventory levels for only selected manufacturing sources
• Direct the process of generating a master production schedule based on the material requirements
plan adjusted for manufacturing constraints for only selected manufacturing sources
• Direct the process of creating a sourcing plan based on the master production schedule for only
selected sources of supply
• Direct the process to identify the supply constraints and risks for selected sources of supply and
resolve these constraints and mitigate the risks
• Direct the process of creating a sourcing plan for a capital or infrastructure project
• Direct the process of identification of the different type of supply chain constraints in planning for a
capital project
Demand and Supply Balancing
32
Executive
COMPETENCY 3.4
DEMAND AND SUPPLY BALANCING
Definition:
The process of identifying and measuring the gaps and imbalances between demand and
resources in order to determine how to best resolve the variances through marketing, pricing,
packaging, warehousing, outsource plans or some other action that will optimise service,
flexibility, costs, and assets (or other supply chain inconsistencies) in an iterative and
collaborative environment. The process of developing a time-phased course of action that
commits supply chain resources to meet constraint based supply chain requirements. This
process includes the formalisation of the sales and operations plan through the sales and
operations meeting.
Should be able to:
• Direct the process of demand & supply balancing for a business to ensure supply chain
performance
• Direct the process of balancing demand and supply requirements taking supply chain
constraints into account for a business across supply chains
• Direct the process of identification of hard and soft constraints in demand supply
balancing for a business across supply chains
• Direct in the process to identify the key business and supply chain drivers causing
imbalances between demand and supply for a business across supply chains
• Direct the process of considering the potential options to resolve these imbalances
between demand and supply for a business across supply chains
• Direct the re-balancing the supply chain through selection of appropriate options for a
business across supply chains
• Direct the formalising of the plan, communicate (to whom communicate changes on
different proficiency levels) adherence to the plan for a business across supply chains
Operational Planning
33
Executive
COMPETENCY 3.5
OPERATIONAL PLANNING
Definition:
To determine the optimal sequencing (schedule), allocation and routing of production orders
guided by the production and supply plan and based on detailed product attributes,
changeover requirements, customer order due dates, work centre capability, labour
required, and other constraints.
Should be able to:
• Direct the process of sequencing, staging and setting production run lengths per product
and production unit within a set production & supply plan and production targets while
taking into account customer orders; inventory & delivery plans and priorities and broad
business rules for a local supply chain
• Direct the process of scheduling of people per shift group for a set production schedule
per product and production unit in a local supply chain
• Direct the process of plant & labour scheduling according to set procedures for a local
supply chain
• Direct the process of pro-actively influence the drafting of up- and downstream supply
schedules & inventory replenishment for a production unit’s schedule in a local supply
chain
Cluster 8 – 10: Supply Chain Operations
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Operations Planning
Demand
Execution
Management
Transport &
DistributionManufacturing Procurement
Warehousing &
Facilities
4 5 6 7 8
Customer
Relationship
Management
Order
Management
International
Logistics
Intermodal
Transport
Transport
Operational
Management
Reverse
Logistics
Fleet
Management
Facility
Design &
Layout
Facility
Operational
Management
Inventory
Control
Materials
Handling
Customer Relationship Management
35
Executive
COMPETENCY 4.1
CUSTOMER RELATIONSHIP MANAGEMENT
Definition:
Customer relationship management is the process of implementing demand or market
strategies. It involves the implementation of different product offerings in line with market and
customer segmentation strategies. Establishing relationships with new customers and
managing relationships with existing customers are included in the process. This process needs
to be aligned with the sales process and calling cycles of the sales team.
Should be able to:
• Co-direct the process of market and customer segmentation of a portfolio of customers for
different businesses across supply chains
• Co-direct the process of developing different product offerings for different customer
segments across supply chains
• Co-direct the process of measuring customer satisfaction or customer service for a portfolio
of customers across supply chains
• Co-direct the application of the pareto principle to a portfolio of customers to determine
the different segments across supply chains
• Co-direct the process of calculating customer profitability for a portfolio of customers
across supply chains
• Co-direct the process of customer engagement to ensure that customer and revenue
targets are realised across supply chains
Customer Order Management
36
Executive
COMPETENCY 4.2
CUSTOMER ORDER MANAGEMENT
Definition:
Development, implementation and improvement of the process from allocation of inventory
or production capacity and delivery up to invoicing the customer. This includes translating the
sales and operations plan into sales allocation planning, managing the inflow of orders,
prioritisation of the orders for distribution, liaison with transport/distribution and ensuring
despatch in line with priorities and allocations. The process will also include ATP and CTP
business rules and facilitate removal of credit or distribution blocks and re-routing/diversions.
