DISTRIBUTION AND LOGISTICS MANAGERS COMPETENCY MODEL

DISTRIBUTION AND LOGISTICS MANAGERS COMPETENCY MODEL INTRODUCTION Distribution and logistics managers are responsible for supply chain strategy, and coordinate supply chain processes that involve suppliers, manufacturers, retailers, and consumers. This role also encompasses distribution management within logistics, including transportation, warehousing, and monitoring the low of goods and materials. APICS The Association for Operations Management is the premier membership organization that provides education, certiication, and career development opportunities to supply chain professionals worldwide. The APICS Certiied in Production and Inventory Management (CPIM) coursework and corresponding certiication gives professionals the knowledge and skills they need to succeed. Knowledge and skills combined with professional experience create the competencies required for individuals to excel in their careers and distinguish themselves in their ield. APICS developed the Distribution and Logistics Managers Competency Model to guide individuals considering careers in distribution and logistics management, distribution and logistics management professionals seeking to advance their positions, and human resource managers who are hiring in this ield. 2 APICS APICS DISTRIBUTION DISTRIBUTION AND ANDLOGISTICS LOGISTICSMANAGERS MANAGERSCAREER CAREERPACK PACK ABOUT THE MODEL The structure of the APICS Distribution and Logistics Managers Competency Model follows guidelines set by the Employment and Training Administration of the United States Department of Labor. The model is visually represented in a diagram for easy reference, as seen on the following page. The model is organized into tiers of competencies and includes descriptions of the activities and behaviors associated with each competency. The Competency Model Clearinghouse deines competency as “the capability to apply or use a set of related knowledge, skills, and abilities required to successfully perform ‘critical work functions’ or tasks in a deined work seting.” In many cases, the competencies outlined in this model are adapted from the APICS Operations Management Body of Knowledge (OMBOK) Framework. ACKNOWLEDGMENTS The APICS Distribution and Logistics Managers Competency Model was a research project undertaken by staf in the professional development division of APICS. They were supported by the APICS 2009 Future Leaders. In addition, APICS staf and leaders used public domain information obtained from the Competency Model Clearinghouse (www.Careeronestop.org) in the model’s creation. 3 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Occupation-related DISTRIBUTION AND LOGISTICS MANAGERS DIAGRAM Distribution and Logistics Managers Specific Requirements includes requirements such as certiication, licensure, and specialized educational degrees, or physical and training requirements for distribution and logistics managers. ̥ Postsecondary education ̥ Association membership ̥ Certiications Distribution and Logistics Managers Knowledge Areas and Technical Competencies Profession-related represent the knowledge, skills, and abilities needed by distribution and logistics managers. ̥ ̥ ̥ ̥ ̥ ̥ Transportation, distribution, logistics Warehousing Distribution requirements planning Inventory management Demand management and forecasting Enterprise resources planning and manufacturing resource planning ̥ Security and hazardous materials regulations ̥ Dispatching ̥ ̥ ̥ ̥ ̥ ̥ ̥ ̥ Risk management Warehouse management systems Supply chain synchronization Vendor managed inventory International regulations Locating facilities Strategic sourcing and purchasing Business and supply chain strategy Operations Management Knowledge Areas and Technical Competencies represent the knowledge, skills, and abilities needed by all occupations within operations management, including distribution and logistics managers. ̥ ̥ ̥ ̥ ̥ Operations strategy Manufacturing process environments Standards (time measurement) Supply chain management Process improvement and six sigma ̥ ̥ ̥ ̥ Execution, planning, scheduling control Lean management Sustainability Enabling technology application Workplace and Leadership Competencies represent those skills and abilities that allow individuals to function in an organizational seting. Foundational ̥ ̥ ̥ ̥ Problem solving and decision making Teamwork and collaboration Accountability and responsibility Customer focus (internal and external) ̥ Planning and organizing ̥ Conlict management ̥ Supporting and training staf Academic Competencies are primarily learned in an academic seting, and include cognitive functions and thinking styles. ̥ ̥ ̥ ̥ Math, statistics, and analytical thinking Reading and writing for comprehension Applied science and technology Supply chain fundamentals ̥ Foundations of business management ̥ Materials management fundamentals ̥ Operations and