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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
Practitioner
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
3
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 how interrelated in an integrated model;
• It provides the definition of the different designations with a high level
definitions 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 this provides the outline of what is expected from the
different designations. The competency assessments are developed based
on the designations guides.
4
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.
6
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;
7
2. Supply Chain Competency:
A Designation Approach
Designations:
8
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, defines 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 in terms of the nature of the supply
chain aspects that will be influenced directly by that role;
• The second aspects is the scope of the supply chain aspects that will
be covered 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
second the scope of supply aspects covering. 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.
9
Supply Chain Scope
Fo
cu
s o
f th
e
Desi
gn
ati
on
Associate
(SCMA) NQF
4
Practioner
(SCMP) NQF
5
Advance
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 more defined in more detail.
Figure 2 outlined the role of the different designation in more detail based
on the dimensions defined in figure 1.
Designations: The Competency Link
10
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 define the
different aspects of supply chain in more detail.
Designations: The Role in The Supply Chain
11
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 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 process level involves the design of the
processes or the operating of processes
Assets & Infrastructure Assets and infrastructure also involves either design or
operating as the two opposites of the impact
Resources Resources roles are either defined or implemented. The
design element is more strategic in nature as opposed to
operation.
Planning Involvement in planning ranges from strategic planning to
operational planning and at the lowest level executing
operational planning
Integration & Optimisation Integration and optimisation ranges from the design to
operation or implementation
Procedures Procedure are either designed or implemented and
followed
KPI’s & Performance
Improvement
KPI’s and performance improvement ranges from the
design and development to the implementation and
measurement
The last aspect of defining the designation profiles is to outlined 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 aspects on the supply chain:
Table 2: Designation Areas of Impact on the Supply Chain Defined
Designation Profile: Supply Chain Associate
12
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 the Designation of Supply Chain Associate in the supply chain is
summarised in the following table:
The more detailed competency requirements are outlined in the following
section. The more detailed competency assessments provide the basis for the
competency assessment and also the creation of a development path towards
excellence in supply chain competency.
Designation Profile: Supply Chain Practioner
13
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 the Designation Supply Chain Practioner in the supply chain is
summarised in the following table:
The more detailed competency requirements are outlined in the following
section. The more detailed competency assessments provide the basis for the
competency assessment and also the creation of a development path towards
excellence in supply chain competency.
Designation Profile: Supply Chain Advance Practitioner
14
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 more detailed competency requirements are outlined in the following
section. The more detailed competency assessments provide the basis for the
competency assessment and also the creation of a development path towards
excellence in supply chain competency.
The role of the Designation Supply Chain Advanced Practioner in the supply
chain is summarised in the following table:
Designation Profile: Supply Chain Executive
15
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 the Designation Supply Chain Executive in the supply chain is
summarised in the following table:
Designation Profile: Supply Chain Leader
16
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 the Designation Supply Chain Leader in the supply chain is
summarised in the following table:
The more detailed competency requirements are outlined in the following
section. The more detailed competency assessments provide the basis for the
development path towards excellence in supply chain competency.
