CLTD Ecm 2.0

VERSION 2.
EXAM CONTENT
MANUAL
APICS
Certified in Logistics, Transportation
and Distribution
Exam Content Manual
Version 2.0
Visit apics.org/ecmerrata for APICS CLTD Exam Content Manual errata.
Internet links cited in the bibliographic references can be found in a more usable format on the
APICS website at apics.org/CLTD.
The references in this manual have been selected solely on the basis of their educational value to
the APICS CLTD certification program and on the content of the material. APICS does not endorse
any services or other materials that may be offered or recommended by the authors or publishers of
books and publications listed in this manual.
©2019 APICS
8430 West Bryn Mawr Avenue, Suite 1000

Chicago, IL 60631-3439 USA
Phone: 1-800-444-2742 or +1-773-867-1777
Fax: +1-773-639-3000
No portion of this document may be reproduced under any circumstances. CLTD is a trademark of
APICS.
Stock #09160-V20E
©APICS
The Association for Supply Chain Management (ASCM) is the global leader in end-to-end supply chain
organizational transformation, innovation and leadership. As the largest non-profit association for
supply chain, we are an unbiased partner connecting people around the world to the newest insights
and solutions on all aspects of supply chain. ASCM transforms enterprises and empowers people
with industry-recognized, global standards - like APICS and SCOR - to optimize their supply chains,
secure their competitive advantage and positively impact the world.
©APICS
Table of Contents
Letter to Candidates ................................................................................................................ 1
Introduction .............................................................................................................................. 2
About the APICS CLTD Examination ........................................................................................ 2
Question Format ............................................................................................................................... 2
Taking the Test .................................................................................................................................. 3
Interpreting Test Scores ................................................................................................................... 3
APICS Certified in Logistics, Transportation and Distribution Fellow……………………………….4
Studying for the APICS CLTD Exam ......................................................................................... 4
APICS CLTD References.................................................................................................................... 4
Terminology ....................................................................................................................................... 5
Additional Resources for APICS CLTD Candidates ................................................................ 5
APICS CLTD Learning System ........................................................................................................... 5
APICS CLTD Instructor-Led Review Courses and Educational Programs....................................... 5
Job Task Analysis……………………………………………………………………………………………………….. 5
Exam Content vs. Courseware……………………………………………………………………………………..6
APICS CLTD Certification Maintenance: Continuing Professional Development ..................7
The Importance of Certification Maintenance ................................................................................ 7
ASCM Code of Ethics ................................................................................................................8
Bibliography……………………………………………………………………………………………………………….. 9
APICS Certified in Logistics, Transporation and Distribution (CLTD) .................................. 10
Scope of the Subject Matter........................................................................................................... 10
APICS CLTD 2.0 Content ................................................................................................................ 12
Content Outline ............................................................................................................................... 12
Key Terminology .............................................................................................................................. 26
Sample Questions .................................................................................................................. 28
Answers to Sample Questions .............................................................................................. 30
©APICS
Letter to Candidates This APICS CLTD Exam Content Manual (ECM)
provides you with an overview of the program,
an outline of the body of knowledge, key
Dear Candidate: terminology, and recommended references.
The content outline is divided into the
Congratulations! On behalf of ASCM and the following nine diagnostic areas with the
members of the Certified in Logistics, relative emphasis of each area indicated by
Transportation and Distribution (CLTD) the percentage:
Subcommittee, I would like to thank you for
your expressed interest in the APICS • Logistics Overview and Strategy (8%)
certification program in the field of logistics, • Capacity Planning and Demand
transportation and distribution. Management (9%)
• Order Management (10%)
The CLTD certification is designed to provide a • Inventory Management (11%)
body of knowledge, technology know-how, and • Warehouse Management (13%)
standards for those in the logistics, • Transportation Management (17%)
transportation and distribution industries. The • Global Logistics (15%)
APICS CLTD sets the global standard for • Logistics Network Design (10%)
logistics best practices and assists employers
• Sustainability and Reverse Logistics
in developing the personnel needed to meet
(7%)
today’s ever-increasing customer demand for
logistics service. As one of the fastest growing
A sample of ten questions is provided at the
industries in the world, transportation and
end of this manual to illustrate the type of
logistics remains the second largest
questions you will encounter on the exam. We
employment sector in the United States,
recommend the APICS CLTD ECM as one of
employing over six million people, and
your references as you prepare for the CLTD
projected to generate almost 130,000 new
exam.
jobs through 2024. With a real output growth
projected to grow faster than the US economy,
We wish you every success in the pursuit of
the Bureau of Labor Statistics (BLS) projects
your CLTD designation.
that total employment in this sector will
exceed 160 million by 2024.
Sincerely,
The APICS CLTD certification aims to lessen
the impact of the logistics industry’s skill gaps.
The program takes an end-to-end supply chain
view of logistics operations, extending from
inbound materials management, outbound
distribution and reverse logistics to Yemisi A. Bolumole, Ph.D., CLTD-F, CTL
encompass all the integrative process steps CLTD Subcommittee Chair
that define supply chain logistics. The APICS
CLTD certification program provides you with
the knowledge to effectively manage the
integration of these activities to maximize your
company’s value chain. By earning the APICS
CLTD designation, you will have demonstrated
the mastery of logistics best practices.
©APICS CLTD Exam Content Manual 1

Introduction About the APICS CLTD
This Exam Content Manual provides guidance
Examination
for individuals preparing for the CLTD
The APICS CLTD examination consists of 150
certification examination. The objective of this
multiple-choice questions, of which 20 are
manual is to outline the APICS CLTD exam
pre-test questions that do not contribute to
body of knowledge.
the total score but are necessary for research
purposes. Candidates should answer all exam
The CLTD body of knowledge section of this
questions. There is a 3 ½ hour time limit for
manual begins with a statement about the
the exam.
scope of the subject matter, followed by a
descriptive outline of the content. Key
For more information about testing and
terminology and a bibliography of suggested
registration policies and procedures, please
references are also provided. The section
visit apics.org/cltd and the APICS Exam
concludes with sample questions similar to
Handbook or contact Customer Relations at 1-
those that appear on the examination, along
800-444-2742 (United States and Canada) or
with correct answers for the sample
+1-773-867-1777.
questions, and brief explanations as to why
they are correct.
Question Format
The recommended procedure for mastering All of the questions on the CLTD examination
the subject matter is to: are intended to test one's understanding of
the CLTD body of knowledge. In addition, it is
• review the content outline, which helpful to understand the various formats of
defines the scope of the material. questions that a candidate may see. The
• study each topic area using the following three examples illustrate the types of
suggested references. multiple-choice questions found on the
examination:
At the end of each major section is a list of the
references that apply to the topics in that For Example 1, choose the response that best
section. The first number indicates the completes the statement.
sequence number for the reference in the
bibliography section and the numbers in Example 1: The 80-20 rule is an
parentheses indicate the relevant chapters application of:
within that reference.
A. statistical process control.
Candidates should understand the definitions B. defect measurement.
of key terminology and the application of the C. root cause analysis.
outlined tools, processes and techniques. D. Pareto analysis.
(The correct answer is D.)
Sufficient references are given for each topic
area that provide different approaches to the
material covered. Reading periodicals, such
as SCM Now magazine and the SCM Impact e-
newsletter will also help you keep up-to-date
about changes in the industry.

For Example 2, choose the response that best know what is being asked without reading the
answers the question. question completely, or “second guessing” the
question. Every effort has been made to avoid
Example 2: The right of eminent domain is misleading wording and to provide sufficient
most often used in which of the following information for each question.
modes of transportation?
Choose the best answer from the choices
A. Truck given. Care has been taken to avoid
B. Water misleading choices. Do not look for hidden
C. Pipeline tricks or exceptions to the norm. For each
D. Air question, one and only one of the four choices
(The correct answer is C.) represents the correct answer.
For Example 3, evaluate the statements and Once you begin the test, approach the
provide the most appropriate response. The questions in order, but do not spend too much
answer is not one person’s opinion; it is the time on those that are unfamiliar or seem
accepted choice according to the APICS body difficult to you. Go on to the other questions
of knowledge. and return to the difficult ones later. If you
have some knowledge about a particular
Example 3: The most significant question, you may be able to eliminate one or
advantage of strategic sourcing is: more choices as incorrect. Your score on the
test will be based on the number of questions
A. finding suppliers who can provide you answer correctly, with no penalty for
materials at lowest cost. incorrect answers; therefore, it is to your
B. using technology to select low-cost, advantage to guess rather than not answer a
high-quality sources of materials. question. Avoid changing an answer unless
C. developing long-term supplier you are absolutely certain you marked the
relationships. wrong answer.
D. having a process for recurring
transactions with single suppliers. Interpreting Test Scores
(The correct answer is C.) Scoring is based on your correct responses.
There is no penalty for incorrect answers. The
Taking the Test omission of an answer will be counted the
The test is designed to evaluate a candidate’s same as an incorrect answer.
knowledge of the subject matter. Therefore,
the key to success is a thorough The APICS CLTD scaled score range is 200–
understanding of the subject matter. All 350.
questions are based on the current CLTD body
of knowledge as defined in the exam content 200 – 299: Fail
manual.
300 – 350: Pass
When you start your exam, read the directions
carefully. Be sure you understand the 320 and greater: Fellow level
directions before you begin to answer any
questions. The minimum passing score is 300. You will
receive your final exam score along with
Read each question carefully and thoroughly. diagnostic information by topic areas on your
If a question includes stimulus material such performance. All APICS exams use the above
as a table, graph, or situation, be sure to study scale for communicating scores to candidates.
it before you answer the question. Avoid Using a scale is a testing industry best
assuming information not given, assuming you practice and allows scores to be