enterprise economics Personal Effectiveness Competencies represent motives and traits as well as interpersonal and self-management styles and generally are applicable to a number of industries at a national level. ̥ Awareness of the needs of others ̥ Integrity ̥ Continuous learning 4 ̥ Efective communication ̥ Interpersonal skills ̥ Creativity APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK FOUNDATIONAL COMPETENCIES PERSONAL EFFECTIVENESS COMPETENCIES Personal efectiveness competencies represent motives, traits, and interpersonal and self management styles, and are applicable in any number of industries. Awareness of the needs of others ̥ Understand other business needs and goals. ̥ Have perspective into other points of view. ̥ Build rapport and credibility with colleagues. ̥ Anticipate needs and respond to concerns and conlicts. Integrity ̥ Demonstrate trustworthiness and professionalism with clients, peers, and team members. ̥ Respond with consistency in situations that require honesty and candor. ̥ Avoid conlicts between work and personal interests or activities. Continuous learning ̥ Demonstrate an interest in personal learning and development; seek feedback from multiple sources about how to improve and develop; modify behavior based on feedback or self-analysis of past mistakes. ̥ Take steps to develop and maintain the knowledge, skills, and expertise necessary to achieve positive results; participate fully in relevant training programs and actively pursue other opportunities to develop knowledge and skills. ̥ Anticipate changes in work demands and participate in assignments or training that address. ̥ These changing demands; treat unexpected circumstances as opportunities to learn. ̥ Engage in career development by identifying occupational interests, strengths, options, and opportunities; make insightful career planning decisions based on integration and feedback; seek out additional training to pursue career goals. 5 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Interpersonal skills ̥ Relate to clients, colleagues, and team members. ̥ Maintain a positive, supportive, and appreciative atitude. ̥ Actively listen to others and demonstrate understanding of diferent points of view. ̥ Create an open environment that encourages people to work together to solve problems and improve practices and services. ̥ Explore and resolve conlicts as they arise. ̥ Communicate clearly to avoid misunderstanding Creativity ̥ Demonstrate intellectual curiosity about why things are the way they are; challenge the status quo. ̥ Change, elaborate, adapt, and improve on ideas or those of others. ̥ Demonstrate a tendency toward action; materialize thoughts into products or services. ACADEMIC COMPETENCIES Academic competencies are primarily achieved in an academic seting and include cognitive functions and thought processes. Math, statistics, and analytical thinking ̥ Practice applied mathematics in collecting and interpreting quantitative data. ̥ Demonstrate the ability to scrutinize and breakdown facts and thoughts into strengths and weaknesses. ̥ Develop the capacity to think in a careful and discerning way, to solve problems, to analyze data, and to recall and apply information. Reading and writing for comprehension ̥ Understand what has been read; gather information from a text. ̥ Demonstrate an understanding of material read by forming opinions and sharing personal experiences. ̥ Apply the strategies of self-questioning, retelling, writing, summarizing, predicting and verifying, story mapping, role play and responsiveness. 6 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Applied science and technology ̥ Demonstrate an understanding of the factors that are considered important to the branch of knowledge or technology. ̥ Understand the use of technology and the interaction with life, society, and the environment, in conjunction with such subjects as industrial arts, engineering, applied science, and pure science. ̥ Develop knowledge of speciic tools and how they afect the ability to adapt to and control the environment. ̥ Demonstrate the ability to apply knowledge or understanding to meet a speciic, recognized need. ̥ Possess knowledge that is suiciently general, clearly conceptualized, carefully reasoned, systematically organized, critically examined, and empirically tested with regard to the speciic science or technology. Supply chain fundamentals ̥ Understand that supply and logistics is a system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer. ̥ Possess basic knowledge of supply chain activities, including transformation of natural resources, raw materials, and components into a inished product that is delivered to the end customer. ̥ Recognize the ways that supply chains link value chains. Foundations of business management ̥ Understand all management activities carried out in the course of running an organization, including controlling, leading, monitoring, adjusting, organizing, and planning. ̥ Analyze inancial statements and explain the implications of standard inancial ratios and all components of the balance sheet and income statement. ̥ Create interactive decision support models that demonstrate the sensitivity of outcome to multiple independent variables. ̥ Calculate project and organizational cash low forecasts; present value investment comparisons and risk-adjusted return calculations. ̥ Demonstrate knowledge of visual presentation techniques including charting, histograms, and low sheets, and oral and writen presentation techniques. ̥ Practice basic business communications. ̥ Understand fundamental organizational behavior. 