ELA Certification for Logistics Professionals Performance Criteria (Standards 2 nd Layer) 3 Senior Management Level (ESLog) 3.6 Supply Chain Flow and Network Management European Logistics Association
3.6.1 Identify opportunities to use e-business/it integration to improve supply chain flows Identify the importance of sharing of information as a key enabler between supply chain members and partners, e.g. transfer of point-of-sale and inventory data upstream through the chain Understand that the Internet makes it possible to exchange detailed information quickly and inexpensively [incl. Intranet, Extranet, EDI] Define e-business opportunities, e.g. e-procurement, e-commerce, e- ordering, e-logistics/e-fulfilment, supplier relationship management, customer relationship management Plan for implementation of e-business/it systems Define appropriate goals and metrics to measure the performance of e- business/it systems in supply chains Monitor performance of e-business/it systems in supply chains 3.6.2 Identify opportunities to use ERP systems to improve supply chain flows Understand the functions and benefits of an Enterprise Resource Planning system [ERP] and of an Advanced Planning and Scheduling system [APS] to support and integrate the entire supply chain Understand the role of ERP and APS systems in planning and controlling a supply chain, e.g. demand planning, network design, sales & operations planning, inventory planning, supply planning, manufacturing planning and scheduling, distribution planning, transport planning, shipment scheduling, available to promise, optimisation Plan for implementation of ERP systems Define appropriate goals and metrics to measure the performance of ERP systems in supply chains Monitor performance of ERP systems in supply chains 3.6.3 Identify opportunities to use new developments to improve supply chain flows Identify new developments [e.g. technologies, concepts, strategies] impacting supply chain flows and performance Define criteria and metrics to assess the impact of new developments on supply chains Assess the impact of new developments on supply chains Plan for implementation of new developments European Certification Board for Logistics 2011 1 Supply Chain Flow & Network Management
3.6.4 Identify opportunities to collaborate with suppliers to improve supply chain flows Understand the type of relationship and links between the value chains of the own company, its suppliers, logistics service providers and other business organisations Identify opportunities to collaborate with suppliers and logistics service providers Assess the potential benefits of collaboration with suppliers and logistics service providers Devise procedures for implementing collaboration with suppliers and logistics service providers Define appropriate goals and metrics to measure the performance of collaboration with suppliers and logistics service providers in supply chains Monitor performance of collaboration with suppliers and logistics service providers in supply chains 3.6.5 Identify opportunities to collaborate with customers to improve supply chain flows Understand the type of relationship and links between the value chains of the own company, its direct customers and final customers/consumers Identify opportunities to collaborate with direct customers and final customers/consumers Assess the potential benefits of collaboration with direct customers and final customers/consumers Devise procedures for implementing collaboration with customers Define appropriate goals and metrics to measure the performance of collaboration with customers in supply chains Monitor performance of collaboration with customers in supply chains 3.6.6 Model supply chain networks as a holistic, flow-oriented system Understand the structure and configuration in a supply chain network, e.g. number of tiers, number of customers/suppliers Identify that SCM encompasses all activities associated with the flow and transformation of goods from the raw materials stage to the end user [incl. associated order, information and financial flows] up and down the chain Select the supply chain members with whom it is critical to link, what processes need to be linked and what level and type of integration is applicable Identify that SCM can play a key role in achieving corporate and chain success Understand the role of reverse logistics within the supply chain, e.g. returned goods, rejects, pool systems of pallets / packaging materials, technical service repairs, recalls, re-use, recycling, waste European Certification Board for Logistics 2011 2 Supply Chain Flow & Network Management
3.6.7 Devise tactical plans for the use of transport in the supply chain Understand the role of transport in the supply chain Assess the impact of transport on other supply chain activities Define strategies for transport in a supply chain context 3.6.8 Devise tactical plans for the use of warehousing in the supply chain Understand the role of warehousing in the supply chain Assess the impact of warehousing on other supply chain activities Define strategies for warehousing in a supply chain context 3.6.9 Devise tactical plans for the use of inventory in the supply chain Understand the role of inventory in the supply chain Assess the impact of inventory on other supply chain activities Define strategies for inventory in a supply chain context 3.6.10 Devise tactical plans for the use of sourcing in the supply chain Understand the role of sourcing in the supply chain Assess the impact of sourcing on other supply chain activities Define strategies for sourcing in a supply chain context 3.6.11 Devise tactical plans for the use of production in the supply chain Understand the role of production in the supply chain Assess the impact of production on other supply chain activities Define strategies for production in a supply chain context European Certification Board for Logistics 2011 3 Supply Chain Flow & Network Management