represented consistently across different Studying for the APICS
forms, or versions, of the same exam. This
accounts for variances in difficulty across CLTD Exam
different exam forms and ensures fairness
and accurate reporting to candidates. For APICS offers several resources to help
more information on Scaled Scoring, please individuals prepare for the APICS CLTD
see the following document. examination.
APICS Certified in APICS CLTD References

Bibliography. The APICS CLTD Examination
Logistics, Transportation Subcommittee has identified a number of
and Distribution Fellow references for the CLTD examination. These
references are used by both the exam sub-
(CLTD-F) committee and CLTD courseware committee
in the development of exam questions and
The distinguishing characteristic of a Certified in preparation materials. These are listed in the
Logistics, Transportation and Distribution Fellow
Bibliography section of this manual. All the
(CLTD-F) is the willingness to share acquired
references contain excellent material that will
knowledge with others through presenting,
assist in test preparation. For additional
teaching, publishing and participating in ASCM
information on the APICS CLTD references,
volunteer activities. This knowledge sharing must
visit the APICS website and the CLTD Exam
take place above and beyond a candidate's
References section, or call Customer
normal job duties and be directly related to the
Relations at 1-800-444-2742 (United States
APICS body of knowledge. and Canada) or +1-773-867-1777.
A current valid CLTD certification is required to
A candidate may discover that the material
be eligible for CLTD-F status. To obtain the covered in the chapters of one reference
APICS CLTD-F designation, an application form
duplicates material covered in another
must be completed and submitted online to the
reference. Both sources are included as
ASCM corporate office. Points are awarded references to allow candidates some
based on the following criteria: APICS discretion in selecting test preparation
certifications earned (increased for fellow level
materials that they find accessible and
exam scoring - 320 or greater), presentations,
understandable.
published works, classroom teaching, and ASCM
volunteer activities.
In deciding if a single reference is sufficient,
To apply for the CLTD-F certification, please visit
candidates should assess their own level of
apics.org/fellow.
knowledge against both the descriptive
examination specifications and the detailed
topic list contained in the content outline. If
there are any areas of weakness, the
candidate should consult another reference
as part of the test preparation process.
Content outline. The content outline provided

in this document should be considered a
primary resource for exam preparation. It
provides an overview of the major topics
included in the exam, as well as a list of the
concepts that are relevant to that topic.

APICS Dictionary. The APICS Dictionary is an concepts but does not teach concepts. The
essential reference to the exam content APICS CLTD Learning System provides a
manual and APICS exams. Within the thorough review of the subject matter, but it
profession, terminology varies among should not be used without the most current
industries, companies, and the academic APICS CLTD Exam Content Manual as a
community. The examination uses standard means to direct the candidate’s study. There
terminology as defined in the APICS will likely be some content in the APICS CLTD
Dictionary. Recognizing the terms and Learning System not covered by the exam;
understanding their definitions are essential. conversely, there will likely be some content in
the exam not covered by the learning system.
Terminology Thus, it is essential for candidates to use the
In studying for the APICS CLTD certification current exam content manual in their studies.
exam, candidates may discover multiple terms
used to denote the same technique. An APICS CLTD Instructor-Led
example of this is customer service ratio and Review Courses and Educational
fill rate. APICS has attempted to provide Programs
consistency with preferred terminology. The instructor-led format combines the APICS
However, synonyms are often used by authors CLTD Learning System print and online
in the various references used to compile the components with the leadership of a qualified
body of knowledge. Candidates are instructor; peer collaboration; company
encouraged to be familiar with all terms and networking; and a structured, set schedule to
concepts listed within the outline and key keep participants on track. Learn more about
terminology section, using the APICS APICS recognized instructors at
Dictionary as the primary guide for definitions. apics.org/recognizedinstructors or find local
APICS partners that provide APICS CLTD
Additional Resources for courses at apics.org/learning-opportunities.
APICS CLTD Candidates ASCM also offers a variety of educational
programs. For a complete list of learning
In addition to the cited references, it may be opportunities and resources, please visit
helpful for you to pursue chapter-sponsored ascm.org or contact Customer Relations at 1-
courses, college courses, APICS workshops, 800-444-2742 or +1-773-867-1777.
self-study courses or courses offered by the
APICS network of international partners as a
means of learning the body of knowledge Job Task Analysis
tested in the certification program. A wide
variety of courses and materials are available. The subject matter in the CLTD exam content
As with any investment, you should research outline is created and validated by means of
the various learning options before choosing a Job Task Analysis (JTA) study. A JTA is a
one. process of creating a survey to analyze which
tasks within a specific role are most
APICS CLTD Learning System important. They are used in the credentialing
The APICS CLTD Learning System is a industry to create and validate certification
comprehensive professional development and programs and their content by ensuring that
certification preparation program. This self- the respective bodies of knowledge are
directed program combines print material and applicable and up-to-date with current
online interactive tools. This system is also industry standards and trends.
offered in instructor-led formats.
In following testing industry standards and
The APICS CLTD Learning System does not best practices, ASCM regularly conducts a
“teach the test” and in many areas reviews JTA for each of its certifications. For the CLTD

program, this process involves bringing candidate to apply the body of knowledge by
together a task force of industry-specific evaluating and/or analyzing a scenario and
professionals that represent a diverse set of determining the best solution. These
logistics, transportation, distribution and questions will frequently require the candidate
operations industries. These professionals, to make finer distinctions than the exercises
under the guidance of a third-party or items presented in a review course.
psychometrician, work to identify the
knowledge, skills and tasks deemed APICS uses a rigorous process for creating its
important in the practice of logistics and certification exams and courseware. Exams
distribution. These inputs are then used to and study materials are developed separately
create a survey that is distributed to supply to maintain the integrity of the exam process.
chain professionals globally to validate the
content identified by the task force. The APICS exam committees define the contents
results of this industry-wide survey are then of the Exam Content Manual (ECM), which
analyzed by the task force, resulting in a determines the areas that will be tested in
recommendation to the CLTD Exam APICS certification exams. The ECM defines
Subcommittee for content updates. the body of knowledge that can be tested, and
every exam question is linked to the ECM
The JTA process is vital to all high-stakes content. The APICS exam committees also
certifications, as it validates the existing select the references that will be used for
body of knowledge (BOK) and identifies new exam development. Additionally, the
areas for addition and updates to ensure committees work with ASCM staff in the
that the content is at the cutting edge of the creating and maintenance of exam forms.
industry. The last JTA update for the CLTD
program took place in 2019. This update was A separate courseware committee, along with
based on the results of a survey that was ASCM staff and a third-party vendor, create
responded to by over 2,800 industry the Learning Systems using the ECM and the
professionals, representing a diverse mix of recommended references.
job functions, industries, organization sizes,
work experience and countries of residence. Questions and answer sets for APICS exams
are written by exam committee members, who
are subject matter experts, and volunteers
Exam Content vs. who have earned APICS certification
Courseware designations. The exam committees must
identify the specific entry in the ECM that is
Certification has a very different purpose than being tested and one or more of the
education. Its purpose is to determine references listed in the ECM that supports the
whether a candidate meets a minimum set of correct answer. All exam questions and
requirements in relation to a body of answers are reviewed and typically revised by
knowledge. Certification examinations test an APICS exam committee members. Exam
individual’s knowledge and ability to apply committees, ASCM Test Development staff
that knowledge to specific situations. Exam and a third-party exam development
questions frequently require the candidate to contractor all review the potential test
select the best of the four choices, complete a questions for correctness of format, spelling
calculation based on the information given or and grammar.
ask the candidate to illustrate their
understanding of a concept, process or A potential test question may be reviewed
procedure. While some exam questions may multiple times before it actually appears on an
simply ask the candidate to demonstrate their examination. Potential test questions initially
recollection of knowledge from the content appear on exams in what is referred to as
outline, they will more often require the “pre-test” status in order to collect statistics