7 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Materials management fundamentals ̥ Demonstrate knowledge of the operations management structure of the modern manufacturing and distribution company. ̥ Convert and communicate demand requirements for products and service into detailed plans and schedules for inventory acquisition. ̥ Calculate key inventory performance metrics such as turnover ratios, cost-beneit trade ofs, days of inventory on hand, labor productivity, and inventory valuation. ̥ Calculate and apply the various costing and valuation methods to inventory management. ̥ Have detailed knowledge of manufacturing planning, master production scheduling, product deinition, inventory control, materials requirements planning, capacity requirements planning shop loor control, warehousing, transportation, and purchasing business functions. ̥ Understand standard enterprise resource planning (ERP) and supply chain management (SCM) system technologies. ̥ Incorporate methods and techniques involved in lean and Just-in-Time (JIT) management. ̥ Implement new technologies. ̥ Be capable of performing human resource management functions. ̥ Participate in strategic planning and control development with senior management. ̥ Understand basic principles of sustainability, including reverse logistics, reworking product lines, and cuting operational energy costs. Operations and enterprise economics ̥ Understand the importance of and demonstrate the ability to take raw materials or knowledge and convert it into a product or service that has more value to the customer than the original material or data. ̥ Determine the success or failure rate of a business using inancial accounting, incorporating terms and techniques including income, expense, cost of goods sold, gross margin, balance sheet, return on assets, inventory turns, capital asset management, and cash management. ̥ Employ the technique of break-even analysis, which inds the break-even point, the volume at which revenues exceed total costs. ̥ Find the best operating level (BOL), the level of capacity a process was designed for. ̥ This is also the volume of output at which average unit cost is minimized. ̥ Use cost accounting systems to keep track of all costs of building products, labor, material, overhead, and variances. These systems include activitybased costing (ABC) and cost analysis and control. 8 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK WORKPLACE AND LEADERSHIP COMPETENCIES Workplace competencies represent those skills and abilities that allow individuals to function in an organizational seting. Problem solving and decision making ̥ Practice goal-directed thinking and action in situations for which no routine solutions exist. ̥ Understand a problem situation and its step-by-step transformation based on planning and reasoning. ̥ Demonstrate ability to choose between alternative courses of action using cognitive processes such as memory and evaluation. ̥ Demonstrate ability to map processes of possible consequences of decisions, to work out the importance of individual factors,and to choose the best course of action. Teamwork and collaboration ̥ Demonstrate a commitment to the mission and motivation to combine the team’s energy and expertise to achieve a common objective. ̥ Understand the dynamics of efective teamwork in order to atain higher levels of performance. ̥ Demonstrate ability to work as part of a tight-knit and competent group of people. ̥ Demonstrate a commitment to engage teams in other departments or divisions of the organization. Accountability and responsibility ̥ Demonstrate a willingness to accept responsibility and accountability for one’s actions. ̥ Exhibit a moral, legal, or mental accountability in areas of responsibility. ̥ Understand that these two workplace competencies are intertwined, and that both abilities must be present in order to succeed. Customer focus (internal and external) ̥ Understand this is an organizational orientation toward satisfying the needs of potential and actual customers. ̥ Ensure that the whole organization, not just frontline service staf, puts customers irst. ̥ Ensure all activities, from the planning of a new product to production, marketing, and ater-sales care, are built around the customer. ̥ Understand that every department and every employee should share the same customer-focused vision. ̥ Practice good customer relations management and maintain a customer relations program. ̥ Demonstrate ability to balance the needs of the organization and the needs of the customer. 