APICS SUPPLY CHAIN MANAGER

COMPETENCY MODEL

©2009 APICS The Association for Operations Management

Introduction
Supply chain managers are crucial to the global economy. They represent a unique discipline responsible
for supporting the global network of delivering products and services across the entire supply chain,
from raw materials to end customers. Specifically, supply chain managers engage in the design, planning,
execution, control, and supervision of supply chain activities with the objectives of creating net value,
building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand,
and measuring performance globally.

APICS The Association for Operations Management is the premier membership organization providing
education, certification, and career development opportunities to supply chain professionals worldwide.
The APICS Certified Supply Chain Professional (CSCP) Learning System and corresponding
certification gives professionals the knowledge and skills they need to be successful. Knowledge and skills
combined with work experience create the competencies required for individuals to excel in their careers
and distinguish themselves in their field. In recognition of this, APICS developed the Supply Chain
Manager Competency Model to guide individuals considering careers in supply chain management,
supply chain professionals seeking to advance their positions, and human resource managers who are
hiring in this fast-growing field.

About the Model

The structure of the APICS Supply Chain Manager Competency Model follows guidelines set by the
Employment and Training Administration of the United States Department of Labor. The model is
visually represented in a diagram for easy reference, as seen on the following page. The model is organized
into tiers of competencies and includes descriptions of the activities and behaviors associated with each
competency. The Competency Model Clearinghouse defines competency as “the capability to apply or use
a set of related knowledge, skills, and abilities required to successfully perform 'critical work functions' or
tasks in a defined work setting.” In many cases, the competencies outlined in this model are adapted from
the APICS Operations Management Body of Knowledge (OMBOK) Framework.

Acknowledgements
The APICS Supply Chain Manager Competency Model was a research project undertaken by the APICS
2009 Future Leaders. They were supported by the 2009 Body of Knowledge Committee, the 2009 Voice
of the Customer Committee, and staff in the Professional Development Division of APICS. In addition,
APICS leaders and staff used public domain information obtained from the Competency Model
Clearinghouse ([Link]) in the model’s creation.
APICS Corporate Office: 8430 West Bryn Mawr, Suite 1000, Chicago, IL 60631 USA
Phone 773-867-1778 Toll Free 800-444-2742 Fax 773-639-3008 [Link]

All rights reserved. No part of this publication covered by the copyright herein may be reproduced or copied in any
form or by any means – graphic, electronic, or mechanical, including photocopying, taping, or information storage and
retrieval systems – without written permission of the publisher.

©2009 APICS The Association for Operations Management

 Supply Chain Manager Specific requirements (Tier 7)
includes requirements such as certification, licensure, and specialized educational degrees, or physical
and training requirements for Supply Chain Managers.

Bachelors or Equivalent Degree Supply Chain Industry Association Membership Supply Chain-Specific Certification

Occupation-related

Supply Chain Manager Technical Competencies (Tier 6)
are specific to the role of Supply Chain Manager.

Locating Distribution Warehousing Logistics International Strategic Sourcing/ Management Management

Facilities Regulations Supplier Relationship Customer Applying Lean/Six
Relationship Sigma Tools

Supply Chain Manager Knowledge Areas (Tier 5)

are broad knowledge areas used as a basis for specifying more detailed knowledge areas required for work as a Supply Chain Manager.
Performance Warehouse Transportation Supply Chain
Risk Sustainability
Trade-offs Management Management Synchronization
Management

Profession-related
Operations Management Technical Competencies (Tier 4)
represent the knowledge, skills, and abilities needed by all occupations within operations management, including Supply Chain Manager.
Strategy Development Supply Chain Process Improvement/ Execution, Planning, Project Lean Management Enabling Technology
and Application Management Six Sigma Scheduling Control Management Application



Workplace and Leadership Competencies (Tier 3)
represent those skills and abilities that allow individuals to function in an organizational setting.
Problem Solving/ Teamwork Accountability/ Customer Focus Planning and Conflict Enabling
Decision Making Responsibility (Internal and External) Organizing Management Technology

Academic Competencies (Tier 2)

are primarily learned in an academic setting, and include cognitive functions and thinking styles.
Math, Statistics, Reading and Writing Applied Science Supply Chain Foundations of Fundamentals of Operations and
Analytical Thinking for Comprehension and Technology Fundamentals Business Management Technology Enterprise Economics