on the questions. It is not until a question is awareness that continuing education and
deemed to be statistically valid that it will skills development are essential to meeting
appear as a scored question on an the information and technological challenges
examination. in today’s rapidly evolving workplace and
global marketplace. Professional development
Because each test form has a limited number opens doors to individual career opportunities
of questions, it samples representative areas and organizational success.
of the body of knowledge as defined by the
ECM. While each test form is different, all Although APICS CLTD recognition and
areas tested are contained within the body of maintenance are voluntary programs, they
knowledge as defined by the ECM. equally demonstrate one’s commitment to
achieving the highest level of professional
The following graphic is a representation of development and standards of excellence.
the type of relationship between the The APICS CLTD certification maintenance
Operations Management Body of Knowledge program upholds both the objectives of the
(OMBOK), courseware / Learning Systems, APICS CLTD program and the APICS vision to
ECM’s and different examinations. promote lifelong learning. This flexible
program recognizes that individuals are at
various levels in their careers, come from
many industries, have different educational
needs and career goals and have varying
access to continuing education. Thus,
requirements for maintaining certification can
be met through multiple sources and a variety
of professional development activities. These
sources and activities are intended to help
prepare for the challenges ahead and
maintain a professional edge by:
• preserving the currency of hard-

earned certification
• expanding your knowledge of the
latest industry practices
• exploring new technology solutions
• reinforcing skills
• improving job performance
APICS CLTD Certification • demonstrating commitment to
Maintenance: Continuing excellence
• increasing competitive advantage
Professional Development
In order to ensure that CLTD certified
The Importance of Certification individuals remain up to date on industry
Maintenance trends and are committed to continued
To promote professional growth and lifelong professional growth, certification maintenance
learning, ASCM requires certification is required for their certification to remain
maintenance every five years, beginning on active.
the date the certification is earned.
For complete details on how to maintain your
The growing number of individuals choosing to APICS CLTD designation, please visit
pursue professional development through the apics.org/maintenance.
APICS CLTD program indicates a strong

ASCM Code of Ethics techniques for the mutual benefit of
the profession;
When you begin the exam registration • In your professional capacity, respect
process, you will be asked to pledge to abide the fundamental rights and dignity of
by the ASCM Code of Ethics. Once certified, all individuals. You must demonstrate
you pledge to continue your education to sensitivity to cultural, individual and
increase your contribution to the supply chain role differences, including those due
management profession. After achieving the to age, gender, race, ethnicity,
CLTD designation, you pledge also to share national origin, religion, sexual
your knowledge with others by participating in orientation, disability, language and
ASCM research and educational activities at socio-economic status;
local, district, national and international • In your professional capacity, not
levels. engage in behavior that is harassing
or demeaning to others based on
The ASCM Code of Ethics is as follows: factors including, but not limited to,
age, gender, race, ethnicity, national
• Maintain exemplary standards of origin, religion, sexual orientation,
professional conduct; disability, language or socio-economic
• Not misrepresent your qualifications, status;
experience, or education to ASCM or • Adhere to this Code of Conduct and its
others you serve in a professional application to your professional work.
capacity; Lack of awareness or
• Respect and do not violate the United misunderstanding of an ethical
States Copyright of all ASCM standard is not itself a defense to a
materials, including but not limited to charge of unethical conduct;
courseware; magazine articles and • Contact the Ethics Committee when
other ASCM publications; ASCM uncertain whether a particular
conference presentations; and CLTD, situation or course of action violates
CPIM, CSCP and SCOR-P examination the Code of Conduct; and
resources. In this same spirit, you • Not to become the subject of public
must not violate the copyright of other disrepute, contempt or scandal that
organizations and individuals in your affects your image or goodwill.
professional capacity;
• Do not engage in or sanction any Failure to abide by ASCM Code of Ethics policy
exploitation of one’s membership, may result in sanctions up to and including
company, or profession; decertification.
• Encourage and cooperate in the
interchange of knowledge and

Bibliography
All test candidates should familiarize themselves with the following references for this examination.
The recommended references pertaining to the diagnostic area are listed at the end of each section
of the content outline. The References listed below can be found at apics.org/cltd under the CLTD
Exam References section. A complimentary digital copy of The APICS Dictionary is available to ASCM
members in the online ASCM Member Benefits section.
References Author(s)
1 APICS Dictionary, 16th ed., 2019 APICS
Bowersox, Donald J.,

Supply Chain Logistics Management. 5th ed., Closs, David J.,
2
McGraw-Hill, 2020. Cooper, M. Bixby,
Bowersox, John C.
Coyle, John J.,
Managing Supply Chains – A Logistics
Langley Jr., John C.,
3 Approach. 9th ed., South-Western, Cengage
Novack, Robert A.,
Learning, 2013.
Gibson, Brian J.
Novack, Robert A.,
Transportation – A Global Supply Chain Gibson, Brian J.,
4
Perspective. 9th ed., Cengage Learning, 2018. Suzuki, Yoshinori,
Coyle, John J.
International Logistics. 5th ed., Cicero Books,
5 David, Pierre.
2017.
Warehouse Management – A Complete Guide
to Improving Efficiency and Minimizing Costs in
6 Richards, Gwynne.
the Modern Warehouse. 3rd ed., Kogan Page
Limited, 2017.
Distribution Planning and Control – Managing
7 in the Era of Supply Chain Management. 3rd Ross, David F.
ed., Springer, 2015.

APICS Certified in logistics’ cross-functional relationships with
marketing, finance, risk management and
Logistics, Transportation manufacturing operation requirements,
and Distribution (CLTD) showing how logistics “fits” into the totality of
business operations and continuity.
CLTD Subcommittee
Capacity Planning and Demand Management
Dr. Yemisi Bolumole, Ph.D., CLTD-F, CTL (Chair) This section addresses the strategic and
Michigan State University operational considerations, and important
Nishat Ahmed, CPIM, CIRM, CSCP, CPM, CLTD, trade-offs related to translating demand into
SCOR-P, CTL capacity planning by integrating forecasting,
M.C. Dean Inc. procurement and demand management in
Louis Francis Carrieri, CPIM, CLTD terms of their separate and combined impact
Baker Hughes, a GE Company on logistics requirements. It emphasizes the
James Caruso, CPIM, CSCP, CLTD resource-alignment tasks that define how
Dr. Douglas Hales, Ph.D., CTL, CLTD-F organizations develop forecasts by which
University of Rhode Island transportation and warehouse considerations
Mark C. Hardison, CPIM-F, CSCP-F, CLTD-F are planned and operationalized.
Mallinckrodt
Scott Lane, CTL, CLTD Order Management
Beaver Street Fisheries This section addresses the related concepts of
Gary A. Smith, CPIM-F, CSCP-F, CLTD-F customer relationship management (CRM),
New York City Transit Authority order management and customer service,
highlighting the major steps required to
Scope of the Subject Matter manage and execute customers’ orders with
The APICS CLTD certification examination an emphasis on logistics' key role in
covers concepts, tools and processes which influencing customer service. Order
illustrate the supply chain-wide system management defines and sets the logistics
perspective of logistics. The CLTD certification process in motion, while customer service is
emphasizes the microanalysis of logistics, the task by which logistics outputs are
distribution and transportation services. measured and defined.
Managing the logistics system requires an
oversight of transportation, order processing, Inventory Management
inventory and the combination of With a detailed examination of the related
warehousing, material handling and concepts of inventory, this section addresses
packaging; all integrated through a network of the various methods and techniques that
facilities with a goal to support customer firms use to control and manage inventory in
service, manufacturing and purchasing the supply chain. This section emphasizes the
operational requirements. The subject matter benefits and roles different types of inventory
is organized into nine content areas: plays in the logistics system. It illustrates the
various managerial decisions in planning and
Logistics Overview and Strategy maintaining optimal inventory levels including
This section provides an overview of the costs, controls and policy.
macro and micro logistics processes and
systems which define forward and backward Warehouse Management
material and information flows in the supply This section focuses on strategies, processes,
chain. With reference to its primary goal to methods and techniques for the effective and
achieve consistent customer service at the efficient management of the warehouse.
least total cost, this section addresses the Emphasis is on the components of warehouse
synchronized and integrated approach to management that reduce cost and cycle time
logistics management. This section illustrates while increasing accuracy and efficiency.

