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140127 ELAQF Standards second layer

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140127 ELAQF Standards second layer

  1. 1. EUROPEAN QUALIFICATION STANDARDS for LOGISTICS PROFESSIONALS Indicative Content
  2. 2. Business Principles Level 4 Business Principles Indicative Content 4EQF Level Supervisory/Operational Management level European Junior Logistician - EJLog © European Logistics AssociationPage 2
  3. 3. Business Principles Level 4 Business Principles Indicative Content Business Principles 4.1.01.01 Understands the elements of a Profit and Loss (P&L) statement and balance sheet • Profit and Loss • Revenues • Direct costs of revenues • Expenses • Net income • Balance sheet • Assets (= liabilities + equity) • Liabilities • Equities 4.1.01.02 Understands the meaning of financial terminology • EBIT • EBITDA • Interest • Depreciation • Amortisation • ROI • RONA • Assets • Net Profit • Net Working Capital • VAT • Tax © European Logistics AssociationPage 3
  4. 4. Business Principles Level 4 Business Principles Indicative Content 4.1.01.03 Calculates the costs of inventory holding • Non Capital Costs of Inventory Holding • Warehousing • Obsolescence • Pilferage • Damage • Insurance • Taxes • Capital Costs • Inventory(value) * Cost of Capital 4.1.01.04 Monitors supplier and customer payment terms • Customer Payment • Monitor number of overdue days • DSO trends: • increase DSO = late customer payment • Supplier Payment • DPO trends • DPO decrease = bills are being paid too early 4.1.01.05 Understands the importance of benchmarking in performance management • Purpose • Continuous measurement • Steps for improvement • Internal and external benchmarking • Comparison with best practice • Performance measures to evaluate improvement 4.1.01.06 Understands the link between shareholder value and supply chain improvements • Goal • Objectives • Actions • Value drivers © European Logistics AssociationPage 4
  5. 5. Business Principles Level 4 Business Principles Indicative Content 4.1.01.07 Describes the use of 4Ps in a marketing plan • Product • Price • Promotion • Place or also referred to as Distribution © European Logistics AssociationPage 5
  6. 6. Business Principles Level 4 Core Management Skills Indicative Content Core Management Skills 4.1.02.01 Plans own and team professional development • Development plan • Goals • Skills and competencies • Continuous improvement • Career development • Steps • Self assessment • Assessment • Organisation Needs • Explore opportunities • Record and monitor progress 4.1.02.02 Understands the principles of change management • Models • John P. Kotter: Eight steps • Kubler-Ross: Five stage model • Bridge's transition model • Roger's technology Adoption Curve • Prosci's ADKAR Model • Principles • Understand the need for change • Communicate vision • Remove obstacles • Empower actions • Implement change • Sustain change © European Logistics AssociationPage 6
  7. 7. Business Principles Level 4 Core Management Skills Indicative Content 4.1.02.03 Participates in cross functional teams • Definition of the Organisational Context • Clear Mission • Functional Alignment • Senior Champions • Project Leader Power • Resources/Time allowance • Team Training • Team Accountability • Team Rewards • Team Co-Location • Definition of the task • Team Empowerment • Integrative Processes • Customer Focus • Important Task • Group/Team Composition • Right functional mix • Team leader selection • Clear roles and responsibilities • Team tenure © European Logistics AssociationPage 7
  8. 8. Business Principles Level 4 Core Management Skills Indicative Content 4.1.02.04 Has good oral and written communication skills • Oral communication • Explain and present ideas clearly • Tailor delivery to given audience • Use appropriate styles and approaches • Non-verbal cues • Written communication • Write effectively in a range of contexts • For a variety of different audiences • Electronic communications • SMS • email, discussion boards, chat rooms and instant messaging 4.1.02.05 Demonstrates decision making ability • Sets goals • Sets priorities • Involves people • Identifies and prioritises key issues involved • Consider risks • Anticipates consequences of decisions. • Makes decisions 4.1.02.06 Chairs meetings • Purpose of meeting • Written agenda • Desired outcomes • Time management • Demonstrates leadership • Handles conflict • Short summary • Action list © European Logistics AssociationPage 8
  9. 9. Business Principles Level 4 Core Management Skills Indicative Content 4.1.02.07 Manages a team • Demonstrates leaderships • Communicates effectively with team • Manages and monitors performance • Sets clear objectives • Develops team • Motivates and encouraging performance • Delegates • Recognises achievements © European Logistics AssociationPage 9
  10. 10. Supply Chain & Logistics Design Level 4 Process Management Indicative Content Process Management 4.2.03.01 Understands the trade-offs within the supply chain • Service versus costs • Flexibility versus Inventory • Flexibility increase through • Manufacturing capacity • Batch sizes • Deliveries • Lead times • Buffer stock 4.2.03.02 Describes a value chain • Encompasses • Range of activities and processes adding value to product or service • Conception • Production and service design • Delivery • Disposal • Continuos improvement • Across multiple players • Use • Map activities • Map links • Value activities • Evaluate improvements © European Logistics AssociationPage 11
  11. 11. Supply Chain & Logistics Design Level 4 Process Management Indicative Content 4.2.03.03 Understands the effect of demand variability on the supply chain? • Demand variability increases moving up the supply chain away form the final customer • Small change in demand can result in large orders placed upstream • No supply chain integration can lead to oscillation effects • Called bullwhip effect or Forrester effect • Can be simulated using the beer game 4.2.03.04 Understands the basic concept of lean • Key principles • Value, defined from the customer perspective • Flow, understand process and clear obstacles that don’t add value • Pull, initiate work only when requested by the customer • Responsiveness, ability to respond to change • Perfection, continuous refine the process • Reduce waste • Overproduction ahead of demand • Waiting • Unnecessary transport • Over processing of parts • Inventory more than the absolute minimum • Unnecessary movement • Defective parts • Unused talent 4.2.03.05 Understands how to calculate total supply chain costs • Order Management Costs • Material Acquisition Costs • Inventory Carrying Costs • Supply Chain Related Finance and Planning Costs • Total Supply Chain-Related IT Costs © European Logistics AssociationPage 12
  12. 12. Supply Chain & Logistics Design Level 4 Process Management Indicative Content 4.2.03.06 Understands the use of a Quality Management Systems (QMS) • Documentation of processes in standard manner • Certification under ISO norms • Reduce non-conformance • Improve reaction to process deviation • Improve integration with suppliers and customers 4.2.03.07 Uses business test scenario's • Business scenarios • A scenario a process flow • Alternative flows can be consider as another scenario. • Variables that can produce different results can be considered as different scenarios • Negative test on how the system responds when invalid inputs or sequence is applied • Used to ensure IT systems deliver the expected outcome 4.2.03.08 Understands the different types of data used in organisations • Unstructured • Transactional • Metadata • Hierarchical • Master • People • Things • Places • Concepts © European Logistics AssociationPage 13
  13. 13. Supply Chain & Logistics Design Level 4 Process Management Indicative Content 4.2.03.09 Understands process reference models • Use process reference models for measure, manage and control • Provides common language across organisation • Describes value chains across multiple departments and organisation • SCOR® model: • Provides standard set of processes, performance metrics and practices • Plan • Source • Make • Deliver • Return • Process Classification Framework℠ (PCF) • Energetics E&P Business process reference model © European Logistics AssociationPage 14
  14. 14. Supply Chain & Logistics Design Level 4 Change and Project Management Indicative Content Change and Project Management 4.2.04.01 Maintains project documentation • Project Charter • Statement of Work • Responsibility Matrix • Communication Plan • Project Plan e.g. Gantt Chart • Action & Decision Lists • Risk Register • Progress Report • Project Closure Report 4.2.04.02 Understands project management tools • Gantt chart • Logic Network • PERT chart • Product Breakdown Structure • Work Breakdown Structure © European Logistics AssociationPage 15