9 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Planning and organizing ̥ Efectively plan what is to be achieved and involve all relevant staf members. ̥ Anticipate important or critical events, identifying resource requirements and assigning responsibility for speciic work, including deadlines and performance expectations. ̥ Demonstrate the use of information-gathering techniques, analyzing situation and identifying implications in order to make correct decisions. ̥ Demonstrate ability to monitor progress and to make changes as required. ̥ Ensure that staf is aware they will be accountable for achieving the desired results through planned program evaluation and individual performance appraisal. ̥ Ensure that staf is provided with the necessary tools to succeed. Conflict management ̥ Demonstrate ability to manage conlict by identifying and handling conlicts in a sensible, fair, and eicient manner. ̥ Demonstrate skill in efective communicating, problem solving, and negotiating with a focus on party interests. Supporting and training staff ̥ Understand the importance of facilitating on-going professional development opportunities for staf. ̥ Assess training needs and identify means (for example, classes, mentoring, writen materials) to ill skill gaps. ̥ Provide opportunities for staf to demonstrate leadership skills. ̥ Provide clear and meaningful performance evaluation. ̥ Encourage the development of skills that increase personal and departmental productivities. 10 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK PROFESSION-RELATED COMPETENCIES OPERATIONS MANAGEMENT KNOWLEDGE AREAS AND TECHNICAL COMPETENCIES Operations management knowledge areas and technical competencies represent the knowledge, skills and abilities needed by all occupations within operations management, including distribution and logistics managers. Operations strategy ̥ Ensure the alignment of the materials management strategy with the business strategies driving sales, marketing, inance, and manufacturing. ̥ Develop inventory and plant asset management strategy supportive of company investment and capital management plans. ̥ Demonstrate ability to consistently deliver products and services to meet customer needs. ̥ Develop strategic objectives that focus on areas of quality, cost, lexibility, productivity, and speed. ̥ Consistently search for methods to develop an agile and commited departmental workforce. Manufacturing process environments ̥ Close understanding and practical knowledge of a company’s manufacturing processes and equipment capabilities. ̥ Encourage a close working relationship between manufacturing and materials management personnel. ̥ Develop materials storage and delivery processes supportive of manufacturing operations. ̥ Assist manufacturing with process improvement and lean initiatives. ̥ Assist manufacturing management in the development of meaningful productivity and performance measurements. ̥ Understand the inluence of demand on manufacturing process design. ̥ Ensure processes conform to both the needs of the customer base and the characteristic of the product. ̥ Ensure the continuous availability of quality materials and inished components. ̥ Understand output of materials requirement planning (MRP), capacity management, and advanced planning system technologies. 11 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Standards (time measurement) ̥ Assist manufacturing engineering in the development of process productivity standards. ̥ Understand calculations for eiciency, utilization, and productivity. ̥ Demonstrate ability to calculate nominal and demonstrated productive capacities. Supply chain management ̥ Demonstrate ability to manage the network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. ̥ Understand that supply chain management spans all movement and storage of raw materials, working process inventory, and inished goods from pointof-origin to point-of-consumption. Process improvement and six sigma ̥ Understand the systematic approach to closing of process or system performance gaps through streamlining and cycle time reduction, and identify and eliminate causes of quality below speciications, process variation, and non-value-adding activities. ̥ Maintain company processes that aford optimum operation and enhance the company’s quality management system. ̥ Demonstrate ability to visualize the total process and aid in locating problem areas using process mapping, quality improvement, and visualization tools to locate, quantify, and correct root causes of problems. ̥ Perform periodic evaluations to maintain processes by gathering