These include space management, packaging, a focus on the key factors and activities that
control systems, storage and retrieval, define reverse logistics processes and
warehouse ownership, layout, automation, logistics social responsibility considerations
outsourcing strategies and key performance with triple bottom line implications.
indicators (KPIs).
The successful candidate will be able to
Transportation Management understand the leadership responsibility of
This section covers the major principles and logistics to design and administer systems to
processes of transportation management, control the movement and positioning of
administration and economics. It addresses material and information flows, to satisfy
the fundamental responsibilities of customer requirements at the least total cost.
transportation and traffic professionals. Based on an understanding of the processes,
These responsibilities include utilizing the best practice methods and tools used by
optimal mode of transportation to position today’s logistics managers, the successful
inventory throughout the supply chain and candidate will be able to define the actions
executing transportation management necessary to implement selected solutions to
functions which include carrier selection and address specific supply chain situations and
negotiations, routing optimization, opportunities. This includes an understanding
documentation, auditing and claims of, and the ability to manage:
administration and specialized transport
related services. • the major inputs and outputs of the
logistics systems with an emphasis on its
Global Logistics value-creating role within the supply chain
With an emphasis on the more complex • the interdependent components within the
analyses required to navigate today’s global logistics system and between logistics and
logistics landscape, this section addresses other business functions in the supply
the rules, processes and techniques that chain
logistics professionals need to succeed in • an integrated logistics facility network
global supply chains. It includes an design strategy that includes an
understanding of transportation mode understanding of tradeoffs that influence
analysis, financing options, security total logistics costs
considerations and regulations, duties, • the effect of variance in a logistics system
documentation and restrictions that define and how collaborative processes and
the global operating environment. relationships provide mechanisms to
minimize these variances while reducing
Logistics Network Design operations costs, enhancing productivity
This section addresses the transportation and and meeting customer requirements
inventory economies that critically define • the changing role of various stakeholders
logistics network design considerations. It and trading partners which define the
includes an introduction to the modeling tools increased complexity of managing logistics
and techniques which enable supply chain within the current global marketplace.
spatial and temporal integration, addressing the
need for today’s logistics professionals to In addition, the candidate preparing for the
extend this responsibility to include the APICS certification examination must have a
processes, resources and tools for managing fundamental understanding of the following
risks. key business concepts:
Sustainability and Reverse Logistics • Business acumen (qualitative skills,

This section addresses the expanded view of math, statistics)
reverse supply chain flows to incorporate a • Ethical considerations
general overview of sustainability. It includes • Leadership

APICS CLTD 2.0 Content Content Outline
Nine content areas have been designed to I. Logistics Overview and Strategy
organize the APICS CLTD domains. The
relative importance of these topics will vary Logistics is the core of supply chain
among industries, but the figures given below management. Fundamental concepts include
show the percentage designated for each managing logistics as a cohesive system,
section on the exam. These percentages are understanding tradeoffs to present a logistics
based on the results of the Job Task Analysis strategy that aligns with organizational
(JTA) Survey referenced on page 5 of this strategy and finding the most effective mix of
document. revenue producing services for the cost of
providing that service. Measurement and
continuous improvement are emphasized as
Diagnostic Main topic Percentage ways to meet and exceed the pressures of
area of exam globalization and the steadily increasing
customer expectations for logistics.
Logistics Overview A. Logistics Fundamentals
I 8%
and Strategy
It is important to understand the scope of
logistics, including how it fits within the larger
Capacity Planning role of supply chain management and
II and Demand 9% business strategy. The concept of tradeoffs is
Management used to show how interconnected the various
areas of logistics really are, while a review of
logistics’ process flows puts things into a
III Order Management 10% different perspective. Achieving the full value
of logistics requires a balance between costs,
customer satisfaction and service levels.
Emphasis is given to an understanding of why
Inventory
IV 11% methods of accounting for logistics costs is
Management important for logistics management and
overall business success.
Warehouse Knowledge and skills in this area include:
V 13%
Management
1. Logistics introduction
a. Definitions
Transportation
VI 17% b. Scope of logistics
Management
c. Principles and components
d. Drivers
VII Global Logistics 15% 2. Supply chain management and the
role of logistics
a. Economic impact of logistics
Logistics Network b. Effects of globalization and e-
VIII 10%
Design commerce
3. The value of logistics management

Sustainability and a. Creating competitive advantage
IX 7%
Reverse Logistics b. Reducing transportation, labor and
inventory costs
c. Increasing customer satisfaction
and service levels
B. Logistics Strategy within the Supply Chain References: 1; 2 (chapters 3, 12, 13, 14); 3
(chapters 2, 3, 4); 7 (chapters 1, 3, 4)
The many aspects of logistics strategy include
altering tactics to account for product life Note: The first number indicates the sequence
cycle stages, finding the right balance number for the reference in the bibliography
between services and their costs, fitting in section and the numbers in parentheses
with existing organizational structures, indicate the relevant chapters within that
developing strong relationships at the
reference.
appropriate level, assessing strategic level
risks including security and designing the right II. Capacity Planning and Demand Management
key performance indicators to encourage
desired behavior. Logistics capacity planning and related
decisions rely on efficient forecasts, so it is
Knowledge and skills in this area include: important to understand the concepts behind
forecasting and its application to logistics
1. Goals and objectives, service levels
decisions. This involves understanding how
2. Value proposition and creation logistics can help direct and prioritize in order
to better match supply to demand. The
3. Product life cycles effective acquisition of inventory also requires
a collaboration between procurement and
4. Cost and service optimization logistics.
a. Transportation/warehousing
b. Inventory (space) A. Balance demand management with LTD
c. Labor capacity (long, medium, short-term)
d. Technology Logistics professionals need an understanding
e. Budget and payment terms of the concepts behind forecasting, especially
the resource-alignment tasks through which
5. Organizational design and supply organizations develop forecasts by which
chain synchronization logistics, manufacturing, purchasing and other
departmental plans are created.
6. Logistics relationships and
interdependencies Knowledge and skills in this area include:
7. Risk management 1. Forecasting process

a. Identifying and managing a. Forecasting methods
exceptions b. Channels (Business to Business
b. Strengths, weaknesses, B2B; Business to Consumers -
opportunities and threats (SWOT) B2C)
c. Logistics, Transportation and c. Interpreting forecasts (errors, gap,
Distribution (LTD) continuity plan analysis, time series components
etc.)
8. Supply chain security
B. Translating Demand into Capacity
9. Segmentation Planning
10. Talent acquisition and management Practitioners use forecasts or other demand
information and translate it into high-level
11. Performance management and Key capacity plans for warehousing and
Performance Indicators (KPIs) transportation to deliver customer service at a
a. Continuous improvement consistent level.
philosophy

Knowledge and skills in this area include: Knowledge and skills in this area include:
1. Transportation capacity planning 1. Purchasing strategy

a. Transport decisions (mode, carrier, a. Make-or-buy decisions
route selections) b. Warehouse capacity constraint
b. Inbound capacity c. Transportation capacity constraint
c. Outbound capacity d. Supplier selection
d. Load planning e. Contract terms and conditions
e. Improve and optimize through
constraint management 2. Performance management (KPIs)
2. Warehousing considerations References: 1; 2 (chapters 5, 6, 7); 3

a. Storage (chapters 7, 9, 11, 13, 14); 4 (chapter 7); 7
b. Equipment (chapters 5, 6, 11, 13)
c. Labor
d. Throughput (constraints) III. Order Management
C. Demand Management At the core of the logistics process is the

customer order, which serves as the trigger
In its cross-functional interrelationships with setting logistics in motion. Order management
sales, marketing, purchasing and activities include a variety of tasks aimed at
manufacturing operations, logistics works to planning, designing and controlling processes
orchestrate and coordinate demand and which manage and execute customers’
supply in order to resolve interface conflicts by orders. At the core of these processes is
systematically considering plausible trade- customer relationship management since
offs. This requires an understanding of every decision and activity that logistics takes
processes including sales and operations should be with the customer in mind. By
planning (S&OP), master scheduling, master developing a customer service management
production schedule (MPS), materials strategy, logistics can deliver on the seven
requirement planning (MRP) and distribution rights of customer service which enhances
requirements planning (DRP). long-term customer satisfaction and creates
lifetime customers.
Knowledge and skills in this area include:
A. Customer Relationship Management
1. Demand forecasting (CRM)
2. Capacity planning CRM is an important marketing philosophy

that emphasizes all customers as being top
3. Demand shaping priority, including internal customers or end
consumers. By implementing the steps of a
D. Sourcing and Procurement CRM process, relationships with key
stakeholders can be optimized throughout
Logistics needs to closely coordinate its each transaction.
activities with procurement to ensure a stable
source of supply at reasonable total logistics Knowledge and skills in this area include:
system costs. This involves the procurement
processes of selecting suppliers and 1. Implementing the CRM process
generating contracts with the appropriate
terms and conditions, which ensure 2. Trade-off analysis
performance is adequately monitored and
controlled. 3. Customer segmentation
4. Customer service management (CSM)