• Should be able to:
• Co-direct the operational allocation planning of available product for a business across
supply chain
• Co-direct the segment operational allocation plan with the sales & operations plan for a
business across supply chains
• Co-direct the calculation of ATP or CTP dates for a specific market or business segment for
a business across supply chains
• Co-direct the matching of order inflow against operational allocation and correcting
allocation problems for a business across supply chains
• Co-direct the identification of execution problems such as distribution or credit blocks and
removing those for a business across supply chains
• Co-direct the re-routing and diversions for different market or business segments across a
business for multiple supply chains
International Logistics
37
Executive
COMPETENCY 5.1
INTERNATIONAL LOGISTICS
Definition:
This involves the integration of international logistics with supply chain strategies to ensure a
cost-effective and synchronised supply chain. The selection and combination of different
transport modes and their integration with other elements such as warehousing
Should be able to:
• Direct the process of developing strategy templates or approaches for different trade
lanes for multiple industries
• Direct the process of developing different strategy templates for different types of supply
chains in different industries
• Direct the process of designing the synchronisation of the international supply chain across
elements such as transport modes, product flow, customs, clearing and service providers
• Direct the process of designing visibility and collaboration mechanisms across different
participants in the international supply chain
Developing Multi-Model Solutions
38
Executive
COMPETENCY 5.2
DEVELOPING MULTI-MODEL SOLUTIONS
Definition:
The process of developing multi-modal solutions starts with a thorough understanding of the
transport requirements in terms of constraints, volumes, distances, routes and the functioning
of the distribution network. An in-depth knowledge of the different transport modes of road,
rail, marine, pipeline and airfreight is also required. An integrated multi-modal transport
solution will combine the different transport modes into a solution that provides the required
service levels at the most cost-effective level.
Should be able to:
• Co-manage the development of a matrix with relevant advantages offered by the
different transport modes for a business across supply chains
• Co-manage the development of a multi-modal transport solution for a specific transport
requirement or business across supply chains using a structured process
• Co-manage the development of a risk profile or matrix of the potential risks of a multi-
modal solution for a specific transport requirement or business across supply chains and
how to mitigate those risks
• Co-manage the development of operational visibility for a specific transport requirement
or business across supply chains
Transport Operational Management
39
Executive
COMPETENCY 5.3
TRANSPORT OPERATIONAL MANAGEMENT
Definition:
Transport operational management focuses on the process of moving cargo from the distribution
requirements planning, load planning, route planning, vehicle scheduling to the assurance of quantity
and quality. Tracking vehicles and cargo during the process of transport will be required to ensure on
time delivery, contingency planning if required and the safety and security of cargo. The process will be
ended with the processing of PODs and managing the payment of transport service providers. Liaison
with all stakeholders during the process of transport needs to provide visibility to all of progress against
scheduled delivery times. Key performance indicators such as vehicle utilisation, transport costs and
customer service levels need to be optimised while complying with risk and governance requirements,
including legislation.
Should be able to:
• Direct the development of transport requirements or distribution requirements planning for
a business across supply chains
• Direct the translation of distribution requirements into load planning for a business across
supply chains
• Direct the vehicle selection (e.g. trucks, vessels, tankers, pipelines) once load planning is
completed for a business across supply chains
• Direct route planning and vehicle scheduling for a business across supply chains
• Direct the tracking vehicles and cargo during the process of delivery for a business across
supply chains
• Direct the contingency planning required to ensure that cargo is delivered on time for a
business across supply chains
• Direct providing visibility to all stakeholders for cargo during delivery for a business across
supply chains
• Direct non-delivery and route deviations during the process of delivery for a business across
supply chains
• Direct the design and implementation of a process of collecting and processing PODs for a
business across supply chains
• Direct the design and implementation of a process for payment of service providers once
PODs are submitted for a business across supply chains
Reverse Logistics Management
40
Executive
COMPETENCY 5.4
REVERSE LOGISTICS MANAGEMENT
Definition:
Reverse logistics refers to the management of the movement involved in the return of
products or empty containers from downstream customers to upstream operations for either
rework or re-use in the production of new products. Planning the collection of such products
needs to be synchronised with the distribution and transport processes. This includes disposal
of products.
Should be able to:
• Direct the design the role of reverse logistics in the total supply chain network across
multiple supply chains
• Direct the determination of the requirements for reverse logistics from the sales &
operations planning process
• Direct the process of identifying the demand drivers for reverse logistics
• Direct the design of the process to exploit the areas of synergies between normal and
reverse logistics and how to exploit the opportunities for cost savings for a business across
multiple supply chains
• Direct the design of an integrated planning approach for reverse logistics through
integration with transport operational scheduling
• Direct the design of special administration and documentation requirements for reverse
logistics
Fleet Management
41
Executive
COMPETENCY 5.5
FLEET MANAGEMENT
Definition:
Fleet management involves the end-to-end process of managing an internal or own transport
fleet. This process starts with the development of fleet requirements based on the transport or
distribution requirements. This will be followed by the selection of the best-suited transport
fleet, which would include selection of vehicles, trailers and other equipment that might be
required in the transport process. Financing the fleet needs to be arranged in terms of the
best approach from options such as full maintenance leasing and others. Once the fleet is
operational, asset management is required which manages the process of maintaining the
fleet, scheduling services and repairs, cost accounting of all costs and the eventual
replacement of the fleet.
