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“Supply chains are under stress,” said Thomas Saueressig, member of the SAP executive board and head of its Product Engineering division, at the recent Hanover Fair. The past few years have shown how prone to failure global logistics chains are, and he added this also has far-reaching consequences for the German manufacturing industry. Digital supply chains, therefore, are needed to be more agile, flexible, resilient, and sustainable. “While companies are aware they need to invest in Industry 4.0 and AI to make their supply chain more resilient, many are still in the pilot phase,” Saueressig said, citing discussions with CEOs and results of a study by Oxford Economics.

Earlier this year, analysts asked nearly 1,000 people around the world in management from 15 industries about the digitization of their supply chains. As a result, managers in manufacturing were more inclined than those in other industries to introduce intelligent technologies on a large scale in order to make better predictions. However, only 36% of the companies surveyed would already use forward-looking analyses in one area of ​​their company.

SAP builds AI into its supply-chain solutions

At the fair, SAP announced it would further expand its logistics chain solutions. SAP Digital Manufacturing, for instance, will be expanded with additional AI tools, which, according to a statement, will allow users to gain AI-supported insights and visual inspections in production to ensure that defective parts are discovered early in the production process and appropriate measures are taken quickly, thus reducing the reject rate and producing higher quality products. The number of complaints would also fall as a result, and the condition and maintenance of systems would be optimized, the provider said.

One of the first adopters of AI-enhanced SAP Digital Manufacturing is Smart Press Shop, a joint venture between Porsche and press manufacturer Schuler. Founded in 2019, the company seized its greenfield opportunity to rethink and redesign the press shop as part of a cloud-first development strategy. Hendrik Rothe, the company’s CEO, spoke of completely paperless production and a fully automated process to configure machines in the production line to cut set-up times nearly in half.

The dark factory dream

According to Rothe, there are many advantages to the digitalization of manufacturing based on the principles of Industry 4.0. In addition to self-optimizing production, continuous traceability, and resource-saving production, smaller batch sizes can also be produced economically. This is an important factor, especially in the automotive industry in the switch to electric vehicles because the quantities are smaller.

Rothe dreams of fully automated dark factories, but there’s still a way to go before those become a reality. According to him, operations are currently at 30 to 40% automation, although the potential varies greatly from area to area. While production itself is fully automated—order-controlled from the SAP system—things are different in the warehouse, as manual processes with forklift drivers continue to work more profitably. “Every automation has to pay off,” says Rothe, and automating transport processes in the warehouse is currently not economical.

Also, while the Smart Press Shop can already carry out its production processes completely paperless, many customers still need paper documents in order to process supplied pressed parts.

Open-data space for manufacturing

Initiatives are currently underway to eliminate fractures in the digital supply chains, and SAP wants to have a say in this. “SAP is in charge of many initiatives in the industry,” says Saueressig, specifically naming two examples. Catena-X, an ecosystem and open-data space, is currently being established in the automotive industry and Saueressig expects the first concrete applications in the current year. And Manufacturing-X is a comparable open-data ecosystem, which will be created in the manufacturing industry.

Around its digital manufacturing, SAP has also expanded other solutions with additional functions. For example, the 3D Product Viewer functions of the SAP Enterprise Product Development solution are now integrated to make all processes, from design and production to service and maintenance, more resilient. So employees in production could display 3D product models in their digital manufacturing dashboard and their work environment, thereby optimizing complex assembly processes. In the SAP Service and Asset mobile application manager, with the help of 3D augmented reality views, field service technicians can carry out maintenance on systems more efficiently to reduce downtimes, SAP says.

Better metrics for sustainable manufacturing

In order to operate their own supply chains more sustainably, users could, in the future, integrate company-specific guidelines for sustainable packaging into the SAP Responsible Design and Production solution. Customers would then have the opportunity to control and monitor the design of packaging more precisely to avoid waste.  

Plus, SAP announced it would expand its integration with EcoVadis, a provider of corporate sustainability ratings. As a result, suppliers could receive more precise sustainability indicators and make their rating status visible in the SAP Business Network. SAP assures its customers this will help buyers see how they can better comply with ​​due diligence and report against the background of new ESG laws. New suppliers can then be selected on the basis of key figures in such a way that sustainability goals in their own business, including the associated value chain, are met.

Digital Transformation, Events, Manufacturing Industry, SAP, Supply Chain Management Software, Vendors and Providers

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Taiwan’s semiconductor factories, the source of many of the chips used in the world’s PCs, servers, and mobile phones, operate under a constant threat of disruption.

The threats are both geological (earthquakes frequently force high-tech plants to shut down despite them being built to withstand seismic shocks) and geopolitical: China considers Taiwan to be part of its territory and has repeatedly said it aspires to the “complete reunification of the motherland.” It regularly illustrates its seriousness about reunification by holding military exercises in the seas around Taiwan, including a mock blockade and land bombardment earlier this month.

The US doesn’t have official diplomatic ties with Taiwan, but its Taiwan Relations Act requires it to provide the island with the means of self-defense. The day after China’s exercises concluded, the US began a series of joint military exercises with the Philippines. The drills, running through April 28, include a live-fire attack on a ship and maneuvers in the South China Sea opposite Taiwan.

Against this backdrop of preparation for conflict, a new study by the Center for European Policy Analysis (CEPA) highlights how the world’s reliance on Taiwan’s semiconductor manufacturing capabilities exposes it to critical supply-chain vulnerabilities.

In “Confronting China and Catching Up on Chips,” the Washington, DC, think tank notes that, while the US may be the source of many of the most advanced chip designs, the bulk of the manufacturing happens in Taiwan.

“A Chinese naval blockade of the island, or an outright invasion, would immediately cut off supply of nearly all current production SoCs (systems on chips) designed by the likes of Qualcomm, Broadcom, and Nvidia and supplied by them to Apple, Samsung, Dell, HP, etc.,” the study says. 

Taiwan inside

Even US chip firm Intel could be affected. It’s a rarity among the big semiconductor brands in that it has its own fabs, as chip factories are called, to make the chips it designs—but it also outsources some of its most advanced production jobs to fabs in Taiwan.

South Korea’s Samsung, too, has its own fabs, although the Exynos chips it makes for mobile phones use designs from Arm, but AMD sold its fabs a decade ago and AMD, Nvidia, and Qualcomm have no fabs of their own. Instead, they rely on contract manufacturers known as foundries to make their chips.

The largest foundry is Taiwan Semiconductor Manufacturing Co. (TSMC), which had a 58.5% share of the contract manufacturing market at the end of 2022, according to data from TrendForce. Samsung, too, does contract manufacturing, and has a 15.8% share of the market. Intel’s fledgling foundry business, launched in 2021, has barely a 1% share.