pertinent information such as problem symptoms from knowledgeable sources and carrying these through to the problems, potential causes, and root causes of the problem. ̥ Hold gains in process improvements by establishing key performance measurements, benchmarking metrics, and continuous process improvement initiatives to improve process quality on a continual basis. Execution, planning, scheduling, and control ̥ Determine the need for material and capacity to address expected demand, execute the resulting plans, and update planning and inancial information to relect the results. ̥ Plan the management function by deining goals and the tasks and resources needed to atain those goals. ̥ Schedule a timetable of events and decide when and where certain events will occur. ̥ Control and check errors, taking any corrective action so that deviations from standards are minimized and stated goals of the organization are achieved in a desired manner. 12 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Lean management ̥ Identify and reduce or eliminate waste in all areas of a supply chain. ̥ Calculate the total system cost of delivering a product or service to the customer. ̥ Develop systems that allow employees to produce results by: • Educating suppliers to create value for customers by streamlining processes in the value chain. • Using suppliers whose methods and core competencies will align with lean requirements and developing long-term relationships with them. • Reducing or entirely eliminating the cost of changing from one product or service to another. Sustainability ̥ Understand current industry and government regulations governing sustainability. ̥ Be able to calculate carbon footprint of business processes. ̥ Develop processes that strive to eliminate waste. ̥ Incorporate renewable raw materials. ̥ Assemble an efective reverse logistics program. ̥ Pursue transportation alternative to reduce energy and emissions. ̥ Utilize safe and reusable containerization. ̥ Pursue paperless documentation. ̥ Coordinate shipping and freight to use full truckloads. ̥ Convert outputs to inputs; recycle end-products and components when possible. Enabling technology education ̥ Recognize that continuous process improvement is an accepted way of life in business and that few companies lack a continuing quality or process improvement efort. ̥ Implement improvement methods such as business process reengineering, total quality management (TQM), six sigma, lean manufacturing, and theory of constraints (TOC). ̥ Understand that technology and process functionality has an interconnected relationship and that each helps transform the other. ̥ Initiate process improvements that are enabled and supported by technology. 13 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK DISTRIBUTION AND LOGISTICS MANAGERS KNOWLEDGE AREAS AND TECHNICAL COMPETENCIES Distribution and logistics managers knowledge areas and technical competencies represent the knowledge, skills and abilities needed by distribution and logistics managers. Transportation, distribution, and logistics ̥ Manage transportation operations. ̥ Maximize freight loads while minimizing freight costs. ̥ Ensure eicient use of transportation resources while meeting the needs of the customer. ̥ Move material, usually one organization’s inished goods or service parts, from the manufacturer or distributor downstream to the customer. ̥ Transfer goods and services from the raw materials suppliers and producers to the end users or consumers. ̥ Apply the cross-docking technique when bringing items into a distribution center for immediate dispatch. ̥ Divide truckloads of homogeneous items into smaller, more appropriate quantities for use by breakbulk handling. ̥ Consolidate several items into larger units for fewer handlings; for example, placing items in boxes loaded and wrapped as a pallet by unitization packaging. ̥ Apply logistics with the movement of personnel, and the design and development, acquisition, storage, movement, distribution, maintenance, evacuation, and disposition of material. ̥ Develop and implement a formal logistics strategy. ̥ Develop and implement a reverse logistics plan. Warehousing ̥ Receive, store, and ship materials to and from production or distribution locations by incorporating warehousing activities. ̥ Conigure warehouses to have formal storage locations that identify the row, rack section, level, and shelf location, typically with an alphanumeric location bar code or label. ̥ Place high-turn items close to packing and shipping areas, which will reduce picking, put-away times, and transportation within the warehouse. ̥ Select random locations when travel distances are not an important consideration and when overall utilization of warehouse space is important. 