Should be able to:
• Co-direct the development of transport fleet requirements for a specific transport
requirement within a business across supply chains
• Co-direct the implementation of processes and business rules to ensure compliance,
including legal requirements, health and safety, business rules and labour legislation
• Co-direct the development of costing for the different fleet options using a TCO approach
in a business across supply chains
• Co-direct the process of selecting the best transport fleet for the specific requirement
within a business across supply chains
• Co-direct the selection of the best support equipment required for transport requirements
within a business across supply chains
• Co-direct the selecting of the best financing option for selected fleet within a business
across supply chains
• Co-direct the implementation of different maintenance strategies and programmes for a
subset within a business across supply chains
• Co-direct the implementation of asset management approach to manage the
operational availability and cost of an operational fleet within a business across supply
chains
Manufacturing
42
Executive
COMPETENCY 6
MANUFACTURING
Definition:
Manufacturing is a key interface in the supply chain and as such a basic understanding of
the key principles of manufacturing is essential for managing the broader supply chain.
Alternative assembly approaches will require different supply chain processes both up and
down stream from manufacturing. Manufacturing is constantly changing through
advancement of technology and assembly approaches, these technologies are addressed
under the technology competency cluster.
Should be able to:
• Co-direct the identification of the supply chain design for different manufacturing
approaches across supply chains
• Co-direct designing the production planning interface for each manufacturing
approaches across supply chains
• Co-direct defining how production scheduling will be different for each approach across
supply chains
• Co-direct exploring alternative factory layout and flows based on different approaches
across supply chains
• Co-direct defining how manufacturing optimisation will differ for each of the production
approaches across supply chains
• Co-direct defining how downstream, processes such as warehousing and transport will be
adapted based on the manufacturing models across supply chains
Facility Design and Layout
43
Executive
COMPETENCY 7.1
FACILITY DESIGN AND LAYOUT
Definition:
Facility design and layout focuses firstly on the design and layout of the facility/building which
includes the size and configuration of the building/facility. The second element includes the
design of the operational flow of material or product and selection of material handling
equipment such as racking, forklifts and any other special equipment required. The objective
is to maximise the productivity of the facility while achieving risk management, health and
safety objectives through governance policies, procedures and legislation.
Should be able to:
• Co-direct the application of the principles of the design and layout of facilities to the
design of a facility as part of a network of facilities
• Co-direct the design the required flow pattern for the design and layout of a facility as
part of a network of facilities
• Co-direct the selection of applicable storage equipment that might be required for a
facility as part of a network of facilities
• Co-direct the design of the layout and design of the site (outside of the facility) required for
movement of vehicles or other transport modes of a facility or part of a facility as part of a
network of facilities
• Co-direct the design of the facility in terms of the inflow and outflow of product, such as
routes, roads, pipelines, marine or rail
• Co-direct the development of the health, safety and legal requirements that should be
taken into account including product compatibility
• Co-direct the identification of potential risks that should be considered during the facility
design and formulation of mitigation strategies
Facilities Operational Management
44
Executive
COMPETENCY 7.2
FACILITIES OPERATIONAL MANAGEMENT
Definition:
Facilities operational management focuses on achieving daily throughput targets while
maintaining productivity, health and safety and risk management objectives. Operational
activities include receiving, put-away, blending, picking, pre-loading, loading, returns,
documentation and administration. Included in facilities operational management are
physical inventory management and control, and housekeeping.
Should be able to:
• Co-direct the process of determining the technical requirements of the various facilities
managed across different supply chains
• Co-direct the basic operational activities taking place in a facility related to receiving
stock from suppliers of facilities across different supply chains
• Co-direct the basic operational activities taking place in a facility related to stock put-
away across various facilities
• Co-direct the design of operational activities taking place in a facility related to stock
picking
• Co-direct the design of operational activities taking place in a facility related to staging
and loading preparation
• Co-direct the design of operational activities taking place in a facility related to doc
allocation to vehicles and ensuring vehicle availability at loading docks
• Co-direct the design of documentation and administration requirements of the operational
processes in facilities
• Co-direct designing the process of physical inventory control, including normal & perpetual
inventory takes
• Co-direct the design of health, safety and legal requirements involved in facility
operational management, including product compatibility
• Co-direct the design of managing the potential risks involved in daily facility operational
management and required mitigation strategies
• Co-direct designing the rules of housekeeping and its importance for good operationalmanagement
Inventory Control
45
Executive
COMPETENCY 7.3
INVENTORY CONTROL
Definition:
The process of inventory control is focused on controlling inventory or stock in warehouses or
facilities. The activities involved are receiving of products into a warehouse or facility, putting
away these products and issuing these products for customer orders or transfer to other
warehouses or facilities. The key objective is to achieve inventory accuracy, namely that the
inventory physically in the facilities is accurate in terms of what should be there based on the
transactional processes.