  15. 15. Supply Chain & Logistics Planning Level 4 Demand, Production and Distribution Requirements Planning Indicative Content Demand, Production and Distribution Requirements Planning 4.3.05.01 Calculates total supply chain/logistics lead time • Time it takes to manufacturer and supply product • If time is longer than customer order cycle need to build stock (lead –time gap) • Lead time • Preprocessing • Processing • Postprocessing • Lead time • Variable • Fixed 4.3.05.02 Uses inventory replenishment models • Fixed Replenishment • Fixed quantity and Fixed order period • Order Point • Fixed quantity and variable order period • Periodic Replenishment • Variable quantity and fixed order period • On demand replenishment • Variable quantity and variable order period 4.3.05.03 Establishes and maintains Bill of Materials (BOM) and Bill of Labour (BOL) • Bill of material (BOM) • List of all parts • Sub-assemblies • Raw materials • Quantity of each required • Bill of labour (BOL) • Required capacity • Key resources © European Logistics AssociationPage 17
  16. 16. Supply Chain & Logistics Planning Level 4 Demand, Production and Distribution Requirements Planning Indicative Content 4.3.05.04 Calculates stocks turns or weeks cover and reports it • Stock turnover ratio • Cost of goods sold versus cost of inventory • Measure of money tied up in the supply chain • High turns equals low level of inventory • Trends are more important than absolute numbers • Weeks cover • Identification of number of weeks sales can be covered with existing inventory on hand 4.3.05.05 Understands stock ageing report • Purpose of stock ageing report • Detection of slow and non moving stocks • Typical content of Inventory Ageing report • List of all items in stock • How long they have been in stock • Average inventory age 4.3.05.06 Allocates available products to orders • Automatic ERP system • Manually to take into account e.g. customer specific lots 4.3.05.07 Uses ABC analysis to differentiate inventory management • Method of categorising items • Review management attention and inventory management approach • A-items • Close follow up • Low safety stocks • C-items • Less frequent follow ups • Higher safety stocks © European Logistics AssociationPage 18
  17. 17. Supply Chain & Logistics Planning Level 4 Demand, Production and Distribution Requirements Planning Indicative Content 4.3.05.08 Uses forecasting methods to create a demand forecast • Forecasting Methods • Subjective • Univariate • Extrapolation • Simple Exponential Smoothing • Holt Method • Box Jenkins • Multivariate • Multiple Regression • Econometric Models 4.3.05.09 Understands the concept of Available to Promise (ATP) • Available capacity • Total lead-time • quote the delivery date for a customer order 4.3.05.10 Understands different planning techniques • Push Planning • Based on forecast • MRP • Reorder Point replenishment • Pull Planning (lean planning) • Based on actual demand • JIT • Kanban • Double bin replenishment © European Logistics AssociationPage 19
  18. 18. Supply Chain & Logistics Planning Level 4 Demand, Production and Distribution Requirements Planning Indicative Content 4.3.05.11 Understands different inventory management optimisation tactics • Inventory reduction in plants/assembly lines (critical resource and bottleneck planning) • Inventory reduction across transportation networks (transportation modes) • Inventory reduction via changes to sourcing policies • Inventory reduction via lot size optimisation • Risk pooling • Inventory reduction via component planning • Inventory reduction via postponement 4.3.05.12 Understands the functionality of planning systems • Strategic network planning capability • Demand planning (using advancing forecasting techniques) • ATP functionality • Master Planning • Production Planning and Scheduling © European Logistics AssociationPage 20
  19. 19. Supply Chain & Logistics Execution Level 4 Warehousing Indicative Content Warehousing 4.4.06.01 Understands the key challenges in warehouse management • Cost reduction whilst optimising service • Reduced lead times • Orders from multiple channels and increase in smaller orders • Fluctuations in demand • Proliferation of SKU • Capacity management • Environmental challenges (green logistics) • Data Accuracy 4.4.06.02 Has a detailed understanding of the warehousing processes • Pre-advice • Receiving • Checking • Put Away • Storage • Replenishment • Picking and Packing • Value Added Logistics (VAL) services • Cross Dock • Dispatch • Complaint Handling & Returns • Stock taking © European Logistics AssociationPage 22
  20. 20. Supply Chain & Logistics Execution Level 4 Warehousing Indicative Content 4.4.06.03 Understands different order picking strategies • Picker to Goods • Pick to order • Cluster picking • Batch picking • Zone picking • Wave picking • Goods to Picker • Automated picking 4.4.06.04 Understands different order picking methods Picking Methods include: • Paper pick • Pick by label • Scanning • Voice Picking • RFID • Pick to light 4.4.06.05 Deploys appropriate warehouse handling equipment • Transport Equipment • conveyors • cranes • industrial trucks • Positioning Equipment • used to handle material at a single location • Unit Load Formation Equipment • equipment used to restrict materials so they can maintain their integrity • Storage Equipment • Identification and Control Equipment © European Logistics AssociationPage 23
  21. 21. Supply Chain & Logistics Execution Level 4 Warehousing Indicative Content 4.4.06.06 Understands how to design a warehouse layout • Principles • Make best use of space • Minimise movement • Provide safe and secure conditions • Optimise operating costs • Process • Define warehouse type • List activities • Draw warehouse flow diagram • Select storage system • Select warehouse handling equipment • Draw layout • U-flow • Straight or through flow 4.4.06.07 Organises stock taking • Correlating entries in accounts with actual state • Counteracting irregularities been stated • Process • Inventory count • Periodic • Continuous • Comparing counts with book entries • Establishing and explaining causes of losses and discrepancies • Proposing methods of settlement of inventory differences • Implementing corrective actions © European Logistics AssociationPage 24
  22. 22. Supply Chain & Logistics Execution Level 4 Warehousing Indicative Content 4.4.06.08 Optimises packing of goods prior to dispatch • Reasons for packing of goods: • Protect products • Ease handling • Criteria for selecting type of packaging: • Period of conservation required • Weight and volume • Labelling requirements • Regulations • Standardised packaging for airfreight shipments - ULD 4.4.06.09 Understands the implications of storing hazardous goods • Obtain and provide information • Proper labeling • MSDS availability • Employee training • Eliminate or control risk • Stop using substance • Substitute • Keep minimum amount • Isolate • Store as instructed on safety data sheet • Engineer controls • Implement safe work practices • Use personal protective equipment • Clean spills or leaks • Obtain and provide information • Proper labeling • MSDS availability • Employee training © European Logistics AssociationPage 25
  23. 23. Supply Chain & Logistics Execution Level 4 Warehousing Indicative Content 4.4.06.10 Understands the role of logistics service providers • Provide services • Warehousing • International transportation • Distribution • Value added services • Contribute to lowering costs levels • Create economies of scale • Offer horizontal collaboration • Contribute to supply chain integration • Contribute to introduction of new technology • Referred to as 1,2,3,4 PL 4.4.06.11 Implements warehouse safety procedures • Identification of the hazards • Evaluation of the risks and planning of precautions • Implementations of findings and communications to team • Review and update 4.4.06.12 Understands the functionalities of Warehouse Management Systems (WMS) • Primary purpose of WMS • directed picking • directed replenishment • directed put away • A WMS will • Have a flexible location system. • Utilise user-defined parameters to direct warehouse tasks • Use live documents to execute warehouse tasks • Have some built-in level of integration with data collection devices © European Logistics AssociationPage 26
  24. 24. Supply Chain & Logistics Execution Level 4 Transportation Indicative Content Transportation 4.4.07.01 Describes the shipment process • Create shipments • Adjust the transportation plan if required • Define the packaging of goods and how they are loaded into vehicles • Manage hazardous-materials requirements • Specify, update, and track planned transportation deadlines • Manage transportation documents 4.4.07.02 Manages transport routing and scheduling • Planning objectives • Minimise fixed and variable costs • Minimise fleet size • Minimise total transport times and/or total distance travelled • Minimise waiting times • Maximise operating profits • Maximise the load capacity of each vehicle • Maximise the utility function and customer satisfaction • Transport modes • Characteristics of • Road network • Customer or demand points • Distribution centres • warehouses • Depots, platforms • Transit centres • Ports • Airports • Other mobile media or platforms • Determine route(s) for each depot and available fleet to attain proposed objectives © European Logistics AssociationPage 27