14 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Distribution requirements planning (DRP) ̥ Deine distribution requirements planning (DRP). ̥ Establish DRP planning procedures. ̥ Understand the components of the DRP planning system. ̥ Build a bill of distribution (BOD) for the DRP explosion. ̥ Be capable of describing the linkage between MRP and DRP. ̥ Understand the sources of distribution demand in a DRP system. ̥ Describe DRP order policies for planned order generation. ̥ Describe how safety stock is used in DRP planning. ̥ Be capable of describing the DRP gross-to-net calculation. ̥ Use the DRP output grid to describe planning requirements. ̥ Use exception reporting to determine order action. ̥ Describe the types of planned orders generated by DRP. ̥ Describe the meaning of DRP action messages. ̥ Use pegged requirements for DRP scheduling and rescheduling actions. ̥ Have knowledge of DRP capacity planning for inancial estimating, transportation planning, warehousing, and labor and equipment capacity planning. ̥ Understand integration of DRP with supply chain management and supply chain event management sotware suites. 15 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Inventory management ̥ Be capable of determining departmental inventory management strategies and objectives. ̥ Know how to set up an efective inventory control department. ̥ Know how to apply trade-of analysis to balance requirements of demand and supply. ̥ Understand the diferent classes of inventory (raw materials, WIP, inished goods, MRO, service parts, damaged, and obsolete). ̥ Understand the diference between independent and dependent demand inventory. ̥ Know how to deine the ive functions of inventory: cycle inventory, safety inventory, anticipation inventory, transportation inventory, and hedge inventory. ̥ Know how to determine the elements of inventory decision costs such as ixed, variable, direct, overhead, and costs ̥ Know how to calculate inventory carrying costs. ̥ Know how to calculate manufacturing and purchasing costs. ̥ Efectively manage surplus and obsolete inventories. ̥ Understand the methods of valuing inventory: standard; irst in, irst out (FIFO); last in, irst out (LIFO); average; and actual cost. ̥ Understand the diference between continuous and period review systems of inventory control. ̥ Efectively calculate the inventory required to restock products or parts with inventory models including: • Visual review • Two-bin inventory system • Periodic review • Order point • Time-phased order point (TPOP) • Just-in-Time (JIT). ̥ Efectively calculate safety stock for independent demand items. ̥ Be able to calculate the order quantity through the economic order quantity (EOQ). ̥ Maintain high inventory accuracy through various techniques including inventory audits, annual physical inventory, and cycle counting. ̥ Generate reporting detailing inventory inancial statements, turnover ratios, activity based cost (ABC) analysis, and inventory performance. ̥ Be aware of the latest electronic data collection technologies. ̥ Understand lean and JIT concepts and practices. ̥ Be able to set up and run a pull system of inventory control. ̥ Efectively calculate kanban card requirements. ̥ Develop kaizen event teams to remove inventory and process wastes and speed inventory throughput. 16 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Demand management and forecasting ̥ Understand the principles and applications of demand forecasting. ̥ Have knowledge of the critical requirements for efective forecasting: establishing time horizons, determining the level of forecasting detail, and determining the forecastable database. ̥ Capable of establishing policies and procedures to ensure forecast control. ̥ Have knowledge of the three forecasting techniques: judgmental (qualitative) forecasts, quantitative (time-series) forecasts, and causal (extrinsic) forecasting. ̥ Be able to discuss and work with time-series analysis in forecast data preparation. ̥ Be able to apply time-series methods to work with horizontal, random, seasonal, trend, and cyclical. ̥ Understand subjective, causal, and time-series forecasting methods including: • Averages • Time series (exponential smoothing) • Trend • Seasonality • Regression models • Focus forecasting. ̥ Establish key performance indicators of forecast accuracy. ̥ Deine the purpose of the forecast. ̥ Prepare the statistical components. ̥ Be capable of determining forecast error. ̥ Ensure the interaction of a irm’s functional managers, and track and maintain the forecast through timely and accurate feedback. 