Should be able to:
• Co-direct the process of defining the requirements for inventory control across various
facilities & supply chains
• Co-direct the calculation of stock accuracy in a facility across various facilities & supply
chains
• Co-direct the application of the ABC classification of stock keeping items across various
facilities & supply chains
• Co-direct the application of different inventory management practices for different for the
different ABC categories across various facilities & supply chains
• Co-direct the activities in a facility required for inventory control across various facilities &
supply chains
• Co-direct the identification of the potential causes of inaccurate inventory in a facility
across various facilities & supply chains
• Co-direct the application of techniques to monitor inventory accuracy across various
facilities & supply chains
Materials Handling
46
Executive
COMPETENCY 7.4
MATERIALS HANDLING
Definition:
Materials handling focuses on ensuring that products that are handled through the supply
chain process are handled with safe and productive mechanisms to limit the associated risks
and avoid product damage. This involves the selection of appropriate material packaging,
handling equipment and techniques for different products through the different stages of
product handling.
Should be able to:
• Co-direct the definition of the objectives of material handling for facilities across different
supply chains
• Co-direct the definition of the cost elements involved in material handling for facilities
across different supply chains
• Co-direct the identification of the potential risks involved in material handling for facilities
across different supply chains
• Co-direct the definition of the importance of product packaging in the handling process
for facilities across different supply chains
• Co-direct the definition of where products are typically handled in the warehousing
process for facilities across different supply chains
• Co-direct the definition of the different types of equipment required for material's handling
for facilities across different supply chains
• Co-direct the identification of material handling equipment for different types of facilities
for facilities across different supply chains
• Co-direct the definition of the factors that should be considered in the process of selecting
material handling equipment for facilities across different supply chains
• Co-direct the definition of the health and safety risks and that are involved in materials
handling for facilities across different supply chains
• Co-direct the selection of the policies and procedures that are required for ensuring health
and safety in materials handling for facilities across different supply chains
Requisition-to-Pay Process
47
Executive
COMPETENCY 8.1
REQUISITION-TO-PAY PROCESS
Definition:
Development, implementation and improvement of the process from the planning of
sourcing orders based on a demand plan, through delivery up to supplier payment. This
includes translating the operations plan into a sourcing plan with planned orders on suppliers,
managing the placement of orders, prioritisation of the orders for delivery, liaison with
transport/distribution ensuring delivery in line with priorities and customer service
commitments. The process will also include the formulation of business rules and constant co-
ordination with stakeholders to resolve changes in planning if required.
Should be able to:
• Co-direct the operational allocation planning process related to supplier fulfilment strategies
functions across supply chains
• Co-direct the operational allocation planning process integrates with sales & operations and supply
planning across supply chains
• Co-direct the application of concepts of ATP or CTP as key elements in the getting delivery
commitments from suppliers for delivery dates across supply chains
• Co-direct the process of managing order placement against operational allocation and correcting
allocation problems across supply chains
• Co-direct resolving supply challenges related to issues such as credit blocks and how to remove
those across supply chains
• Co-direct the re-routing and diversions and how they are used to maximise customer service from
suppliers across supply chains
• Co-direct using supply execution management to ensure the achievement of supplier service targets
across supply chains
• Co-direct formulating key performance metrics need to be implemented to measure supplier service
levels across supply chains
• Co-direct formulating different approaches required for placing supplier orders in for a capital or
infrastructure project across supply chains
• Co-direct the integration required for placing suppliers orders and project planning for capital or
infrastructure projects across supply chains
Competency Cluster 9: Supply Chain Sustainability
48
Supply Chain Sustainability 9
Environmental
ManagementSustainability
Supply Chain Sustainability
49
Executive
COMPETENCY 9.1
SUPPLY CHAIN SUSTAINABILITY
Definition:
Supply chain sustainability focuses on the implementation of principles and strategies that
ensure the long-term sustainability of the supply chain. Aspects that are included in this are
renewable energy, creating energy savings and various others. It is important that supply
chain sustainability initiatives should be aligned with corporate initiatives.
Should be able to:
• Co-direct the definition of the concept of supply chain sustainability for a business across
multiple supply chains
• Co-direct defining the importance of supply chain sustainability for a business across
multiple supply chains
• Co-direct the process of defining the main elements of supply chain sustainability for a
business across multiple supply chains
• Co-direct the development of initiatives can be implemented to improve supply
sustainability for a business across multiple supply chains
• Co-direct the development of partnerships with customers and suppliers to improve supply
chain sustainability across multiple supply chains
• Co-direct the process of developing a scorecard for measuring the improvement of supply
chain sustainability
• Co-direct the assessment of the environmental impact across supply chains
• Co-direct the identification of the potential harmful impacts that the supply chain of your
company might have on the environment across supply chain
• Co-direct the develop of action plans to reduce the harmful impact and increase the
positive impacts on the environment across supply chains
• Co-direct the implementation of action plans to reduce the harmful impact and increase
the positive impacts on the environment
• Co-manage the development of a plan for the implementation of partnerships for
environmental management
Environmental Management
50
Executive
COMPETENCY 9.2
ENVIRONMENTAL MANAGEMENT
Definition:
Environmental management within supply chain focuses on how the supply chain interfaces
with the environment. The objective is to avoid any harmful effects that the supply chain
might have on the environment. The process involves the identification of potentially harmful
impacts, and the formulation of actions to avoid such impact.