Overall, TrendForce credited Taiwan with 66.9% of the world’s chip foundry business at the end of 2022, with South Korea at 16.7% and China at 7.3%.

But at the top end of the market, Taiwan wields even greater influence: According to the CEPA report, it makes over 90% of the world’s most advanced microchips, those made with a highly sophisticated process technology of less than 10 nanometers.

Network analysis

CIOs need to work closely with chief supply-chain officers to understand their risk exposure in the Asia-Pacific region, says Koray Köse, Gartner’s senior director analyst for supply chain research.

If your organization doesn’t yet have the necessary analytical tools, now is an excellent time to talk CEOs and CFOs into increasing investment in supply-chain risk management, he says.

Those tools will help organizations understand whether they or their network of suppliers are reliant on raw materials, production capacity, or shipping routes in any potential conflict region.

Start with your own organization and Tier 1 partners, and then, says Köse, “Determine the critical lower tiers’ vulnerabilities as effectively as possible using both supplier relations and technologies, like graph technology to uncover key chokepoints.”

Chain reaction

A lack of supply-chain visibility hampered organizational responses to disruptions caused by the COVID-19 lockdowns in March 2020, as well as the blockage of the Suez Canal when the container ship Ever Given ran aground in March 2021.

The Suez incident highlighted the importance of knowing where the goods you rely on originally come from, and how they reach you. Each year around $1 trillion in freight passes through the Suez Canal, but the Taiwan Strait, between mainland China and Taiwan, is the most important transportation route globally, says Köse, with over $5.3 trillion in freight passing through it annually.

Gartner’s 2021 Supply Chain Risk and Resilience Survey found that 70% of enterprises (and 83% of those with revenue above $1 billion) listed improving visibility among their top three priorities to manage risk in the supply chain. Barely half of companies had 90% visibility of even their Tier 1 suppliers; for Tier 2 and beyond, fewer than 4% of companies had such visibility.

Looking beyond visibility

Gaining visibility as far up the supply chain as possible is a key first step, says Köse, but it’s not the only action CIOs should take.

Committing to key suppliers to secure needed volume can help, but he warns against irrational buying. “While safety stock could be nice to have, it’s largely wishful thinking when it comes to the semiconductor space,” and could needlessly tie up critical capital, he says.

And Christopher Cytera, author of the CEPA report that highlighted the geopolitical risks to the semiconductor supply chain, says, “I do not think hoarding is the answer.”

If you do buy up stocks, adds Köse, then it’s important to keep them close to where you want to use them: “Goods bought but left in the region may still be exposed to logistics bottlenecks.”

He says CIOs should consider diversifying their suppliers to different geographic regions, but acknowledges this can be challenging when it comes to semiconductors since many products IT departments rely on contain chips that started their life in Taiwan.

None of these tactics will eliminate supply-chain risk, though, Köse says. Ultimately, it’s about incrementally increasing the time you can keep things running and finding alternatives to concentrated sources of risk.

CIO, ICT Partners, Supply Chain

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During the pandemic, nut lovers were alarmed to see shelves in their favorite part of the supermarket empty–and devoid of the roasted delicacies they craved.

Now, we finally understand why.

In addition to the usual threats–droughts, wildfires, and weather–California almond growers had to contend with wild fluctuations in supply and demand while transportation resources became limited, unreliable, and expensive.

This was challenging news for Sacramento-based Blue Diamond Growers, the world’s largest almond processing and marketing cooperative.

The state “provides 80% of the world’s (almond) supply,” Aubrey Bettencourt, President and CEO of the California Almond Alliance, explained to KCBS Radio. “Part of that is dependent on our ability to transport it around world. The inability to move that product, that is sold but cannot be delivered, means a cash-filled crisis, because we get paid once the product is delivered.”

Out of their tree

This was compounded by the fact that Blue Diamond’s processes, systems, and documents used for managing the cooperative’s $300-million supply chain and logistics functions were limited by a number of manual processes. With workers dependent on a disjointed network, the conditions created by the pandemic made it all but impossible to consistently satisfy demand.

While customers worried about the uncertainty of orders being filled, customer service representatives were required to navigate through 10 different systems and data sources for answers. At times, it took days for customers to receive a reply.

During this period, lead time for securing freight increased from three weeks to five months, while the early stage of planning new promotions stretched from two months to five.

The chaotic environment also hampered the ability of the cooperative to create a 12-month demand and supply plan for the fiscal year. With so many disparate documents and systems, consolidating, validating, and analyzing the data and metrics was time consuming, leaving limited opportunities to run scenarios and simulations.

The circumstances accelerated the need for Blue Diamond to move to a completely digitized supply chain–and there was little time to lose.

Kernel of hope

Originally founded as the California Almond Grower’s Exchange in 1910, Blue Diamond now represents approximately 3,000 growers and ships to nearly 75 countries. The organization’s efforts are largely responsible for California’s almond crop being the state’s largest food export.

“Almonds are all we do,” the cooperative boasts.

Indeed, the organization’s catalog includes everything from wasabi and soy sauce almonds to low-sodium treats to almond milk.

Yet, to maximize returns for each grower, Blue Diamond must regularly develop new products while operating with efficiency, scenarios the old supply chain system did not particularly enhance.

Since 2014, though, Blue Diamond had been working with enterprise resource planning (ERP) software leader SAP. Now, the cooperative turned to the German multinational to utilize its transportation management, logistics, business planning, analytics cloud, and other capabilities to build a world-class supply chain solution.

Planting the seed

Deployment occurred in phases over 2021 and 2022, building off the SAP and ERP ecosystem foundations.

The enhanced supply chain visibility and planning tools helped eliminate shortages due to supply and freight issues, while the organization now had a single source for responding to customer inquiries.

The new system allows planners and support representatives to comprehensively plan ahead to meet demand, relieve supply gaps, and identify transportation gridlock.

Indeed, supply planning, which used to take place once a month, can be done weekly or even daily.

Meanwhile, the number of related systems supported by the IT team declined from five to one.

Rather than being assigned low-level Excel tasks, planning employees have been endowed with new responsibilities, redefining themselves as product managers and experts.

With a more comprehensive management view across the business, Blue Diamond has been able to meet the industry standard of keeping two months of inventory on hand at a particular time. This is a 20% reduction from the prior method of stocking 75 days of product.

Another noticeable change: scenario planning can be concluded in 20 minutes, down from the previous six hours.