PRACTIONER
17
Designation Profile:
Supply Chain
Practitioner
Competency Cluster 1:Product Portfolio Management
18
Product Portfolio Management1
Product Portfolio
Management
Product/Service
Development
Omnichannel
Marketing
Product Development
19
PRACTITIONER
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:
• Apply supply chain principles to the development of a product for a business or business
unit
• Participate in the process of designing a product for improved supply chain performance
• Participate in a collaborative product design process with supply chain partners such as
suppliers
• Apply the principles of product portfolio management to a number of products within a
business to improve supply chain performance
• Demonstrate cause-and-effect understanding in the application of product portfolio
management
Product Portfolio Management
20
PRACTITIONER
COMPETENCY 1.2
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:
• Apply the principles of product portfolio management to a number of products within a
business to improve supply chain performance
• Evaluate the product portfolio of the company and identify the opportunities for
improvement
• Demonstrate cause-and-effect understanding in the application of product portfolio
management
• Implement a plan of action to optimise the product portfolio of the company
Omnichannel Marketing
21
PRACTITIONER
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:
• Participate in defining the concept of omnichannel marketing channels
• Participate in the process of identifying the challenges in managing the customer interface
through omnichannels
• Participate in identifying the supply chain implications of fragmented customer interfaces
• Participate in defining the supply chain implications of increased on-line shopping
• Participate in identifying the potential impact of omnichannel marketing for supply chain
processes and operations
• Participate in 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
22
Supply Chain Strategy
Developing
Supply Chain
Strategy
Different
Supply Chain
Models
Demand
Management
Strategic
Sourcing
Demand
Fulfilment
Strategy
2
Demand Management Strategy
23
PRACTITIONER
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:
• Participate in demand and market analysis for the purpose of development a demand
management strategy for a business unit
• Participate in determining the impact of omnichannel design on market segmentation for a business
unit
• Participate in market segmentation of a business unit and determining the impact on supply chain
management
• Participate in the calculation of customer profitability and cost to serve modelling for a business unit
• Participate in the process of target market selection and determining the impact on supply chain
management
• Participate in the strategic market positioning of a business unit and determining the impact on
supply chain management
• Participate in customer service design, the cost to serve for a business unit and determining the
impact on supply chain management
Understanding Different Types of Supply Chains
24
PRACTITIONER
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:
• Differentiate performance objectives of different types of supply chains from each other
• Explain the different configurations required for different types of supply chains in detail
• Outline how logistics networks between different supply models will operate differently from
each other
• Develop different inventory strategies for the different supply chain configurations
• Formulate different strategies that deliver the desired results for the different supply chains
Developing Supply Chain Strategy
25
PRACTITIONER
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:
• Perform basic strategic analysis of the elements of supply chain strategy such as outbound
strategy and sub-strategies
• Apply basic analysis techniques to identify improvement opportunities
• Develop improvement plans for supply chain strategy, outbound strategy, procure &
supply strategy, managing the customer interface & supply chain planning
Developing a Demand Fulfilment Strategy
26
PRACTITIONER
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:
• Participate in 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 specific business segment or mini supply chain
• Participate in the development of different inventory positioning strategies for the business
segment network mapped in the previous point
• Participate in the development of a network model for the quantification of costs, service,
constraints and other performance metrics for the network of a specific business segment
• Participate in the development different strategies to optimise the network of a specific
business segment
• Participate in the application of different quantification techniques to optimise the network
mapped and quantified
Strategic Sourcing
27
PRACTITIONER
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:
• Participate in the process of strategic sourcing for the development of a sourcing strategy
• Participate in the process of spend analysis to determine commodity groups
• Participate in demand analysis for different commodity groups or categories
• Participate in industry & supplier market analysis as part of the strategic sourcing process
• Participate in determining the impact of global economic and trade trends on strategic
sourcing
• Participate in the calculating the total cost of ownership as part of the strategic sourcing
process
• Participate in the concept of developing different procurement strategies for different
commodity segments
• Participate in the development of global strategic sourcing partnerships
• Participate in the concept of developing different procurement strategies for different
commodity segments
• Participate in the development of global strategic sourcing partnerships