Foundational
Personal Effectiveness Competencies (Tier 1)
represent motives and traits as well as interpersonal and self-management styles and generally are applicable to a number of industries at a national level.
Awareness of the Integrity Continuous Learning Effective Communication Interpersonal Skills Creativity
Needs of Others

©2009 APICS The Association for Operations Management

©2009 APICS The Association for Operations Management
FOUNDATIONAL COMPETENCIES
Personal Effectiveness Effective Communication
• Express information to individuals or groups
Competencies (Tier 1) considering the audience and the nature of the
Personal Effectiveness competencies represent
information (e.g., technical or controversial);
motives and traits as well as interpersonal and self-
speak clearly and confidently; organize information
management styles, and generally are applicable
in a logical manner; speak using common English
to any number of industries.
conventions including proper grammar, tone and pace;
track audience responses and react appropriately to
Awareness of the Needs of Others
those responses; effectively use eye contact and non-
• Understand others' business needs and goals.
verbal expression.
• Have perspective into others’ points of view.
• Receive, attend to, interpret, understand, and respond
• Build rapport and credibility with colleagues.
to verbal messages and other cues; pick out important
• Anticipate others’ needs and respond to their
information in verbal messages; understand complex
concerns and problems.
instructions; appreciate feelings and concerns of
verbal messages.
Integrity
• Practice meaningful two-way communication by
• Demonstrate trustworthiness and professionalism
speaking clearly, paying close attention and seeking
in dealing with clients, peers, and team members.
to understand others, listening attentively and
• Respond in a consistent manner to situations that
clarifying information and attending to nonverbal
require honesty and candor.
cues and responding appropriately.
• Avoid conflicts between work and personal interests
• Influence others; persuasively present thoughts and
or activities.
ideas; gain commitment and ensure support for
proposed ideas.
Continuous Learning
• Demonstrate an interest in personal learning and
Interpersonal Skills
development; seek feedback from multiple sources
• Relate well to clients, colleagues, and team members.
about how to improve and develop; modify behavior
• Maintain a positive, supportive, and appreciative
based on feedback or self-analysis of past mistakes.
attitude.
• Take steps to develop and maintain knowledge,
• Actively listen to others and demonstrate an
skills, and expertise necessary to achieve positive
understanding of their point of view.
results; participate fully in relevant training programs
• Create an open environment that encourages people
and actively pursue other opportunities to develop
to work together to solve problems and improve
knowledge and skills.
practices and services.
• Anticipate changes in work demands and participate
• Explore and resolve conflicts as they arise.
in assignments or training that address these
• Communicate clearly to avoid misunderstanding.
changing demands; treat unexpected circumstances as
opportunities to learn.
Creativity
• Engage in personal career development by identifying
• Demonstrate intellectual curiosity about why things
occupational interests, strengths, options, and
are the way they are. Challenge the status quo.
opportunities; make insightful career planning
• Change, elaborate, adapt, and improve own ideas
decisions based on integration and consideration of
or those of others.
others’ feedback; seek out additional training to
• Demonstrate a bias towards action; materialize
pursue career goals.
thoughts into products or services.