Should be able to:
• Co-direct the assessment of the environmental impact across supply chains
• Co-direct the identification of the potential harmful impacts that the supply chain of your
company might have on the environment across supply chain
• Co-direct the develop of action plans to reduce the harmful impact and increase the
positive impacts on the environment across supply chains
• Co-direct the implementation of action plans to reduce the harmful impact and increase
the positive impacts on the environment
• Co-manage the development of a plan for the implementation of partnerships for
environmental management
Competency Cluster 10: Risk & Performance Management
51
Risk&
Performance Management
1
010
Performance Management
Partnerships &
Outsourcing
Ethics
Performance Improvement
Human Capital
Contract & Supplier
Management
Risk & GovernanceManagement
Cost Optimisation
Contract and Supplier Performance Management
52
Executive
COMPETENCY 10.1
CONTRACT AND SUPPLIER PERFORMANCE MANAGEMENT
Definition:
The process of supplier performance management focuses on establishing relationships with
selected suppliers and partners, achieving integration, supplier performance measurement
for the purpose of achieving supplier performance and supplier development where
required, taking into account industry-specific legislative requirements.
Should be able to:
• Co-direct the process of developing a supplier relationship management strategy for
across supply chains
• Co-manage the process of supplier integration to achieve supplier performance for a
business across supply chains
• Co-direct the development and implementation of strategies for supplier relationship
management for a business across supply chains
• Co-direct the process of implementing strategies to achieve seamless integration with
suppliers and partners for a business across supply chains
• Co-direct the process of developing SLA’s (Service Level Agreements) to ensure supplier
performance and strategic alignment with supply chain partners
• Co-direct the process of developing a supplier performance management process for a
business across supply chains
• Co-direct the process of developing incentives and penalties as part of contract
management across supply chains
• Co-direct the process of developing alternative corrective actions in case of supplier non-
performance across supply chains
• Co-direct the development of a supplier development and alignment process across
supply chains
• Co-direct the use of benchmarking and improvement frameworks to achieve supplier
development across supply chains
Human Capital Management
53
Executive
COMPETENCY 10.2
HUMAN CAPITAL MANAGEMENT
Definition:
This is the process of aligning people with different views and perspectives with a shared vision
and objectives in terms of outbound supply chain strategy and direction. It involves
addressing resistance to change through change management interventions with
communication mechanisms, dealing with obstacles in the process of managing different
stakeholders representing different groups with different objectives.
Should be able to:
• Co-direct the development of job descriptions to align human capital with supply chains
objectives and allocate roles and responsibilities for a business across supply chains
• Co-direct the development of functional competency definitions and profiles to ensure
functional competency of human capital for a business across supply chains
• Co-direct the design of an organisational structure to ensure achieving performance
through human capital for a business across supply chains
• Co-direct the definition of personal KPI’s to ensure that supply chain performance
objectives are achieved for a business across supply chains
• Co-direct projects to determine organisational culture and the impact on supply chain
performance for a business across supply chains
• Co-direct determining strategic alignment and the impact of that on human capital
management for a business across supply chains
• Co-direct determining the impact of technology advancement and digitisation on the
competency requirements of human capital for a business across supply chains
• Co-direct skills definitions and benchmarking to define training requirements for a business
across supply chains
• Co-direct the development of talent management programs to ensure the availability of
the required competency for a business across supply chains
• Co-direct the development of transformation and change management projects for a
business across supply chains
Supply Chain Performance Improvement
54
Executive
COMPETENCY 10.3
SUPPLY CHAIN PERFORMANCE IMPROVEMENT
Definition:
Ensure continuous improvement of business performance across the supply chain
performance improvement. This would include assessment of current performance across
and between all areas of supply chain, for example supply chain planning, outbound
strategy, procurement strategy, demand fulfilment, facilities and transport management.
Assessment will be followed by identification of improvement strategies, process
development, master data planning, implementation plans and the actual implementation.
Should be able to:
• Co-direct the application of improvement concepts such as reliability and others in the
process of performance improvement across supply chains
• Co-direct the application of concepts of Lean, Agile and Postponement to improve
performance across supply chains
• Co-direct the application of the SCOR framework as a basis for improving supply chain
performance across supply chains
• Co-direct supply chain optimisation projects to improve performance across supply chains
• Co-direct the application of Business Process Redesign for performance improvement
across supply chains
• Co-direct the application of benchmarking projects in the process of performance
improvement across supply chains
• Co-direct the application of digitisation for performance improvement across supply
chains
• Co-direct the development of visibility and information sharing to improve supply chain
performance
• Co-direct the identification of barriers towards achieving business process optimisation
and performance improvement
• Co-direct developing joint performance improvement projects with supply chain partners
across supply chains
• Co-direct the quantification of supply chain complexity and determining the impact on
supply chain performance across supply chains
Ethics in Supply Chain Management
55
Executive
COMPETENCY 10.4
ETHICS IN SUPPLY CHAIN MANAGEMENT
Definition:
The development of business rules, policies, procedures and controls to ensure ethical
behaviour of not only people working in supply chain management, but also the
entrenchment of ethics into all supply chain practices, processes and operating procedures.