17 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Enterprise resources planning (ERP), manufacturing resource planning (MRP II), materials requirements planning (MRP) ̥ Be able to deine ERP and MRP II sotware systems. ̥ Be able to explain the components of a modern ERP system. ̥ Have knowledge of the foundations of ERP systems. ̥ Understand the basic principles and operations of ERP systems. ̥ Understand the integration of company functions provided by an ERP system. ̥ Establish ERP planning procedures. ̥ Explain MRP II time-phased planning logic. ̥ Capable of discussing the role of the bill of material in ERP. ̥ Describe how safety stock is managed in MRP. ̥ Understand the various types of order policies available in MRP order generation. ̥ Apply the application of independent and dependent demand to ERP. ̥ Calculate scrap and shrinkage factors into the MRP generation. ̥ Be capable of discussing and demonstrating MRP gross-to-net explosion process. ̥ Evaluate the contents and calculations on the MRP grid display or report. ̥ Have knowledge of planning utilizing action messaging. ̥ Have knowledge of planning time fences in MRP. ̥ Be capable of deining the types of replenishment orders found in the MRP grid. ̥ Be capable of working with pegged requirements in MRP. ̥ Know how to perform order rescheduling in MRP. ̥ Understand the various MRP output reports. ̥ Establish when MRP is to be generated. ̥ Have knowledge of detail capacity planning (CRP). ̥ Detailed knowledge of the CRP components (work centers, labor and machines, routings, setup times, run, standards and move times) necessary to run CRP. ̥ Have knowledge of how to increase or decrease capacity. ̥ Be able to use CRP to reschedule open and MRP generated orders. ̥ Understand load versus capacity output reporting. ̥ Collaborate with functional departments to discuss and react to changes in demand. ̥ Understand ERP support for advanced planning systems (APS). 18 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Security and hazardous materials regulations ̥ Comply with security regulations established by the Department of Homeland Security. ̥ Have knowledge of various trade agreements, such as NAFTA or those of the European Union. ̥ Have knowledge of the key hazardous materials handling laws established by the Environmental Protection Agency. ̥ Identify and implement proper packing and labeling methods for transportation of hazardous materials. ̥ Ensure all staf handling hazardous materials receives training on safety and compliance regulations. ̥ Create lean and green programs for energy and materials use reduction. ̥ Establish eicient reverse logistics and recycling programs. ̥ Determine the most efective ways of disposing of hazardous wastes. ̥ Be capable of working with purchasing and manufacturing to target waste and hazardous materials reduction. Dispatching ̥ Determine the sequence of jobs run at workstations. ̥ Understand making and using dispatch lists. ̥ Have knowledge of sequencing rules. ̥ Use of simulation models to test sequencing choices. Risk management ̥ Accurately identify risks that afect supply, transformation, delivery, and customer demand. ̥ Efectively analyze the probability, control, and impact of identiied risks. ̥ Develop strategies for dual sourcing, bufering, forward buying, and others that minimize inancial impact uncertainties such as yields, timing, pricing, and catastrophic events. Warehouse management systems (WMS) ̥ Have knowledge of the applications available in a WMS. ̥ Have knowledge of the necessary steps to integrate WMS and ERP systems. ̥ Develop standardized processes, instructions, rules, and parameters for warehouse management in the initial sotware implementation. ̥ Have knowledge of how to perform warehousing planning in a WMS. ̥ Input receiving, storing, bin selecting, picking, and shipping tasks ofered by WMS application functionality. 19 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Supply chain synchronization ̥ Balance supply with demand, considering both lead time and demand variability created by supply paterns not matching demand paterns. ̥ Efectively collaborate and communicate with supply chain members. ̥ Integrate activities across organizations on the supply chain by ensuring information visibility in inventory levels, anticipated productions, and material-in-transit. ̥ Mitigate the bullwhip efect. Vendor-managed inventory (VMI) ̥ Know how to establish an onsite customer inventory management program. ̥ Establish objectives of the VMI program. ̥ Establish performance reporting to ensure quality and proitability. ̥ Integrate the customer requirements into the business planning system. ̥ Be capable of managing remote staf. International regulations ̥ Comply with international regulations in decision making in the distribution system, including customs regulations on what is restricted from entering the country; trade tarifs and duties on imported goods; security regulations, such as those contained in the SAFE Ports Act; and trade agreements, such as NAFTA or those of the European Union. ̥ Ensure the competitiveness of a country or protect a country’s distribution and manufacturing systems by incorporating international regulations. ̥ Efectively bring material into a free trade zone (FTZ). ̥ Consider import and export taxes, relative currency valuation and volatility, and special agreements between cooperating countries when designing