  25. 25. Supply Chain & Logistics Execution Level 4 Transportation Indicative Content 4.4.07.03 Describes the transport procurement process • Freight costs spend analysis • RFQ process management, e-auctions, online procurement process • Evaluate proposals • Contract award • Execute contract • Control invoice 4.4.07.04 Manages day to day shipment operations • Route and expedite movement of shipments • Take directions from customers • Arrange the pick-up of shipments for delivery 4.4.07.05 Understands key elements of transport cost • Labour (driver) • Fuel • Taxes & insurance • Equipment maintenance • Equipment depreciation 4.4.07.06 Understands the European transport policies,legislation and procedures • Common rules for access to the international road haulage market • Goods: towards a safer and more competitive high-quality road transport system • Goods: carriage between Member States • Goods: community safeguard mechanism • Goods: Non-resident carriers in the national market • Taxation of heavy goods vehicles: Eurovignette Directive • Goods: distribution of permits for heavy goods vehicles travelling in non-EU countries • Goods: statistical returns on the carriage of goods by road • Hiring of vehicles for the carriage of goods © European Logistics AssociationPage 28
  26. 26. Supply Chain & Logistics Execution Level 4 Transportation Indicative Content 4.4.07.07 Understands the implications of shipping hazardous goods • Laws governing the shipping and transportation of hazardous goods. • Training and certification required for drivers • Limitations on transport of such materials • Material Safety Data Sheets (MSDS) © European Logistics AssociationPage 29
  27. 27. Supply Chain & Logistics Execution Level 4 Transportation Indicative Content 4.4.07.08 Understands the functionalities of Transport Management Systems (TMS) • Strategic transportation functionality: • Transport Sourcing • Performance Management • Network Design • Design Carbon Footprint • Calculations Contract Management • Tactical transportation functionality: • Capacity Management • Asset & Fleet Management • Resource Management • Rate & Tariff Management • Operational planning transportation functionality: • Shipping Consolidation & Load / Trip Planning • Load Design • Route Planning • Fleet & Driver Planning • Carrier Selection • Operational execution transportation functionality: • Order Entry & Consolidation • Dispatching • Order Status Information • Global Logistic Execution / Customs & Transport Doc. • Yard Management • Parcel Management • Execution Monitoring • Operational vehicle transportation functionality: • Vehicle Management • Communications with Driver • Communications with Truck • Communication with Trailer / • LoadRoute Planning © European Logistics AssociationPage 30
  28. 28. Supply Chain & Logistics Execution Level 4 Sourcing Indicative Content Sourcing 4.4.08.01 Describes the procedures covering the procurement process cycle • Pre-Order Stage: • Need/requirements • Specify • Sourcing • Enquiry • Evaluation • Selecting • Order Stage: • Ordering • Progressing • Expediting • Delivery • Receipt • Post Order Stage: • Payment • Invoice verification • Reviewing • Complaint handling 4.4.08.02 Supports supply market analysis • Commodity Profile • Cost Structure • Research Suppliers • Key market indicators © European Logistics AssociationPage 31
  29. 29. Supply Chain & Logistics Execution Level 4 Sourcing Indicative Content 4.4.08.03 Describes the different purchasing approaches • Strategic items (high profit impact, high supply risk) • developing long-term supply relationships • analysing and managing risks regularly • planning for contingencies. • Leverage items (high profit impact, low supply risk) • Using full purchasing power • Substituting products or suppliers • Placing high-volume orders. • Bottleneck items (low profit impact, high supply risk). • over ordering when item is available • Non-critical items (low profit impact, low supply risk) • using standardised products • monitoring • optimising order volume 4.4.08.04 Understands supplier evaluation and selection process • understand the business requirements • determine the sourcing strategy • identify potential supply sources • determine method of evaluation • establish RFP or RFQ • establish evaluation matrix • evaluates bids • negotiate and select suppliers © European Logistics AssociationPage 32
  30. 30. Supply Chain & Logistics Execution Level 4 Sourcing Indicative Content 4.4.08.05 Understands the negotiation process • Prepare • Open the negotiation • Discuss • Explore options • Reach a consensus • Articulate proposition • Obtain final agreement 4.4.08.06 Uses Key Performance Indicators (KPIs) to measure supplier performance • Understands purpose of KPIs • Examples of KPIs • Quality oriented KPIs • complaints • rejects • rework • Quantity oriented KPIs • order receipts • Price oriented KPIs • materials • labour • downtime • absenteeism • rework • Place oriented KPIs • accuracy of delivery to location • tracking availability whilst in transit • Time oriented KPIs • lead-times • emergency response © European Logistics AssociationPage 33
  31. 31. Supply Chain & Logistics Execution Level 4 Sourcing Indicative Content 4.4.08.07 Describes the goal of a supplier certification and the process steps • Aim of supplier certification process • Maintain consistent quality in conformance with specifications • Improve quality over time • Process steps • Establish objectives • Supplier selection • Preparation for audit • Conducting the audit • Review audit findings and corrective actions • Certification complete with ongoing program for improvement • Periodic Audit to maintain certification 4.4.08.08 Understands functionalities of Electronic (e)-Procurement Information Technology (IT) tools • Self service procurement solutions • Role based catalogues (defined to different user groups) • Different search capabilities • Workflow • Order tracking • Requisition • Change request tracking • Audit trail • Re-approval controls • Procurement cards management • Supplier integration capability © European Logistics AssociationPage 34
  32. 32. Supply Chain & Logistics Execution Level 4 Customer Service Indicative Content Customer Service 4.4.09.01 Understands customer service procedures • Pre –transaction elements • Customer service policy • Returns procedure • Product allocation procedure • Transaction elements • Setting stock levels • Selecting transportation and delivery mode • Establishing order processing procedures • Post transaction elements • Services to support product in the field 4.4.09.02 Uses Key Performance Indicators (KPIs) for measuring customer service • The number of orders completely satisfied • The number of lines delivered • The number of items of a total order delivered • The value of the order completely delivered • Understands order fulfilment and OTIF measurement 4.4.09.03 Understands multi channel customer communication • Seamless connection for different modes of communication • Phone • Inter- and intranet solutions • Online chat • Email • Mobile apps © European Logistics AssociationPage 35
  33. 33. Supply Chain & Logistics Execution Level 4 Customer Service Indicative Content 4.4.09.04 Understands the key functionalities of Customer Relationship Management (CRM) Systems • Customer relationship management (CRM) function • Improve the interactions and engagement of customers • Functionalities include • Sales force automation (SFA), • Marketing automation • Customer service and support, • Partner management • Enterprise marketing management. • CRM solutions • Features and functions for sophisticated reporting and analytics © European Logistics AssociationPage 36
  34. 34. Business Principles Level 6 Business Principles Indicative Content 6EQF Level Senior Management level European Senior Logistician - ESLog © European Logistics AssociationPage 37
  35. 35. Business Principles Level 6 Business Principles Indicative Content Business Principles 6.1.01.01 Understands the financial impact of holding inventory • Inventory, financial asset • Cost of capital associated with holding inventory • Inventory decrease • Cash is released • Revenues are released • Inventory increase • Cash is tied up • Inventory write up • Cash and P&L impact 6.1.01.02 Understands cash to cash (C2C) cycle • Working capital • Amount of cash tied up in supply chain • Reduction of cash to cash cycle: • Longer supplier payment days • Vendor managed inventory • Inventory reduction • Lean • Shorter customer credit 6.1.01.03 Is able to calculate Net Present Value (NPV) • Present value of cash inflows • Present value of cash outflows • Capital budgeting to analyse profitability of investment or project 6.1.01.04 Monitors actual costs versus budgeted costs • Budget • Actual expenditure to date • Future expenditure commitments • Balance of annual budget remaining © European Logistics AssociationPage 38
  36. 36. Business Principles Level 6 Business Principles Indicative Content 6.1.01.05 Prepares a business plan • Business Concept • The business • Its product • The market • Financial features • Sales • Profits • Cash flow • Return on investments • Financial requirements • Capital needed to start and expand • Current business position • Current state of the company • Major achievements • Developments essential to success 6.1.01.06 Understands how a pricing strategy is defined • Price relative to business strategy • Survival • Current profit maximisation • Market share leadership • Product quality leadership • Price elasticity of demand • Costs • Competitors prices • Pricing Method • Cost Plus • Target Profit Pricing • Perceived value Pricing © European Logistics AssociationPage 39
