Aim
To provide students with the
information and knowledge needed for an understanding of the nature
of strategy within the organisation, and to develop knowledge of the
specific contribution that strategic management of the supply chain
can make to overall success.
Rationale
Organisations are
increasingly under pressure to operate efficient and effective
strategies within the international market. They rely heavily upon
the supply of goods and services to maintain competitive advantage.
It is essential that purchasing professionals develop an awareness
of how strategies are developed and executed within organisations,
and the impact of strategic purchasing and supply chain management
upon the success of such strategies.
1. Strategy and Strategic Procurement
a) The concept of strategy
b) Strategy development
c) Corporate purpose and scope for
organisations
d) Levels of strategy in the
organisation
e) Strategic management
f) The nature of strategic supply
chain management
g) Strategic purchasing and supply
chain models
h) The role, basis and influence of
customer perception
Learning outcomes
In the assessment the candidate may be required to:
1.1 Explain the concept of strategy and appraise alternative views
of strategy development
1.2 Appraise the corporate purpose and
scope for organisations and describe the levels of strategy
operating within the organisation
1.3 Outline the relationship between
approaches adopted by organisations to strategy development and how
this affects their approach to strategic management
1.4 Analyse how strategic management
operates in different sectors
1.5 Evaluate the nature of strategic
supply chain management and appraise the role of the purchasing and
supply chain function within it
1.6 Analyse how strategic purchasing
and supply chain process models for private and public sectors and
discuss their implication on the organisation, including the CIPS
model, EC Procurement Directives model, and the MoD (UK) acquisition
process model
1.7 Outline the basis of customer
perceptions, and assess their influences on customer requirements
and how these perceptions and influences affect customer
responses
(weighting 15%)
2. Strategic Management
a) Strategic analysis, purpose and nature
b) Utilisation of strategic analysis
in business
c) Definition of the basis of
strategic choice
d) Generic strategies
e) Strategic direction options
including consolidation and market penetration
f) Strategic method options including
internal development and joint alliances
g) Evaluation and selection of
strategic options
h) Implementation of strategies
i) Development, management and control
of resources
j) Organisational design
k) Organisational structures
l) Purchasing and supply function
structures
Learning outcomes
In the assessment the candidate may be required to:
2.1 Evaluate the nature and purpose of strategic analysis
2.2 Categorise the various tools of
strategic analysis
2.3 Assess how the strategic tools of
analysis permit knowledge of the organisation and its environment to
be assessed
2.4 Identify and evaluate the drivers
that underpin strategy development
2.5 Debate the basis for strategic
choice within the organisation critically examining relevant generic
strategies
2.6 Appraise the various strategic
directions that an organisation could deploy
2.7 Appraise the various strategic
methods an organisation could deploy
2.8 Outline the relationship between
the strategic choices an organisation can adopt, the strategic
direction it may choose to follow, and the strategic methods it may
deploy
2.9 Evaluate the financial
implications of strategic analysis and implementation
2.10 Assess the approach to evaluation
and selection of strategy that an organisation can take
2.11 Evaluate the process and
challenges with the implementation of strategies and the management
of change in organisations
2.12 Compare and contrast how
different organisations develop, manage and control resources from a
corporate strategic level within the organisation
2.13 Consider the effect of IT on
strategic choice
2.14 Judge the impact of changes in
strategic direction for organisations on organisational design
2.15 Define and assess different
approaches to organisational structures within the various types of
organisation
2.16 Define and appraise different
approaches to purchasing and supply function structures
2.17 Appraise the relationship between
organisational and purchasing and supply function structures
(weighting 45%)
3. Strategic Supply Chain Management
a) Development and evolution of the purchasing and supply function
b) Role, objectives and contribution
of supply chain strategies to corporate strategy
c) The strategic supply chain planning
process
d) Strategic supply chain frameworks
e) The operation of supply chain
strategies through all organisation functions
f) Configuration and co-ordination of
the supply chain
g) Control and creation of added value
in supply chain management
h) Innovation in supply chain
management
i) Designing products and services
through strategic supply chain
j) Managing environmental procurement
within strategic supply chain management
Learning outcomes
In the assessment the candidate may be required to:
3.1 Outline the development and evolution of the purchasing and
supply function
3.2 Debate the role, objectives and
contribution of supply chain strategies to corporate strategy and
the strategic planning process
3.3 Critically review strategic supply
chain frame-works and the operation of supply chain strategies
through all organisational functions
3.4 Evaluate the configuration and
co-ordination of the supply chain in different markets
3.5 Evaluate where strategic supply
chain management can create and control added value for the
organisation as a whole
3.6 Assess the role and impact of
innovation on supply chain management
3.7 Outline the role for the strategic
supply chain in the design of products and services, product/service
development, product design process models, product life cycles
3.8
Define what is meant by environmental procurement and evaluate the
implications for strategic management of the supply chain
(weighting 40%)
Aim
To examine tactics and techniques
for the control of supply chain operations.
Rationale
Long-term success for any
organisation requires an appropriate strategic direction and sense
of mission; however success ultimately depends upon performance. The
key to successful operational performance lies in the achievement of
excellence in the five key operational areas of cost, quality,
flexibility, dependability and speed. It is performance in these
five key operational areas that will enable the organisation to
outperform its competitors and ensure long-term success. The
procurement function is central to each of these five areas hence
successful tactics and operations in procurement are vital to the
long-term success of the organisation as a whole. This syllabus
therefore deals with tactics and operational activities that focus
on shorter-term implementation but at the same time conducted within
a strategic framework. It will consider operational techniques
within the context of both different sectors and different sized
organisations. This is a broad syllabus and the student should adopt
a general view.