An incredible $1 million has been saved in logistics costs, and order fill rates increased to 99%–10% more than the industry average. Forecast accuracy has improved by almost 10%, as well.

“We have created a solid foundation for an intelligent, data-driven cooperative that provides the best value for our growers,” observed Steve Birgfeld, the cooperative’s Vice President of Information Technology and Services.

The development of a state-of-art supply chain earned Blue Diamond Growers the distinction as a finalist at the 2023 SAP Innovation Awards, a yearly ceremony honoring organizations using SAP products to craft meaningful change.

The solution provides a roadmap to improve production planning, scheduling, plant maintenance, sustainability, and other critical areas as part of an overall movement of “resilience disruption.” You can read how Blue Diamond accomplished this in their Innovation Awards pitch deck.

Enterprise Applications, SaaS

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Over the last seven decades, global carbon emissions have increased almost eightfold. Meanwhile, since 1980, the planet’s average temperature has risen significantly, with nine out of 10 warmest years on record having been in the last nine years. For sustainable development, it is now widely agreed that we must achieve a shared global goal of cutting carbon emissions by 45% in the next 20 years from 2010 levels.   

The good news is that businesses have started responding actively. More than 100 companies worldwide have pledged 100% use of renewables. Food companies have set a goal to reverse forest loss and land degradation by 2030. And more than 30 financial institutions with global assets worth $8.7 trillion have pledged to avoid investing in any business that can be held responsible for deforestation.  

Making such a pledge is one thing—finding ways to measure, track, and implement it is entirely another. Pledges like the ones above, for instance, mean tracking data on the deforestation impact of ingredients such as soya, palm, cocoa, and coffee, which many consumer goods and retail businesses use in their food and personal care products.  

To evaluate how effectively enterprises are managing their sustainability imperatives, TCS and Microsoft worked together to research and analyze publicly available data. We found that irrespective of size and revenue, enterprises are becoming increasingly conscious of sustainability. However, they are struggling to measure the true value of decarbonization efforts in their supply chains. By improving the quality of global supply chain data, enterprises can better measure their true carbon footprint—and ultimately help find the missing link to a net-zero business ecosystem.   

Read the white paper.  

Green IT, Retail Industry, Supply Chain

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Ensuring strong software security and integrity has never been more important because software drives the modern digital business. High-profile vulnerabilities discovered over the past few years, with the potential to lead to attacks against organizations using the software, have hammered home the need to be vigilant about vulnerability management.

Perhaps the most dramatic recent example was the zero-day vulnerability discovered in Apache’s popular open-source Log4j logging service. The logging utility is used by millions of Java applications, and the underlying flaw—called Log4Shell—can be exploited relatively easily to enable remote code execution on a compromised machine. The impact of the vulnerability was felt worldwide, and security teams had to scramble to find and mitigate the issue.

In November 2022, open-source toolkit developers announced two high-severity vulnerabilities that affect all versions of OpenSSL 3.0.0 up to 3.0.6. OpenSSL is a toolkit supporting secure communications in web servers and applications. As such, it’s a key component of the Transport Layer Security (TLS) protocol, which ensures that data sent over the internet is secure.

SBOMs as a solution

One of the most effective tools for finding and addressing such vulnerabilities and keeping software secure is the software bill of materials (SBOM). SBOMs are formal, machine-readable records that contain the details and supply chain relationships and licenses of all the different components used to create a particular software product. They are designed to be shared across organizations to provide transparency of the software components provided by different players in the supply chain.

Many software providers build their applications by relying on open-source and commercial software components. An SBOM enumerates these components, creating a “recipe” for how the software was created.

For example, something like the OpenSSL toolkit includes dependencies that are difficult or, in many cases, impossible for traditional vulnerability scanners to uncover. It requires a multilayered approach to help security teams identify third-party libraries associated with a software package. This is where an SBOM can help.

The U.S. Department of Commerce has stated that SBOMs provide those who produce, purchase, and operate the software with information that enhances their understanding of the supply chain. This enables multiple benefits, most notably the potential to track known newly emerged vulnerabilities and risks.

These records form a foundational data layer on which further security tools, practices, and assurances can be built, the Commerce Department says, and serve as the foundation for an evolving approach to software transparency.

A 2022 report by the Linux Foundation Research, based on a survey of 412 organizations from around the world, showed that 90% of the organizations had started their SBOM journey.

More than half of the survey participants said their organizations are addressing SBOMs in a few, some, or many areas of their business, and 23% said they are addressing them across nearly all areas of their business or have standard practices that include the use of SBOMs. Overall, 76% of organizations had a degree of SBOM readiness at the time of the survey.

The research showed that the use of open-source software is widespread and that software security is a top organizational priority. Given the worldwide efforts to address software security, SBOMs have emerged as a key enabler, it said. Growth of SBOM production or consumption was expected to accelerate by about 66% during 2022, leading to SBOM production or consumption use by 78% of organizations.

The top-three benefits of producing SBOMs identified by survey participants were that SBOMs made it easier for developers to understand dependencies across components in an application, monitor components for vulnerabilities, and manage license compliance.

Key features to consider

SBOMs are a key to quickly finding and fixing vulnerabilities before it’s too late. That’s because they dig deep into the various dependencies among software components, examining the compressed files with applications to effectively manage risk. It might take a software vendor days or weeks to confirm with its developers whether its products are affected or not. That’s too long a window of opportunity in which cybercriminals can exploit vulnerabilities.

With SBOMs, security teams can know exactly where an affected component is being used across applications in use within their organizations.

It’s important for organizations to understand that not all SBOM offerings from vendors are alike. An ideal solution delivers critical, real-time visibility into an organization’s software environments, enabling them to make better-informed decisions to manage risk.

SBOMs should be able to answer questions such as:

Exactly where is a particular software package located?Which open-source dependencies, if any, does an application use?Which version of the software package is running?Do any other applications use the software package?

A key capability includes having the ability to understand every software component at runtime, uncover software packages and break them apart to examine all constituent components without the need to engage the software vendor.

SBOMs should also be able to address any vulnerabilities or misconfigurations found in the various software components; take quick action to mitigate supply chain risk, even removing applications completely across affected endpoints; and optimize an organization’s investments in third-party tools by populating them with granular, accurate and real-time SBOM data.

The takeaway 

Digital businesses today rely on software to support all kinds of processes. In fact, it’s difficult to imagine any company operating without applications. Keeping software secure and reliable is essential for success today.

With solutions such as SBOMs, security teams at organizations can be confident that they have a good handle on all the complexities inherent in the software world, and that they are keeping up on any flaws that need to be addressed to keep applications secure.