  37. 37. Business Principles Level 6 Business Principles Indicative Content 6.1.01.07 Assesses business performance • Review Activities • Evaluate products or services produced • Review financial performance • Use financial and operational ratio's to benchmark 6.1.01.08 Makes outsourcing decisions • Decide what to outsource • A core competence • Require specific expertise • Financially attractive • Process • Plan initiatives • Explore strategic implications • Analyse costs/performance • Select providers • Negotiate terms • Transition resources • Manage relationships 6.1.01.09 Defines and implements a performance scorecard • Performance Scorecards • Translate strategy into performance measures. • Organised set of performance measures. • Focus on a number of domains • Implementation • Project management approach • Employee involvement • Pilot first • Models • Balanced Scorecard • EFQM Model © European Logistics AssociationPage 40
  38. 38. Business Principles Level 6 Business Principles Indicative Content 6.1.01.10 Designs an appropriate organisation structure • Specialisation • Type and number of job specialities used • Shape • Number of people • Distribution of power • Centralised • Decentralised • Departmentalisation • Functions • Products • Workflow • Markets • Geography © European Logistics AssociationPage 41
  39. 39. Business Principles Level 6 Core Management Skills Indicative Content Core Management Skills 6.1.02.01 Demonstrates excellent communication skills • Oral communication • Explain and present ideas clearly • Tailor delivery to given audience • Use appropriate styles and approaches • Non-verbal cues • Written communication • Write effectively in a range of contexts • For a variety of different audiences • Electronic communications • SMS • email, discussion boards, chat rooms and instant messaging 6.1.02.02 Influences and coaches others to achieve superior performance • Counsels • Resolving problems • Mentors • Supporting performance • Tutors • Teaching skills and process • Challenges • Adjusting performance 6.1.02.03 Demonstrates strategic thinking • Conceptual thinking • Systems thinking • Reframing • Reflecting • Articulating • Anticipating © European Logistics AssociationPage 42
  40. 40. Business Principles Level 6 Core Management Skills Indicative Content 6.1.02.04 Facilitates change • Persuasive • Thorough • Confidence • Communication • Unwavering 6.1.02.05 Understands the principles of situational leadership • Tasks involved • Maturity level of the people the individual is managing 6.1.02.06 Understands the principles of Management By Objectives (MBO) and performance evaluation • Adopts systematic,organised approach to MBO • Focuses on achievable goals • Uses available resources effectively • Aligns goals within organisation • Involves employees in objective setting • Provides ongoing tracking and feedback © European Logistics AssociationPage 43
  41. 41. Supply Chain & Logistics Design Level 6 Process Management Indicative Content Process Management 6.2.03.01 Analyses the supply chain by using value stream mapping • Flowcharting technique • Using defined symbols • Visualise product/work flows through processing steps • Identifying value add and non value add activities • Identifying improvement opportunities (Kaizen burst) 6.2.03.02 Understands what is required to implement a lean & agile supply chain • Focus on customer needs • Maintain inventory in an undifferentiated way as long as feasible • Buffer variation in demand with capacity, not inventory • Use forecast to plan, pull to execute • Build partnerships and alliances with supply chain members • Formulate performance measures to support process orientation • Focus on the bottleneck resources • Focus on synchronising flow • Reduce variation in the system © European Logistics AssociationPage 45
  42. 42. Supply Chain & Logistics Design Level 6 Process Management Indicative Content 6.2.03.03 Applies problem solving techniques • Process • define the problem • gather information • identify alternative solutions • evaluate the options and select the best option • involves others • take action • evaluate the action • Tools and techniques • Brainstorming • Mind mapping • 5 Why's • Cause and effect analysis (Fish bone diagram) • PDCA (Plan Do Check Act) Cycle 6.2.03.04 Implements reverse logistics • Business processes • Product acquisition: retrieval from the market and physical collection • Reverse logistics : transportation to the recovery location • Testing and Inspection • Sorting and disposition • Recovery • Redistribution • Product types • End of life returns • End of use returns • Commercial returns • Reusable items (e.g. pallets) © European Logistics AssociationPage 46
  43. 43. Supply Chain & Logistics Design Level 6 Process Management Indicative Content 6.2.03.05 Understands the elements of a Cost-to-Serve model • True cost of doing business • Indirect costs • Direct costs • Cost drivers • Link process, product, channel, customer • Identification of • Loss making customers • Low/high cost to serve customers 6.2.03.06 Identifies and implements supply chain Key Performance Indicators (KPIs) • KPIs • Measure what is of fundamental importance • Achieving drive success of organisation • Examples of KPIs • Supply Chain Reliability • Delivery Performance, • Fill Rates, • Perfect Order Fulfilment • Supply Chain Responsiveness: • Order fulfilment • Supply Chain Flexibility • Supply Chain Costs • Supply Chain Asset Management Efficiency 6.2.03.07 Applies lean techniques to identify process improvement opportunities • Identify waste through value stream mapping • Reduce process variability through six sigma • Apply process improvement approach: • DMAIC • PDCA © European Logistics AssociationPage 47
  44. 44. Supply Chain & Logistics Design Level 6 Process Management Indicative Content 6.2.03.08 Uses modelling to explore the impact of options on the supply chain • Descriptive models • Forecasting models, • Cost relationship models • Resource utilisation relationship models • Simulation models • Optimisation models • Linear Programming based models 6.2.03.09 Performs software functionality tests • Develop test scripts • Perform unit functionality test • Perform stress test • Perform integrated test • Sign off © European Logistics AssociationPage 48
  45. 45. Supply Chain & Logistics Design Level 6 Change and Project Management Indicative Content Change and Project Management 6.2.04.01 Defines and manages the scope of a project • Scope Definition • Goals and Deliverables • Actions • Break down in tasks (work breakdown structure) • Define resources • Define responsibilities • Define scope boundaries • Define constraints and assumptions • Get sign off • Scope Management • Scope change management system • Document scope change request • Define impact of scope change on timeline and resourcing • Approval system • Update project scope 6.2.04.02 Establishes project governance structure • Alignment with all stakeholders • Appropriate delegation • Decision gates • Consistent and transparent reporting • Independent review © European Logistics AssociationPage 49
  46. 46. Supply Chain & Logistics Design Level 6 Change and Project Management Indicative Content 6.2.04.03 Understands the concept of project management life cycle • Initiation • Business case development • Feasibility • Project scope/charter • Project team installation • Planning • Project • Resource • Financial • Quality • Risk • Acceptance • Communication • Execution • Build deliverables • Monitor • Control • Closure • Project closure • Review project 6.2.04.04 Applies phase gate process to a project • Main processes • Definition • Initiation • Planning • Execution and closure • Monitoring and controlling all throughout the project • Each process is broken down into phases with related deliverables © European Logistics AssociationPage 50
  47. 47. Supply Chain & Logistics Design Level 6 Change and Project Management Indicative Content 6.2.04.05 Coaches projects managers • GROW model: Goal, Reality,Options, Will • Goal • SMART (Specific, Measurable, Actionable, Realistic, Time-bound) • PURE (Positively stated, Understood, Relevant, Ethical) • CLEAR (Challenging, Legal, Environmentally sound, Appropriate, Recorded). • Current Reality • Options • Will or way forward • GO MAD model: Go Make a Difference • FUEL model: • Frame the conversation • Understand the current state • Explore the desired state • Lay out a success plan 6.2.04.06 Applies a project methodology whilst managing a project • Methods • Processes • Practices • Examples • Prince • PMBok 6.2.04.07 Manages the costs of project • Project Costs • Resource costs of completing project • Costs of using, maintaining and supporting the product • Project Cost Management • Estimate Costs • Determine Budget • Control Costs © European Logistics AssociationPage 51
  48. 48. Supply Chain & Logistics Design Level 6 Change and Project Management Indicative Content 6.2.04.08 Understands project quality management • Plan Quality • Perform Quality Assurance • Perform Quality Control 6.2.04.09 Implements a continuous improvement programme • Selecting overall approach • Establishing systematic management system with linkage to strategic goals: • Selecting suitable continuous improvement tools • Establishing of budget and timeline • Management of expectations • Establishing roles and responsibilities of organisation • Management structure and governance • Steering committee • Overall champion • Team leaders • Process owners • Facilitators • Deploying Continuous Improvement Tool • Visual Displays • Standard Work • Tracking for Sustainability • Sharing (best practices, community of practice) © European Logistics AssociationPage 52