1. Specifying and Managing
Quality for Goods and Services
a) The formulation of specifications and quality standards
b) The relationship between
specifications, quality and cost, and techniques for the elimination
of unnecessary cost
c) Tools and techniques for the
measurement and improvement of quality
d) Changing approaches to quality from
zero defects and continuous improvement (Kaizen)
e) Quality as a feature of good design
f) Total Quality Management in the
manufacture of goods and the delivery of services
g) The importance of early supplier
involvement (ESI) and early buying involvement (EBI) in design
Learning outcomes
In the assessment the candidate may be required to:
1.1 Evaluate tools, techniques, and approaches to the building-in of
quality at the design stage, and the elimination of unnecessary
costs in the production of goods and services
1.2 Appraise the role of the
purchasing function in the attainment and management of quality
standards in the acquisition and production of goods and services
1.3 Assess the contribution of
purchasing to Total Quality Management
1.4 Propose techniques for achieving
consistency and control in the production of goods and services
(weighting 20%)
2. Sourcing and the Management and Development of Suppliers
a) Techniques for the identification and selection of suitable
suppliers
b) Developing suppliers and improving
supplier performance
c) The use of suppliers as a resource
d) The selection and contracting of
suppliers for the provision of outsourced services,and the
management of subsequent performance standards
e) The nature and variables involved
in make or buy decisions
f) The tactical and operational
contribution to supply chain management and lean supply
Learning outcomes
In the assessment the candidate may be required to:
2.1 Evaluate techniques for supplier selection and assessment for
the provision of goods and services
2.2 Critically evaluate the
organisational procedures and techniques that can be used in the
development and management of products, services, and suppliers
2.3 Propose procedures for undertaking
an outsourcing exercise and the management of the provider's
performance
2.4 Analyse a make or buy situation
and make appropriate recommendations
2.5 Propose techniques that will
contribute to effective supplier base management and lean supply
objectives
(weighting 20%)
3. Matching Supply with Demand
a) Inventory control and the economics of stock management
b) Inventory control systems for
independent demand items
c) Dependent demand and buying for
materials requirements planning (MRP), other integrated systems, and
Just-in-Time
d) General approaches to forecasting
e) Pareto (ABC) analysis of inventory
as a basis for inventory policy and decisions
Learning outcomes
In the assessment the candidate may be required to:
3.1 Compare inventory control systems for both dependent and
independent demand items
3.2 Evaluate methods for balancing the
supply and demand for inventory
3.3 Establish control systems which
will ensure the effective management of inventory
3.4 Determine the appropriate level of inventory for
supporting operations in a variety of organisational types
(weighting 15%)
4. Capital Buying
a) The nature of capital buying and
the life cycle approach to asset managment
b) The main principles of investment
appraisal and risk analysis
c) Appropriate terms and conditions in
capital contracts including payment arrangements, defects liabilty
and after sales support
Learning Outcomes
In the assessment the candidate may
be required to:
4.1 Propose suitable techniques for
making capital buying decisions that will ensure that both
organisational and long-term economic and financial considerations
are taken into account
4.2 Develop a coordinated team
approach to capital acquisitions
4.3 Evaluate appropriate terms and
conditions for capital contracts and develop appropriate support
arrangements with suppliers, which will protect the buying
organisation's long-term interests
4.4 Apply the concepts of life
cycle costing to the acquisition of capitial assets
(weighting 10%)
5. Buying from Overseas
a) The motivations for sourcing overseas rather than domestically
b) Problems encountered when buying
abroad
c) Calculation of the true delivered
cost and the basis of overseas quotations using Incoterms
d) Import procedures including
currency management and payment arrangements
e) Particular problems of buying
capital items abroad
f) International freight movement
Learning outcomes
In the assessment the candidate may be required to:
5.1 Evaluate the basis of overseas quotations and judge the
attractiveness of an overseas quotation in comparison to a domestic
quotation
5.2 Assess the main problems
associated with overseas sourcing, for both revenue and capital
items, and propose the means by which they may be overcome
5.3 Manage the acquisition of
production and capital items from overseas using the most effective
procedures and minimising risk
(weighting 10%)
6. Commodity Buying
a) The nature of commodities, how markets operate, the influences on
markets
b) Control of expenditure through
techniques such as £-cost averaging and budget buying
c) The markets in gas, electricity,
communications, and the environmental quotas
Learning outcomes
In the assessment the candidate may be required to:
6.1 Evaluate the problems of purchasing commodities and in
particular the problems caused for buyers by the volatile nature of
such markets
6.2 Propose methods for
stabilising prices in commodity markets and controlling budgeted
expenditure
(weighting 5%)
7. Information Systems
a) Information Technology (IT) as a means of reducing transactions
costs in the supply chain
b) The contribution of IT to the
concept of lean supply
c) Integrated information systems
internal and external networks, including electronic data
interchange (EDI) and electronic point of sale (EPOS) and electronic
low value ordering systems (ELVOS), eProcurement
d) The use of bar coding in operations
and inventory management
Learning outcomes
In the assessment the candidate may be required to:
7.1 Assess the application of IT to the management of the supply
chain, its effectiveness in the elimination of unnecessary costs and
contribution to the improvement in communication
7.2 Evaluate the application of IT
to the procurement function and the contribution it can make to
improved procurement effectiveness
7.3 Explain the contribution that IT
applications can make to the objectives of lean supply
(weighting 10%)
8. Negotiation
a) Strategies for negotiations
b) Support tools for negotiations
including price/cost analysis and learning curve analysis
c) Styles of negotiation such as
win/win, win/lose, hard and soft styles, adversVerdana and
non-adversVerdana
d) The implimentation phases (stages)
of negotiated agreements
Learning outcomes
In the assessment the candidate may be
required to:
8.1 Evaluate and compare the different negotiation strategies,
styles and their effectiveness in a range of different negotiation
situations
8.2 Assess the range of support tools
available and their application in negotiation
8.3 Review the implementation phases
(stages) of negotiated agreements
(weighting 10%)
P3 - Legal Aspects for Purchasing and Supply Chain Management
Aim
To provide students with
information on the principle areas of the law relevant to purchasing
and supply with particular emphasis on Contract and Sale of Goods
legislation.
Rationale
All organisations need to
understand the legal framework within which they operate, but in
particular the purchasing and supply professional is dealing with
the legal implications of procurement on a daily basis. The
purchasing and supply professional needs to understand where legal
issues may impact upon the organisation and the liabilities and
rights which flow from their actions and the actions of third
parties with which they deal. They need to appreciate the need for
risk avoidance or limitation in terms of legal liability and they
need to know when to refer an issue to legal professionals. This
syllabus therefore provides an overview of relevant legislation,
common law, and European and international legal regulation needed
to fulfil this task effectively.
