Key Responsibilities and Required Skills for Chief Logistics Officer
💰 $150,000 - $350,000
🎯 Role Definition
The Chief Logistics Officer (CLO) is the executive accountable for designing and executing the organization's logistics and distribution strategy to meet customer service targets while minimizing total supply chain cost. The CLO leads transportation, warehousing, inventory management, reverse logistics, customs and trade compliance, and logistics technology (TMS/WMS/ERP) programs. They partner closely with commercial, procurement, manufacturing, IT and finance teams to align logistics capacity with demand plans, manage third‑party logistics providers, and drive continuous improvement initiatives that scale operations sustainably.
This role requires a blend of strategic vision and operational rigor: developing long‑term network design and capital plans while also owning day‑to‑day performance against KPIs (OTIF, inventory turns, cost per unit, lead time variability). The CLO must be an executive communicator and operator who can lead transformation programs, build high‑performing teams, negotiate major contracts, and report logistics performance to the C‑suite and board.
📈 Career Progression
Typical Career Path
Entry Point From:
- Director of Logistics / Head of Logistics
- VP of Supply Chain / VP of Distribution
- Head of Transportation / Director of Warehouse Operations
Advancement To:
- Chief Operating Officer (COO)
- Executive Vice President, Global Operations
- Chief Supply Chain Officer / Chief Commercial Officer (for integrated roles)
Lateral Moves:
- Chief Procurement Officer
- Head of Global Supply Chain
- Head of Customer Fulfillment & Reverse Logistics
Core Responsibilities
Primary Functions
- Develop and communicate a multi‑year logistics strategy and network design that balances service, inventory, and transportation cost, including warehouse footprint optimization, cross‑dock vs. DC strategy, and fulfillment center placement to support e‑commerce and wholesale channels.
- Lead end‑to‑end transportation management, establishing route planning, carrier selection, freight procurement strategies (spot vs. contract), mode optimization (rail, ocean, air, truckload/LTL), and dynamic routing capabilities to reduce freight spend and improve on‑time delivery.
- Own warehousing operations and fulfillment excellence, setting standards for receiving, putaway, picking, packing, shipping, and returns processing; implement WMS best practices and labor management systems to maximize throughput and accuracy.
- Drive inventory optimization frameworks tied to demand signals and safety stock policies; implement inventory segmentation (ABC/XYZ), replenishment models, and stock rationalization to minimize working capital while protecting service levels.
- Implement and scale logistics technology stack (TMS, WMS, OMS, yard management, transportation procurement platforms) and integrations with ERP, e‑commerce platforms, and carrier APIs to increase automation, visibility, and exception management.
- Establish and monitor logistics KPIs and balanced scorecards (OTIF, fill rate, inventory turns, cost per order, dwell time, cycle time), ensuring regular reporting to executive leadership and the board with actionable insights and improvement plans.
- Own P&L for logistics operations: build annual budgets, manage capital investments in distribution facilities and automation, forecast operating expenses, and drive cost reduction programs while protecting service.
- Negotiate strategic contracts and SLAs with 3PLs, carriers, freight forwarders, and customs brokers, including KPIs, rate structures, liability terms, capacity guarantees, and performance incentives.
- Lead supply chain risk and continuity planning including contingency routing, dual sourcing for critical lanes, disaster recovery playbooks, and scenario planning for demand surges, port disruptions, or carrier failures.
- Ensure global customs, trade compliance, and regulatory adherence for cross‑border shipments including tariff classification, import/export controls, bonded warehouse management, and trade documentation to avoid fines and clearance delays.
- Build and execute reverse logistics and returns strategies that reduce return cycle time and cost, increase recovery value through refurbishment or resale channels, and integrate returns data into product quality and supplier performance reviews.
- Partner with commercial teams to align logistics capacity and service agreements with customer contracts, segmented service models, and key account escalations to preserve strategic customer relationships.
- Lead cross‑functional S&OP / IBP discussions to align demand, production, procurement and logistics execution—ensuring that logistics constraints are reflected in planning and that distribution plans support commercial promotions and new product launches.
- Architect and lead continuous improvement and operational excellence programs (Lean, Six Sigma, Kaizen) across logistics operations to reduce waste, improve throughput, and enhance safety and quality.
- Oversee capital planning and facility development: site selection, lease vs. build analysis, capital budgeting for automation (conveyors, sortation, robotics), and project governance for facility builds and migrations.
- Drive sustainability and carbon reduction initiatives in logistics such as carrier decarbonization programs, route consolidation, packaging optimization, modal shift, and electrification pilots to meet ESG commitments and lower total cost.
- Manage vendor and partner ecosystems, including periodic performance reviews, scorecards, corrective action plans, and strategic partnerships for innovation and capacity scaling.