©2009 APICS The Association for Operations Management

FOUNDATIONAL COMPETENCIES
Academic Competencies (Tier 2) materials, and components into a finished product that
Academic competencies are primarily learned in an is delivered to the end customer.
academic setting and include cognitive functions and • Recognize the ways that supply chains link value chains.
thinking styles.
Foundations of Business Management
Math, Statistics, and Analytical Thinking •U  nderstand all management activities carried out in
• Practice applied mathematics in collecting and the course of running an organization, including
interpreting quantitative data. controlling, leading, monitoring, adjusting, organizing,
• Demonstrate the ability to scrutinize and break down and planning.
facts and thoughts into their strengths and weaknesses. •A  nalyze financial statements and explain the implications
• Develop the capacity to think in a careful and of standard financial ratios and all components of the
discerning way, to solve problems, to analyze data, balance sheet and income statement.
and to recall and apply information. •C  reate interactive decision support models that
allow the development of multiple scenarios and
Reading and Writing for Comprehension demonstrate the sensitivity of outcome to multiple
• Understand what has been read; gather information independent variables.
from a text. • Calculate project and organizational cash flow forecasts;
• Demonstrate an understanding of material read by present value investment comparisons and risk-adjusted
forming opinions and sharing personal experiences. return calculations.
• Apply the strategies of self-questioning, retelling, writing, • Demonstrate knowledge of visual presentation
summarizing, predicting and verifying, story mapping, techniques including charting, histograms, and flow
role play, and responsiveness. sheets, as well as oral and written
presentation techniques.
Applied Science and Technology • Practice basic business communications.
• Demonstrate an understanding of the factors that • Understand fundamental organizational behavior.
are considered important to the branch of knowledge
or technology. Operations and Enterprise Economics
• Understand the use of technology and its interrelation • Understand the importance of and demonstrate the ability
with life, society, and the environment, drawing upon to take raw materials or knowledge and convert it into a
such subjects as industrial arts, engineering, applied product or service that has more value to the customer
science, and pure science. than the original material or data.
• Develop knowledge of specific tools and how they • Determine the success or failure rate of a business
affect a person’s ability to adapt to and control his using financial accounting, incorporating terms and
or her environment. techniques including: income; expense; cost of goods
• Demonstrate an ability to gain knowledge or sold; gross margin; balance sheet; return on assets;
understanding to meet a specific, recognized need. inventory turns; capital asset management; and
• Possess knowledge that is sufficiently general, clearly cash management.
conceptualized, carefully reasoned, systematically • Employ the technique of break-even analysis, which
organized, critically examined, and empirically tested finds the break-even point, the volume at which
with regard to the specific science or technology. revenues exceed total costs.
• Find the Best Operating Level (BOL), the level of capacity
Supply Chain Fundamentals for which a process was designed. This is the also volume
• Understand that supply and logistics is a system of output at which average unit cost is minimized.
of organizations, people, technology, activities, • Use cost accounting systems to keep track of all costs
information, and resources involved in moving a of building products, labor, material, overhead, and
product or service from supplier to customer. variances. These systems include activity-based costing
•P  ossess basic knowledge of supply chain activities, (ABC) and cost analysis and control.
including transformation of natural resources, raw ©2009 APICS The Association for Operations Management
FOUNDATIONAL COMPETENCIES
Workplace and Leadership • Understand that every department and every employee
should share the same customer-focused vision.
Competencies (Tier 3) • Practice good customer relations management and
Workplace competencies represent those skills and maintain a customer relations program.
abilities that allow individuals to function in an • Demonstrate ability able to balance the needs of the
organizational setting. organization and the needs of the customer.
Problem Solving and Decision Making Planning & Organizing
• Practice goal-directed thinking and action in situations • Effectively plan what is to be achieved and involve all
for which no routine solutions exist. relevant staff members.
• Understand a problem situation and its step-by-step • Anticipate important or critical events, identifying
transformation based on planning and reasoning. resource requirements and assigning responsibility
• Demonstrate ability in choosing between alternative for specific work, including deadlines and
courses of action using cognitive processes such as performance expectations.
memory, thinking, and evaluation. • Demonstrate the use of information-gathering
• Demonstrate ability to map processes of likely techniques, analyzing situations and identifying
consequences of decisions, to work out the importance implications in order to make correct decisions.
of individual factors, and to choose the best course • Demonstrate ability to monitor progress and to make
of action. changes as required.
• Ensure that staff is aware they will be accountable for
Teamwork achieving the desired results through planned program
• Demonstrate a commitment to the mission and evaluation and individual performance appraisal.
motivation to combine the team's energy and • Ensure that staff is provided with the necessary tools
expertise to achieve a common objective. to succeed.
• Understand the dynamics of effective teamwork in
order to attain higher levels of team performance. Conflict Management
• Demonstrate ability to work as part of a tight-knit • Demonstrate
 ability to manage conflict by identifying and
and competent group of people. handling conflicts in a sensible, fair, and efficient manner.
• Demonstrate skill in effective communicating, problem
Accountability and Responsibility solving, and negotiating with a focus on party interests.
• Demonstrate a willingness to accept responsibility
or and accountability for one’s actions. Enabling Technology
•E  xhibit a moral, legal, or mental accountability in areas •P  rovide a means to generate giant leaps in performance
for which one is responsible. and capabilities of the user using equipment and
• Understand that these two workplace competencies are methodology.
intertwined, and that both abilities must be present in • Possess knowledge of hardware and software
order to succeed. components which, when properly integrated,
enable a specific process to be realized.
Customer Focus (Internal & External) • Understand that all technology enables something.
• Understand this is an organizational orientation toward
satisfying the needs of potential and actual customers.
• Ensure that the whole organization, and not just
frontline service staff, puts its customers first.
• Ensure all activities, from the planning of a new
product to its production, marketing, and after-sales
care, are built around the customer.