Should be able to:
• Co-direct a process to communicate the importance of ethics in the supply chain across
supply chains
• Co-direct a process to identify the different aspects of ethical behaviour across the
different supply chain functions and operations across supply chains
• Co-direct the process of developing ethical practices should be applied in the selection of
suppliers and supply partners across supply chains
• Co-direct the development of strategies and processes that could be implemented to
eradicated bribery and corruption across supply chains
• Co-direct developing strategies to ensure corporate social responsibility across all aspects
of supply chain management across supply chains
Governance & Risk Management across the Supply Chain
56
Executive
COMPETENCY 10.5
GOVERNANCE AND RISK MANAGEMENT ACROSS THE SUPPLY CHAIN
Definition:
The development of business rules, policies, procedures and controls to ensure the required
governance and legislation during the creation, implementation and maintenance of supply
chain strategies and processes. The objective is to ensure adherence to business rules at all
times with the purpose of achieving consistent operational activities, mitigating supply chain
risks and ensuring that the required contingencies are in place.
Should be able to:
• Co-direct the development of basic governance for specific sub-processes and processes
such as customer demand or facilities management across supply chains
• Co-direct the implementation of governance such as operating procedures, policies and
business rules for identified risks in the different areas across supply chains
• Co-direct the development of compliance audits to determine the extent of governance
across supply chains
• Co-direct the monitoring of key performance indicators to track adherence to business
rules and policies across supply chains
• Co-direct the development and implementation of corrective actions in case of non-
compliance across supply chains
• Co-manage the development a risk matrix which identifies potential risks in the different
areas across the supply chain
• Co-manage the application of the relevant ISO systems (Quality – 9001:2000;
Environmental – 14001; Safety and Health – 18000) for selected parts of the transport of a
business unit
• Co-manage the development of different risk mitigation strategies that could be followed
to effectively mitigate supply chains risks
Partnership and Outsourcing
57
Executive
COMPETENCY 10.6
PARTNERSHIPS AND OUTSOURCING
Definition:
Partnerships and outsourcing involves the process of using external facilities providers to fulfil
facilities requirements. This will involve the in-depth understanding of the facilities requirement,
the development of RFQ documentation, identification of potential service providers,
requesting proposals, evaluation of proposals and the selection of the provider best suited for
the requirement. Contract implementation will require the contracting process to be
completed followed by contract management based on a service level agreement to
ensure the required performance from both parties.
Should be able to:
• Co-direct the process of identifying the principles on which supply chain partnerships are
based for different supply chains
• Co-direct developing a motivation for outsourcing certain activities to supply chain
partners for different supply chains
• Co-direct the process of identifying the key requirements to successful supply chain
partnerships across supply chains
• Co-manage the process of developing differentiated supply chain partnerships for
different categories or commodity groups across supply chains
• Co-direct the definition of the requirements and scope of work for a specific contract
focusing on a business segment across supply chains
• Co-direct the development of RFI & RFP documentation as part of the identification of
potential supply chain partners across supply chain
• Co-direct the identification and qualification of potential supply chain partners across
supply chains
• Co-direct the evaluation of alternative proposals provided by different service providers
for a variety of contracts across supply chains
• Co-direct the development and negotiation agreements, e.g. commercial, operational,
service level agreements, for a variety of contracts for a business unit across supply chains
• Co-direct the implementation of a new outsourcing process with a supply chain partner
across supply chains
Supply Chain Performance Indicators
58
Executive
COMPETENCY 10.7
SUPPLY CHAIN PERFORMANCE INDICATORS
Definition:
Definition: Supply chain performance indicators include two aspects, performance attributes
and performance metrics. A performance attribute is a grouping of indicators used to express
a specific strategy, while an indicator is a standard for measurement of the performance or a
supply chain or process. The performance attributes include reliability (this focuses on the
predictability of the outcome of a process); responsiveness (describes the speed at which
tasks are performed); agility (describes the ability to respond to external influences); cost
(describes the cost of operating a process and includes all aspects of costs expressed as total
costs to serve); and assets (describes the ability to efficiently utilise assets, which includes both
fixed and variable assets). Supply chain performance metrics are defined at different levels
based on the composition of the relevant supply chain process. Performance metrics are
aligned with performance attributes and provide cause-and-effect measurements at three
levels to enable performance measurement to a detail or activity level.