1. Contract
a) Formation, offer and acceptance,
capacity, reconciliation of buyers' and
sellers' terms and conditions, void and unenforceable contracts
b) Exclusion clauses, unfair contract terms
c) Standard and special clauses, force majeure, retention of title,
penalties and
liquidated damages
d) Express and implied terms
e) Misrepresentation, mistake and duress
f) Agency, assignment, bailment and indemnity clauses
g) Remedies, termination, settlement of disputes
h) Arbitration vs litigation
Learning outcomes
In the assessment the candidate may be required to:
1.1 Describe and apply the knowledge of the process of contract
formation to be
able to subject this to an analysis of the problems of reconciling
the buyer's terms and conditions with those of the seller when faced
with the battle of the forms
1.2 Distinguish between express and implied terms in contracts and
apply the principles relating to specific types of contractual
clauses in a practical setting, and in particular in relation to the
sale and supply of goods and services
1.3 Explain and apply the rules relating to the factors that vitiate
a contract,
(misrepresentation, mistake, duress, undue influence and illegality
- including restraint of trade)
1.4 Explain and apply the law relating to termination of contracts
at common law,
and the remedies available to either party when a contract is
breached
1.5 Explain and apply the legal principles that apply to agency and
bailment whether by contract or by common law
1.6 Describe and apply the knowledge of the various means of dispute
resolution
available to contractual parties in relation to contracts within the
United Kingdom and those which have an international dimension
(weighting 40%)
2. Sale and Supply of Goods and Services
a) Breaches of conditions and warranties
b) Transfer of property, risk and title
c) Limiting risk, indemnity, exclusion and insurance, when to insure
d) The rules in nemo dat quod non habet
e) Delivery
f) Supply of goods and services
Learning outcomes
In the assessment the candidate may be required to:
2.1 Distinguish between the statutes relating to sale of goods and
the supply of goods and services in specific circumstances and apply
those rules to given practical situations
2.2 Explain and apply the rules relating to implied conditions and
warranties under the Sale of Goods Act 1979 and the Supply of Goods
and Services Act 1982 (as amended)
2.3 Analyse the legal implication of the statutory regulations on
the passing of title, risk and delivery, including instalments
2.4 Analyse the rules relating to the passing of title by a
non-owner under the legislation, and the exceptions to these rules
2.5 Assess the issues of risk avoidance in contracts and when to
insure against a risk that cannot be avoided
(weighting 20%)
3. Specific Legal Rights and Obligations
a) Privity of contract
b) Liability in negligence, including product liability and
defective goods
c) Relationship with contract conditions
d) Collateral warranties and guarantees
e) Contract (Rights of Third Parties) Act 1999
f) Contractual obligations relating to post-tender negotiation,
pre-tender undertakings, and letters of comfort
g) EC Procurement Directives
h) Redundancy, TUPE and related legislation in outsourcing of
services
Learning outcomes
In the assessment the candidate may be required to:
3.1 Analyse the various methods for circumventing the problems of
privity of contract; i.e. through collateral contracts or
warranties, indemnity clauses, agency arrangements and liability in
negligence or under the Consumer Protection Act 1987 Part I
3.2 Evaluate the operation of the Contract (Rights of Third Parties)
Act 1999 and the limited operation of the legislation as a tool for
avoidance of the rules of privity of contract
3.3 Apply the rules relating to third party rights to given
practical situations
3.4 Analyse the legal rules relating to tendering processes. In
particular evaluate where legal liability may lie for failure to
operate the procedures properly and distinguish between the
obligations which may arise before a contract is placed, and those
which may arise after a contract is placed
3.5 Explain the rules that relate to public procurement within the
European Union and explain where and when these rules will be
applied
3.6 Analyse the rules which apply in relation to the con-tracts of
employment of staff and other workers when undertaking and
outsourcing of services or operations. In particular the rules which
relate to compulsory redundancy, voluntary severance and
re-deployment of staff, and those which relate to the transferring
of staff between undertakings
3.7 Appreciate the need for consultation and the cost implications
for both parties in relation to the workforce in such outsourcing
arrangements, and recommend appropriate course of action to protect
business interests in relation to compliance
with these legal regulations
(weighting 20%)
4. Competitive Advantage and International Trade
a) Current competition legislation and directives throughout the
United Kingdom
and the European Union (EU), including the WTO
b) Patents, design rights, trade marks, copyright
c) Confidentiality and trade secrets
d) Contractual implications of confidentiality and intellectual
property rights
e) Import/export documentation
f) Terms and conditions of international trade. Legal implications
of using Incoterms
g) Payment: methods and instruments
h) Settlement of disputes in international trade, determination of
venue and
appropriate law
Learning outcomes
In the assessment the candidate may be required to:
4.1 Compare and contrast the regulations applicable to the control
of anti-competitive practices and abuses of a dominant market
position in both the United Kingdom and the European Union
4.2 Analyse the implications of the laws controlling competition in
the United Kingdom, the European Union and through other
international agencies, including the WTO
4.3 Recommend appropriate course of action to protect business
interests in relation to compliance with the legal regulations
4.4 Distinguish between intellectual property rights which are
registerable and those that are unregisterable rights in relation to
creation, protection, enforcement, transfer and the rights of owners
of such intellectual property rights within the United Kingdom and
elsewhere
4.5 Explain and apply the common law rules relating to
confidentiality and the protection of trade secrets in English law
and recommend appropriate course of action to protect business
interests in relation to confidentiality and the protection of trade
secrets and intellectual property
4.6 Explain the process of payment and the appropriate documentation
involved in transactions for the sale of goods in an international
context
4.7 Analyse and apply the rules relating to the transfer of title,
risk, delivery and related liabilities involved in contracts, and
compare and contrast the various obligations under the Incoterms.
The more common Incoterms include CIF, FOB,EXW, DDP, and FAS.
(weighting 20%)
P4 - Case Study in Purchasing and Supply
Aim
To develop the ability of
candidates to analyse a situation, identify problems, appraise
various options and recommend solutions to issues raised in a case
study.
Rationale
Organisations in the public and
private sector are confronted by a wide-range of purchasing and
supply chain problems. It is therefore vital to have professional
managers who can develop practical solutions to deal with everyday
procurement problems. The case study offers a different form of
assessment from that of other units. It provides candidates with an
opportunity to re-examine the content of the other three core
modules and to find and apply appropriate tools and techniques in
order to develop solutions applicable to the problems posed in the
case. The emphasis is on the ability to research the problems, offer
a critical analysis of the potential solutions, and to provide
convincing reasons for the recommended course of action.
Content
a) Strategy and Strategic Procurement
b) Legal Aspects for Purchasing and Supply Chain Management
c) Tactics and Operations
d) Tools and techniques of analysis
Learning outcomes
In the assessment the candidate may be required to:
1.1 Recall and apply the knowledge and information gained from the
Legal Aspects for Purchasing and Supply Chain Management, Strategy
and Strategic Procurement, and Tactics and Operations syllabuses
1.2 Analyse a business situation through the application of
recognised tools of analysis
1.3 Identify and diagnose the issues and problems presented in the
case
1.4 Prioritise the issues and problems
1.5 Select and justify a range of solutions to the issues and
problems
1.6 Propose and rate recommendations which closely relate to the
problems
1.7 Suggest and critique potential implementation proposals
Candidates will be rewarded for demonstrating both the correct
knowledge (technical accuracy) and demonstrating the skills of:
analysis, diagnosis, identification, prioritisation, problem
solving, justification, selection and rating, and critiquing.