B. Order Management d. Freight terms
Logistics professionals work closely with 4. Order fulfillment channels
procurement specialists who source required a. Omni-channel
materials and components from suppliers for b. E-commerce
the manufacture of products. Once the c. Direct to store
purchase order processing is completed, d. Direct to consumer
logistics confirms the goods received match
the original order and a routing guide is used References: 1; 2 (chapters 3, 4, 13); 3
to assist in the multiple decisions that must (chapters 7, 8); 7 (chapters 10, 11)
be made.
IV. Inventory Management
Logistics relies on systems, such as Electronic
Data Interchange (EDI) and transportation Inventory management involves maintaining
management systems (TMS) which enable inventory levels in a manner that aligns with
order visibility to identify the status of any the business strategy and goals, supporting
customer order and to coordinate complex the coordination of supply and demand, while
inbound flows, intracompany movements and protecting inventory value. Within the logistics
outbound orders. Supplier and carrier environment, the effective management of
performance is tracked and measured so that inventory takes on added importance because
improvements can be made on an ongoing of its direct impacts on service levels, working
basis, making logistics more efficient and capital and return on asset investments. Like
effective. most things within the logistics systems,
decisions regarding inventories must take the
Tailoring, aligning and managing relationships
tradeoffs between costs and service levels
with the supply chain partners will enhance
into consideration.
the performance of the entire supply chain.
A. Inventory Management in Logistics
To fulfill its basic functions, inventory resides
1. Inbound order management at many points in the supply chain. Excessive
a. Logistics role in supplier levels of inventory create additional costs for
relationship management (SRM) the organization, exposure to risk in
1. Vendor-managed inventory fluctuations and changes in customer
(VMI) demand. Because of its critical impact on the
b. Inbound process bottom line, effective inventory management
1. Information flow is now seen as a way to create value in the
2. Lead time business. It is more imperative than ever to
c. Advance ship notice (ASN) process understand the unique role that inventory
d. Packaging requirements plays in the business strategy.
e. Order tracking, receipt and
confirmation Knowledge and skills in this area include:
f. Transportation plan
g. Freight forwarders 1. Role of inventory management
h. Performance Management (KPIs) a. Decouple supply and demand
b. Support service levels
2. Intracompany orders c. Support total cost objectives
3. Outbound order management 2. Inventory types

a. Order cycle time a. Raw materials
b. Order cycle stages b. Work in process (WIP)
c. Exceptions and change c. Finished goods
management

d. Maintenance, repair and operating capture the value of inventory investments
(MRO) supplies more quickly.
e. Pipeline stock (in-transit inventory)
3. Functions of inventory (classifications)
a. Anticipation 1. When to order
b. Cycle stock/lot size a. Reorder point (ROP)
c. Safety stock b. Period order quantity (POQ)
d. Hedge
e. Decoupling 2. How much to order
a. Economic order quantity (EOQ)
B. Inventory Management Methods b. Lot-for-lot (L4L)
c. Min-max system
Managing inventory effectively requires
meeting competing goals to minimize 3. Manage exceptions, anomalies,
inventory costs and maximize constraints and conditions of
customer/consumer service. A clear uncertainty
understanding of what contributes to
inventory carrying costs is, therefore, a 4. Inventory auditing
prerequisite to crafting an appropriate a. Segmentation / ABC analysis /
inventory management strategy. These costs classification
can be controlled through more effective b. Physical inventory
approaches to inventory ordering that c. Cycle counting
minimize the amount of time inventory resides
in the pipeline, which reduces the risk of 5. Performance metrics (inventory
accumulating excess and potentially obsolete turnover, stock outs, carrying costs,
inventory. forecasting error, etc.)
References: 1; 2 (chapter 7); 3 (chapter 2, 9);
1. Costs of Inventory 5 (chapter 18); 6 (chapters 1, 3 – 10, 14, 16);
a. Ordering costs 7 (chapters 7, 8, 9, 12)
b. Setup costs (one-time costs vs
overhead costs)
V. Warehouse Management
c. Inventory carrying costs
d. In-transit costs Warehouse management entails the
movement of materials and goods into and
2. Order quantity out of storage efficiently, safely and with
minimal inventory damage. Supporting the
C. Inventory Control, Strategy, and Policy logistics systems’ goal of time and place
Maintaining optimal inventory levels includes utility, warehouses enable synchronized
the related replenishment questions of “how storage, consumption and transportation
much to order” and “how often to order.” The activities within the supply chain. As business
answers help create an inventory control practices and technology evolve, warehouse
approach that is both economical and service- management strategies must adapt to new
oriented. Inventory control also requires distribution channels and customer/consumer
deciding when to order, which in turn requires expectations by creating new processes that
considering issues such as lead times, supply deliver the desired results.
risk and inventory review. Inventory control
approaches focus on increasing the rate of Knowledge and skills in this area include:
inventory turnover and helping the business

A. Warehouse Strategy, Ownership Types efficient warehouse layout that supports
and Roles warehouse operations and technology. The
execution of warehousing activities and
Warehouse management strategy aims to processes set the stage for the day-to-day
deploy the firm’s warehousing assets and facility operations. Product handling, storage
skills to advance the business goals. The and support functions provide key
warehouse strategy must be aligned with the coordination between key processes and
corporate strategy and objectives and also members across the supply chain while
with the organization’s supply chain strategy, maximizing returns on the organization’s
which defines the role of each warehouse, inventory investment. Beyond basic product
including its location, size and capabilities. flows, warehouses support the timely and
Understanding the role of warehouses in the accurate flow of information within distribution
facilities as well as across the supply chain.
supply chain and within the firm’s business
The use of appropriate warehouse technology
strategy is the foundation of effective enables distribution control and effective
fulfilment processes. Ownership decision making within the supply chain.
considerations support a responsive approach
to changing business environments and Knowledge and skills in this area include:
enables organizations to maintain optimal
facility location and performance. 1. Warehouse processes and order flow
a. Receiving
Knowledge and skills in this area include: b. Storage
c. Picking and packing - first in, first
1. Role of warehousing out (FIFO); last in, first out (LIFO)
a. The economics of warehousing d. Consolidation
b. Challenges of warehousing e. Loading
c. Warehouse and inventory policy f. Shipping
g. Replenishment
2. Ownership types
a. Private 2. Facility layout decisions
b. Public a. Size of facility
c. Contracted b. Types of layouts
d. Bonded c. Optimizing throughput, space and
capacity
3. Uses/roles of warehouses
3. Warehouse automation and systems
4. Specialized warehouse services a. Warehouse management systems
a. Climate-controlled (WMS)
b. Bonded, duty paid b. Yard management system (YMS)
c. Hazmat c. Enterprise resources planning
d. Automated capabilities (ERP)
d. Automated storage and retrieval
5. Warehousing strategies systems (AS/RS)
a. Outsourcing / 3PL
b. Value-added warehousing 4. Documentation
B. Warehouse Processes, Layout and 5. Performance management (KPIs)