Learn how Tanium’s Converged Endpoint Management (XEM) platform can address SBOMs to give your organization real-time visibility—even in the most complex software environments.

Security

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Efficient supply chain operations are increasingly vital to business success, and for many enterprise, IT is the answer.

With over 2,000 suppliers and 35,000 components, Kanpur-based Lohia Group was facing challenges in managing its vendors and streamlining its supply chain. The capital goods company, which has been in textiles and flexible packaging for more than three decades, is a major supplier of end-to-end machinery for flexible woven (polypropylene and high-density polyethylene) packaging industry.

“In the absence of an integrated system, there was no control on vendor supply, which led to an increased and unbalanced inventory,” says Jagdip Kumar, CIO of Lohia. “There was also a mismatch between availability of stock and customer deliveries. At the warehouse level, we had no visibility with respect to what inventory we had and where it was located.”

Those issues were compounded by the fact that the lead time for certain components required to fulfill customer orders ranges from four to eight months. With such long component delivery cycles, client requirements often change. “The customer would want a different model of the machine, which required different components. As we used Excel and email, we were unable to quickly make course correction,” Kumar says. 

Jagdip Kumar, CIO, Lohia Corp

istock

Moreover, roughly 35% of the components involved in each customer order are customized based on the customer’s specific requirements. Long lead times and a lack of visibility at the supplier’s end meant procurement planning for these components was challenging, he says, adding that, in the absence of any ability to forecast demand, Lohia was often saddled with disbalanced (either extra or less) inventory.

The solution? Better IT.

Managing suppliers to enhance efficiency and customer experience

To manage its inventory and create a win-win situation for the company and its suppliers, Kumar opted to implement a vendor management solution.

“The solution was conceptualized with the goal of removing the manual effort required during the procurement process by automating most of the tasks of the company and the supplier while providing the updates that the former needed,” says Kumar.

“We roped in KPMG to develop the vendor portal for us on this SAP platform, which is developed on SAP BTP (Business Technology Platform), a business-centric, open, and unified platform for the entire SAP ecosystem,” he says.

The application was developed using SAP FIORI/UI5, while the backend was developed using SAP O-Data/ABAP services. The cloud-based front end is integrated with Lohia’s ERP system, thereby providing all relevant information in real-time. It took four months to implement the solution, which went live in September 2021.

With the new deployment, the company now knows the changes happening in real-time, be it the non-availability of material or a customer not making the payment or wanting to delay delivery of their ordered machine. “All these changes now get communicated to the vendors who prepone or postpone accordingly. Armed with complete visibility, we were able to reduce our inventory by 10%, which resulted in cost savings of around ₹ 200 million,” says Kumar.

The vendor portal has also automated several tasks such as schedule generation and gate entry, which have led to increases in productivity and efficiency.

“The schedules are now automatically generated through MRP [material requirement planning] giving visibility to our suppliers for the next three to four months, which helps them to plan their raw material requirements in advance and provide us timely material,” Kumar says. The result is a material shortage reduction of 15% and a 1.5X increase in productivity. “It has also helped us to give more firm commitments to our customers and our customers delivery has improved significantly, increasing customer trust,” he says.

“Earlier there was always a crowd at the gate as the entry of each truck took 10-15 minutes. The new solution automatically picks up the consignment details when the vendor ships it. At the gate, only the barcode is scanned, and truck entry is allowed entry. With 100 trucks coming in every day, we now save 200-300 minutes of precious time daily,” he says.

Kumar’s in-house development team worked in tandem with KPMG to build custom capabilities on the platform, such as automatic scheduling and FIFO (first in, first out) inventory valuation.

To ensure suppliers would adopt the solution, Lohia deployed its own team at each vendors’ premises for two to three days to teach them how to use the portal.

“We showcased the benefits that they could gain over the next two to three months by using the solution,” Kumar says. “We have been able to onboard 200 suppliers, who provide 80% of the components, on this portal. We may touch 90-95% by the end of this year.”

Streamlining warehouse operations to enhance productivity

At the company’s central warehouse in Kanpur, Kumar faced traceability issues related to its spare parts business. Also, stock was spread across multiple locations and most processes were manual, leading to inefficient and inaccurate spare parts dispatches.

“There were instances when a customer asked for 100 parts, and we supplied only 90 parts. There were also cases wherein a customer had asked for two different parts in different quantities, and we dispatched the entire quantity comprising only one part,” says Kumar. “Then there was the issue of preference. As we take all the payment upfront from our customers, our preference is to supply the spare part on a ‘first come first serve’ basis. However, there could be another customer whose factory was down because he was awaiting a part. We could not prioritize that customer’s delivery over others.”

That the contract workers were not literate, and the company had too much dependency on their experience was another bottleneck.

To overcome these problems, and to integrate its supply chain logistics with its warehouse and distribution processes, Lohia partnered with KPMG to deploy SAP EWM application on the cloud.

“We decided to optimize the warehouse processes with the usage of barcode, QR code, and wifi-enabled RF-based devices. There was also a need to synchronize warehouse activities through the integration of warehouse processes with tracking and traceability functions,” says Kumar. The implementation commenced on 01st April 2022, and it went live on 01st August 2022.

To achieve traceability, Kumar barcoded Lohia’s entire stock. “We now get a list from the system on the dispatchable order and its sequence. Earlier there was a lot of time wastage, as we didn’t know which part was kept in which portion of the warehouse. Employees no longer take the zig-zag path as the new solution provides the complete path and the sequence in which they must go and pick up the material,” Kumar says.

Kumar also implemented aATP (Advanced Available-to-Promise), which provides a response to order fulfilment inquiries in Sales and Production Planning. This feature within the EWM solution provides a check based on the present stock situation and any planned or anticipated stock receipts.

“The outcome was as per the expectations. There was improved inventory visibility across the warehouse as well as in-transit stock. The EWM dashboard helped warehouse supervisor to have controls on inbound, outbound, stocks overview, resource management, and physical inventory,” says Kumar.

“Earlier one person used to complete only 30 to 32 parts in a day but after this implementation, the same person dispatches 47 to 48 parts in a day, which is a significant jump of 50% in productivity. The entire process has become 100% accurate with no wrong supply. If there is short supply, it is known to us in advance. There is also a 25% reduction in overall turnaround time in inbound and outbound processes,” he adds.

Supply Chain Management Software

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Supply chain disruptions have impacted businesses across all industries this year. To help ease the transport portion of that equation, Danish shipping giant Maersk is undertaking a transformation that provides a prime example of the power of computing at the edge.