• Participate in the tender process with RFI’s and RFP’s
Competency Cluster 3:Sales & Operations Planning
28
Sales & Operations Planning3
Supply
Planning
Demand
Planning
Demand
Sensing &
Shaping
Demand &
Supply
Balancing
Operations
Planning
Demand Sensing and Shaping
29
PRACTITIONER
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:
• Participate in the analysis the demand pattern for a specific customer and determine the
demand pattern
• Participate in the identification of the factors that drive or influence the actual demand
pattern of a customer
• Participate in the process of determining demand for the digital products as opposed to
physical products
• Participate in the quantification of the impact of a fluctuating demand pattern on the
profitability of fulfilment and the cost to serve
• Participate in the process of determining the demand for infrastructure or capital projects
• Participate in the formulation of strategies that can be implemented to improve the
profitability of fulfilling that demand pattern
• Participate in the formulation of strategies that can be implemented to improve the
profitability of fulfilling that demand pattern of digital products
Demand Planning
30
PRACTITIONER
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:
• Participate in the process of identifying the basic economic/market factors that drive
demand for a specific market or business segment
• Participate in the process of setting up demand planning which includes the selection of
the best forecasting techniques for a specific market or business segment
• Participate in the process of data clean-up and preparation for demand planning
• Participate in the process of creating a baseline sales forecast at the required level of
detail for a specific market or business segment
• Participate in the process of collaborative forecasting with selected customers for a
specific market or business segment
• Participate in process of aligning the demand plan with the business plan and business
objectives
• Participate in the process of creating a consensus forecast through internal collaboration
with sales and marketing for a specific market or business segment
• Participate in the process of cross-functional integration and liaison as required for
achieving good demand planning
Supply Planning
31
PRACTITIONER
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:
• Participate in the identification of the basic economic/market factors that drive supply for
a specific market or business segment
• Participate in the process of data maintenance and clean-up in preparation of the supply
planning process for selected supply resources only
• Participate in the process of generating a distribution requirements plan based on the
consensus demand plan for selected distribution points only
• Participate in the process of inventory planning based on the distribution requirements
plan, which includes review of inventory levels, safety inventory and re-order levels for
selected distribution points only
• Participate in 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
• Participate in the generation of a material requirements plan based on distribution
requirements adjusted for inventory levels for only selected manufacturing sources
• Participate in the generation a master production schedule based on the material
requirements plan adjusted for manufacturing constraints for only selected manufacturing
sources
• Participate in creating sourcing plan based on the master production schedule for only
selected sources of supply
• Participate in identification of supply constraints and risks for selected sources of supply
and resolve these constraints and mitigate the risks
• Participate in the process of creating a sourcing plan for a capital or infrastructure project
• Participate in the process of identification of the different type of supply chain constraints
in planning for a capital project
Demand and Supply Balancing
32
PRACTITIONER
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:
• Participate in the process of demand & supply balancing for a selected business segment
to ensure supply chain performance
• Participate in the process of balancing demand and supply requirements taking supply
chain constraints into account for a selected business segment
• Participate in the process of identification of hard and soft constraints in demand supply
balancing for a selected business segment
• Participate in the process to identify the key business and supply chain drivers causing
imbalances between demand and supply for a selected business segment
• Participate in considering the potential options to resolve these imbalances between
demand and supply for a selected business segment
• Participate in re-balancing the supply chain through selection of appropriate options for a
selected business segment
• Participate in formalising the plan, communicate (to whom communicate changes on
different proficiency levels) adherence to the plan for a selected business segment
Operational Planning
33
PRACTITIONER
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:
• Participate in 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
• Participate in the process of scheduling of people per shift group for a set production
schedule per product and production unit
• Participate in the process of plant & labour scheduling according to set procedures
• Participate in the process of pro-actively influence the drafting of up- and downstream
supply schedules & inventory replenishment for a production unit’s schedule
• Participate in the process of pro-actively influence material requirements based on
production schedule changes per product and production unit
Cluster 8 – 10: Supply Chain Operations
34
Operations Planning
Demand
Execution
ManagementTransport &
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
PRACTITIONER