- The Case Study in Purchasing and
Supply examination questions relate to a seen Case Study issued
one month before the examination date.
- There will always be a question
taken from the knowledge base of at least TWO of the three core
modules.
- There will be four compulsory
questions.
- Knowledge gained from the six
foundation stage modules will be assumed as underpinning
knowledge.
Supply
Chain Management Options List
The Options build
on the Core modules for an in-depth study of the supply chain,
so you should complete your study of the Core before
you start them.
You must do at
least one option.
P5
- Storage and Distribution in Supply Chains
Aim
To examine the methods, techniques
and factors concerned with the storage and transport of physical
stocks and to consider how added value can be created in the storage
and movement of goods.
Rationale
All organisations are ultimately
about 'satisfying the customer', whether the customer is local or
global. Physical storage and distribution is fundamental to this
principle in physically delivering to the customer: the right goods
in the right condition to the right place, at the right time and at
the right cost. Purchasing and supply professionals need to be aware
of the importance of physical storage and distribution to appreciate
the downstream activities in the supply chain. Relationship
management with suppliers needs to be mirrored by well-defined
relationships with customers, to reduce costs, add value and reduce
lead times. Storage and distribution therefore links both nationally
and globally, the organisation's supply-side with customer demands.
1. Concepts
a) Objectives for storage and distribution
b) Logistics and the global supply chain
c) Total costs concept
d) Customer service and added value concepts and measures
e) Cost and service trade off's
Learning outcomes
In the assessment the candidate may be required to:
1.1 Determine the objectives for a distribution operation
1.2 Explain and evaluate the connections between distribution,
logistics and global
supply chain
1.3 Evaluate the total costs concept
1.4 Contrast and evaluate customer service levels
1.5 Explain and evaluate the added value concept
1.6 Explain and evaluate cost and service parameters
(weighting 10%)
2. Distribution Planning
a) Strategic factors affecting the choice of a storage and
distribution network
b) Using third party contractors and logistics service providers
c) ICT Tools, such as EDI, data capture, voice
recognition
d) Import UK Customs controls
e) Incoterms
Learning outcomes
In the assessment the candidate may be required to:
2.1 Explain and evaluate the factors that affect, strategically, the
design of a
distribution network
2.2 Evaluate the use of third party contractors/logistics service
providers
2.3 Examine and evaluate the use of ICT in distribution
2.4 Explain the appropriate UK Import Customs controls
2.5 Explain the costs and risks associated with the various
Incoterms
(weighting 10%)
3. Moving Goods
a) Selection of the modes used for freight transport
b) Characteristics of each mode
c) Inter-modal transport
d) Road transport route and load planning
e) Unitisation and containerisation of loads
f) Transport of hazardous goods
Learning outcomes
In the assessment the candidate may be required to:
3.1 Compare and evaluate the alternative modes of transport
3.2 Explain and evaluate the various combinations used in
inter-modal transport
3.3 Categorise and evaluate road transport operational routing and
scheduling
3.4 Describe and differentiate between unitisation and
containerisation
3.5 Describe and evaluate hazardous goods legislation
(weighting 20%)
4. Warehousing and Storage of Goods
a) Design of the flow in the warehouse
b) Equipment types: mechanical handling, equipment, and storage
c) Coding and classification of goods
d) Introduction of new items, management of the stock range
e) Control of obsolescent and redundant stocks
Learning outcomes
In the assessment the candidate may be required to:
4.1 Explain and evaluate the costs and the service requirements when
designing
the internal layout of a warehouse
4.2 Compare and contrast the different types of warehouse equipment
4.3 Design and explain a coding system
4.4 Evaluate the factors affecting the introduction of new items
4.5 Examine the causes and management of obsolescent and redundant
stock
(weighting 20%)
5. Controlling Physical Distribution
a) Security in the transport and the warehousing activities
b) Managing returns from customers and reverse logistics
c) Managing the unit loads: pallets, roll cages, tote boxes
d) Costs: fixed and variable
e) Productivity standards: utilisation and performance ratios
Learning outcomes
In the assessment the candidate may be required to:
5.1 Evaluate security measures
5.2 Analyse and evaluate customer returns
5.3 Explain reverse logistics
5.4 Compare and evaluate the requirements for packing in
distribution
5.5 Define and evaluate cost measurements
5.6 Define and evaluate productivity measurements
(weighting 15%)
6. Legal Aspects of Moving Materials
a) Health and Safety at Work
b) COSHH requirements
c) Legal requirements in transporting goods
Learning outcomes
In the assessment the candidate may be required to:
6.1 Explain the requirements of health and safety legislation in a
materials
environment
6.2 Discuss the requirements of COSHH regulations, and the materials
to which they are applicable
6.3 Consider the legal issues raised in the transport of goods
(weighting 15%)
7. Techniques and Tools in Supply Chains
a) Network analysis
b) Distribution modelling, simulation
c) Operations research techniques, including queuing theory,
decision trees
d) Distribution requirements planning (DRP)
Learning outcomes
In the assessment the candidate may be required to:
7.1 Prepare and analyse a network model from data provided
7.2 Discuss the use of modelling and simulation in the storage and
movement of
goods
7.3 Evaluate the use of operations research techniques in storage
and distribution
contexts
7.4 Explain the use and application of DRP in storage and
distribution
(weighting 10%)
P6 - Commercial Relationships
Aim
To examine ways in which supplier
and customer relationships are created and managed in connection
with both inter and intra organisational activities. To understand
supply chains for both goods and services as value streams.
Rationale
Purchasing and supply is concerned
with making available goods and services from external providers to
meet the needs of internal and external customers. In undertaking
the activities necessary to achieve this availability, interactions
take place between functional staff, suppliers and customers. These
interactions take many forms, from the straight-forward exchange
transaction of simple buying or selling, to long-term strategic
alliances between organisations with complementary resources and
goals. Developing concepts such as supply chain management and value
stream analysis recognise the fact that many interactions do not
exist in isolation, but form part of a longer series of
relationships beginning at the origin of primary ideas or materials,
and ending with the satisfaction of the needs or wishes of the
ultimate consumer. This syllabus contributes to the overall scheme
by providing insights into the developing recognition of the
importance of commercial relationships, and the need to develop and
adopt appropriate strategies and policies. The planning, direction,
assessment and control of relationships are also considered.