Gavin Laybourne, global CIO of Maersk’s APM Terminals business, is embracing cutting-edge technologies to accelerate and fortify the global supply chain, working with technology giants to implement edge computing, private 5G networks, and thousands of IoT devices at its terminals to elevate the efficiency, quality, and visibility of the container ships Maersk uses to transport cargo across the oceans.

Laybourne, who is based in The Hague, Netherlands, oversees 67 terminals, which collectively handle roughly 15 million containers shipped from thousands of ports. He joined Maersk three years ago from the oil and gas industry and since then has been overseeing public and private clouds, applying data analytics to all processes, and preparing for what he calls the next-generation “smartport” based on a switch to edge computing in real-time processing.

“Edge provides processing of real-time computation — computer vision and real-time computation of algorithms for decision making,” Laybourne says. “I send data back to the cloud where I can afford a 5-10 millisecond delay of processing.”

Bringing computing power to the edge enables data to be analyzed in near real-time — a necessity in the supply chain — and that is not possible with the cloud alone, he says.

Laybourne has been working closely with Microsoft on the evolving edge infrastructure, which will be key in many industries requiring fast access to data, such as industrial and manufacturing sectors. Some in his company focus on moving the containers. Laybourne is one who moves the electrons.

Digitizing the port of the future

Maerk’s move to edge computing follows a major cloud migration performed just a few years ago. Most enterprises that shift to the cloud are likely to stay there, but Laybourne predicts many industrial conglomerates and manufacturers will follow Maersk to the edge.

“Two to three years ago, we put everything on the cloud, but what we’re doing now is different,” Laybourne says. “The cloud, for me, is not the North Star. We must have the edge. We need real-time instruction sets for machines [container handling equipment at container terminals in ports] and then we’ll use cloud technologies where the data is not time-sensitive.”

Laybourne’s IT team is working with Microsoft to move cloud data to the edge, where containers are removed from ships by automated cranes and transferred to predefined locations in the port. To date, Laybourne and his team have migrated about 40% of APM Terminals’ cloud data to the edge, with a target to hit 80% by the end of 2023 at all operated terminals.

As Laybourne sees it, the move positions Maersk to capitalize on a forthcoming sea change for the global supply chain, one that will be fueled by enhanced data analytics, improved connectivity via 5G/6G private networks, and satellite connectivity and industry standards to enable the interoperability between ports. To date, Maersk controls about 19% of the overall capacity in its market.

As part of Maersk’s edge infrastructure, container contents can be examined by myriad IoT sensors immediately upon arrival at the terminals. RFIDs can also be checked in promptly and entered into the manifest before being moved robotically to their temporary locations. In some terminals, such operations are still performed by people, with cargo recorded on paper and data not accessible in the cloud for hours or longer, Laybourne says.

Cybersecurity, of course, is another major initiative for Maersk, as is data interoperability. Laybourne represents the company on the Digital Container Shipping Association committee, which is creating interoperability standards “because our customers don’t want to deal with paper. They want to have a digital experience,” he says.

The work to digitize is well under way. Maersk uses real-time digital tools such as Track & Trace and Container Status Notifications, APIs, and Terminal Alerts to keep customers informed about cargo. Automated cranes and robotics have removed most of the dangerous, manual work done in the past, and have improved the company’s sustainability and decarbonization efforts, Laybourne notes.

“Robotic automation has been in play in this industry for many years,” he says, adding that the pandemic has shifted the mindset of business-as-usual to upskilling laborers and making the supply chain far more efficient.

“We have automated assets such as cranes and berth and then there’s [the challenge of] how to make them more autonomous. After the pandemic, customers are now starting to reconfigure their supply chains,” he says, adding that autonomous, next-generation robotics is a key goal. “If you think of the energy crisis, the Ukraine situation, inflation, and more, companies are coming to a new view of business continuity and future sustainability compliance.”

Top vendors such as Microsoft and Amazon are looking at edge computing use cases for all industries, not just transport and logistics. According to IDC, more than 50% of new IT infrastructure will be deployed at the edge in 2023.

Gartner calls implementations like Maersk’s the “cloud-out edge” model. “It is not as much about moving from the cloud to edge as it is about bringing the cloud capabilities closer to the end users,” says Sid Nag, vice president and analyst at Gartner. “This also allows for a much more pervasive and distributed model.”

Next-gen connectivity and AI on deck

Aside from its partnership with Microsoft on edge computing, Maersk is collaborating with Nokia and Verizon on building private 5G networks at its terminals and recently demonstrated a blueprint of its plans at the Verizon Innovation Center in Boston. The ongoing work is among the first steps toward a breakthrough in connectivity and security, Laybourne maintains.

“It’s technology that opens up a lot more in terms of its connectivity, and in some of our terminals, where we have mission-critical systems platforms, the latency that 5G can offer is fantastic,” he says, noting that it will allow the cargo to “call home” data every 10 milliseconds as opposed to weeks. “But the real breakthrough on 5G and LTE is that I can secure my own spectrum. I own that port — nobody else. That’s the real breakthrough.”

Garnter’s Nag agrees that private 5G and edge computing provide meaningful synergies. “Private 5G can guarantee high-speed connectivity and low latencies needed in industries where use cases usually involve the deployment of hundreds of IoT devices, which then in turn require inter connectivity between each other,” Nag says.

For Maersk, installing IoT sensors and devices is also revolutionizing terminal operations. In the past, the cargo in containers had to be inspected and recorded on paper. Looking forward, Laybourne says, the process will all be automated and data will be digitized quickly.

His data science team, for example, has written algorithms for computer vision devices that are installed within the container to get around-the-clock electronic eyes on the cargo and identify and possibly prevent damage or spoilage.

Edge computing with IoT sensors that incorporate computer vision and AI will also give customers what they’ve longed for some time, and most pointedly during the pandemic: almost instant access to cargo data upon arrival, as well as automated repairs or fixes.

“It can then decide whether there’s an intervention needed, such as maintenance or repair, and that information is released to the customer,” the CIO says, adding that cameras and data collection devices will be installed throughout terminals to monitor for anything, be it theft, lost cargo, or potentially unsafe conditions.

Maersk has also been working with AI pioneer Databricks to develop algorithms to make its IoT devices and automated processes smarter. The company’s data scientists have built machine learning models in-house to improve safety and identify cargo. Data scientists will some day up the ante with advanced models to make all processes autonomous.

And this, Laybourne maintains, is the holy grail: changing the character of the company and the industry.

“We’ve been a company with a culture of configurators. So now we’ve become a culture of builders,” the digital leader says. “We’re building a lot of the software ourselves.

This is where the data scientists sit and work on machine learning algorithms.”