and operating a supply chain. Locating facilities ̥ Apply qualitative techniques when quantiiable data are not available or when measures for diferent criteria relevant to logistics decisions are used. ̥ Apply quantitative techniques when solving logistic problems such as the designing of routes and the scheduling of vehicles. ̥ Incorporate the transportation model to ind the optimal allocation of sources of supply — typically plants — to meet demand at destinations in the network, typically warehouses. ̥ Eiciently distribute products among suppliers, manufacturing facilities, distribution centers, warehouses, and customers through a logistics network. ̥ Reach optimal eiciency of all vehicle assets within a network through a vehicle routing process. 20 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK Strategic sourcing and purchasing ̥ Efectively locate and source key materials suppliers, while analyzing the total cost associated with procuring an item or service. ̥ Focus on developing and maintaining long-term relationships with trading partners who can help the purchaser meet proitability and customer satisfaction goals. ̥ Integrate automation of request for quote (RFQ), request for proposal (RFP), electronic auctioning, business-to-business (B2B) commerce, and contract management processes when using a strategic sourcing approach. ̥ Establish methods of meeting customer satisfaction goals. Business and supply chain strategy ̥ Analyze the company’s external and internal environments to identify promising strategic options for the company. ̥ Analyze the principle competing pressures in your market. ̥ Develop reliable estimates of competitor resources and strategic plans in order to anticipate next moves and to avoid being surprised. ̥ Determine an enterprise’s key success factors (those things a company needs to “get right” to be successful). ̥ Assess your company’s current strategy by examining your competitive approach using quantitative and other performance measures. ̥ Conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis to understand the company’s overall business health and sustainability and to determine preliminary recommendations for actions to improve its market position and proitability. ̥ Develop a competitive strategy using the knowledge gained about your industry’s prospects and your competitive strengths and weaknesses compared to rivals. 21 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK OCCUPATION-RELATED COMPETENCIES DISTRIBUTION AND LOGISTICS MANAGERS SPECIFIC REQUIREMENTS Distribution and logistics managers speciic requirements include certiication, licensure, and specialized educational degrees, or physical and training requirements. Post-secondary education ̥ The majority of distribution and logistics management professionals hold post secondary degrees — a bachelor’s or equivalent. ̥ While a number of distribution and logistics management professionals have degrees related to supply chain or operations management, the majority hold degrees in other ields including but not limited to, business, economics, engineering, or liberal arts studies. Association membership Professional association membership ensures that the distribution and logistics management professional is able to link into a network of practitioners to share best practices, develop their careers, and continue their professional education. There are a number of distribution and logistics associations including but not limited to: ̥ APICS The Association for Operations Management (APICS) ̥ American Society of Transportation and Logistics (AST&L) ̥ The International Society of Logistics (SOLE) ̥ Warehousing Education and Research Council (WERC). Certifications Once the professional is in the workplace, it is desirable to obtain distribution and logistics management related certiication. While there are a number of supply chain and operations management certiications related to speciic industries, general certiications include: ̥ APICS Certiied in Production and Inventory Management (CPIM) ̥ APICS Certiied Supply Chain Professional (CSCP) ̥ AST&L Certiication in Transportation and Logistics (CTL) ̥ SOLE Certiied Master Logistician (CML) ̥ SOLE Certiied Professional Logistician (CPL). 22 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK ABOUT APICS APICS is the leading professional association for supply chain and operations management and the premier provider of research, education and certiication programs that elevate end-to-end supply chain excellence, innovation and resilience. APICS Certiied in Production and Inventory Management (CPIM) and APICS Certiied Supply Chain Professional (CSCP) designations set the industry standard. With over 37,000 members and more than 250 international partners, APICS is transforming the way people do business, drive growth and reach global customers. © 2014 APICS 23 APICS DISTRIBUTION AND LOGISTICS MANAGERS CAREER PACK