Should be able to:
• Co-direct the development of a process for measuring supply chain performance for a
business across supply chains
• Co-direct the identification of the different levels of supply chain performance metrics or
measures across supply chains
• Co-direct defining how the different levels of supply chain metrics relate to each other
across supply chains
• Co-direct the integrating supply chain performance metrics with the overall business
performance
• Co-direct linking supply chain performance metrics to the income statement and balance
sheet of a business across supply chains
• Co-direct the development of a master data strategy for supply chain performance
measurement
• Co-direct the development of an approach towards managing the challenges of
measuring supply chain metrics or KPI’s
• Co-direct the resolution potential conflict exists between supply chain metrics and other
functional metrics such as marketing for a business across supply chains
Supply Chain Cost Management
59
Executive
COMPETENCY 10.8
SUPPLY CHAIN COST MANAGAMENT
Definition:
Reducing TCO is a process of analysing the total cost, direct and indirect cost of a procured
item over its life cycle, with the objective of reducing the TCO.
Should be able to:
• Co-direct the process of analysing TCO for selected cost items or parts of the procurement
portfolio for different supply chain
• Co-direct the process of identifying the internal cost drivers of TCO for selected procured
items or parts of the procurement portfolio across supply chains
• Co-direct the identification of the external drivers of TCO for selected procured items or
parts of the procurement portfolio across supply chains
• Co-direct the identification of potential strategies that can be applied to reduce the TCO
for selected procured items or parts of the procurement portfolio across supply chain
• Co-direct the implementation of initiatives for the reduction of TCO for selected procured
items or parts of the procurement portfolio
• Co-direct the development of sourcing and partnerships strategies to reduce TCO through
strategic sourcing TCO across supply chains
• Co-direct the process of developing strategic supplier partnerships to reduce the TCO for
selected procured items or parts of the procurement portfolio across supply chains
• Co-direct the redesign of certain internal practices to reduce the TCO for selected
procured items or parts of the procurement portfolio across supply chains
Competency Cluster 11: Technology Enablement
60
Systems
&
Technology
1
011
Advanced
Analytics
Robotics &
Automation
Cloud
Computing &
Big Data
Augmented
Reality
Internet of
Things
Autonomous
Vehicles
Digital
Products
Digital
Transformation
Supply
Chain
Systems
Autonomous Vehicles
61
Executive
COMPETENCY 11.1
AUTONOMOUS VEHICLES
Definition:
The development of autonomous vehicles is making significant progress with significant
allocation of global funding to research and technology. Autonomous vehicles are currently
being tested in a number of supply chain environments, from public transport, courier
deliveries and long distance transport. Autonomous vehicles will impact the supply chain of
the future across broad spectrum of aspects. The fundamental approach towards supply
chain design and operation is likely to be changed by the growth of autonomous vehicles.
The objective of a functional competency in autonomous vehicles is to comprehend the
future impact on supply chain management and the progression towards a new environment
needs to managed.
Should be able to:
• Co-direct the mapping of different types of autonomous vehicles to areas of the supply
chain that might be impacted
• Co-direct the identifications of the supporting supply chain that is required to provide
support and energy for autonomous vehicles
• Co-direct the identification of the potential areas in the supply chain that will be impacted
by autonomous vehicles
• Co-direct the process of defining how the fundamental supply chain processes possible
need to change with autonomous vehicles being operated
Internet of Things
62
Executive
COMPETENCY 11.2
INTERNET OF THINGS
Definition:
The Internet of Things is accelerating globally as an unprecedented pace. The number of
sensors installed and built into devices is growing exponentially. IOT can fundamentally
extend the supply chain beyond its traditional boundaries by connecting to products and
devices in the environment previously not possible. These connections will create a new
supply chain which previously did not exist. This extension has the potential to change the
core of supply chain processes and operations. The objective of the competency in IOT is
focused on developing not only a basic understanding of what IOT is about, but also the
understanding and capability to drive the change towards supply chain processes and
operations that will be possible.
Should be able to:
• Co-direct the process of identification of how IOT can extend the traditional supply chain
• Co-direct the process of defining the potential of connecting with products and services
• Co-direct the process of determining the potential impact can be for supply chain
processes if data is received directly from products and the environment
• Co-direct identifying the potential changes that might be required to achieve the
potential performance improvements from IOT
• Co-direct identifying the potential risks associated with the IOT and how it could be
mitigated
Augmented Reality
63
Executive
COMPETENCY 11.3
AUGMENTED REALITY
Definition:
Augmented reality has the potential to change the world of work fundamentally. It has the
potential to extend the capability of human capital beyond its current limits. Productivity in
supply chain operations can be significantly impacted by augmented reality. The objective
of the competency in Augmented Reality is focused on developing not only a basic
understanding of what AR is about, but also the understanding and capability to drive the
change towards supply chain processes and operations that will be possible.