©2009 APICS The Association for Operations Management

PROFESSION-RELATED COMPETENCIES
Operations Management Technical and carrying these through to the problems,
potential causes, and root causes of the problem.
Competencies (Tier 4) •H
 old gains in process improvements by establishing
Operations management technical competencies key performance measurements, benchmarking
represent the knowledge, skills and abilities needed metrics, and continuous process improvement
by all occupations within operations management, initiatives to improve process quality on continual basis.
including supply chain managers.

Strategy Development and Application Execution Planning, Scheduling, and Control

•A
 nswer the questions: “Where are we going?” and • Determine the need for material and capacity to
“How are we going to get there?”, and create a address expected demand, execute the resulting
specific and purposeful path when there are clear plans, and update planning and financial
answers to these two questions. information to reflect the results of execution.
•C
 reate a strategy based on the company’s core • Plan the management function by defining goals
values, mission, and your vision. for future organizational performance and decide
•D
 etermine core competencies, strategic challenges. on the tasks and resources needed to attain
•D
 evelop goals, objectives and specific strategies to those goals.
accomplish those goals. • Schedule a timetable of events and decide when
•C
 reate priorities once objectives are determined. and where certain events will occur.
•D
 eploy action plans throughout the organization. • Control and check errors, taking any corrective
•E
 stablish a process for aligning day-to-day action so that deviation from standards are
decisions to the strategic plan. minimized and the stated goals of the organization
are achieved in a desired manner.
Supply Chain Management
• Demonstrate ability to manage the network of Project Management
interconnected businesses involved in the ultimate • Understand the discipline of planning, organizing,
provision of product and service packages required and managing resources to bring about the
by end customers. successful completion of specific project goals
• Understand that supply chain management spans and objectives.
all movement and storage of raw materials, work- • Achieve project goals and objectives while honoring
in-process inventory, and finished goods from the project constraints, typically scope, time,
point-of-origin to point-of-consumption. and budget.
• Optimize the allocation and integration of inputs
Process Improvement/Six Sigma necessary to meet pre-defined objectives.
• Understand the systematic approach to closing • Define the set of activities that use resources,
of process or system performance gaps through such as money, people, materials, energy, space,
streamlining and cycle time reduction, and identify provisions, communication, and motivation, to
and eliminate causes of quality below specifications, achieve the project goals and objectives.
process variation, and non-value-adding activities.
• Maintain company processes that afford optimum
operation and enhance the company’s quality
management system.
• Demonstrate ability to visualize the total process
and aid in locating problem areas using process
mapping, quality improvement, and visualization
tools to locate, quantify, and correct root causes of
problems.
• Perform periodic evaluations to maintain processes
by gathering pertinent information, such as
©2009 APICS The Association for Operations Management
problem symptoms from knowledgeable sources
PROFESSION-RELATED COMPETENCIES
Lean Management
• Identify and reduce or eliminate waste in all areas Warehouse Management
of a supply chain. • Control the movement and storage of materials
• Calculate the total system cost of delivering a within a warehouse.
product or service to the customer. • Apply a total systems approach to designing and
•D  evelop systems that allow employees to produce managing the entire flow of information, materials,
perfect results by: and services – from raw materials, suppliers, through
 Educating suppliers to create value for customers factories and warehouses, and finally to the customer.
by streamlining processes in the value chain. • Monitor the movement of products through a
 Using suppliers whose methods and core warehouse.
competencies will align with lean requirements • Provide and transform inputs into products and
and developing long-term relationships with them. services, and link to the distribution network and
 Reducing or entirely eliminating the cost of local service providers that localize the product.
changing from one product or service to another.
Transportation Management
Enabling Technology Application • Manage transportation operations.
• Recognize that continuous process improvement • Maximize freight loads while minimizing freight costs.
is an accepted way of life in business and that few • Ensure efficient use of transportation resources while
companies lack a continuing quality or process meeting the needs of the customer.
improvement effort. • Integrate movement demands with vehicle resources.
• Implement improvement methods, such as business
process reengineering, Total Quality Management Supply Chain Synchronization
(TQM), Six Sigma, lean manufacturing, and • Balance supply with demand, considering both lead time
Theory of Constraints. and demand variability created by supply patterns not
• Understand that technology and process functionality matching demand patterns.