For example, his data scientists are working on advanced ML models to handle exceptions or variations in data. They are also working on advanced planning and forecasting algorithms that will have an unprecedented impact on efficiencies. “Traditionally, this industry thinks about the next day,” the CIO says. “What we’re looking at actually is the next week, or the next three weeks.”

The core mission won’t change. But everything else will, he notes.

“We’re still going to have the job of lifting a box from a vessel into something else. Are we going to have autonomous floating containers and underseas hyperloops? I don’t think so,” Laybourne says, claiming the container industry is well behind others in its digital transformation but that is changing at lightning-fast speed. “Loading and unloading will still be part of the operation. But the technologies we put around it and in it will change everything.”

Cloud Computing, Edge Computing, Internet of Things, Supply Chain

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Amazon Web Services (AWS) is making a foray into supply chain management with the release of a cloud application that integrates machine-learning to help large enterprises, which often use multiple ERP systems, get a unified view of suppliers, inventory, logistics and other supply-chain related components.

The launch of the application, dubbed AWS Supply Chain, comes at a time when the world has been hit with a myriad of supply chain issues, including the pandemic and ongoing war in Ukraine.

Supply chain management (SCM) is the fastest growing market in the enterprise application software segment and is estimated to generate sales of $20.24 billion in 2022, according to market research firm Gartner.

AWS Supply Chain, announced at AWS re:Invent Tuesday, can connect to existing enterprise resource planning (ERP) suites and supply chain management systems via built-in connectors to unify all data into a supply chain data lake, which can be later used to generate actionable insights, the company said. The connectors use pretrained machine learning models based on Amazon.com’s own history of supply chain data to extract and aggregate data from ERP and supply chain management systems.

Most enterprises today use disparate systems for supply chain management, which can  lead to delays in identifying potential supply chain disruptions, said Diego Pantoja-Navajas, vice president of AWS Supply Chain.

AWS Supply Chain offers map-based visualization

To provide supply chain visibility and combat this problem, AWS Supply Chain, which can be accessed via the AWS Management Console, provides a visual representation of the unified data on a real-time visual map that contains contextual information, the company said.

The map-based interface, along with contextual information such as inventory shortages or delays, can be used by inventory managers, demand planners and supply chain leaders to de-escalate potential disruptions, Pantoja-Navajas said, adding that the service could be set to generate alerts in case of disruptive scenarios.

Additionally, AWS Supply Chain will automatically provide recommended actions to resolve supply chain issues, such as moving inventory among locations, after considering factors such as the distance between facilities, and the impact on sustainability, the company said, adding that teams can collaborate within the application using its built-in chat and messaging functionality.

The new service, according to the company, is priced on a pay-as-you-consume model. AWS will charge $0.28 per hour for the first 10GB of storage and services. An additional $0.25 per GB per month will be charged when storage data exceeds 10GB, the company said.

AWS Supply Chain, which is in preview, can be accessed across US East (North Virginia), US West (Oregon), and Europe (Frankfurt), regions, the company said, adding that availability across more regions will follow soon.

Other products that AWS Supply Chain will compete with include Oracle Fusion Cloud SCM and Microsoft Dynamics 365 Supply Chain Management.

Cloud Computing, Supply Chain Management Software

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The “endless aisle” concept isn’t new, but it’s definitely the future for many supply chain operators. This retail strategy enables customers at a physical store to virtually browse and order any products that are either out of stock or not sold in-store and have them shipped to the store or their home. A fulfillment center or another nearby retail location that has the item in stock fills their order.

Increasingly, consumers expect an endless aisle experience. The pandemic has accelerated the transition to digital shopping and fundamentally changed consumers’ purchasing mindset. Today’s consumers regularly buy everything from daily groceries to new cars online or through an app, and they expect fast delivery — even within an hour, in many cases. If the retailer they go to first can’t meet that expectation, the consumer can open any number of apps and purchase the same product from another retailer, either brick-and-mortar or online, and pick it up or have it delivered when they want it.

So, the pressure is on to create the endless aisle. However, supporting this strategy will require most supply chain operators to significantly modernize their operations, including implementing solutions powered by artificial intelligence (AI) and machine learning (ML). It requires a mindset shift for operators — from thinking about technology not only as a tool to help lower supply chain costs, but also as the key to preventing missed sales opportunities, filling more orders faster, and increasing profitability.

Top challenges to building the endless aisle

1. Legacy limitations and lack of insight

Many companies, especially in the retail space, have already focused a lot of attention on creating the front-end experience for the endless aisle, giving their customers various digital options for ordering products from both in-store and online inventories. But it’s on the back end where most businesses fall short on delivering this experience: They can’t get the right products from here to there fast enough.

Several issues can hinder an organization’s ability to achieve a true endless aisle experience:

Outdated facilities, order management systems, and supply chain processesInflexible systems that prevent order fulfillment from multiple warehouse or retail locationsThe lack of true, real-time visibility into inventory status (i.e., what is available, where it is located now and where it needs to be)The inability to project where the next order will most likely originate so that inventory can be staged at the closest location to fill that order at the lowest cost

AI and ML play a leading role in helping supply chain operators overcome these limitations and build a next-generation supply chain. Following is a closer look at how these advanced technologies can enable the endless aisle by helping organizations to develop intelligent warehousing and engage confidently in more predictive decision-making.

2. Creating smarter, more flexible warehouses

Historically, supply chain operators have had dedicated warehouses and distribution centers that serve specific customers or regions. That strategy creates complexities for companies in forecasting the type and amount of inventory needed at those facilities. The result is that companies can’t flex much or at all.

No organization can create smarter warehouses or a more agile, flexible supply chain without updating their back-end technology first. Most will also need to rethink their entire order management process — including whether there’s a different way to handle it rather than with their inflexible, traditional enterprise resource planning (ERP) system, which lets them map specific products only to specific locations and offers very little visibility.

If these organizations have intelligent warehousing systems within their supply chain, they could request and supply any inventory they have to any customer or geography at any time. They could also confidently enable the endless aisle concept while at the same time reducing shipping costs and delays.

To create intelligent warehousing and deliver the endless aisle, many organizations will need to wrap new technologies like AI and ML around their legacy ERP system to improve and extend its capabilities or even completely replace certain functions. Integrating their ERP system and warehouse management system will also be a critical measure to ensure efficiency and timeliness when the business eventually starts shipping inventory from more places to serve customers in any location.

3. Enabling more predictive, proactive decision-making

Predictive modeling, using both AI and ML, lets an organization know how much inventory to stock, and where to place the goods based on historical and current patterns and behaviors. This insight is a must for any supply chain operator that wants to stay ahead of trends, prepare for future sales, and accelerate order-to-fulfillment time.