  49. 49. Supply Chain & Logistics Planning Level 6 Demand, Production and Distribution Requirements Planning Indicative Content Demand, Production and Distribution Requirements Planning 6.3.05.01 Improves the demand management process • Implement structured communication process • Prioritise demand to match supply (within agreed time frame) • Implement demand consensus meeting • Develop and implement demand management training programme • Have process in place to manage abnormal demand • Implement appropriate performance measures • Use advanced IT systems • Integrate customers within demand management process 6.3.05.02 Implements collaborative forecasting • CPFR® • Collaborative • Planning • Forecasting • Replenishment • Process model contains nine steps (VICS, 1998) • Develop front-end agreement • Create joint business plan • Create sales forecast • Identify exceptions for sales forecast • Resolve / collaborate on exception items • Create order forecast • Identify exceptions for order forecast • Resolve / collaborate on exception items • Order generation © European Logistics AssociationPage 54
  50. 50. Supply Chain & Logistics Planning Level 6 Demand, Production and Distribution Requirements Planning Indicative Content 6.3.05.03 Understands push/pull planning • Push • Based on forecasts • MRP is a push planning technique • Effective for items with little demand variability and high importance of economies of scale • Pull • Based on demand • Kanban is a pull planning technique • Effective for items with large demand variability • Hybrid Push-Pull • Part of supply chain push, part of supply chain pull • Boundary reffered to as decoupling point 6.3.05.04 Optimises planning parameters to fine tune inventory holding • Lead-Time • Order Policy • Minimum, maximum, multiple • Fixed order • Lot for lot • Period quantity © European Logistics AssociationPage 55
  51. 51. Supply Chain & Logistics Planning Level 6 Demand, Production and Distribution Requirements Planning Indicative Content 6.3.05.05 Establishes safety stock • Safety stock • Used to buffer against lead-time and demand variation • Calculation • Fixed safety stock • Time based • Statistical • Factors impacting safety stock • Life cycle stage of product • Product shelf life • Business importance • Sales pattern • Supply constraints • Demand • Interaction with customers • Costs • Number of stocking locations 6.3.05.06 Optimise Distribution Requirements Planning (DRP) • Optimisation of the planning inputs at item/location/planning period level • Lead-time • Capacity • Forecasts • Service level requirements • Seasonality • Review periods and resulting safety stock • Cycle stock and pre-build stock • Analysing drivers of inventory • At each level • Either supply of demand related • Analysed across the entire network • Trade-offs should be implemented © European Logistics AssociationPage 56
  52. 52. Supply Chain & Logistics Planning Level 6 Demand, Production and Distribution Requirements Planning Indicative Content 6.3.05.07 Understands how to adapt inventory holding taking into account product cycle • Product cycle • New product • Extra safety stock to support the launch • Mature • Decline • Safety stock to be removed 6.3.05.08 Identifies causes for stock obsolescence and redundancy and propose ways for minimising this • Install an effective S&OP process • Deploy inventory optimisation tactics • Adapt supply chain planning to the product life cycle 6.3.05.09 Runs the demand management, supply management and the scenario analysis of the Sales and Operations Planning (S&OP) process • Periodic process • steps • demand review • review of past and forward looking demand • supply review • review of past and to be planned product supply • demand/supply balancing (scenario analysis) • understanding possible constraints and simulation of best business approach • executive review • summary of process and decisions on options for next planning period 6.3.05.10 Understands functionalities of inventory optimisation tools • Inventory target setting by SKU family, channels • Multi echelon inventory management • Replenishment management • Vendor Managed Inventory • Scenario Management • Tactical Inventory Management © European Logistics AssociationPage 57
  53. 53. Supply Chain & Logistics Planning Level 6 Demand, Production and Distribution Requirements Planning Indicative Content 6.3.05.11 Implements Vendor Management Inventory (VMI) process • Communicate expectations of all parties • Customer • commit to precise information • Supplier • Reliable transmission • Receipt • Use of information • Test systems • Review process • Improve 6.3.05.12 Develops Key Performance Indicators (KPIs) relative to inventory management • Inventory Turns • Inventory Days of Supply • Inventory to Sales ratio • Inventory Carrying cost • Inventory Accuracy 6.3.05.13 Selects and implements appropriate Information Technology Systems (ITS) such as Advanced Planning Systems (APS) • Perform gap analysis of current operations and required functionalities • Prepare a long list of possible software solutions and software vendors • Prepare a RFP (request for proposal) • Evaluate proposal including demo • Perform reference site visits • Contract • Implement • Perform post implementation optimisation © European Logistics AssociationPage 58
  54. 54. Supply Chain & Logistics Execution Level 6 Warehousing Indicative Content Warehousing 6.4.06.01 Optimises warehouse costs • Warehouse costs include • Space costs • Rent, leasing costs • Insurance • Rates • Utility costs • Racking depreciation • Repairs and maintenance • Cleaning and security • Waste disposal • Direct labour costs fixed and variable • Indirect labour costs fixed and variable • Equipment costs fixed and variable 6.4.06.02 Implements a health and safety programme • Develop a policy • Obtain senior management buy in • Define responsibilities • Develop and implement procedures • Train employees • Review and improve program 6.4.06.03 Improves receipt of goods from suppliers • Process optimisation • Use advanced shipping note • Inbound barcode scanning • Reduce variability • Flexible staffing • Delay receipt of low priority items © European Logistics AssociationPage 60
  55. 55. Supply Chain & Logistics Execution Level 6 Warehousing Indicative Content 6.4.06.04 Selects appropriate storage systems • Key factors • Nature and characteristics of the goods and unit loads held • Effective utilisation of building volume – horizontal and vertical • Good access to stock • Maintenance of stock condition and integrity • Personnel safety • Overall systems costs • Space • Land and building services • Fire protection • Handling equipment inclusive maintenance • Staff and information systems • Storage systems include: • Pallet block stacking • Drive in and drive through racking • Double deep racking • Powered mobile racking • Pallet live storage • High bay and other automated storage • Tote bins • Drawer units • Dynamic systems • Carousels 6.4.06.05 Implements a 5S programme in warehouse environment • Sorting • Straightening • Systematic cleaning • Standardising • Sustaining © European Logistics AssociationPage 61
  56. 56. Supply Chain & Logistics Execution Level 6 Warehousing Indicative Content 6.4.06.06 Performs warehouse risk management assessments • Identify the hazards • Decide who might be harmed and how • Evaluate the risks and decide on precautions • Record findings and implement them • Review assessment and update policy if necessary 6.4.06.07 Defines and implements Key Performance Indicators (KPIs) to improve warehouse operations • Define KPIs • At each process step • Receiving • Putaway • Storage • Order picking • Shipping • For each area • Service • Responsiveness • Capacity Utilisation • Costs • Set targets • Monitor performance to target • Implement corrective actions © European Logistics AssociationPage 62
  57. 57. Supply Chain & Logistics Execution Level 6 Warehousing Indicative Content 6.4.06.08 Understands and implements appropriate technology in warehousing • Connectivity • Wireless LAN • Cellular networks • Bluetooth • Voice and GPS communication integrated into rugged computers • Speech recognition • Digital Imaging • Portable printing • 2D and other bar coding • RFID • RTLS • Remote Management • Wireless and device security 6.4.06.09 Selects and implements appropriate IT systems such as a warehouse management system (WMS) • Perform gap analysis of current operations and required functionalities • Prepare a long list of possible software solutions and software vendors • Prepare a RFP • Evaluate proposal including demo • Perform reference site visits • Contract • Implement • Perform post implementation optimisation © European Logistics AssociationPage 63
  58. 58. Supply Chain & Logistics Execution Level 6 Transportation Indicative Content Transportation 6.4.07.01 Optimises transport mode selection • Product characteristics • Costs • Service • Lead time • Safety and security • Risk assessment • Sustainability 6.4.07.02 Evaluates freight market and selects appropriate carriers • Segregate freight market to mode and to transportation type • FTL • LTL • Groupage • Courier • Identify carriers for each mode and type • Evaluate supplier using a supplier evaluation process • Select supplier © European Logistics AssociationPage 64
