ELA

Certification for Logistics Professionals

Performance Criteria (Standards 2
nd
Layer)
2 Supervisory/Operational Management Level (EJLog)

2.0 Basic Supply Chain Concepts











European Logistics Association
Standards 2
nd
Layer Version 110101
European Certification Board for Logistics 2011 1 Basic Supply Chain Concepts

2.0.1 Explain the scope and role of component activities within the supply chain
Understand the terms logistics management and supply chain
management
Understand and apply the basic logistics terminology
Understand the historical development [e.g. military, business/products,
services, changes and enlargement] and briefly explore how logistics has
developed over time
Identify logistics as the management of goods flows {and related information
and financial flows} within a system organised to achieve specific objectives
Identify supply chain management as working together across and between
businesses/business partners in a chain or network
Determine the component activities within logistics and the supply chain
2.0.2 Map a supply chain identifying component activities
Define the various parts of logistics management [e.g. incoming
materials/purchasing/supply logistics, production logistics, distribution
logistics/outgoing goods and reverse/return logistics]
Understand the differences in logistics management between industrial
companies, trading organisations, government agencies and the services
sector
Identify the types of goods flows
Identify the decisions taken in the various parts of a supply chain
2.0.3 Identify the source and characteristics of supply and demand
Understand the changes in consumption, production and distribution
patterns
Identify characteristics of supply and demand
Understand logistics in terms of matching the customer demand and the
supply side, integrating the own company, external suppliers and service
providers
2.0.4 Explain how supply chain management contributes to competitive advantage
Understand how logistics and supply chain management contributes to
competitive advantage
2.0.5 Identify how the supply chain activity contributes to sustainability
Understand the impact of logistics and supply chain management on
sustainability
Standards 2
nd
Layer Version 110101
European Certification Board for Logistics 2011 2 Basic Supply Chain Concepts

Understand the requirements for environmentally friendly design of products
and packaging materials, re-use and recycling
2.0.6 Explain how MTS, ATO, MTO and ETO configurations work
Understand and apply the concepts of customer order decoupling point [e.g.
Maketo-Stock = MTS, AssembletoOrder = ATO, Maketo-Order = MTO,
EngineertoOrder = ETO]
Understand the role of inventory
2.0.7 Determine the lead times within a supply chain
Understand and apply the difference between delivery time and
lead/throughput time/reaction time
Understand the principles of time-based competition [e.g. reducing lead
time/cycle time and delivery time; time compression]
Identify various categories of lead times [e.g. design, sourcing,
manufacturing, distribution, delivery, ordering]
Measure lead time
Identify the major factors impacting lead time
2.0.8 Assess the barriers that hinder supply chain flows
Understand that logistics decisions are made at various strategic, structural,
tactical, functional and operational levels [e.g. strategic = customer service
requirements, business objectives, logistics objectives; structural =
make/buy, number/location/size of facilities, modes of transport, degree of
automation; functional = site selection, inventory deployment, carrier
selection, roles and responsibilities; operational = operating policies, control
rules, procedures, scheduling, routing]
Understand the role of interfaces (technical and organisational) in supply
chain flows
Identify barriers in goods flows and information flows
Understand the role of transparency and trust in supply chain collaboration
Define appropriate action to improve supply chain flows in and between
organisations
2.0.9 Identify how changes in supply and demand impact cost to serve
Understand and apply the concept of customer service
2.0.10 Identify opportunities for trade-offs between supply chain activities
Understand the concept of quality/reliability and continuous improvement
Standards 2
nd
Layer Version 110101
European Certification Board for Logistics 2011 3 Basic Supply Chain Concepts

2.0.11 Identify the key roles for information and IT within the supply chain
Understand the role and benefits of IT within the supply chain
Identify the information needs within the supply chain
Identify logistics information systems and related software in logistics and
supply chain management [e.g. MRP-I, MRP-II, DRP, ERP, APS, TMS, WMS]
Understand how functional logistics information systems work together and
the requirements on interfaces [e.g. EDI]
Assess the use of information and communication technology [ICT] and their
impact on logistics performance
Understand chances and challenges related to the application of RFID
technology in the supply chain
Standards 2
nd
Layer Version 110101
European Certification Board for Logistics 2011 1 Basic Supply Chain Concepts