ML is also an excellent tool for minimizing costs and lost revenue due to obsolescence, excess inventory, and stockouts. And AI tells the organization where future demand is likely to originate and suggests where future inventory should be placed as it arrives. AI also helps supply chain operators avoid costs from excess shipping charges, long transit times, and stockouts and obsolescence.

These advanced technologies are also essential to providing real-time data insights that inform supply chain “digital twins” — logical views of the physical supply chain used for simulation modeling — that allow the business to understand, well in advance, what options it has to fulfill customer requirements when supply chain disruptions inevitably occur.

Many companies that have made significant progress on their journey toward building a next-generation supply chain are also using AI and ML to enhance their forecasting so they can address their “SKU problem.” They are better able to determine what inventory they need to have on hand instead of keeping two of everything on the shelf “just in case.” More organizations are also embracing AI and ML as force multipliers for their supply chain workforce; intelligent automation is helping them overcome current labor shortages while allowing their existing workers to be more productive.

There is no one-size-fits-all approach to modernizing the supply chain, creating intelligent warehousing, and laying the groundwork for the endless aisle. Each company’s journey will vary in scope and duration. Some organizations will choose to augment their existing infrastructure with more intelligent solutions, while others will go so far as to set up entirely new and separate supply chain operations. But the need for change is urgent, and those businesses that act now regardless of any further disruption or uncertainty that may be on the horizon are those that will emerge as tomorrow’s supply chain leaders.

Learn more about Protiviti’s Emerging Technology Solutions and Supply Chain Services.

Connect with the authors:

John Weber

Director – Supply Chain, Protiviti

Geoff Weathersby

Director – IoT and Emerging Technology, Protiviti

Artificial Intelligence, Machine Learning

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Supply chain management is a growing field and a satisfying profession, as a recent survey from the Association for Supply Chain Management (ASCM) found that 96% of those surveyed were highly satisfied with their career in SCM, with average rating of 8.4 out of 10. The survey also found that it pays to get certified: SCM pros with at least one certification get paid on average 19% more than those who aren’t certified, and those with two or three certifications earn salaries that are 39% and 50% higher than the median, respectively.

And with the global supply chain remaining a vital concern for businesses across nearly every industry, the value of those with verifiable SCM skills will likely only increase, especially as IT turns to analytics and other data-related measures to help alleviate issues businesses face with their supply chains.

Whether you’re already making a career in supply chain management, or want to break into the field, here are 12 supply chain management certifications that can round out your resume and give you a leg up against the competition.

Top 12 SCM certifications

ASCM Certified in Logistics, Transportation, and Distribution (CLTD)ASCM Certified in Production and Inventory Management (CPIM)ASCM Certified Supply Chain Professional certification (CSCP)ASCM Supply Chain Operations Reference (SCOR-P) EndorsementCertified Six Sigma Black BeltISM Certified Professional in Supply Management (CPSM)ISM Certified Professional in Supplier Diversity (CPSD)NCMA Certified Professional Contract Manager (CPCM)Oracle E-Business Suite 12 Supply Chain Certified Implementation Specialist: Oracle Purchasing CertificationSCPro Council of Supply Chain Management FundamentalsSCPro Council of Supply Chain Management Professionals (CSCMP)SOLE Certified Professional Logistician (CPL)

ASCM Certified in Logistics, Transportation, and Distribution (CLTD)

The Association for Supply Chain Management (ASCM), formerly known as the American Production and Inventory Control Society (APICS), offers a number of certifications to demonstrate your SCM skills. The ASCM Certified in Logistics, Transportation, and Distribution (CLTD) certification is designed for those focused on improving efficiency in distribution and warehousing in order to optimize the overall customer experience. The exam covers the best practices around logistics, transportation, and distribution with a focus on topics such as logistics overview, network design, sustainability and reverse logistics, capacity planning, demand management, order and inventory management, and global logistics and transportation. According to the ASCM, CLTD certified professionals report earning 25% higher salaries than those without the certification. To earn the CLTD designation, you will need to pass one exam, and to maintain the certification you will need to earn and submit 75 professional development maintenance points every five years.

Exam fee: $985 per exam for Plus members, $1,315 per exam for Core and nonmembers

ASCM Certified in Production and Inventory Management (CPIM)

You’ll need to pass two exams within three years to earn your Production and Inventory Management (CPIM) certification from ASCM, and you’ll need to maintain your certification every five years by completing 75 professional development points. If your certification isn’t maintained within five years, it will expire before the 10-year mark, and you will be required to retake the exam. For every year that your certification is suspended, you’ll need to submit an additional 15 professional development points. When considering the cost, remember that you’ll have to pay the fee for both exams — the fee only applies to one exam at a time. According to ASCM, those with a CPIM certification reporting earning up to 23% more per year over their uncertified peers. The exam covers supply chain fundamentals, plan supply, inventory management, continuous improvement and quality management, strategy, sales and operations planning, and inventory, among other topics.

Exam fee: $545 per exam for Plus members, $760 per exam for Core and nonmembers

ASCM Certified Supply Chain Professional certification (CSCP)

To be eligible to take ASCM’s Certified Supply Chain Professional exam, you’ll need three years related experience or a bachelor’s degree or international equivalent. As with the CPIM certification above, you’ll need to submit an extra 15 points for every year your certification is suspended if you let it lapse. The CSCP certification exam covers topics such as supply chains, demand management and forecasting, global supply chain networks, sourcing products and services, internal operations and inventory, supply chain risk, and optimization and sustainability. According to the ASCM, those with a CSCP certification report earning salaries that are 40% higher than their peers.

Exam fee: $1,095 for Plus members, $1,425 for Core and nonmembers

ASCM Supply Chain Operations Reference (SCOR-P) Endorsement

The SCOR-P endorsement from ASCM validates your knowledge in the Supply Chain Operations Reference (SCOR) model and methods. The SCOR model is a supply chain approach that helps link SCM to business goals, metrics, processes, and other internal departments and stakeholders. The exam is included in the course, which extensively covers the SCOR model to help you apply it to real-life supply chain problems, support organizational goals, improve efficiency, organize SCOR projects, and implement processes. To become SCOR-P certified, you will need to attend a three-day SCOR-P public training or an in-house corporate training where you’ll study the workbook material in a group setting and take the exam at the end of the three-day training. 