  59. 59. Supply Chain & Logistics Execution Level 6 Transportation Indicative Content 6.4.07.03 Implements transport supplier agreements • Risk Transfer • Sub-contracting • Methods and routes of transportation • Equipment • Description of goods and packing • Inspection of goods • Trade Regulations • Freight Forwarder and Carrier Liability • Delay and Consequential Losses • Notice of loss or damage • Failure to Notify • Hindrances affecting Performance © European Logistics AssociationPage 65
  60. 60. Supply Chain & Logistics Execution Level 6 Transportation Indicative Content 6.4.07.04 Optimises transport scheduling • Inputs • Transport Network • Customers (location, delivery or pick up constraint, time window) • Vehicle fleet (number, capacity, capability) • Drivers • Objectives • Optimise transportation costs • Minimise vehicles used • Minimise travel time • Situations • Delivery optimisation with no time window constraint • Delivery and pick up to be integrated in same rout • Delivery (and pick up) with customer time window constraints • Optimisation tactics include: • Clustering of stop close to each other • Review and negotiate appropriate time windows • Use multi compartment vehicles (combination of ambient and cold transportation) • Integrate pick-ups and deliveries in same route • Avoid clustering with crossing routes © European Logistics AssociationPage 66
  61. 61. Supply Chain & Logistics Execution Level 6 Transportation Indicative Content 6.4.07.05 Selects logistics service providers • Selection • Define and specify the service • Simplify and standardise • Perform market survey • Issue Request for Information • Issue Request for Proposal • Evaluate and analyse risk • Negotiate • Contract • Evaluation • Compatibility • Cost • Quality • Operational performance • Market reputation • Financial performance 6.4.07.06 Designs a distribution network • Balance • Inbound Transportation • Storage & Handling • Inventory Holding • End Customer Distribution • Lead Time Requirements • Possible Networks • Central European Distribution Centre • Regional Distribution Centres • Central European Distribution Centre and Satellites (Hub & Spoke) • Relationship between total logistics costs and number of DC is hyperbolic © European Logistics AssociationPage 67
  62. 62. Supply Chain & Logistics Execution Level 6 Transportation Indicative Content 6.4.07.07 Defines and implements Key Performance Indicators (KPIs) to improve transportation • Number of customers order despatched per day / FTE • Truck Loading (%) • Amount of backloading • On time deliveries • Total Transport Cost as a % of sales 6.4.07.08 Selects and Implements appropriate Information Technology (IT) systems such as a transport management systems (TMS) • Perform gap analysis of current operations and required functionalities • Prepare a long list of possible software solutions and software vendors • Prepare a RFP • Evaluate proposal including demo • Perform reference site visits • Contract • Implement • Perform post implementation optimisation © European Logistics AssociationPage 68
  63. 63. Supply Chain & Logistics Execution Level 6 Sourcing Indicative Content Sourcing 6.4.08.01 Prepares sourcing plans • Description of category • Use of category by business • History of category • Volume • Prices • Cost improvements • Data current supplier • Process map • Supply Market Overview • Value Analysis • Objectives • Implementation and Action Plan 6.4.08.02 Establishes supplier agreements • Statement of work • Specification • Terms and conditions • List of deliverables • Schedule • Budget • Defined acceptance process © European Logistics AssociationPage 69
  64. 64. Supply Chain & Logistics Execution Level 6 Sourcing Indicative Content 6.4.08.03 Creates and manages collaborative supplier relationships • Include SRM into sourcing approach • Set up adequate teams • Look for increased and incremental value • Build joint working teams • Incentives and reward suppliers • Focus on TCO • Realise quick wins to motivate • Measure performance 6.4.08.04 Optimises negotiation strategies with all involved stakeholders • Strategy functions • Available alternatives • Importance of long term relationship • Balance of power • Strategies • Avoidance • Competitive • Accommodating • Compromising • Collaborating 6.4.08.05 Standardises and optimises operational purchasing processes • Definition of the procurement need • Specification of what to procure • Definition of the order • Financial Review of the order • Supplier Research and Selection • Agreement on purchasing price and terms • Order Placement • Order receipt • Order registration and payment © European Logistics AssociationPage 70
  65. 65. Supply Chain & Logistics Execution Level 6 Sourcing Indicative Content 6.4.08.06 Selects and implements electronic (e)-Procurement tools • e-Procurement • Electronic integration and management of procurement activities • Purchase requests • Authorisation • Ordering • Payment and Delivery • Tools include: • EDI • on line market place • online auctions. • Select and Implementation: • Evaluate solutions • Try out selected solution before commitment • Engage end users during implementation • Master basics • Roll out • Leverage most influential users • Ensure top management visibility and support • Capture business improvement opportunities © European Logistics AssociationPage 71
  66. 66. Supply Chain & Logistics Execution Level 6 Customer Service Indicative Content Customer Service 6.4.09.01 Implements a customer service policy • Identify the main elements of service and identify market segments • Determine the relative importance of each service element • Establish company competitiveness at current service level • Identify distinct service requirements for different market segments • Develop specific customer service packages • Determine monitoring and control procedures 6.4.09.02 Establishes a customer service organisation • Single point of contact • Support from multifunctional teams • Dedicated multifunctional cell structures 6.4.09.03 Defines and implements Key Performance Indicators (KPIs) to improve customer service • Number of customers order processed per day / FTE • Average lead time for all orders • Order entry accuracy • Delivered in full to customer • Delivered on time to customer • Percentage of customer claims • Product returns • Product Damage • Invoice accuracy © European Logistics AssociationPage 72
  67. 67. Supply Chain & Logistics Execution Level 6 Customer Service Indicative Content 6.4.09.04 Selects and implements appropriate Information Technology Systems (ITS) such as Customer Relationship Management (CRM) systems • Perform gap analysis of current operations and required functionalities • Prepare a long list of possible software solutions and software vendors • Prepare a RFP • Evaluate proposal including demo • Perform reference site visits • Contract • Implement • Perform post implementation optimisation © European Logistics AssociationPage 73
  68. 68. Business Principles Level 7 Business Principles Indicative Content Business Principles 7.1.01.01 Understands the impact of supply chain design on company taxation • Optimise network with tax/duties consideration • Understand impact of centralised purchasing • Understand impact of legal and operating models • Consignment or toll manufacturer • Contract manufacturer • Full fledged manufacturer • Agent/Sales • Commissionaire • Limited risk distributor • Full fledge distributor 7.1.01.02 Identifies and manages enterprise risk • Risk management and internal control objectives (governance) • Statement of attitude of organisation to risk (risk strategy) • Description of risk aware culture or control environment • Level and nature of risk that is acceptable (risk appetite) • Risk management organisation and arrangements (risk architecture) • Details of procedures for risk recognition and ranking (risk assessment) • List of documentation for analysing and reporting risk (risk protocols) • Risk mitigation requirements and control mechanisms (risk response) • Allocation of risk management roles and responsibilities • Risk management training topics and priorities • Criteria for monitoring and benchmarking of risks • Allocation of appropriate resources to risk management • Risk activities and risk priorities for the coming year • COSO ERM Cube © European Logistics AssociationPage 75
  69. 69. Business Principles Level 7 Business Principles Indicative Content 7.1.01.03 Evaluates the impact of government and politics on business strategy • PESTLE analysis or PEST analysis • Political • Economic • Social • Technological • Legal • Environmental • Porter's Five Forces • Competitive rivalry • Supplier power • Threat of new entry • Buyer power • Threat of substitution 7.1.01.04 Understands the implications of contract law • Mutual Consent • Offer and Acceptance • Mutual Consideration • Performance or Delivery • Good Faith • No Violation of Public Policy © European Logistics AssociationPage 76