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:
• Participate in the process of market and customer segmentation to a portfolio of
customers for a business or business unit
• Participate in the development of different product offerings for different customer
segments
• Participate in the process of measuring customer satisfaction or customer service for a
portfolio of customers
• Participate in the application of the pareto principle to a portfolio of customers to
determine the different segments
• Participate in the process of calculating customer profitability for a portfolio of customers
• Participate in the process of customer engagement to ensure that customer and revenue
targets are realised
Customer Order Management
36
PRACTITIONER
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:
• Participate in operational allocation planning of available product for a selected market
or business segment
• Participate in the segment operational allocation plan with the sales & operations plan
• Participate in the calculation of ATP or CTP dates for a specific market or business segment
• Participate in matching order inflow against operational allocation and correcting
allocation problems for a specific market or business segment
• Participate in the identification of execution problems such as distribution or credit blocks
and removing those for a specific market or business segment
• Participate in the re-routing and diversions for a specific market or business segment to
maximise customer service
• Participate in the measurement of the key performance metrics to measure customer
service levels
International Logistics
37
PRACTITIONER
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:
• Participate in the development of strategy templates or approaches for different trade
lanes
• Participate in the development of different strategy templates for different types of supply
chains in different industries
• Participate in the design of the synchronisation of the international supply chain across
elements such as transport modes, product flow, customs, clearing and service providers
• Participate in the design of visibility and collaboration mechanisms across different
participants in the international supply chain
Developing Multi-Model Solutions
38
PRACTITIONER
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:
• Participate in the development of a matrix with relevant advantages offered by the
different transport modes for a specific business segment
• Participate in the development of a multi-modal transport solution for a specific transport
requirement or business segment using a structured process
• Participate in the development of a risk profile or matrix of the potential risks of a multi-
modal solution for a specific transport requirement or business segment and how to
mitigate those risks
• Participate in the development of operational visibility for a specific transport requirement
or business segment
Transport Operational Management
39
PRACTITIONER
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:
• Participate in the development of transport requirements or distribution requirements planning for a
specific segment of business
• Participate in the translation of distribution requirements into load planning for a specific segment of
business
• Participate in the vehicle selection (e.g. trucks, vessels, tankers, pipelines) once load planning is
completed for a specific segment of business
• Participate in route planning and vehicle scheduling for a specific segment of business
• Participate in tracking vehicles and cargo during the process of delivery
• Participate in contingency planning required to ensure that cargo is delivered on time
• Participate in providing visibility to all stakeholders for cargo during delivery for a specific segment of
business
• Participate in managing non-delivery and route deviations during the process of delivery
• Participate in the design and implementation of a process of collecting and processing PODs for a
specific segment of business
• Participate in the design and implementation of a process for payment of service providers once
PODs are submitted
Reverse Logistics Management
40
PRACTITIONER
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:
• Participate in designing the role of reverse logistics in the total supply chain network
• Participate in determining the requirements for reverse logistics from the sales & operations
planning process
• Participate in the process of identifying the demand drivers for reverse logistics
• Participate in designing the process to exploit the areas of synergies between normal and
reverse logistics and how to exploit the opportunities for cost savings
• Participate in designing an integrated planning approach for reverse logistics through
integration with transport operational scheduling
• Participate in special administration and documentation requirements for reverse logistics
Fleet Management
41
PRACTITIONER
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:
• Participate in development of transport fleet requirements for a specific transport
requirement within a business unit
• Participate in the implementation of processes and business rules to ensure compliance,
including legal requirements, health and safety, business rules and labour legislation
• Participate in the development of costing for the different fleet options using a TCO
approach
• Participate in the process of selecting the best transport fleet for the specific requirement
within a business unit
• Participate in selecting the best support equipment required for transport requirements
within a business unit
• Participate in selecting of the best financing option for selected fleet within a business unit
• Participate in the implement of different maintenance strategies and programmes for a
subset within a business unit