has an interconnected relationship and that each
• Effectively collaborate and communicate with supply
helps transform the other.
chain members.
• Initiate process improvements that are enabled
• I ntegrate activities across organizations on the supply
and supported by technology.
chain by ensuring information visibility in inventory
levels, anticipated productions, and material-in-transit.
Supply Chain Manager •M  itigate the bullwhip effect.
Knowledge Areas (Tier 5)
Supply chain manager knowledge areas are broad Risk Management
knowledge areas that can be used as a basis for •A
 ccurately identify risks affecting supply,
specifying more detailed knowledge areas required transformation, delivery, and customer demand.
for work as a supply chain manager. •D
 evelop strategies, for example dual sourcing,
buffering, forward buying, etc that minimize financial
Performance Trade-Offs impact uncertainties, such as yields, timing, pricing,
•D
 esign a responsive, agile and efficient supply chain that has and catastrophic events.
the ability to: •E
 ffectively analyze the probability, control, and impact
 Meet the changing and diverse needs of customers. of risks identified.
 Manufacture and deliver a broad range of high-quality
products and services in the shortest reliable lead times and
in varying volumes to provide enhanced value to customer.
 Deliver high-quality products with short lead times at
low cost.
©2009 APICS The Association for Operations Management
Profession-RELATED COMPETENCIES
Supply Chain Manager Technical that identify the row, rack section, level, and shelf
location, typically with an alphanumeric location bar
Competencies (Tier 6) code or label.
Supply chain manager technical competencies are specific • Place high-turn items closest to packing and shipping
to the role of supply chain manager. areas, which will reduce picking, put-away times, and
transportation within the warehouse.
Locating Facilities • Select random locations when travel distances are not an
• Apply qualitative techniques when quantifiable data important consideration and when overall utilization of
are not available or when measures for different criteria warehouse space is important.
relevant to the logistics decisions are used.
• Apply quantitative techniques when solving logistic Logistics
problems, such as the designing of routes and the • Obtain, produce, and distribute materials and products
scheduling of vehicles. in the proper places and in the proper quantities.
• Incorporate the transportation model to find the optimal • Apply logistics with the movement of personnel, as well
allocation of sources of supply, typically as the design and development, acquisition, storage,
plants, to meet demand at destinations in the network, movement, distribution, maintenance, evacuation, and
typically warehouses. disposition of material.
• Efficiently distribute products among suppliers, • Develop and implement a formal logistics strategy.
manufacturing facilities, distribution centers, warehouses,
and customers through a logistics network. International Regulations
• Reach optimal efficiency of all vehicle assets within a • Comply with international regulations in decision
network through a vehicle routing process. making in the distribution system, including customs
regulations on what is restricted from entering a country;
Distribution trade tariffs and duties on imported goods; security
• Move material, usually one organization's finished goods regulations, such as those contained in the 2007 SAFE
or service parts, from the manufacturer or distributor Ports Act; and trade agreements, such as NAFTA or those
downstream to the customer. of the European Union.
• Transfer goods and services from the raw materials • Ensure the competitiveness of a country or protect a
suppliers and producers to the end users or consumers. country’s distribution and manufacturing systems by
• Choose shipping methods, considering the trade-offs incorporating international regulations.
between costs and benefits. • Effectively bring material into a free trade zone (FTZ).
• Apply the cross-docking technique when • Consider import and export taxes, relative currency
bringing items into a distribution center for valuation and volatility, and special agreements between
immediate dispatch. cooperating countries when designing and operating a
• Divide truckloads of homogeneous items into supply chain.
smaller, more appropriate quantities for use by break-
bulk handling. Strategic Sourcing/Supplier Relationship
• Consolidate several items into larger units for fewer Management
handlings, for example placing items in boxes loaded • Effectively locate and source key materials suppliers,
and wrapped as a pallet by unitization packaging. while analyzing the total cost associated with procuring
an item or service.
Warehousing • Focus on developing and maintaining long-term relationships
• Receive, store, and ship materials to and from production with trading partners who can help the purchaser meet
or distribution locations by incorporating warehousing profitability and customer satisfaction goals.
activities. • Integrate automation of request for quote (RFQ), request
• Configure warehouses to have formal storage locations for proposal (RFP), electronic auctioning, business-to-
©2009 APICS The Association for Operations Management
Profession-RELATED COMPETENCIES
business commerce (B2B), and contract management
processes when using a strategic
sourcing approach.
• Establish methods of meeting customer satisfaction goals.