1. Relationships in
Context
a) Strategic considerations in
relationship formation
b) Supply chains, value streams and related concepts and their
impact upon commercial relationships
c) The main types of relationship
d) Intra-organisational relationships
e) Relationship issues in public procurement
Learning outcomes
In assessment the candidate may be required to:
1.1 Evaluate the need for appropriate strategies for relationships
in different contexts
1.2 Evaluate the relationship implications of emergent supply system
philosophies
1.3 Assess the circumstances in which short-term relationships might
be appropriate, and analyse such relationships
1.4 Assess the circumstances in which partnership relationships
might be appropriate, and analyse such relationships
1.5 Identify and explain the circumstances in which co-destiny
relationships might be appropriate, and analyse such relationships
1.6 Appraise 'open book' philosophies
1.7 Analyse joint ventures, partnerships and other permanent
alliances, and discuss the 'relationships' aspects of such
arrangements
1.8 Appraise the cross and multi-functional aspects of corporate
management, and the relationships implications of these ideas
1.9 Analyse relationships in the context of public procurement
(weighting 25%)
2. Relationships Strategy, Policy and Practice
a) Tools of analysis in relationship selection and determination
b) Risk assessment and evaluation in relationship decisions
c) The contribution of appropriate relationships to organisational
success
d) Factors impacting upon relationships
e) Relationships and supply chain policy
Learning outcomes
In assessment the candidate may be required to:
2.1 Propose and justify the use of appropriate tools of analysis in
relationship
determination
2.2 Assess potential risk and uncertainty in commercial
relationships
2.3 Comment critically on the need for transparency in relationships
2.4 Evaluate potential wastes in the supply chain, and suggest
approaches to their elimination
2.5 Evaluate the supplier characteristics appropriate for the main
types of relationship
2.6 Appraise appropriate sourcing policies from a relationship
perspective
2.7 Assess the impact of lean supply, agile supply and power issues
upon
commercial relationships
2.8 Evaluate ethical, technological, legal, environ-mental and other
relationships constraints and enablers
(weighting 30%)
3. Relationship Management
a) Structural issues
b) The role of the internal customer
c) The role of the supplier
d) Supplier development
e) The relationship life cycle
Learning outcomes
In assessment the candidate may be required to:
3.1 Appraise the role of supplier associations, buying consortia,
joint buying arrangements and other groupings in commercial
relationships
3.2 Appraise supply base tiering, and relationship implications of
this practice
3.3 Evaluate the role of the internal customer, including the
concept of the intelligent customer
3.4 Evaluate the potential and practicalities of supplier
development from a
relationship perspective. Recommend appropriate actions in relation
to supplier
development and upstream management. Explain the relationship
life-cycle
3.5 Recommend appropriate approaches to the termination or
suspension of relationships
3.6 Evaluate the implications of relationship failure
3.7 Comment critically on developing theory and practice in relation
to relationship assessment and management
(weighting 25%)
4. Contracting and Relationships
a) The role of contracts
b) Relationship aspects of contracts
c) Relationships in the service context
d) Relationships in connection with hire or lease contracts
Learning outcomes
In assessment the candidate may be required to:
4.1 Evaluate the role and value of contracts in relationships
4.2 Propose alternatives to contracts where appropriate
4.3 Determine appropriate approaches to the management of contracts,
including
payment methods. Explain and demonstrate the use of clauses employed
for incentivisation purposes
4.4 Propose appropriate clauses employed for the purpose of
accommodating changing costs
4.5 Evaluate the use of leasing in hiring arrangements as an
alternative to buying
4.6 Assess the relationship issues particularly relevant where
relationships are concerned with service provision
(weighting 20%)
The Project (Double Module)
Aims of the project
The aims of the CIPS project are to
enable you to:
- Demonstrate the application of
purchasing and supply management principles, techniques and
theories in a given organisational context, with a view to
enhancing practice and/or performance
- Explore the body of current
purchasing and supply management knowledge to enable you to raise
your professional standards
- Develop the knowledge and skills
to undertake a substantive and discrete piece of analytical work
and present your findings in a clear and logical manner.
Content
The content of the project is:
a) Background, rationale and
objectives
b) Research methods and design
c) Literature review
d) Application, data collection and analysis
e) Synthesis
f) Conclusions and recommendations
g) Presentation, structure and referencing
Learning outcomes
These indicate what you should be
able to do or have demonstrated on completion of the project:
1.1 Identify and justify a feasible
and appropriate subject area for investigation within an
organisation
1.2 Select and execute appropriate
research methodology
1.3 Identify and review pertinent
literature related to the subject area under investigation
1.4 Analyse and synthesise
appropriate primary and secondary data related to an investigation
1.5 Organise the findings into a
comprehensible and explicit structure
1.6 Critically assess the validity
and general applicability of the conclusions drawn
1.7 Manage their time effectively
and reflect meaningfully on the learning process
1.8 Present an 8,000 word (+ or -
5%) project report to a professional format and standard.
The Project is a
work - related research study. You need to submit a title and outline
to CIPS and gain approval before you can complete this Option. The
Project is also a double
module - it counts as two passes should you complete it successfully,
but it is double the work
as well.
Elective
modules List
The Electives broaden
your understanding of the commercial issues affecting the supply
chain, and it can be helpful to save studying them until last:
P7 - Operations Management
Aim
To examine those operational
processes, techniques, planning and control systems in both services
and manufacturing that particularly affect the management of the
supply chain.
Rationale
Operations, or the process of
converting input resources into output products and services, occur
in all types of organisation, whether in manufacturing or services,
public or private sector. Every organisation has one or more
operations function which adds value to its inputs in providing
saleable goods or services. Operations staff - those who are
responsible for producing and delivering - are likely to be the most
important internal customers of purchasing and supply chain
managers; supply chain management is one of the most important
interfaces between operations and the outside world. It is therefore
essential that students are able to identify and analyse key
operations concepts, and the practices and techniques used within
operations to deliver competitive advantage.