Should be able to:
• Co-direct the process of identification of how augmented reality can extend the
traditional supply chain
• Co-direct identifying the potential changes that might be required to achieve the
potential performance improvements from augmented reality
• Co-direct identifying the potential risks associated with augmented reality and how it could
be mitigated
Cloud Computing and Big Data
64
Executive
COMPETENCY 11.4
CLOUD COMPUTING AND BIG DATA
Definition:
The growth in cloud computing is providing the platform for accumulation of volumes of data
is surpassing previous standards. The combination of cloud computing and big data is
providing the basis for combining data and processing significant volumes of data at the
speed and cost efficiency not previously possible. This combination is already changing the
face of supply chain processes and operations. The objective of this competency is to create
understanding for the concept, and also how the implementation already changed previous
standards. The future of supply chain will continue to be impacted by this trend.
Should be able to:
• Co-direct the process of defining the potential business case of cloud computing across
supply chains
• Co-direct the process of defining the potential business case of big data
• Co-direct the definition the potential benefits from big data for the supply chain across
supply chains
• Co-direct the process of developing specific cases where big data can potentially impact
supply chain processes and performance
• Co-direct the process of identifying the potential risks of cloud computing across supply
chains
Robotics and Automation
65
Executive
COMPETENCY 11.6
ROBOTICS AND AUTOMATION
Definition:
Robotics and automation have grown significantly over the last decade to the extent that
the face of the traditional supply chain is already changed dramatically. This includes 3D
printing, a technology with the broader scope of automation which will bring about a
complete revolution in supply chain development. Robotics and automation have already
changed supply chains fundamentally and will continue to change the operating models of
supply chains further in future. Understanding this at a fundamental level is a key competency
requirement.
Should be able to:
• Co-direct the definition of the concept of robotics and development of a business case
for the use robotics across supply chains
• Co-direct the definition of the concept of automation and development of a business
case for the its use across supply chains
• Co-direct the definition of the concept of 3D printing and development of a business case
for the its use across supply chains
• Co-direct the identification of the potential benefits of robotics and automation for supply
chain performance improvement across supply chains
• Co-direct the definition of the potential benefits of 3D printing for supply chain
performance improvement and the creation of new supply chain model across supply
chains
Advance Analytics
66
Executive
COMPETENCY 11.7
ADVANCE ANALYTICS
Definition:
Advanced analytics, simulation and optimisation offer opportunities for performance
improvement not previously possible. Cloud computing and big data is contributing towards
this capability. Machine learning, digital twins, and continuous optimisation is powered by the
combination of cloud computing and big data. Supply chain processes will be significantly
impacted by these technologies and will provide an opportunity to improve supply chain
performance at a new level. Understanding these technologies and opportunities will be a
key competency to contribute towards the future supply chain.
Should be able to:
• Co-direct the identification of opportunities from cloud computing and big data to enable
advanced analytics across supply chains
• Co-direct the process of defining how machine learning can be used to improve supply
chain processes
• Co-direct defining the business case for predictive analytics and how it can contribute
towards improving supply chain performance
• Co-direct defining the application of predictive and prescriptive analytics in improving
supply chain performance across supply chain processes
• Co-direct defining the application of digital twins and how it can be applied to improve
supply chain optimisation across supply chains
• Co-direct the identification of the application of continuous optimisation and how it can
improve supply chain planning across supply chains
Digital Transformation
67
Executive
COMPETENCY 11.8
DIGITAL TRANSFORMATION
Definition:
Digital disruption is a term used to describe fundamental changes to business and operating
models across all industries. Business and operating models are being changed
fundamentally as a result of digital disruption. The process capability of supply chain
processes are redefined through the process of digital disruption. Digital disruption is a process
of changing business models through the use of a combination of the technologies already
included in the technology competency cluster. This is a key competency required to equip
supply chain professionals for the next generation of supply chain management.
Should be able to:
• Co-direct defining the concept of digital disruption within supply chain application across
supply chains
• Co-direct the identification of the improvement opportunities of digital disruption for supply
chain management across supply chains
• Co-direct the definition of the potential change impact of digital disruption for supply
chain management
• Co-direct the identification of the challenges with the implementation of digital
transformation across supply chains
• Co-direct the process of defining how digital transformation can be used as an important
mechanism for risk mitigation across supply chains
Supply Chain Systems
68
Executive
COMPETENCY 11.9
SUPPLY CHAIN SYSTEMS
Definition:
Various new technology developments were outlined in this competency cluster focused
specifically on how it transforms supply chain operating models and processes. The objective
of this competency is ground these technologies in the core supply chain systems that
operate in the different functional areas of the supply chain. The potential impact of these
technologies on the different systems in the supply chain functions is the focus of this
competency.
Should be able to:
• Co-direct the process of defining the impact of new technologies on customer
connection systems across supply chains
• Co-direct the process of defining the impact of new technologies on supply chain
planning systems across supply chains
• Co-direct the process of defining the impact of new technologies on transport &
distribution management systems across supply chains
• Co-direct the process of defining the impact of new technologies on warehousing &
facility management systems across supply chains
• Co-direct the process of defining the impact of new technologies on manufacturing
systems across supply chains
• Co-direct the process of defining the impact of new technologies on procurement systems
across supply chains
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