• Participate in the implement of asset management approach to manage the operational
availability and cost of an operational fleet within a business unit
Manufacturing
42
PRACTITIONER
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:
• Participate in identification of the supply chain design for different manufacturing
approaches
• Participate in designing the production planning interface for each manufacturing
approach
• Participate in defining how production scheduling will be different for each approach
• Participate in exploring alternative factory layout and flows based on different approaches
• Participate in defining how manufacturing optimisation will differ for each of the
production approaches
Facility Design and Layout
43
PRACTITIONER
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:
• Participate in the application of the principles of the design and layout of facilities to the
design of a facility or part of a facility
• Participate in the design the required flow pattern for the design and layout of a facility or
part of a facility
• Participate in the selection of applicable storage equipment that might be required for a
facility
• Participate in 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
• Participate in the design of the facility in terms of the inflow and outflow of product, such
as routes, roads, pipelines, marine or rail
• Participate in the development of the health, safety and legal requirements that should be
taken into account including product compatibility
• Participate in the identification of potential risks that should be considered during the
facility design and formulation of mitigation strategies
Facilities Operational Management
44
PRACTITIONER
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:
• Participate in the process of determining the technical requirements of the specific type of facility
managed
• Participate in the basic operational activities taking place in a facility related to receiving stock from
suppliers
• Participate in the basic operational activities taking place in a facility related to stock put-away
• Participate in the basic operational activities taking place in a facility related to stock picking
• Participate in the basic operational activities taking place in a facility related to staging and loading
preparation
• Participate in the basic operational activities taking place in a facility related to doc allocation to
vehicles and ensuring vehicle availability at loading docks
• Participate in the documentation and administration requirements of the operational processes in
facilities
• Participate in the process of physical inventory control, including normal & perpetual inventory takes
• Participate in the health, safety and legal requirements involved in facility operational management,
including product compatibility
• Participate in managing the potential risks involved in daily facility operational management and
required mitigation strategies
• Participate in the application of the basic rules of housekeeping and its importance for good
operational management
Inventory Control
45
PRACTITIONER
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:
• Participate in the process of defining the requirements for inventory control
• Participate in calculating stock accuracy in a facility
• Participate in the application of the ABC classification of stock keeping items
• Participate in the application of different inventory management practices for different for
the different ABC categories
• Participate in managing the activities in a facility required for inventory control
• Participate in the identification of the potential causes of inaccurate inventory in a facility
• Participate in the application of techniques to monitor inventory accuracy
Materials Handling
46
PRACTITIONER
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:
• Participate in defining the objectives of material handling
• Participate in defining the cost elements involved in material handling
• Participate in identification of the potential risks involved in material handling
• Participate in defining the importance of product packaging in the handling process
• Participate in defining where products are typically handled in the warehousing process
• Participate in defining the different types of equipment required for material's handling
• Participate in identification of material handling equipment for different types of facilities
• Participate in defining the factors that should be considered in the process of selecting
material handling equipment
• Participate in defining the health and safety risks and that are involved in materials
handling
• Participate in selecting the policies and procedures that are required for ensuring health
and safety in materials handling
Requisition-to-Pay Process
47
PRACTITIONER
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:
• Participate in the operational allocation planning process related to supplier fulfilment strategies
functions
• Participate in the operational allocation planning process integrates with sales & operations and
supply planning
• Participate in the application of concepts of ATP or CTP as key elements in the getting delivery
commitments from suppliers for delivery dates
• Participate in the process of managing order placement against operational allocation and
correcting allocation problems
• Participate in resolving supply challenges related to issues such as credit blocks and how to remove
those
• Participate managing re-routing and diversions and how they are used to maximise customer service
from suppliers
• Participate in using supply execution management to ensure the achievement of supplier service
targets
• Participate in formulating key performance metrics need to be implemented to measure supplier
service levels