3.6.12 Map the processes connected with supply chain activity Define the various parts of a supply chain, e.g. incoming materials/purchasing / supply logistics, production logistics, distribution logistics/outgoing goods and reverse/return logistics] Identify the decisions taken in the various logistics parts Identify the types of goods flows Identify the types of information flows Understand the differences in logistics management between industrial companies, trading organisations, government agencies and the services sector Make a model of a specific goods flow or supply chain [activities, planning and control structure] Understand the role of process reference models in identifying and mapping component activities, e.g. SCOR Supply Chain Operations Reference Model Apply process reference models for identifying and mapping component activities 3.6.13 Audit supply chain and interpret the findings Plan for joint supply chain objectives and strategies [e.g. better customer service, lower costs, lower inventories, faster delivery times, shorter lead times, quality improvements, simplification of processes, reduction of investments, speedier collections, improved cash flows, high return on assets, more added value, best practices, dependence, mutual gain/win win, creation of competitive advantages] by working together and integrating the processes across business partners, thereby optimising the performance of the chain as a whole Define the critical success and failure factors for working together closely [e.g. long term cooperation, trust, openness, reliability, power, interpersonal relationship, clear objectives, win win relationship, sharing of information, mutual collaboration, leadership, partnership, sharing the costs and benefits] Identify the potential barriers to implementation and define how to overcome them Manage the chain with one integrated plan as an alliance/partnership between chain members and integrate customer-focused plans with the management of the whole supply chain Understand the various types of integration in the chain [e.g. physical, information, planning and the basic network structure of in- / outsourcing / core competencies] Understand the stages in SCM / external integration [e.g. objectives, strategy, alternatives, chosen structure, partner search, information, organisation, measurement] European Certification Board for Logistics 2011 4 Supply Chain Flow & Network Management
3.6.14 Contribute to the creation of supply chain objectives Understand the relationship between supply chain objectives and functional objectives [e.g. in transport, warehousing, production] Negotiate objectives between supply chain partners [suppliers, your own company, customers, logistics service providers] Define appropriate metrics for supply chains objectives Acquire the necessary data for measuring supply chains objectives Apply procedures for benchmarking 3.6.15 Develop and document supply chain processes and procedures Understand that a SCM organisation is process-oriented [e.g. order fulfilment, planning, procurement, product development, manufacturing, delivery, invoicing, returns] Implement the proper coordination mechanisms Optimise and improve supply chain processes and procedures 3.6.16 Establish, maintain and improve supply chain performance management systems Identify which metrics/performance indicators should be used to evaluate the entire supply chain performance [e.g. total days of inventory, cash-tocash cycle, logistics per unit, adequacy of customer service, product availability, degree of coordination, degree of conflict, availability of information, value for customers, profitability of the supply chain and its members] Measure the actual performance against planned performance 3.6.17 Apply appropriate techniques to plan and model processes within the supply chain Define a framework for modelling processes [including modelling language and tools] Define the objects to be represented [e.g. activities/tasks, events, information objects, organisational units] Define the logistics symbols used for activities and other objects Apply appropriate tool to model and assess processes within the supply chain 3.6.18 Apply appropriate techniques to plan and model inventory positioning within the supply chain Understand the SCM concepts, methods and techniques [e.g. integrated suppliers, synchronised production, continuous replenishment, automated store ordering, reliable operations, cross docking, vendor-managed inventories, postponed manufacturing, flexible production, quick response, European Certification Board for Logistics 2011 5 Supply Chain Flow & Network Management
virtual corporation, on-site representative, supply chain planning, collaborative planning/forecasting/replenishment] Understand the relationship between demand/category management and supply chain management 3.6.19 Provide technical and professional advice on preparing programmes and projects to implement supply chain strategy Define programmes and projects to implement supply chain strategy Contribute to project plans for implementing supply chain strategy Manage programmes and projects European Certification Board for Logistics 2011 6 Supply Chain Flow & Network Management