1. The Concept of
Operations
a) Defining Operations Management
b) The input-transformation-output model
c) Product versus service operations (the product/service mix)
d) The roles, responsibilities and relationships of Operations
Management
e) Performance objectives for the Operations
function
f) Techniques for analysing the strategic contributions of the
Operations function
Learning Outcomes
In the assessment the candidate may be required to:
1.1 Demonstrate an understanding of the operations transformation
process
1.2 Differentiate between manufacturing and service based operations
1.3 Appraise the role of Operations and the relationship with other
business functions
1.4 Demonstrate the strategic contribution of Operations within an
organisation
1.5 Apply techniques used in the profiling and analysis of
operations
1.6 Develop and categorise objectives for a successful operations
strategy
(weighting 10%)
2. The Design of Products and Services
a) The design process for products and services
b) Design evaluation and improvement
c) Environmentally sensitive design
d) The contribution of purchasing and supply in the design of
products and services
Learning outcomes
In the assessment the candidate may be required to:
2.1 Demonstrate how good design can lead to competitive advantage
2.2 Appraise the design process for products and services
2.3 Assess the contribution of the purchasing and supply function to
the design process
2.4 Examine the trade-offs involved in designing environmentally
acceptable products and services
2.5 Apply the tools used to improve designs
(weighting 15%)
3. The Design and Management of the Operations Network
a) Operations as part of a demand/supply network
b) Facility location
c) Process types in manufacturing and service industries
d) Process layouts and work flow
e) Process technologies
f) Principles of job design; ergonomics
g) Material handling principles
h) Work Study (Method Study and Work Measurement)
i) Quality planning and control
j) Asset maintenance and replacement strategies
Learning outcomes
In the assessment the candidate may be required to:
3.1 Identify the investment decisions involved when designing an
operations network
3.2 Examine the complexity surrounding facility location decisions
3.3 Distinguish between process types in terms of the volume and
variety that they can accommodate
3.4 Analyse and categorise the features and advantages of different
layout types in terms of efficient work flow
3.5 Examine the capabilities, benefits and limitations of process
technologies in operations
3.6 Examine the advantages and disadvantages of different approaches
to job design
3.7 Describe approaches to material handling issues
3.8 Appraise the uses and techniques of work measurement
3.9 Identify and categorise the costs of quality
3.10 Appraise the techniques used to plan and control quality in
products and processes
3.11 Examine the differences between preventive and repair
maintenance
3.12 Calculate the appropriate time to replace an asset
(weighting 30%)
4. Resource Planning and Control
a) Objectives and activities of operations planning and control (OPC)
b) Measuring capacity and calculating system efficiency
c) Demand and capacity management strategies
d) Loading, sequencing and scheduling the operations system
e) Dependent and independent demand
f) Forecasting demand
g) JIT supply
h) Network analysis
Learning outcomes
In the assessment the candidate may be required to:
4.1 Examine the objectives for OPC and the actions necessary to
control operations
4.2 Appraise appropriate strategies for managing and smoothing
capacity
4.3 Demonstrate how system capacity can be defined and efficiency
measured
4.4 Schedule work through an operations strategy
4.5 Distinguish the nature of demand for products and services
4.6 Use basic techniques to forecast demand
4.7 Compare the characteristics of 'push' and 'pull' operations
systems
4.8 Evaluate the principles of JIT supply
4.9 Create a network, calculate the critical path and identify
resource constraints
(weighting 25%)
5. Evolving Approaches to Operations
a) The Total Quality Management (TQM) approach to improvement
b) Business Process Re-engineering (BPR)
c) Lean performance
d) World-class operations
e) Benchmarking the operation
f) Evolving process technologies
g) Detecting and preventing failure
Learning outcomes
In the assessment the candidate may be required to:
5.1 Appraise the principles and techniques of TQM
5.2 Explain and comment on the principles and techniques of BPR
5.3 Assess the achievements of lean operations and world-class
performance in operational terms
5.4 Assess the need to measure operations performance against others
in similar organisations
5.5 Explore the possibilities for and implications of new process
technologies in an operations context
5.6 Analyse how failure and potential failure can be detected and
prevented
(weighting 20%)
P8 - Marketing
Aim
To provide the student with an
appreciation of the marketing concept and to examine the place of
marketing in the organisation and its contribution to strategic
objectives in consumer and business-to-business marketing
operations.
Rationale
All organisations need to satisfy
their customers, whether they are public or private sector.
Marketing provides the techniques, knowledge and methods necessary
to achieve this fundamental principle. Purchasing strategy and
decisions have a direct impact on an organisation's ability to
satisfy its customers. Purchasing and supply professionals need to
understand how an organisation satisfies its customers through the
application of marketing principles.
1. Marketing and the
Environment
a) Definitions of marketing and the
marketing concept
b) Organisational orientations including market-ing, production, and
selling orientations
c) The relationship between marketing and purchasing and supply
d) Relationship marketing
e) The external environment and its impact on marketing decisions
Learning outcomes
In the assessment the candidate may be required to:
1.1 Demonstrate an understanding of and apply the principles and
functions of marketing in various types of markets and industries
1.2 Explain the impact of marketing decisions on purchasing strategy
and analyse the relation-ship between the marketing and purchasing
and supply functions
1.3 Examine the concept of relationship marketing including aspects
of internal marketing
1.4 Demonstrate how an organisation's marketing effort is affected
by factors and developments in the proximate and macro- environment
(weighting 15%)
2. Understanding the Market
a) Marketing research and the marketing research process
b) Techniques used for primary data collection including test
marketing
c) Customer buying behaviour
d) The target marketing process
Learning outcomes
In the assessment the candidate may be required to:
2.1 Explain and apply the stages of the marketing research process
2.2 Evaluate techniques used for data collection
2.3 Evaluate the impact of IT on information management
2.4 Compare organisational and consumer buying behaviour
2.5 Explain and apply the stages of the target marketing process in
various types of markets
(weighting 20%)
3. Product Policy
a) Branding and packaging considerations
b) The importance of new product development
c) The use of product portfolio management tools
d) The characteristics of services marketing
Learning outcomes
In the assessment the candidate may be required to:
3.1 Examine the use of branding and packaging in product management
3.2 Explain and assess the new product development process and the
impact of new product development on the purchasing and supply
function
3.3 Explain the purpose of product portfolio management and apply
recognised tools of product portfolio management
3.4 Compare product and services marketing
(weighting 10%)
4. Pricing Decisions and Distribution Systems
a) Identification of pricing objectives, strategies and tactics
b) Factors affecting pricing decisions
c) The tendering process
d) Identification of channels of distribution and channel selection
strategy
e) The functions of intermediaries and managing, motivating and
controlling channel intermediaries
f) The impact of IT on channel management
Learning outcomes
In the assessment the candidate may be required to:
4.1 Evaluate and apply pricing objectives, strategies and tactics,
and identify factors affecting the pricing decision
4.2 Discuss and appraise the tendering process in relation to
business-to-business marketing
4.3 Analyse the affect of pricing decisions on the purchasing and
supply function, and other functions within an organisation
4.4 Identify and evaluate criteria to select appropriate
distribution channels and appropriate intermediaries
4.5 Describe methods to manage channel intermediaries and ensure
horizontal and vertical channel co-operation
4.6 Evaluate the impact of technology on distribution and explain