• Participate in formulating different approaches required for placing supplier orders in for a capital or
infrastructure project
• Participate in the integration required for placing suppliers orders and project planning for capital or
infrastructure projects
Competency Cluster 9: Supply Chain Sustainability
48
Supply Chain Sustainability 9
Environmental
ManagementSustainability
Supply Chain Sustainability
49
PRACTITIONER
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:
• Participate in the definition of the concept of supply chain sustainability
• Participate in defining the importance of supply chain sustainability
• Participate in the process of defining the main elements of supply chain sustainability
• Participate in the development of initiatives can be implemented to improve supply chain
sustainability
• Participate in the development of partnerships with customers and suppliers to improve
supply chain sustainability
• Participate in the process of developing a scorecard for measuring the improvement of
supply chain sustainability
Environmental Management
50
PRACTITIONER
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:
• Participate in the assessment of the environmental impact of the supply chain of your
company
• Participate in the identification of the potential harmful impacts that the supply chain of
your company might have on the environment
• Participate in the develop of action plans to reduce the harmful impact and increase the
positive impacts on the environment
• Participate in the implementation of action plans to reduce the harmful impact and
increase the positive impacts on the environment
• Participate in the development of a plan for the implementation of 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
PRACTITIONER
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:
• Participate in the process of developing a supplier relationship management strategy
• Participate in a process of supplier integration to achieve supplier performance
• Participate in the development and implementation of strategies for supplier relationship
management
• Participate in the process of implementing strategies to achieve seamless integration with
suppliers and partners
• Participate in the process of developing SLA’s (Service Level Agreements) to ensure
supplier performance and strategic alignment with supply chain partners
• Participate in the process of developing a supplier performance management process
• Participate in the process of developing incentives and penalties as part of contract
management
• Participate in the process of developing alternative corrective actions in case of supplier
non-performance
• Participate in the development of a supplier development and alignment process
• Participate in the use of benchmarking and improvement frameworks to achieve supplier
development
Human Capital Management
53
PRACTITIONER
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:
• Participate in the development of job descriptions to align human capital with supply chains
objectives and allocate roles and responsibilities
• Participate in the development of functional competency definitions and profiles to ensure
functional competency of human capital
• Participate in the design of an organisational structure to ensure achieving performance through
human capital
• Participate in the definition of personal KPI’s to ensure that supply chain performance objectives are
achieved
• Participate in projects to determine organisational culture and the impact on supply chain
performance
• Participate in determining strategic alignment and the impact of that on human capital
management
• Participate in determining the impact of technology advancement and digitisation on the
competency requirements of human capital
• Participate in skills definitions and benchmarking to define training requirements
• Participate in the development of talent management programs to ensure the availability of the
required competency
• Participate in the development of transformation and change management projects
Supply Chain Performance Improvement
54
PRACTITIONER
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:
• Participate in the application of improvement concepts such as reliability and others in the process
of performance improvement
• Participate the application of concepts of Lean, Agile and Postponement to improve performance
• Participate in the application of the SCOR framework as a basis for improving supply chain
performance
• Participate in supply chain optimisation projects
• Participate in the application of Business Process Redesign for performance improvement
• Participate in the application of benchmarking projects in the process of performance improvement
• Participate in the application of digitisation for performance improvement
• Participate in developing visibility and information sharing to improve supply chain performance
• Participate in the identification of barriers towards achieving business process optimisation and
performance improvement
• Participate in developing joint performance improvement projects with supply chain partners
• Participate in the quantification of supply chain complexity and determining the impact on supply
chain performance
Ethics in Supply Chain Management
55
PRACTITIONER
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:
• Participate in a process to communicate the importance of ethics in the supply chain
• Participate in a process to identify the different aspects of ethical behaviour across the
different supply chain functions and operations
• Participate in the process of developing ethical practices should be applied in the
selection of suppliers and supply partners
• Participate in the development of strategies and processes that could be implemented to
eradicated bribery and corruption
• Participate in developing strategies to ensure corporate social responsibility across all
