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

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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 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.

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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.

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;

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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.

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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

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

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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 define 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 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

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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 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

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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 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

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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 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

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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 the Designation Supply Chain Executive in the supply chain is

summarised in the following table:

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 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

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Designation Profile:

Supply Chain

Practitioner

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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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

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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

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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

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Supply Chain Strategy

Developing

Supply Chain

Strategy

Different

Supply Chain

Models

Demand

Management

Strategic

Sourcing

Demand

Fulfilment

Strategy

2

Demand Management Strategy

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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

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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

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Sales & Operations Planning3

Supply

Planning

Demand

Planning

Demand

Sensing &

Shaping

Demand &

Supply

Balancing

Operations

Planning

Demand Sensing and Shaping

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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

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