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Exam 2: Effective Supply Management Performance

2-B. Logistics

2-B-1

Design/modify logistics facility layouts and equip- ment designs to support business model, increase productivity and lower operating costs.

Knowledge of:

  • 1)

    Considerations for geographical location

    • A)

      Labor considerations

    • B)

      Transportation availability considerations

    • C)

      Governmental issues

1.0 Political 2.0 Tax considerations

    • D)

      Environmental considerations

    • E)

      Channel proximity/modality considerations

    • F)

      Average delivery time

    • G)

      Build-out vs. build-up

    • H)

      Two-dock vs. single-dock layout

    • I)

      Safety considerations

    • J)

      Security

    • K)

      Sanitation

    • L)

      Warehouse material handling systems

      • (e.

        g., facility consideration re: forklifts, pickers, etc.)

  • 2)

    Order picking vs. stock replenishing functions

  • 3)

    Labor intensive vs. mechanized

    • A)

      Automation

    • B)

      Picker to part vs. part to picker

  • 4)

    Virtual warehouse vs. real warehouse

  • 5)

    Logistics performance measures, strategies and cost savings initiatives

    • A)

      Cost-to-sales ratios

    • B)

      Logistics cost per unit vs. budget

    • C)

      Cost of functions as a percent of sales

  • D)

    Inventory turns (e.g., Sales/Inventory, CGS/Inventory)

    • 6)

      Third-party logistics considerations

    • 7)

      Scorecards

    • 8)

      Process improvement action plans

2-B-2

Direct traffic/distribution policies and procedures to ensure optimum flow of material and consolida- tion of freight.

Knowledge of:

  • 1)

    Policies and procedures

    • A)

      Transportation modalities

    • B)

      Transportation restrictions

    • C)

      Carrier cost auditing

    • D)

      Carrier performance auditing

    • E)

      Freight classifications/Rates

    • F)

      Available technology

    • G)

      Relocation or movement processes

2-B-3

Manage international transportation, invoicing and documentation functions to ensure corporate compliance with all governmental import, export, haz-mat and air freight regulations

Knowledge of:

  • 1)

    Characteristics of various modes of transportation

  • 2)

    Roles of shipping companies, customers, suppliers and freight forwarders

  • 3)

    Import/export documentation

  • 4)

    Traffic patterns

  • 5)

    Shipping routes

  • 6)

    INCOTERMS

  • 7)

    C-TPAT (Customs-Trade Partnerships Against Terrorism)

ISM CPSM Exam Specifications

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