aspects of supply chain management
Governance & Risk Management across the Supply Chain
56
PRACTITIONER
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:
• Participate in the development of basic governance for specific sub-processes and
processes such as customer demand or facilities management
• Participate in the implementation of governance such as operating procedures, policies
and business rules for identified risks in the different areas
• Participate in the development of compliance audits to determine the extent of
governance
• Participate in the monitoring of key performance indicators to track adherence to business
rules and policies
• Participate in the development and implementation of corrective actions in case of non-
compliance
• Participate in the development a risk matrix which identifies potential risks in the different
areas across the supply chain
• Participate in 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
• Participate in the development of different risk mitigation strategies that could be followed
to effectively mitigate supply chains risks
Partnership and Outsourcing
57
PRACTITIONER
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:
• Participate in the process of identifying the principles on which supply chain partnerships are based
• Participate in developing a motivation for outsourcing certain activities to supply chain partners
• Participate in the process of identifying the key requirements to successful supply chain partnerships
• Participate in the process of developing differentiated supply chain partnerships for different
categories or commodity groups
• Participate in defining the requirements and scope of work for a specific contract focusing on a
business segment
• Participate in the development of RFI & RFP documentation as part of the identification of potential
supply chain partners
• Participate in the identification and qualification of potential supply chain partners
• Participate in the evaluation of alternative proposals provided by different service providers for a
specific contract
• Participate in the development and negotiation of agreements, e.g. commercial, operational,
service level agreements, for a specific contract
• Participate in the implementation of a new outsourcing contract
• Participate in contract management and dealing with scope changes required in the contract
during its duration for a specific contract
Supply Chain Performance Indicators
58
PRACTITIONER
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:
• Participate in the development of a process for measuring supply chain performance
• Participate in the identification of the different levels of supply chain performance metrics or
measures
• Participate in defining how the different levels of supply chain metrics relate to each other
• Participate in integrating supply chain performance metrics with the overall business performance
• Participate in linking supply chain performance metrics to the income statement and balance sheet
of a business
• Participate in the development of a master data strategy for supply chain performance
measurement
• Participate in developing an approach towards managing the challenges of measuring supply chain
metrics or KPI’s
• Participate in the resolution potential conflict exists between supply chain metrics and other
functional metrics such as marketing
Supply Chain Cost Management
59
PRACTITIONER
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:
• Participate in the process of analysing TCO for selected cost items or parts of the
procurement portfolio
• Participate in the process of identifying the internal cost drivers of TCO for selected
procured items or parts of the procurement portfolio
• Participate in the identification of the external drivers of TCO for selected procured items or
parts of the procurement portfolio
• Participate in the identification of potential strategies that can be applied to reduce the
TCO for selected procured items or parts of the procurement portfolio
• Participate in the implementation of initiatives for the reduction of TCO for selected
Participate in the development of sourcing and partnerships strategies to reduce TCO
through strategic sourcing TCO
• Participate in the process of developing strategic supplier partnerships to reduce the TCO
for selected procured items or parts of the procurement portfolio
• Participate in the redesign of certain internal practices to reduce the TCO for selected
procured items or parts of the procurement portfolio
• procured items or parts of the procurement portfolio
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
PRACTITIONER
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:
• Participate in the mapping of different types of autonomous vehicles to areas of the supply
chain that might be impacted
• Participate in the identifications of the supporting supply chain that is required to provide
support and energy for autonomous vehicles
• Participate in the identification of the potential areas in the supply chain that will be
impacted by autonomous vehicles
• Participate in a process of defining how the fundamental supply chain processes possible
need to change with autonomous vehicles being operated
Internet of Things
62
PRACTITIONER
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:
• Participate in the process of identification of how IOT can extend the traditional supply
chain
• Participate in the process of defining the potential of connecting with products and
services
• Participate in the process of determining the potential impact can be for supply chain
processes if data is received directly from products and the environment
• Participate in identifying the potential changes that might be required to achieve the
potential performance improvements from IOT