the reasons for the growth in direct channels of distribution
(weighting 15%)
5. Promotion
a) Stages involved in promotional planning
b) Advertising objectives and media selection
c) The use of sales promotion activities
d) Public relations and projection of corporate image
e) Management and organisation of the sales force
f) Developments in direct marketing
Learning outcomes
In the assessment the candidate may be required to:
5.1 Explain and apply the stages involved in promotional planning in
various types of markets
5.2 Discuss developments in electronic media and its impact on
promotions
5.3 Evaluate approaches to measuring the effectiveness of promotion
5.4 Evaluate the promotional mix and apply the promotional mix to
various types of markets
(weighting 15%)
6. International Marketing
a) Developments in the world trading environment and trends in
international trade
b) Appraising the international macro-environment
c) International market entry strategies
d) Managing the marketing mix in international markets
Learning outcomes
In the assessment the candidate may be required to:
6.1 Explain key developments in the world trading environment
including macro factors driving world trade and globalisation
6.2 Evaluate the international marketing environment and explain
barriers to international trade
6.3 Apply and evaluate international market entry strategies
6.4 Identify and assess factors affecting marketing mix strategy
decisions in international markets
(weighting 10%)
7. Marketing Planning
a) Stages in the marketing planning process
b) The relationship of marketing to corporate planning
c) Integration and management of marketing mix elements to achieve
corporate objectives
d) Customer Relationship Management (CRM)
Learning outcomes
In the assessment the candidate may be required to:
7.1 Apply each stage of the marketing planning process and explain
the relationship between marketing planning and corporate planning
7.2 Demonstrate and apply appropriate strategic management tools to
develop the marketing plan
7.3 Explain how management and integration of marketing mix
components can be used to achieve marketing objectives
7.4 Explain the use of Customer Relationship Management and the
application of Customer Relationship Management strategy
(weighting 15%)
P9 - Project Management and Contract Management for Purchasing and
Supply
Aim
To provide students with the
knowledge of principles, practices and techniques for the commercial
management of projects with particular emphasis on the role of the
supply chain specialist.
Rationale
Projects can range from
construction to refurbishment of premises, the introduction of new
Information Technology systems, to outsourcing of contracts to
suppliers for work previously carried out in-house, such as
facilities management or other operations. The supply chain
specialist in both the private and public sectors should have a
vital role in the planning and control of projects, and the
development and on-going management of resulting contracts with
suppliers. The role can be concerned with the achievement of
objectives surrounding cost management, and achieving timescales
required, as well as achieving the desired levels of performance
from the suppliers employed. The supply chain specialist should have
a high degree of involvement in developing the procurement strategy
for contracts with suppliers, and the operational activities of
monitoring and administering supplier performance.
1. Project Management
Methodology
a) The varying nature of project work in
business
b) The setting of objectives in procurement projects
c) Planning, organising, co-ordinating and controlling projects,
using appropriate tools
d) Teamwork, leadership and motivational aspects of project
management
e) The use of IT software for improved project and contract
management
Learning outcomes
In the assessment the candidate may be required to:
1.1 Evaluate and differentiate the supply chain specialist's role in
differing types of projects
1.2 Formulate and propose appropriate structures and strategies for
the management of projects
1.3 Identify and apply appropriate objectives that apply to projects
involving procurement
1.4 Recognise and prepare suitable approaches to the planning,
organisation, co-ordination and control of projects
1.5 Construct a theoretical underpinning for the teamwork,
leadership and motivational aspects of procurement projects and
suggest possible approaches that can be adopted by the supply chain
professional
1.6 Discuss and evaluate the use of different IT software systems to
help improve the project management of procurement led projects
(weighting 25%)
2. Project Appraisal and Assessment
a) Project appraisal, including methods of investment appraisal and
assessment of risks
b) Pre-contract considerations with regard to the use of
consultants, deployment of people, initiation of joint ventures and
appointment of sub-contractors
c) The use of project partnering and best value
d) The use of tendering procedures taking into account the EU
Procurement Directives
Learning outcomes
In the assessment the candidate may be required to:
2.1 Appraise differing methods of investment appraisal applicable to
projects and be able to propose the most appropriate means of
investment appraisal
2.2 Construct a method for assessing and managing risks inherent in
project work
2.3 Evaluate the needs of the purchasing organisation in the
appointment of external parties and to formulate strategies for
their subsequent management
2.4 Identify the roles of consultants and
sub-contractors in project work
2.5 Select relevant criteria for selection of consultants and
sub-contractors and other third parties in procurement projects
2.6 Discuss and judge the uses and applications of joint ventures in
procurement projects
2.7 Evaluate the use of project partnering and best value and
appraise their use in contemporary procurement project work
2.8 Identify, discuss and assess the tendering process advocated by
the EU Procurement Directives
(weighting 25%)
3. Contractual Issues
a) Competitive, negotiated, turnkey, multiple management, design,
build and operate
contract strategies
b) Aspects of the contract; the specification, the performance
measures and the contractual terms
c) Contractual clauses such as those covering pricing methods,
payment, control of sub-contractors, default, unforeseen
circumstances, delay and liquidated damages, defects and
maintenance, indemnity and insurance, intellectual property
d) The operation of alternative pricing methods in procurement
projects
e) Forms of dispute resolution
f) Legal considerations relating to project and contract management
g) Project funding methodology
Learning outcomes
In the assessment the candidate may be required to:
3.1 Evaluate, discuss and compare differing contract strategies
3.2 Rate the use of relevant specifications, performance measures
and contractual terms that can apply to different procurement
projects
3.3 Identify and compose a variety of contractual terms
3.4 Recognise and compare different pricing methods that can be
deployed in procurement projects
3.5 Calculate variable pricing and identify the most appropriate
means of pricing arrangement compliant with work required in
connection with the procurement project
3.6 Define and revise alternative methods of
dispute resolution
3.7 Recognise, report and debate contemporary developments in legal
considerations relating to project and contract management
3.8 Evaluate alternative sources of project funding
(weighting 25%)
4. Contract Management
a) Contract control, including network analysis techniques, the
measurement and reporting of progress
b) Costs control with regard to certification and payment
c) Management and negotiation of variations and claims
d) Monitoring and negotiating improvement to supplier performance
e) Contract closure and liability for defects
f) Post-implementation appraisal
Learning outcomes
In the assessment the candidate may be required to:
4.1 Explain and illustrate techniques deployed for contract control
4.2 Discuss and evaluate various means of cost control and the use
of certification on payments made to suppliers
4.3 Identify the risks relating to variations and claims to
contracts and circumstances under which they are likely to occur
4.4 Propose a suitable negotiation strategy for dealing with
variations and claims to contracts
4.5 Discuss and evaluate suitable means of controlling and for
improving supplier performance
4.6 Plan for contract closure and to discuss issues relating to
liability for defects
4.7 Appraise the importance of and identify means of conducting
post-implementation appraisals with suppliers
(weighting 25%)
P10 - Retail Merchandise
Management
Aim
To provide knowledge and
understanding of the main strategic and operational concepts in the
current and developing practices of retail merchandise management.