Exam fee: The exam is included in the course fee, which varies per program

Certified Six Sigma

The Six Sigma method was designed to streamline quality management and it’s still widely used today to help eliminate waste in processes, identify areas for improvement, and keep track of the supply chain while developing products. The Six Sigma certification scheme is often found within organizations, earning you “belts” as you move from green belt all the way up to black belt and make your way up the certification ladder. It’s typically used in large companies to create paths towards leadership in operations and to maintain a focus on efficiency and quality. The principles in Six Sigma can be extremely helpful for keeping your supply chain lean and agile, and it’s a valuable certification if you’re working in an organization that leans on the Six Sigma method.

Exam fee: Varies by location and provider

ISM Certified Professional in Supply Management (CPSM)

The Institute for Supply Management (ISM) offers a Professional in Supply Management (CPSM) certification that validates your knowledge on supply management functions across several industries. The ISM touts the CPSM as the “most recognized supply chain management certification” you can earn. To gain your credentials, you will need to pass three exams. The ISM offers several certification paths, including self-paced learning, learning bundles with everything you’ll need for all three exams, guided learning hybrid courses, and classroom-based training onsite at your organization. You can take the three exams in any order but to qualify, you’ll need three years of full-time SCM experience in a position that isn’t clerical or support. To maintain and renew your certification after four years, you’ll need to earn 60 hours of approved continuing education credits. If you already passed ISM’s CPSD certification (see below), you will not need to take the foundation exam for the CPSM certification, since it’s included in both. If you aren’t already a member, the cost of the nonmember fee for the exam also includes one year of ISM Direct membership.

Exam fee: $495 for members, $725 for nonmembers

ISM Certified Professional in Supplier Diversity (CPSD)

The second certification from the ISM is the Certified Professional Supplier Diversity (CPSD) certification, which you can earn on top of the CPSM certification from ISM. It’s a relatively unique certification that focuses on the growing demand for companies to “engage in supplier diversity to be socially responsible or to meet customer or federal requirements,” according to the ISM. The CPSD certification consists of two exams, but you can skip the foundational exam if you already hold your CPSM exam. To qualify for the exam, you’ll need three years of supplier diversity or management experience and a bachelor’s degree, or five years of experience. To maintain your certification, you’ll need to complete 50 hours of approved continuing education credits over a three-year period. According to the ISM, those with a CPSD certification earn around 10% more than their uncertified peers.

Exam fee: $229 for members, $379 for nonmembers

NCMA Certified Professional Contract Manager (CPCM)

The National Contract Management Association (NCMA) offers multiple certifications, including the Certified Professional Contract Manager (CPCM). The certification is designed for those who participate in government-to-business and business-to-business contract and subcontract activities, who want to better understand how buyers’ actions impact sellers and vice versa, and those interested in learning more about contract management. Candidates for the exam will need a strong understanding of the Certified Management Body of Knowledge (CMBOK) and a minimum of five years’ experience in a relevant field. The NCMA also offers a Certified Federal Contract Manager (CFCM) certification for those working in or with the government and a Certified Commercial Contract Manager (CCCM) certification for those in the commercial industry.

Exam fee: $135 for domestic, $160 for international exams

Oracle E-Business Suite 12 Supply Chain Certified Implementation Specialist: Oracle Purchasing Certification

The Oracle E-Business Suite 12 Supply Chain Certified Implementation Specialist certification is targeted at intermediate-level implementation team members who are members of the Oracle PartnerNetwork with a focus on selling and implementing Oracle E-Business Suite Supply Chain Management modules. The certification is designed to show employers that you have the right skillset to navigate the R12 E-Business Suite, enter data, pull information, form queries, and access online help. You’ll also need to know how to manage the purchasing process, set up and use the R12 Oracle Purchasing software, and navigate purchase orders. The exam covers topics such as navigating in R12 Oracle applications, introduction to Oracle Applications R12, shared entities and integration as well as the fundamentals of Flexfields, Multi-Org, and Workflow and Alerts. It also covers topics such as purchasing, suppliers, document security, routing and approval, RFQs and quotations, approved supplier lists and sourcing rules, requisitions, and automation.

Exam fee: $245

SCPro Council of Supply Chain Management Fundamentals

The SCPro Council of Supply Chain Management Fundamentals certification is an entry-level supply chain management certification that offers eight certification tracks that cover the most important aspects of SCM. These tracks include supply chain management principles, transportation operations, demand planning, manufacturing and service operations, customer service operations, warehouse operations, inventory management, supply management, and procurement. There are no eligibility requirements and each exam for the eight tracks consists of a 40-question multiple-choice format and the credentials do not expire or need renewal.

Exam fee: $200 per certification track

SCPro Council of Supply Chain Management Professionals (CSCMP)

The SCPro Council of Supply Chain Management Professionals (CSCMP) certification is unique in that it combines a multi-level education with a three-tiered exam process. There are three levels of SCPro certification and the first level, SCPro Level One, covers the fundamentals and eight elements of supply chain management. At the second level, SCPro Level Two: Analysis and Application of Supply Chain Challenges, you’ll be tested on your ability to apply SCM knowledge in various scenarios. The third and final level, SCPro Level Three: Initiation of Supply Chain Transformation, certifies your ability to “positively impact an organization” through a hands-on project that demonstrates your skills. You will need to renew your certification for all three levels every three years, which will require 60 hours of eligible professional development activities. You will need to complete at least 20 hours of professional development annually, but no more than 30 hours per year.

Level 1 exam fee: $650 for members, $975 for nonmembers

Level 2 exam fee: $1,095 for members, $1,500 for nonmembers

Level 3 exam fee: N/A

SOLE Certified Professional Logistician (CPL)

The International Society of Logistics (SOLE) offers a Certified Professional Logistician (CPL) certification in logistics, which is a key element of supply chain management in certain industries such as commerce, defense, federal and local government agencies, and education. The exam takes place twice a year in May and November over an eight-hour period, with two four-hour sessions; you will need to pass all four parts of the exam before you can earn your certification. It’s a relatively advanced certification — to qualify for the CPL exam, you’ll need at least nine years’ experience practicing or teaching logistics and two years’ experience in at least two fields of logistics. Each year of undergraduate accredited coursework in logistics subjects is equivalent to one year of professional experience, up to four years. For those with a master’s degree or doctoral degree, you’ll need four or three years’ additional experience, respectively.

Exam fee: $225 for members, $375 for nonmembers

More on supply chain management:

What is supply chain management? Mastering logistics end to endHow CIOs can help reduce supply chain anxietiesSupply chain woes? Analytics may be the answerSupply chain analytics: 5 tips for smoother logisticsSupply chain analytics: 3 success storiesWhat is SCOR? A model for improving supply chain management10 best graduate programs for supply chain managementCareers, Certifications, IT Skills, Supply Chain Management Software