Automation a. Throughput
b. Quality
Warehouse management strategy is c. Capacity
implemented through efficient and effective d. Productivity
warehouse processes, along with a safe and

e. Customer service VI. Transportation Management
f. Audits
Transportation moves goods and services
C. Material Handling and Packaging across geographic lines, between where
products are produced and where they are
High-performing material handling protocols consumed, while allowing for competitive
represent significant cost savings and service growth. At home and abroad, advances in
improvement opportunities. Material handling, transportation through technology and design
unit containerization and packaging represent have broadened the markets for both
integral parts of the integrated logistics domestic and international competition. The
systems with their significant impact on its wider a product’s distribution and the greater
cost and productivity capabilities. The facility its demand, the more manufacturers can
considerations of material handling and leverage transportation’s economies of cost.
packaging thus ensures handling efficiencies Logistics professionals are responsible for
as well as customer-friendly product moving inventory throughout the firm’s supply
unitization and protection. With the increased chain and to the firm’s customers. They can
use of automation and information technology use a combination of private and purchased
applications within warehousing and material transportation services with access to various
handling operations, supply chains are modes of transportation, offering flexible
discovering new ways to reduce labor costs solutions for transporting product from origin
with promising improvements on service to destination.
quality. A. Transportation Fundamentals
Knowledge and skills in this area include: Transportation systems connect the various
supply chain components and must be
1. Packaging fundamentals properly managed and controlled with
a. Product characteristics, primary complete visibility and strong communication
vs. secondary packaging between multiple stakeholders and
requirements transportation managers. Proactive
b. Unitization & unit loads transportation management is critical to an
1. Returnable containers efficient and economical operation and should
2. Pallets & slip-sheets be considered when a company plans
3. corrugated organizational and supply chain processes. An
integral part of logistics, the transportation
2. Materials handling process, represents one of the largest
a. Equipment portions of a logistics manager’s budget.
1. Manual & mechanical
2. High level order pickers Knowledge and skills in this area include:
3. Sortation systems 1. Transportation cost structure
b. Layout a. Terminals
1. Storage b. Vehicles
2. Picking
3. Receiving 2. Transportation stakeholders
4. U Flow / Flow through a. Shipper (consignor)
c. Slotting strategy (e.g. random, b. Recipient (consignee) of
dynamic) transported goods
d. Health and safety, security c. Carrier of goods and agents
d. Government
References: 1; 2 (chapters 1, 3, 7, 9, 11); 3 e. Public
(chapters 9, 11, 14, 16); 6 (chapters 1, 3 - 10,
12 - 16); 7 (chapters 7, 12)

3. Transportation 2. Rail
capabilities/intermediaries a. Types of carriers/freight (TOFC,
a. 3PLs and 4PLs COFC, etc.)
b. Freight forwarders b. Container types
c. Freight brokers c. Market structure and sales
d. Customs broker strategy
e. Export management companies d. Operating and service
(EMC), Export trading companies characteristics
(ETC) e. Issues and challenges
f. Shipping associations
g. Agents 3. Air
h. Export packing companies a. Types of carriers
i. Selection considerations b. Container types
c. Market structure and sales
4. Carrier Types strategy
a. Common d. Operating and service
b. Contract characteristics
c. Exempt e. Issues and challenges
d. Private carriers
e. Selection considerations 4. Water (ocean or waterways)
a. Freight classifications (Full
B. Modes of Transportation and Selection Container Load (FCL), Less than
Considerations Container Load (LCL), etc.)
b. Vessel type
Transportation consumes time, financial and c. Market structure and sales
environmental resources. Understanding the strategy
characteristics of the different transportation d. Operating and service
modes enables managers to make characteristics
appropriate selections based on relative e. Issues and challenges
modal performance in terms of speed,
availability, dependability, capability, 5. Pipeline
frequency and cost. Intermodal transportation a. Types of freight
combines two or more modes to execute the b. Market structure and sales
shipment process and represent a key means strategy
of transportation service. c. Operating and service
characteristics
Knowledge and skills in this area include: d. Issues and challenges
1. Road 6. Intermodal and multi-modal
a. Trailer types (Container on a transportation, multi-stop
flatcar (COFC), Trailer on flatcar a. Types of carriers
(TOFC), etc.) b. Freight classification (FCL, LCL,
b. Freight classification (Truckload etc.)
(TL), Less-than-truckload (LTL) c. Market structure and sales
etc.) strategy
c. Market structure and sales d. Operating and service
strategy characteristics
d. Operating and service e. Issues and challenges
characteristics
e. Issues and challenges 7. Courier and parcel services
a. Types of carriers

b. Market structure and sales 5. Documentation
strategy a. Terms of sale
c. Operating and service b. Master bill of lading
characteristics c. House bill of lading
d. Issues and challenges d. Freight bill
e. Freight claims
8. Market structure and sales strategy f. Proof of delivery (POD)
a. Issues and challenges
6. Tracing, tracking, expediting,
C. Transportation Management consolidation, and metrics
a. Timeline vs. location
Transportation management usually covers
b. Optimization
two areas: inbound and outbound flows.
c. Electronic data interchange (EDI)
Transportation management’s goal is to
d. Exception management
reduce transportation costs and increase
delivery reliability through collaboration
7. Routing and billing, demurrage (dwell)
between all participants in the transportation
transaction: carriers, providers and non-vessel
8. Special product considerations
operating agents. Transportation managers
must effectively manage the entire
9. Transportation cost forecasting and
transportation process—from long-range
budgeting
strategies and operational planning to day-to-
a. Economic considerations
day execution.
b. Market considerations
Knowledge and skills in this area include: c. Security considerations
d. Regulation requirements
1. Transportation network design and
mode selection 10. Freight settlement
a. Routing analysis and optimization
b. Trade-offs in transportation design References: 1; 2 (chapters 3, 8, 11); 3
c. Utilize data driven business (chapter 10); 4 (chapters 2 –11); 5 (chapters
intelligence 4, 6); 7 (chapter 13)
2. Carrier negotiations and selection VII. Global Logistics

a. Selection factors
For the global logistics manager, successful
b. Outsourcing considerations
participation in international trade requires
c. Request for proposal / Request for
awareness and knowledge of a number of key
quotation (RFP/RFQ) process
components, including but not limited to:
d. Contracts
1. Master contracts • the infrastructure and systems of the
2. Purchase orders countries to which it will export goods
3. Templates, key sections • the regulations which govern each country
4. Best practices that its shipments will travel through
• the customs clearing and documentation
3. Fleet Management and Optimization
requirements for each shipment as
dictated by each country and
4. Rate tariffs
a. Manual vs. automatic transportation mode used
b. Standardize charges • an understanding of how it can reach
c. Rates per mode mutual agreement on the terms of sale,
d. Drivers methods of payment and finance terms
e. Contract types and rates trade participants; and

• the process of determining the currency to against some of these complex procedures.
be used for payment, transfer pricing and Navigating the various changing export
potential understanding of how restrictions and lists of restricted/denied
free/foreign trade zones (FTZ) influences parties requires a working knowledge of each
duties paid and total landed costs. country’s current regulations, quotas, control
Coordinating these international trade lists, and end use certificates.
elements is an essential skill set for
today’s logistics professionals. Knowledge and skills in this area include:
A. Infrastructure and System 1. International trade

a. Trade agreements
By identifying the macroenvironmental factors b. Trading blocs
of global logistics that impact countries and c. Trade compliance
organizations around the world, logistics
professionals can be better prepared to 2. International transportation
manage their array of service providers, regulations
related transportation costs and substitute a. Government policies and
product offerings. A variety of important regulations
international trade theories and practices, as b. International Air Transport
well as discussion of the relative quality and Association (IATA)
quantity of transportation infrastructures c. Anti-bribery and corruption
across modes and countries provide a solid practices
historical and geographic perspective of the
many components that impact global trade 3. Transportation safety
today. a. Labor safety regulations
b. Standards for equipment and
Knowledge and skills in this area include: vehicles
c. Dangerous goods and hazardous
1. Macroenvironmental factors materials
influencing international logistics d. Environmental
e. Security
2. International Infrastructure
a. Transportation 4. Methods of entry
b. Utilities a. Import/export regulations
c. International trade specialists b. Export restrictions
3. Performance management C. Customs Clearing and Documentation

a. Lead time considerations
b. Risk and exception management Today’s logistics managers must be
knowledgeable in preparing all the required
B. Regulations documentation needed by customs to ensure
that the customers’ shipments arrive safely,
Virtually every aspect of international trade is securely, without damage and on time at their
governed by regulations created by the final designation. Ease in using the
government of each country through which a Harmonized System Classification codes is
shipment will pass. With most international vital to properly specifying the goods for export
transactions, product shipments typically pass and each code assignment ultimately dictates
multiple borders, thus increasing the the tariff rate charged for those products.
complexity of required documentation, safety
and security measures and involvement of Knowledge and skills in this area include:
logistics and trade specialists. Trade
agreements and trading blocs can be used to 1. Invoices
facilitate international trade by mitigating a. Commercial invoice

b. Pro forma invoice Knowledge and skills in this area include:
c. Consular invoice
1. Terms of sale
2. Import documents (sales documents) a. Contract terms and conditions
a. Certificate of origin b. Incoterms®
b. Certificate of manufacture
c. Certificate of inspection 2. Methods of payment
d. Certificate of free sale a. Cash in advance
e. Import license b. Letter of credit
f. Certificate of insurance c. Bills of exchange
g. Carnet d. Open account
3. Export documents E. Currency and Tax Considerations

