Logistics: SCOR, Kraljic Matrix & EOQ

By completing this course, participants will be able to:

• Apply SCOR concepts to understand and improve supply chain processes.
• Analyze supply chain performance and identify operational improvement areas.
• Use the Kraljic Matrix to segment procurement categories based on supply risk and business impact.
• Develop differentiated sourcing and supplier-management strategies.
• Calculate and apply EOQ to balance ordering and inventory-holding costs.
• Apply safety-stock, Min/Max, JIT, ABC, and Pareto-based inventory techniques.
• Improve material forecasting and inventory decision-making.
• Analyze transportation modes, costs, lead times, and intermodal logistics options.
• Improve warehouse and material-handling efficiency.
• Apply Total Cost of Ownership (TCO) to procurement decisions.
• Understand International Commercial Terms and their implications for logistics.
• Identify logistics and supply-chain risks and develop mitigation strategies.
• Use ERP and analytics technologies to support logistics and inventory decisions.

Module 1: Supply Chain and Logistics Framework

• Supply chain and logistics fundamentals
• End-to-end supply chain processes
• Material, information, and financial flows
• Supply chain performance and operational objectives
• Introduction to SCOR
• SCOR process framework and process-based improvement
• Mapping supply chain activities
• Identifying process gaps and improvement opportunities

Module 2: SCOR-Based Supply Chain Performance

• SCOR process hierarchy
• Process mapping and supply chain analysis
• Supply chain performance measurement
• Process metrics and operational indicators
• Identifying bottlenecks and process inefficiencies
• Benchmarking supply chain performance
• Using SCOR concepts for continuous improvement
• Aligning process performance with business objectives

Module 3: Strategic Procurement and Sourcing

• Strategic procurement fundamentals
• Procurement strategy and category management
• Supplier selection and evaluation
• Supplier relationship management
• Strategic sourcing
• Total Cost of Ownership (TCO)
• Make-or-buy considerations
• Procurement risk and supply continuity

Module 4: Kraljic Matrix and Supplier Portfolio Analysis

• Introduction to the Kraljic Portfolio Matrix
• Profit/business impact
• Supply risk
• Strategic items
• Leverage items
• Bottleneck items
• Non-critical/routine items
• Category segmentation
• Matching sourcing strategies to category characteristics
• Supplier relationship strategies
• Risk mitigation for high-risk categories

Module 5: Inventory Management and Optimization

• Inventory objectives
• Types and classifications of inventory
• Inventory carrying costs
• Ordering and replenishment costs
• ABC and Pareto analysis
• Cycle counting
• Inventory turnover
• Safety stock
• Min/Max inventory systems
• Just-in-Time (JIT)
• Inventory accuracy
• Reducing excess and obsolete inventory
• Balancing inventory cost against service levels

Module 6: Economic Order Quantity (EOQ)

• EOQ fundamentals
• Ordering cost and holding cost
• EOQ assumptions
• EOQ calculation
• Order frequency and replenishment decisions
• EOQ and total inventory cost
• Applying EOQ to practical inventory decisions
• Limitations of the basic EOQ model
• EOQ in combination with safety stock and replenishment policies

Module 7: Material Forecasting and Inventory Planning

• Material demand and consumption patterns
• Forecasting fundamentals
• Material planning
• Replenishment planning
• Lead-time considerations
• Safety-stock planning
• Inventory deployment
• Min/Max decision-making
• Integrating forecasting with procurement and logistics
• Managing demand and supply uncertainty

Module 8: Transportation and Logistics Management

• Transportation management fundamentals
• Transportation modes
• Road, rail, air, sea, and intermodal transportation
• Transportation economics
• Freight-cost analysis
• Carrier and route considerations
• Transit-time management
• Lead-time reduction
• International logistics
• International Commercial Terms
• Hazardous-material transportation considerations

Module 9: Warehousing and Material Management

• Warehouse operations
• Warehouse layout and space utilization
• Material-handling systems
• Storage strategies
• Receiving and put-away
• Picking and order fulfillment
• Inventory movement
• Cycle counting
• Warehouse efficiency
• Warehouse performance measurement
• Technology-enabled warehouse management

Module 10: Logistics Risk, Technology and Performance Improvement

• Supply-chain and logistics risk
• Supply disruption risks
• Risk identification and mitigation
• Supply-chain resilience
• Logistics performance measurement
• Order-cycle performance
• Lead-time performance
• Inventory performance
• ERP systems for procurement and inventory
• Transportation management technology
• Logistics analytics and dashboards
• Integrating procurement, warehousing, and distribution information
• Continuous improvement

5 Days

• End-to-end supply chain workflow configuration.
• EOQ-based inventory-control exercises.
• Safety-stock planning.
• Inventory optimization scenarios.
• Procurement and TCO analysis.
• Pareto-based inventory segmentation.
• Material forecasting and resource-planning exercises.
• Intermodal transportation analysis.
• Transportation-route optimization.
• Warehouse and distribution scenarios.
• Supply-chain risk mitigation exercises.
• Enterprise logistics data analysis.
• Building an integrated logistics dashboard.
• Synchronizing procurement, warehousing, and distribution data.
• Simulating real-time supply chain decision-making.

Certification: Koenig Original Advanced Logistics & Material Management Certification

Format: Multiple-choice questions, Labs, Case studies

• Supply Chain Managers
• Logistics Managers
• Procurement Managers
• Purchasing Officers
• Inventory Control Managers
• Materials Management Specialists
• Warehouse Operations Managers
• Logistics Coordinators
• Supply Chain Analysts
• Procurement and Sourcing Professionals
• Operations Professionals

• Basic knowledge of supply chain management principles and processes.
• Familiarity with inventory concepts such as EOQ, JIT, and ABC analysis.
• Basic knowledge of transportation models and distribution strategies.
• Understanding of warehousing operations and material-handling systems.
• Familiarity with ERP systems used for logistics and procurement.
• Prior completion of an introductory logistics or supply chain course, or equivalent professional experience.