  70. 70. Business Principles Level 7 Business Principles Indicative Content 7.1.01.05 Develops appropriate Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for inclusion in contracts • Service levels to measure • KPI to measure service • Process to measure • Time period to measure • Reporting format and frequency • Minimum standards • Standards tolerance • Service level credits • Level failure results in contract termination 7.1.01.06 Manages contracts life cycle with third party service providers and suppliers • Contract Request • Authoring • Negotiation • Approval • Execution • Obligations Management • Contract Amendment • Audit & Reporting • Renewal © European Logistics AssociationPage 77
  71. 71. Business Principles Level 7 Core Management Skills Indicative Content Core Management Skills 7.1.02.01 Demonstrates excellent communication skills • Oral communication • Explain and present ideas clearly • Tailor delivery to given audience • Use appropriate styles and approaches • Non-verbal cues • Written communication • Write effectively in a range of contexts • For a variety of different audiences • Electronic communications • SMS • email, discussion boards, chat rooms and instant messaging 7.1.02.02 Influences and coaches others to achieve superior performance • Counsels • Resolving problems • Mentors • Supporting performance • Tutors • Teaching skills • Teaching processes • Challenges • Adjusting performance © European Logistics AssociationPage 78
  72. 72. Business Principles Level 7 Core Management Skills Indicative Content 7.1.02.03 Demonstrates strategic thinking • Conceptual thinking • Systems thinking • Reframing • Reflecting • Articulating • Anticipating 7.1.02.04 Facilitates change Be: • Persuasive • Thorough • Confidence • Communication • Unwavering © European Logistics AssociationPage 79
  73. 73. Supply Chain & Logistics Design Level 7 Process Management Indicative Content Process Management 7.2.03.01 Understands the drivers to supply chain transformation • Policy changes • Distribution channels • Infrastructure • Demand variability • Market environment • Company culture • Business structures • Technology 7.2.03.02 Understands leading and lagging Key Performance Indicators (KPIs) • Lagging Indicator • Measures performance after business or process result starts to follow a pattern or trend • Confirm long-term trends • Don't predict trends • Leading Indicator • Measures performance before business or process result starts to follow a pattern or trend • Can sometimes be used to predict changes and trends 7.2.03.03 Derives an appropriate supply chain strategy from the business strategy • Define and communicate the corporate strategy • Identify areas of corporate strategy enabled by the supply chain • Align supply chain performance metrics with corporate strategy • Structure supply chain to optimise strategic goals • Align incentives end to end • Keep refreshing strategy and alignment process © European Logistics AssociationPage 81
  74. 74. Supply Chain & Logistics Design Level 7 Process Management Indicative Content 7.2.03.04 Understands how sustainability might impact on the supply chain • Reduce energy cost • Reduce any form of waste • Apply green technologies within transportation and logistics networks. • Establish a deeper level of collaboration chain partners • Re-examine • Delivery methods • Products • Packaging • Measurement systems 7.2.03.05 Understands the impact of technological innovation on supply chain design • Contribution to supply chain visibility • Internet Transparency • Social Media (linkedin,twitter, facebook) • Cloud Computing • Supply Chain Visibility supports collaboration • 3D printing 7.2.03.06 Manages lean projects to identify and reduce waste • Establish objectives (hoshin planning) • Map Value Stream • Implement 5S • Create Flow • Establish standard work • Reduce variability (through six sigma) © European Logistics AssociationPage 82
  75. 75. Supply Chain & Logistics Design Level 7 Process Management Indicative Content 7.2.03.07 Improves synchronisation along the supply chain • Includes • Matching the supply chain to the demand of the market • Coordinating flows and processes • Elimination bottle necks • Delays • Waste • Implementing • Appropriate supply chain management techniques • Performance metrics focussing on cross functionality and interrelationships • Theory of constraints • DBR • Appropriate tools 7.2.03.08 Understands and implements lean flow principles Possible actions to increase flow within supply chains: • Map and measure process • Identify problems experienced • Identify waste in current process • For each waste asks • Why it occurs • Prevent it • Apply principles of good process design • Reintroduce reality into perfect process • Develop change plan • Put in place effective process © European Logistics AssociationPage 83
  76. 76. Supply Chain & Logistics Design Level 7 Change and Project Management Indicative Content Change and Project Management 7.2.04.01 Acts as an expert in phase gate models in projects Project structured in • Discrete phases • Sign off at end of each phase to move to next phase The most familiar one is the Stage-Gate® model 7.2.04.02 Applies principles of change management Principles • Why change • How change • Value of change • Getting buy -in • Pilot • Rollout © European Logistics AssociationPage 84
  77. 77. Supply Chain & Logistics Design Level 7 Change and Project Management Indicative Content 7.2.04.03 Coaches managers to manage change Apply coaching model: • GROW model: Goal, Reality,Options, Will • Goal • SMART (Specific, Measurable, Actionable, Realistic, Time-bound) • PURE (Positively stated, Understood, Relevant, Ethical) • CLEAR (Challenging, Legal, Environmentally sound, Appropriate, Recorded). • Current Reality • Options • Will or way forward • GO MAD model: Go Make a Difference • FUEL model: • Frame the conversation • Understand the current state • Explore the desired state • Lay out a success plan 7.2.04.04 Initiates change management programmes • Evaluate project risk • Identify sponsor • Ensure employee involvement • Assess ROI • Identify interactions with other projects • Complete organisation assessment • Define measurement of success © European Logistics AssociationPage 85
  78. 78. Supply Chain & Logistics Design Level 7 Change and Project Management Indicative Content 7.2.04.05 Completes project risk assessment • Establish the context • Identify the risks • Analyse the risks • Evaluate the risks and rank • Treat risks • Identify mitigation options • Select the best options • Develop mitigation plan • Implement • Monitor and Control 7.2.04.06 Makes the business case for supply chain automation and systems Business case includes: • Identification of alternative investment options • Costs/benefits analysis • Risks analysis • Evaluation of options and selection of case • Documenting findings • Making the case • Monitoring performance against the selected case © European Logistics AssociationPage 86
  79. 79. Supply Chain & Logistics Planning Level 7 Demand, Production and Distribution Requirements Planning Indicative Content Demand, Production and Distribution Requirements Planning 7.3.05.01 Improve forecasting process • Understand what forecasting is and what isn't • Forecast demand, plan supply • Communicate, co-operate, collaborate • Eliminate islands of analysis • Use tools wisely • Prioritise importance of forecasting process • Measure and follow up 7.3.05.02 Implements Sales and Operations Planning (S&OP) process • Executive sponsorship • Define phased approach • Identify key stakeholders • Determine of data collection process, timing and responsibilities • Prototype key concepts for each process • Identify detailed process for demand, supply and executive review • Define data requirements, reports, meeting data package • Review pilot • Roll Out • Continuity © European Logistics AssociationPage 88
  80. 80. Supply Chain & Logistics Planning Level 7 Demand, Production and Distribution Requirements Planning Indicative Content 7.3.05.03 Implements push/pull planning systems • Push Planning • Items with low demand uncertainty • Low reaction to changing demand pattern • High importance of economies of scale in reducing costs • Pull Planning • Items with high demand uncertainty • Low importance of economies of scale • Hybrid Push/Pull • Position decoupling point. • From source to decoupling point supply chain is triggered by forecasts (push). • From customer to decoupling point supply chain is triggered by customer order (pull). 7.3.05.04 Optimises inventory within a multi echelon inventory management systems • Multi Echelon Inventory Optimisation (MEIO) • Define control strategy • Central • Decentral • Sequential • Sequential RDC and DC inventory replenishment optimisation • Distribution Requirements Planning (DRP) • Fully Integrated • Avoid multiple independent forecast in each echelon • Account for all lead times and lead time variations • Monitor and manage the bullwhip effect • Enable visibility up and down • Synchronise order strategies • Differentiated order strategies © European Logistics AssociationPage 89
  81. 81. Supply Chain & Logistics Planning Level 7 Demand, Production and Distribution Requirements Planning Indicative Content 7.3.05.05 Understands relationship between New Product Development (NPD) and Supply Chain Management (SCM) • Concurrent engineering • Design • Manufacturing • Engineering • Marketing • Simultaneously developing product and processes • Three-dimensional concurrent engineering (3-DCE) • Design of the product • Process • Supply chain • All above considered simultaneously © European Logistics AssociationPage 90