a. Shipper’s export declaration (SED)
b. Export license Similar to the selection of terms of sale and
financing, global trade participants must
4. International transportation decide which currency will be most
documents appropriate for payment, based on the
a. International bill of lading convertibility of the selected currency and the
b. Ocean bill of lading risk of fluctuation. As trade participants
c. Air waybill (AWB) individually strive for sustained profitability,
d. Road waybill this must be appropriately balanced with
e. Rail waybill levels of risk exposure between buyers and
f. ATR certificate sellers. Related options such as use of foreign
g. Packing list trade zones and transfer pricing can lessen or
mitigate these risks exposures.
5. Customs clearance Knowledge and skills in this area include:
a. Duty
b. Harmonized system of 1. Currency translation
classification
c. Valuation 2. Transfer pricing
d. Tariffs
e. Customs brokers 3. Free/foreign trade zones (FTZ)
D. Finance and Payment Options
References: 1; 2 (chapter 10); 3 (chapter 3);
Global trade can often associate with higher 4 (chapters 1, 7, 9, 10, 11, 12, 13); 5
levels of financial risks as a result of the many (chapters 1, 2, 3, 4, 6, 7, 8, 9, 11, 12, 13, 15,
unknown variables that can impact 16, 17, 20); 7 (chapters 13, 14)
international transactions. All parties must
evaluate their risk of exposure and identify VIII. Logistics Network Design
which financing and payment options are
The design of the network of warehouses and
most appropriate and amenable to the parties
involved. There must be agreement on all the transportation lanes enables an effective
terms of sale and the method and timeframe match of supply with the place and time of
of payment. Familiarity with International demand. This involves choosing the optimal
Commercial Terms, also known as number, location and type of warehouse
Incoterms®, is essential to clarifying and facilities, which can be supported by using
understanding how responsibilities are both manual and automated decision support
assigned between buyers and sellers in each tools. Risk management helps logistics
transaction. professionals determine how they can help

minimize uncertainty and provide more 3. Modeling approaches
reliable organizational results. a. Optimization
b. Simulation
A. Facilities Planning c. Heuristic
Several factors need to be weighed to
determine the proper location, number and C. Risk Management
type of warehouse facilities given the trade- Risk management is a vital part of network
offs with transportation. This requires a design and must be included in order to make
detailed analysis of transportation and the network resilient and resistant to
distribution requirements, while customer, financial, regulatory, security,
understanding the key trade-offs inherent in hazard, business interruption and other types
planning and deploying an optimized network. of vulnerabilities. It is important for logistics
Knowledge and skills in this area include: professionals to learn the risk management
process for identifying, prioritizing and
1. Transportation requirements appropriately responding to each risk. These
a. Business strategy plans can include prevention or mitigation
b. Analysis of transportation plans, as well as providing business continuity
requirements for customer if a risk event occurs. Logistics requires an
c. Trade-offs understanding of the types of insurance that
d. Inventory location and levels, can be acquired and the associated benefits
order size and frequency and limitations. The amount of insurance
obtained needs to be measured against risk
2. Facility location decisions levels to make sure that the investment in
a. Types of distribution networks insurance is appropriate for the business
b. Deployment situation.
considerations/factors
c. Location techniques Knowledge and skills in this area include:
3. Determining appropriate facility type 1. Types (customer, financial, regulatory)

a. Mode selection
B. Distribution Network Design b. Choosing your carrier
c. Warehouse strategy
Logistics professionals should follow a
d. Build redundancy
process to make the complex activities of
e. Weather/environmental
network design easier to navigate, including
f. Supplier failure
understanding the various factors to consider
g. Avoid unnecessary costs
when selecting a particular facility location.
h. Visibility
Distribution network design involves
employing modeling techniques, such as
2. Risk management process
heuristic, optimization and simulation tools
designed to help find the right balance among
3. Security
the competing needs of the multiple
a. International organizations
stakeholders involved in a modern logistics
b. Different country approaches
network.
Knowledge and skills in this area include: 4. Business continuity planning
1. Logistics network design process 5. Packaging options
2. Locational determinants – key factors 6. Insurance

a. National/regional
b. Site-specific

D. Performance Management Knowledge and skills in this area include:
1. Analytics 1. Key product factors
2. Benchmarking 2. Reverse logistics activities

a. Returns, recalls, overstocks
3. Cost/finance b. Reusable shipping assets
c. Reduce/reuse (refilling), repair,
4. Forecasting remanufacturing
d. Recycling, repurposing, recovery
References: 1; 2 (chapters 3, 11, 14); 3 e. Disposal (scrap, salvage)
(chapter 2, 11, 12); 4 (chapter 10); 5 (chapter
10, 15); 6 (Chapter 1, 9); 7(chapters 3, 4) 3. Reverse logistics process
a. Forward and reverse flow, closed-
IX. Sustainability and Reverse Logistics loop supply chains
b. Steps to product returns process
Companies around the globe use reverse
logistics to manage their product returns in 4. Optimizing reverse logistics
ways that actually turn the reverse flows into a. Reverse logistics costs; strategic
quantifiable value streams that not only view
contribute to the profitability of the b. Avoidance strategies
organization, but also strengthen its triple c. Key management elements
bottom line (TBL) and its commitment to d. Key technologies
sustainability and social responsibility. These e. Benefits
efforts make the organization more attractive f. Challenges
to customers, suppliers, other supply chain
participants and to shareholders who value B. Sustainability
green initiatives, reduced carbon footprints Logistics plays a critical role in demonstrating
and wiser usage of the world’s finite social responsibility that is valued by its
resources. customers, shareholders and the community.
It can impact each dimension of social
A. Reverse Logistics responsibility, safety, human rights, diversity,
Logistics is involved in deciding if the firm’s philanthropy and ethics by implementing
reverse logistics strategy can be handled specific tactics in its operations. With these
internally by creating a central returns center targeted efforts and sustainability initiatives,
logistics will impact the organization’s triple
or by hiring a third-party provider to coordinate
bottom line (TBL) which measures their
the activities. These activities may include economic, social and environmental impact.
recalls, overstocks, reuse, refilling, repairing,
remanufacturing, refurbishing, recycling, A commitment to sustainable processes and
repurposing, recovery and disposal. The firm practices and choosing suppliers and other
must carefully weigh the benefits and supply chain members according to those
challenges it will encounter for each of these requirements will help the organization be a
sub-processes and develop a comprehensive good environmental steward for the long-term.
strategy to master and manage its reverse Knowledge and skills in this area include:
flow processes and the value stream which
will contribute positively to the organization’s 1. Logistics social responsibility
bottom line. considerations
a. Dimensions
b. Triple Bottom Line (TBL) impacts

c. Frameworks, standards, and
guidelines
1. United Nations Global
Compact
2. Global Reporting Initiative
(GRI)
3. ISO Standards (ISO 14001,
ISO 50001)
4. Government regulations
2. Sustainability in the supply chain

a. Carbon footprints and offsets
b. Green initiatives
1. Products
2. Packaging
3. Warehousing design and
layout
4. Material handling
5. Transportation mode selection
and alternatives
6. Reducing fuel consumption,
alternative vehicle/fuel
technologies
c. Vendor selection
d. Pricing incentives
e. Other environmental impacts
1. Dangerous goods
2. Hazardous waste
f. Monitoring and measurement
References: 1; 2 (chapter 14); 3 (chapter 15);

4 (chapter 13); 5 (chapter 2); 6 (chapter 16);
7 (chapter 2)

Key Terminology distribution requirements planning (DRP)
An understanding of the following list of terms dunnage
is recommended. This list is intended to be
thorough but not exhaustive. The candidate is E
also expected to be familiar with the 80-20
definitions of terms identified in the content embargo
outline. Definitions of these terms can be enterprise resource planning
found in the APICS Dictionary, 16th edition.
F
A fill rate
Activity-based costing (ABC) freight rate
allocation
anti-bribery regulations G
asset recovery gatekeeping
automatic identification and data capture
(AIDC) H
available-to-promise (ATP) Harmonized Tariff Schedule (HTS)
B I
backorder inventory shrinkage
balanced scorecard
barge
bill of lading (uniform) L
break-bulk landed cost
broker lean six sigma
bullwhip effect letter of credit (L/C)
life cycle analysis
C line haul
cash-to-cash cycle time
center-of-gravity approach M
certified supplier master service agreement
closed-loop systems motor carrier
collaborative planning, forecasting, and multisourcing
replenishment (CPFR)
commodity rate N
container on flat car (COFC) non-vessel-operating common carrier (NVOCC)
container security initiative (CSI)
continuous replenishment O
cross-docking order fill rate
cross-docking warehouse order to cash cycle
cube rates
cube utilization P
customer service ratio pallet
Customs-Trade Partnership Against Terrorism Pareto analysis
(C-TPAT) perfect order
pick-to-light
D pick-to-voice system
demand forecasting postponement
demand planning private warehouse
demurrage public warehouse
detention