Customer Relationship Management

• Effectively collect and analyze sales and marketing
information to understand and support existing and
potential customer needs.
• Effectively link delivery and service with customer needs
in the design process.
• Incorporate contract management and administration
when holding suppliers and customers accountable for
meeting the work specified in a contract.
• Evaluate contract responsiveness, negotiate changes to a
contract, and ensure that contractors are compensated for
products or services provided.
• Measure customer satisfaction and develop loyal
customers by using performance metrics taken from
the customer’s perspective, with criteria such as on-time
delivery, perception of quality, percentage of complaints,
and length of wait times.

Applying Lean Tools/Six Sigma

• Establish improvement initiatives focused on the
reduction or elimination of waste in all areas of the
supply chain.
• Execute ways of eliminating unnecessary steps in product
design, as well as aligning suppliers’
processes with the delivery schedules required for
lean manufacturing.
• Demonstrate an understanding of unit acquisition cost
by examining the total cost of ownership (TCO).
•D  emonstrate the knowledge and experience to actively
participate in Lean teams using tools such as:
 Just-in-Time
 Kaizen events
 Kanban
 Value Stream Mapping
•D  emonstrate the knowledge and experience to actively
participate in Six Sigma teams to define, measure,
analyze, improve, and control processes (DMAIC).

©2009 APICS The Association for Operations Management

Occupation-RELATED COMPETENCIES
Supply Chain Manager Specific Certifications
• Once the professional is in the workplace, it is desirable
Requirements (Tier 7) to obtain a supply chain specific certification. While
Supply chain manager specific requirements such as
there are a number of supply chain certifications related
certification, licensure, and specialized educational
to specific industries, general certifications include:
degrees, or physical and training requirements for
 Certified Supply Chain Professional (CSCP)
supply chain managers.
– APICS The Association for Operations
Management
Post Secondary Education
 Certified in Production and Inventory
• The majority of supply chain management
Management (CPIM) – APICS The Association
professionals hold post secondary degrees – a
for Operations Management
Bachelor's or equivalent.
 Certified Professional in Supply Management
• While a number of supply chain professionals
(CPSM) – Institute of Supply Management
have degrees related to supply chain or operations
 SCOR/P – Supply Chain Council
management, the majority hold degrees in other fields
 Certification in Transportation and Logistics (CTL)
including, but not limited to, business, economics,
– American Society for Transportation
engineering, or liberal arts studies.
and Logistics
Association Membership
• Professional association membership ensures that the
supply chain professional is able to link into a network
of practitioners to share best practices, develop their
careers, and continue their professional education.
There are a number of supply chain associations related
to specific industries, including but not limited to:
 APICS The Association for Operations
Management (APICS)
 Institute of Supply Management (ISM)
 Supply Chain Council (SCC)
 Council of Supply Chain Management
Professionals (CSCMP)
 American Society for Transportation
and Logistics (ASTL)
 Warehousing Education and Research
Council (WERC)

©2009 APICS The Association for Operations Management

 APICS The Association for
Operations Management
APICS The Association for Operations Management is the global leader and premier
source of the body of knowledge in operations management, serving nearly 40,000
members globally. APICS education and certification programs are recognized worldwide
as the standard of professional competence in production and inventory management,
operations management, and supply chain management.
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