• Participate in Identifying the potential risks associated with the IOT and how it could be
mitigated
Augmented Reality
63
PRACTITIONER
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:
• Participate in the process of defining the potential business case of cloud computing
• Participate in the process of defining the potential business case of big data
• Participate in the definition the potential benefits from big data for the supply chain
• Participate in the process of developing specific cases where big data can potentially
impact supply chain processes and performance
• Participate in the process of identifying the potential risks of cloud computing
Cloud Computing and Big Data
64
PRACTITIONER
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:
• Participate in identification of opportunities for combining a traditional product offering
with a platform offering
• Participate in the process of identifying opportunities for adding digital value to a physical
product to create a completely new offering
• Participate in identification how the supply chain for digital type products and platforms
require a different approach compared to traditional supply chains
• Participate in the process of defining the potential benefits of the application of
blockchain technology
• Participate in developing the implications of blockchain technology for traditional supply
chain processes and operations
Digital Products and Platforms
65
PRACTITIONER
COMPETENCY 11.5
DIGITAL PRODUCTS AND PLATFORMS
Definition:
The digital disruption and industry 4.0 accelerated the development of platforms as products
where customers interact with each other, adding value to the platform and to each other
through the facilitation of the platform technology. Physical products are being converted
into platforms rather than single products. These platforms create a new type of business
model where the traditional characteristics of a physical products are combined with a
technology platform that adds digital content and value to the physical product. Products
turning into platforms require a different kind of supply chain approach as such it will become
a key competency to manage supply chains for digital platforms. Blockchains can potentially
be seen as a form of digital platform adding value without any physical product being
involved.
Should be able to:
• Participate in identification of opportunities for combining a traditional product offering
with a platform offering
• Participate in the process of identifying opportunities for adding digital value to a physical
product to create a completely new offering
• Participate in identification how the supply chain for digital type products and platforms
require a different approach compared to traditional supply chains
• Participate in the process of defining the potential benefits of the application of
blockchain technology
• Participate in developing the implications of blockchain technology for traditional supply
chain processes and operations
Robotics and Automation
66
PRACTITIONER
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:
• Participate in defining the concept of robotics and development of a business case for the
use robotics
• Participate in defining the concept of automation and development of a business case for
the its use
• Participate in defining the concept of 3D printing and development of a business case for
the its use
• Participate in the identification of the potential benefits of robotics and automation for
supply chain performance improvement
• Participate in defining the potential benefits of 3D printing for supply chain performance
improvement and the creation of new supply chain models
Advance Analytics
67
PRACTITIONER
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:
• Participate in the identification of opportunities from cloud computing and big data to
enable advanced analytics
• Participate in the process of defining how machine learning can be used to improve
supply chain processes
• Participate in defining the business case for predictive analytics and how it can contribute
towards improving supply chain performance
• Participate in defining the application of predictive and prescriptive analytics in improving
supply chain performance
• Participate in defining the application of digital twins and how it can be applied to
improve supply chain optimisation
• Participate in identifying the application of continuous optimisation and how it can
improve supply chain planning
Digital Transformation
68
PRACTITIONER
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:
• Participate in defining the concept of digital disruption within supply chain application
• Participate in the identification of the improvement opportunities of digital disruption for
supply chain management
• Participate in defining the potential change impact of digital disruption for supply chain
management
• Participate in identification of the challenges with the implementation of digital
transformation
• Participate in the process of defining how digital transformation can be used as an
important mechanism for risk mitigation
Supply Chain Systems
69
PRACTITIONER
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:
• Participate in the process of defining the impact of new technologies on customer
connection systems across the supply chain
• Participate in the process of defining the impact of new technologies on supply chain
planning systems
• Participate in the process of defining the impact of new technologies on transport &
distribution management systems
• Participate in the process of defining the impact of new technologies on warehousing &
facility management systems
• Participate in the process of defining the impact of new technologies on manufacturing
systems
• Participate in the process of defining the impact of new technologies on procurement
systems
PRACTIONER
70