  82. 82. Supply Chain & Logistics Planning Level 7 Demand, Production and Distribution Requirements Planning Indicative Content 7.3.05.06 Assesses supply chain risks • Risk categories • Industry / supply specific exposures • Supplier-specific exposures • Management controls – supplier management • Management controls – risk management • Suppliers’ supply chain management • Process • Supply chain mapping • Risk management • IP risk management • Risk evaluation and scenario definitions • Examination of the nature of the supply chain risks • Determination of the relative priorities • Evaluate risk factor information • Exposure measurement • Control • Define and evaluate risk scenarios • Risk transfer considerations • Develop risk grading • Determine risk strategies • Elements to consider • Skills • Experience • Details for each key loss scenario • Financial statements from supplier and financial / credit assessments • Key supplier details • Risk factor information on key suppliers • Relationships © European Logistics AssociationPage 91
  83. 83. Supply Chain & Logistics Planning Level 7 Demand, Production and Distribution Requirements Planning Indicative Content 7.3.05.07 Manages the Material Review Board (MRB) • A cross-functional team • Review production or purchased items • On hold • Obsolete • Slow moving • Determines disposition • Rework • Scrap • Return to the vendor 7.3.05.08 Implements process to achieve end-to-end supply chain visibility • Streamline processes for easier monitoring • Improve internal cross-departmental visibility • Improve timeliness and accuracy of data exchange • Increase connectivity and visibility into supplier side processes 7.3.05.09 Deploys a multi criteria inventory categorisation model • One category approach • ABC • Multi criteria approach add • Value • Criticality • Substitutability © European Logistics AssociationPage 92
  84. 84. Supply Chain & Logistics Execution Level 7 Warehousing Indicative Content Warehousing 7.4.06.01 Determines whether to outsource warehouse operations • Strategic • Competitive Advantages • Core competences • Organisational • Lack of expertise and resources • Lack of experience in commercial real estate negotiation • Financial • Avoid capital expenditures • Lower costs • Improved visibility of costs • Service • Improved service • Value add service • Access to multiple locations • Access to best in class operations • Flexibility • Easily and quickly add short or long-term capabilities • Scalability 7.4.06.02 Implements sustainable warehouse policies and practices • Reduce energy usage • Install suitable controls and lighting • Clean or replace roof lights • Clean or replace glass roof panels • Ensure heating and air conditioning systems are working effectively • Install comprehensive insulation • Make use of daylight • Install renewable energy (solar cells, wind turbines) • Reduce use of packaging (pallets, stretch wrap) © European Logistics AssociationPage 94
  85. 85. Supply Chain & Logistics Execution Level 7 Warehousing Indicative Content 7.4.06.03 Implements lean warehouse policies • Create an easy-to-read product shelf labelling scheme • Create a product locator map • Create and display a map of the warehouse • Organise products based on product groups • Use colour-coded bins for specific product groups • Ensure all shelves have locators that are easy to identify • Create a workflow diagram • Store high volume items near ship-out area • Use a standard checklist at the shipping station • Optimise pick paths • Use daily cycle counts • Focus on cross-training employees 7.4.06.04 Implements collaborative agreements with service providers • Invest in relationship and openly share information • Outsource for the right reasons, with total buy in form your business • Make it work for both companies • Help partner understand your business • Find way to meet both parties needs • Work together to achieve performance and compensation goals © European Logistics AssociationPage 95
  86. 86. Supply Chain & Logistics Execution Level 7 Transportation Indicative Content Transportation 7.4.07.01 Seeks collaboration to improve load utilisation • Methodology for identifying and bringing together compatible shippers and overlapping freight flows • New actors to facilitate freight flow bundling • Multilateral legal framework, compliant with European anti-trust legislation • Win-win revenue models allowing multiple shippers to share synergy gains • Collaboration models linking together • Multiple shippers • One or more logistics service providers • A neutral trustee • ICT systems for collaborative transport management and synchronisation • Real-time solution for synergy gain calculation and redistribution • Automated and integrated order-to-cash processes • Advanced community reporting services • Multimodal transport solutions 7.4.07.02 Implements freight optimisation strategies • Parcel Case Strapping • Parcel/LTL minimum Charge • Cross Dock/Pooling • Pooling • Aggregation • Consolidations • Co-loading © European Logistics AssociationPage 96
  87. 87. Supply Chain & Logistics Execution Level 7 Transportation Indicative Content 7.4.07.03 Implements sustainable transportation management programmes • Avoid • Reduction of the volume/weight of products • Reduction of the volume/weight of the packaging • Reduction of the distance between production and consumption location • Concentration of products (e.g. concentrated fruitjuices) • Avoidance of urgent deliveries • Reduction of waste and return flows through better product life cycle design • Improve • Process Improvement • Implement energy efficiencies measures • Improve load utilisation • Shift • Alternative fuels • Modal shifts 7.4.07.04 Links transportation costs with business strategy • Sourcing location • Product and packaging design • Distribution channel • Service level agreements • Order policies © European Logistics AssociationPage 97
  88. 88. Supply Chain & Logistics Execution Level 7 Sourcing Indicative Content Sourcing 7.4.08.01 Establishes a strategic procurement programme • Identify scope • Map spending and spent categories • Prioritise spend categories • Form category teams • Develop a sourcing strategy per category • Identify potential suppliers • Perform the RFP process • Make the selection • Manage the supplier relationship • Evaluate and improve programme 7.4.08.02 Manages outsourcing projects • Develop a strategy for outsourcing • Establish a rigourous provider selection process • Clearly define expectations • Develop a good contract • Establish sound policies and procedures • Identify and avoid potential friction points • Communicate effectively with partner • Measure performance, communicate results • Motivate and reward providers © European Logistics AssociationPage 98
  89. 89. Supply Chain & Logistics Execution Level 7 Sourcing Indicative Content 7.4.08.03 Manages Total Costs of Ownership (TCO) of sourced services and goods • TCO • Acquisition • LCC • Initial Price • Cost of financing • Terms of Payment • Guarantees • Build cost • Running Cost • Cost of Spares • Maintenance Costs • Dismantling costs • Disposal costs 7.4.08.04 Implements Supplier Relationship Management (SRM) • Definition of the target buyer–supplier relationship • Competitive Supplier • Preferred Supplier • Developing Partnership • Mature Partnership • Evaluation of existing relationship • Determination of direction of development • Laying the foundation for progression © European Logistics AssociationPage 99
  90. 90. Supply Chain & Logistics Execution Level 7 Sourcing Indicative Content 7.4.08.05 Implements a category management approach • Category • Group of items from same or similar suppliers • Why • Supplier consolidation • Manage changing business conditions • Supply economics-leverage volume • Leverage internal resources • Leverage presence in the market © European Logistics AssociationPage 100
  91. 91. Supply Chain & Logistics Execution Level 7 Customer Service Indicative Content Customer Service 7.4.09.01 Understands use of social media in customer service processes • Develop social media strategy • Seek opportunities for communicating with customers • Uses social media proactively to deal with customer complaints 7.4.09.02 Implements Voice of the Customer (VOC) programmes • Detailed understanding of customer requirements • Common ways to collect customer information • Focus groups • Individual customer interviews • Contextual inquiry 7.4.09.03 Implements effective Service Level Agreements (SLA) • Clarify service elements • Type of services • Conditions of service availability • Service standards • Responsibilities of parties • Cost versus service trade off • Escalation procedure • Clarify management elements • Effectiveness tracking • Reporting • Issue resolution © European Logistics AssociationPage 101
  92. 92. Supply Chain & Logistics Execution Level 7 Customer Service Indicative Content 7.4.09.04 Implements preventive complaint handling process • Educational activities • Customer service policies • Guarantees • Refund and exchange policies • Benchmarks • Internal audits • Codes to set out service level commitments • Consequences for not meeting service level commitments © European Logistics AssociationPage 102

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