R
radio frequency identification (RFID)
rail gauge
reorder point (ROP)
routing guide
S
sales and operations planning (S&OP)
seasonality
short-sea shipping
slip sheet
sorting
square root rule
stock keeping unit (SKU)
stowability
T
terms of trade
total cost of ownership (TCO)
trailer on a flatcar (TOFC)
truckload (TL) carriers
twenty-foot equivalent unit (TEU)

Sample Questions 4. Which of the following metrics is
considered external thus customer-
facing?
The following ten questions are similar in
format and content to the questions on the
(A) Perfect order
CLTD exam. These questions are intended for
(B) Line fill
practice—that is, to enable you to become
(C) Inventory turns
familiar with the way the questions are asked.
(D) Cycle count
The degree of success you have in answering
these questions is not related to your potential
5. Inventory carrying costs generally
for success on the actual exam and should
include:
not be interpreted as such. Read each
question, select an answer and check your
(A) Inventory capital, storage, service,
responses with the explanations on pages 30-
and risk costs.
31.
(B) Inventory capital, order, storage, and
setup costs.
1. In its simplest form, logistics:
(C) Inventory risk, service, setup, and
order costs.
(A) is concerned with only the
(D) The fixed costs associated with a
distribution of products.
company-owned warehouse.
(B) is another term for transportation.
(C) integrates inbound logistics with
6. Pallet-flow racking is perfect for
outbound logistics.
facilitating:
(D) does not involve customer service.
(A) last in, first out (LIFO).
2. Warehouse management system (WMS)
(B) cycle counts.
based task interleaving combines:
(C) first in, first out (FIFO).
(D) low velocity moves.
(A) Put-away and replenishment
operations.
7. The standard gauge of most of the
(B) Replenishment and shipping
world’s rails will measure at:
operations.
(C) Shipping and put-away operations.
(A) 4 feet 6 inches.
(D) Receiving and shipping operations.
(B) 4 feet 8 inches.
(C) 5 feet 6 inches.
3. A logistics manager works within a
(D) 6 feet 4 inches.
business where transportation capacity
is near critical mass. Load planning is
8. A ship, which is able to carry 6,000
inefficient given the increasing volume
twenty-foot equivalent unit (TEUs), would
of loads. Which of the following
maximize its capacity by carrying which
applications would enable better
of the following containers?
decision making and efficiency in
planning loads?
(A) 3,000 20' containers
(B) 3,000 40' containers
(A) Advanced planning and scheduling
(APS) (C) 1,500 20' and 1,500 40' containers
(B) Distribution requirements planning (D) 3,000 20' and 3,000 40' containers
(DRP)
(C) Enterprise resources planning (ERP)
(D) Transportation management system
(TMS)

9. Which of the following functions are
associated with a supply-facing
warehouse?
(A) Manufacturing operations

(B) Consolidating shipments of finished
goods
(C) Marketing strategies
(D) Inbound materials and components
10. A marketing initiative increases

packaging dimensions for an existing
product that remains unchanged. While
the larger packaging may increase sales
of the product, the impact on
sustainability will be that:
(A) less packaging will be thrown out.

(B) transportation capacity will be
wasted.
(C) shipment density will increase.
(D) fewer shipments will be required.

Answers to Sample help organizations integrate information
and key business processes via a
Questions common software platform and
centralized database system.
Note: References to the content outline
appear in parentheses. 4. A (IIIA4) A is correct because customer
service can be looked at from an
1. C (IA1) C is correct because the internal or external key performance
combination of materials management indicator (KPI) perspective. B, C, and D
(inbound logistics) and outbound are internal metrics while external
logistics of physical distribution was a metrics include perfect order and order
natural progression of the post- fill rate performance. These external
deregulation development of logistics metrics are obvious to the customers
during the 1980s. A and B are and often directly influence customers’
incomplete perspectives of the system sales behavior since they impact
that defines logistics. D is incorrect customers’ perception of the
because customer service is one of the organization’s strategies.
key outputs of the logistics system.
5. A (IVB1) A is correct because inventory
2. A (IB4) A is correct because put-away and carrying costs generally include those
replenishment (picking) are typically costs that are only incurred by inventory
opposite operations in warehouses. Task at rest and waiting to be used, i.e., those
interleaving is a WMS-based task that costs associated with manufacturing
typically combines dissimilar tasks in and moving inventory from one point to
order to reduce traveling and increase another within the firm’s supply chain.
productivity. There are four components of inventory
carrying costs: capital costs, storage
3. D (IIB1) D is correct because the space cost, service costs, and risk costs.
planning capabilities of a transportation The fixed costs associated with a
management system (TMS) assists company-owned warehouse (option D)
transportation buyers and managers do not vary with volume of inventory
with key pre-shipment decisions. Critical manufactured/purchased. Setup costs
TMS planning applications include (options B and C) refer to the expense
routing and scheduling, load planning incurred each time an organization
and optimization, and appointment modifies production or assembly
scheduling. Advanced planning and processes.
scheduling (APS) is a system of
techniques that integrates demand, 6. C (VC) C is correct because pallet-flow
production, and distribution planning racks are driven by gravity, making them
during short, intermediate, and long- perfect for fast-moving products with a
term time periods. An APS system first in, first out (FIFO) stock rotation.
allocates raw materials and production Last in, first out (LIFO) would be
capacity optimally to balance demand incorrect since this is typically more
and plant capacity. Distribution feasible with a push-back racking
requirements planning (DRP) is used to system. The other 2 options of cycle
help determine the appropriate level of counts and low velocity moves are not
inventory in order to manage and control relevant options in this case.
replenishment schedules between an
7. B (VIB2) B is correct because 4 feet 8
organization’s manufacturing facilities
inches is the global standard gauge as
and its distribution centers. Enterprise
about 60% of the world uses this gauge.
resources planning (ERP) systems are
Answer A would be considered narrow
multi module application platforms that

gauge and answers C and D would be
considered broad gauge rail.
8. B (VIB4) B is correct since it equals

6,000 TEU’s which would maximize the
capacity of the ship. Answers A and C do
not maximize the capacity of the ship
while D would be over the capacity of
the ship.
9. D (VIIIA2) D is correct because supply-

facing warehouses are used for
incoming material and components into
the facility. Options A, B, and C are
wrong because they are all associated
with demand or outgoing facing
warehouses.
10. B (IXB2) B is correct because increasing

the package size only creates more
wasted space. Fewer products in a
shipment mean increased shipments
using more fuel. A is incorrect because
more packaging will be thrown out. C is
wrong because shipment density will
decrease, not increase. D is also wrong
because more shipments are needed
due to reduced density.

About APICS and ASCM
For more than 60 years, APICS certifications and training
have demonstrated a commitment to global supply chain
excellence – achieved one person at a time. APICS CPIM,
CSCP and CLTD are now part of the Association for
Supply Chain Management (ASCM), the largest non-profit
association for supply chain professionals. ASCM is proud
to offer the globally recognized certification programs
you’ve come to trust.

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VERSION 2.

8430 West Bryn Mawr Avenue, Suite 1000

©APICS CLTD Exam Content Manual 1

©APICS CLTD Exam Content Manual 2

©APICS CLTD Exam Content Manual 3

APICS Certified in APICS CLTD References

Content outline. The content outline provided

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• preserving the currency of hard-

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Bowersox, Donald J.,

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Sustainability and Reverse Logistics • Business acumen (qualitative skills,

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3. The value of logistics management

7. Risk management 1. Forecasting process

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1. Transportation capacity planning 1. Purchasing strategy

2. Warehousing considerations References: 1; 2 (chapters 5, 6, 7); 3

C. Demand Management At the core of the logistics process is the

2. Capacity planning CRM is an important marketing philosophy

4. Customer service management (CSM)

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3. Outbound order management 2. Inventory types

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B. Warehouse Processes, Layout and 5. Performance management (KPIs)

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2. Carrier negotiations and selection VII. Global Logistics

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A. Infrastructure and System 1. International trade

3. Performance management C. Customs Clearing and Documentation

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3. Export documents E. Currency and Tax Considerations

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3. Determining appropriate facility type 1. Types (customer, financial, regulatory)

1. Logistics network design process 5. Packaging options

2. Locational determinants – key factors 6. Insurance

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1. Analytics 1. Key product factors

2. Benchmarking 2. Reverse logistics activities

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2. Sustainability in the supply chain

References: 1; 2 (chapter 14); 3 (chapter 15);

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(A) Manufacturing operations

10. A marketing initiative increases

(A) less packaging will be thrown out.

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