Technical Supply Chain Competencies
The underlying Supply Chain competencies are skills, knowledge and characteristics that support the effective performance as Supply Chain professional. Given the global Supply Chain demands Supply Chain professionals should never stop developing new skills and enhancing existing ones. Here are 8 core Supply Chain competencies that Supply Chain professional need to master—and continually improve.
The ability to determine the production capacity required by a supplier or a company plant to meet forecasted customer demand. The capacity planner must be able to calculate the maximum amount of work that an organization is capable of manufacturing in a given period of time and adjust its utilization based on inputs from various processes, including Overall Equipment Effectiveness (OEE) and Sales Inventory & Operations Planning (SIOP).
Inventory Management & Optimization
The ability to ensure product availability through inventory administration activities such as demand planning, stock optimization, and monitoring the age of the product. Inventory levels are set to meet customer service requirements with a minimum amount of inventory.
The use of qualitative and quantitative methods to predict short-term incoming demand for use as an input into the Sales, Inventory, & Operations Planning (SIOP) process. This supply chain competency includes the use of analytical techniques and software to generate baseline statistical forecasts.
Master Production Scheduling
The knowledge and creation of an overall production plan over a specified time horizon which includes a list of part numbers, quantities, and due dates. The competency includes the evaluation of capacity, demand and material availability of the operation to ensure an effective supply and demand balance.
Materials Replenishment Planning
The knowledge of forecasting, demand planning, scheduling, and inventory management tools and concepts necessary to analyze optimal placement and velocity of materials required in the manufacturing and distribution process. This competency includes the ability to take the Master Production Schedule replenishment quantities and “explode” quantities through the bill of materials to create component requirements which are compared against on-hand and on-order. Purchasing or manufacturing orders are subsequently planned and either placed or deferred.
The knowledge and skills necessary to manage the receipt and scheduling of customer orders. Processes included in this competency include standard order receipt, exception identification, and exception resolution. Key to the success of this function are 1) the ability to work effectively with customers to clarify requirements and negotiate solutions when constraints exist, and 2) the ability to work effectively with other company functions to assess ability to meet customer needs and to develop work-around solutions when necessary.
Shop Floor Execution
The knowledge and skills necessary to effectively manage materials procedures in the order fulfillment process within a plant. Processes in this competency include receiving, put-a-way to stores, picking, Work In Progress (WIP), scrap and materials hold, production scheduling, back flush, and shipping transactions. The competency includes the knowledge and understanding of these processes as well as effective application.
Supply Chain Continuity Planning
The knowledge of the process that seeks to optimize Supply Chain strategy, processes, human resources, technology and knowledge. Supply Chain Continuity Planning controls, monitors and evaluates Supply Chain risk, which serves to safeguard against new uncertainties that may emerge affecting profitability.
Those are the 8 most indispensable Supply Chain competencies I believe. Each of them has definitely given my career a huge technical edge. I hope some of them are helpful for you too.
Which Supply Chain competency is your favorite of the above?