- Lead M&A logistics integration efforts: due diligence on logistics risks and opportunities, integration planning (systems, processes, facilities), and execution to realize synergies and continuity.
- Develop talent and leadership within the logistics organization: succession planning, competency frameworks, recruitment of senior logistics leaders, and coaching to build a resilient, scalable organization.
- Champion data and analytics for logistics decision‑making: invest in BI, predictive analytics, real‑time tracking, and cost‑to‑serve modeling to reveal network inefficiencies and quantify tradeoffs between service and cost.
- Oversee customer experience outcomes related to logistics, including delivery performance, exception handling, customer communications, and root‑cause analysis for repeat service failures to drive continuous improvement.
Secondary Functions
- Provide rapid, data‑driven responses to ad‑hoc executive and board requests by working with analytics and finance to produce scenario modeling for capacity, costs, and investments.
- Serve as the logistics subject matter expert in cross‑functional projects such as product launches, promotional campaigns, IT implementations, and channel expansions to ensure operational readiness.
- Represent the company in industry forums, carrier negotiations, regulatory bodies and customer escalations, communicating the company’s logistics capabilities and negotiating favorable terms.
- Support procurement and commercial teams during RFP processes for 3PLs, carriers and logistics services by defining requirements, evaluating proposals, and selecting partners based on service, cost and scalability.
- Coordinate with IT and data teams to prioritize integrations, master data governance, and visibility tools that provide end‑to‑end shipment and inventory transparency for internal and external stakeholders.
- Support sustainability, compliance and audit programs by providing logistics documentation, participating in audits, and implementing corrective actions for deficiencies identified by regulators or customers.
Required Skills & Competencies
Hard Skills (Technical)
- Strategic logistics planning and network optimization, including DC footprint optimization and distribution modeling.
- Transportation management (TMS) expertise, including freight procurement, rate negotiation, mode optimization and carrier management.
- Warehouse operations and WMS knowledge: slotting, labor management, cycle counting, and automation technologies (robotics, sortation).
- ERP integration experience (SAP, Oracle, NetSuite) and cross‑system data flows between OMS, TMS, WMS and finance.
- Inventory optimization techniques and tools (safety stock modeling, SKU segmentation, demand variability analysis).
- Freight cost modeling and cost‑to‑serve analysis to quantify and prioritize cost reduction opportunities.
- International trade and customs compliance, HS classification, duties management and free trade program administration.
- Analytics and BI proficiency (Power BI, Tableau, SQL, Python for analytics) to deliver KPI dashboards, scenario modeling and root cause analysis.
- Project and capital program management for DC builds, automation rollouts, and system implementations.
- Contract and SLA drafting and negotiation with logistics service providers, 3PLs and carriers.
- Reverse logistics and returns management with focus on process flows, refurbishment, liquidation and sustainable disposition.
- Lean / Six Sigma or continuous improvement methodologies applied to operations and process redesign.
Soft Skills
- Executive leadership with proven ability to build, inspire and scale cross‑functional teams.
- Strategic thinker capable of translating long‑term logistics vision into operational roadmaps and measurable KPIs.
- Strong stakeholder management and communication skills with experience presenting to C‑suite and boards.
- High‑impact negotiator and influencer, able to secure capacity and favorable commercial terms with carriers and partners.
- Excellent analytical problem solving and decision‑making under uncertainty and constrained timelines.
- Change management expertise to lead cultural and process transformation across operations and IT.
- Customer‑focused mindset to balance commercial commitments with operational realities.
- Results orientation with bias for action and accountability for operational outcomes.
- Coaching and talent development skills to build bench strength and succession pipelines.
- Resilience and adaptability in complex, global logistics environments.
Education & Experience
Educational Background
Minimum Education:
- Bachelor’s degree in Supply Chain Management, Logistics, Business Administration, Industrial Engineering, Operations Research, or related field.
Preferred Education:
- MBA, MS in Supply Chain/Logistics, or other advanced degree with significant focus on operations, finance, or strategy.
Relevant Fields of Study:
- Supply Chain Management
- Logistics & Transportation
- Industrial / Systems Engineering
- Business Administration (Operations or Strategy focus)
- Operations Research / Analytics
Experience Requirements
Typical Experience Range:
- 12–20+ years of progressive experience in logistics, distribution, transportation and supply chain operations with at least 5–10 years in senior leadership roles.
Preferred:
- 15+ years in logistics or integrated supply chain roles with global responsibility, P&L ownership, demonstrated success with TMS/WMS/ERP implementations, freight procurement at scale, managing 3PL relationships, and leading logistics transformation programs or facility builds.