Rationale
The business environment today is
characterised by increasing turbulence and competitive activity.
Nowhere is this truer than within the retail environment. Rapid
developments in information technology and telecommunications are
helping create more sophisticated and demanding consumers. As a
result product life-cycles are becoming shorter and the rate of new
product development is increasing. Retailers are becoming ever
larger and more powerful and often offer a range of services other
than the supply of tangible consumer products. Retailer's own brands
are gaining market share and in many categories are challenging the
brand leaders. As a result of these pressures the role of the retail
buyer is also developing and becoming more professional. This unit
will provide students with the opportunity to explore retail buying
and product management.
1. Introduction to
Retailing
a) Size, economic importance and
competitive structure
b) Common retail formats
c) The retail marketing mix
d) The role of the retail buyer and the work of the buying
office/merchandise department
e) Organisational structures and the organisation of retail buying
Learning outcomes
In the assessment the candidate may be required to:
1.1 Discuss the scope and economic importance of retailing
1.2 Articulate the key features that distinguish the organisation
and organisational roles of retail buying and merchandise management
from similar roles in other types of organisation
(weighting 10%)
2. Inventory Management
a) Key performance ratios, how to calculate them and what they mean
- margin on returns, gross margin, stock turn, forward cover, mark
down, gross margin return on inventory (GMROI)
b) Stocktaking methods, advantages, disadvantages and usage
c) The causes of markdown, strategies to limit markdowns
d) The advantages and disadvantages of rapid stock turn, techniques
to manage stock turn
e) The implications for effective management of GMROI on the
financial health of the business.
f) Merchandise management for maximum GMROI
Learning outcomes
In the assessment the candidate may be required to:
2.1 Consider the different methods of retail stock taking and their
advantages and disadvantages
2.2 Identify and describe key merchandise performance ratios
2.3 Evaluate the significance of these performance ratios and the
retail management techniques used to improve financial performance
2.4 Recall strategies to improve stock turn and GRMOI and to reduce
markdowns and wastage
(weighting 20%)
3. Merchandising
a) Product assortment strategies related to retail format
b) Branding and retailers' own brand development
c) Range assortment planning and budgeting, model stock, never-out
lists, open-to-buy
d) Forecasting and modelling techniques
Learning outcomes
In the assessment the candidate may be required to:
3.1 Discuss the nature and usage of key merchandise range planning,
budgeting and control techniques
3.2 Evaluate the benefits and constraints of retailer own brand
development for both retailers and suppliers
3.3 Explain key approaches to planning, budgeting and forecasting
(weighting 15%)
4. Visual Merchandising
a) Space management, its importance financially and the different
techniques used to manage space
b) The customer decision making process and its affect on store
layout and product
c) Image and atmosphere and how these are affected by visual
merchandising
d) Generic store layouts and their advantages and disadvantages
e) Direct Product Profit (DPP), ABC analysis and implications for
visual merchandising
Learning outcomes
In the assessment the candidate may be required to:
4.1 Articulate the linkage between visual merchandising and image
4.2 Discuss the relationship between space
management and profitability
4.3 Describe the key tools and techniques involved in managing
retail selling space profitably
4.4 Identify different types of store layout and their advantages
and disadvantages
(weighting 20%)
5. Buying and Supplying
a) Key operational objectives: speed, cost, quality,
dependability, flexibility
b) Supplier selection and evaluation, order qualifiers and order
winners, customer satisfaction indices and service level agreements
as applied by retailers
c) Product sourcing, researching the customers needs, researching
supply markets
d) The product development process in retailing
e) Quality assurance, use of agencies, Sale of Goods Act, Trades
Descriptions Act
f) Partnerships for competitive advantage, Quick Response (QR),
Efficient Customer Response (ECR) and Vendor Managed Inventory (VMI)
g) The future of EDI and use of web based solutions to create
extranets, from supply chains to demand chains
Learning outcomes
In the assessment the candidate may be required to:
5.1 Articulate the key strategic objectives for a retail operation
5.2 Consider how the retail supply chain can be managed in order to
achieve these strategic operational objectives
5.3 Articulate the developing role of Information and Communications
technology in supporting supply chain management and strategy
5.4 Outline and evaluate relationship based supply chain strategies
and their benefits and constraints
5.5 Critically appraise the role of the buyer and the retail
organisation in sourcing the product
5.6 Discuss the roles played by buyers and suppliers in the
development process for new products
5.7 Explain the key legal and moral obligations of the retailer to
the consumer with regard to the product and the implications for
buying and resourcing
5.8 Outline procedures and strategies for retail quality assurance
5.9 Apply appropriate methods of retail supplier selection and
evaluation
(weighting 30%)
6. Merchandise Strategy
a) Generic retail strategies and the implications for the product
and merchandise range assortments
b) Market growth strategies, and international expansion
c) eTailing, clicks and mortar vs bricks and mortar, direct vs
indirect distribution
Learning outcomes
In the assessment the candidate may be required to:
6.1 Articulate the emerging and most common competitive strategies
deployed by retailers
6.2 Critically evaluate the impact of new and emerging channels of
communication and distribution on retail supply strategies
(weighting 5%)
P11 - International Supply Chain Management
Aim
To provide a comprehensive analysis
of the principles and practices of the international supply chain
and the strategic impact it has on the role of the buyer in seeking
to extend and proactively manipulate the value chain.
Rationale
With the ever-increasing pressure
of competition among companies, the move towards consolidation of
global production and the improvements in communication and
transportation systems, it emphasises sourcing of supply from around
the world. To that end the sourcing of materials or the engagement
of service providers is taking on an international perspective, this
alters dramatically the role of purchasing, to a more strategic and
global posture. Three forces guide the development of the supply
chain: the supply chain concept, the trends within global business
and a strategic shift being taken by an increasing number of
enterprises toward core competencies.
1. International Supply
Chain Management
a) The concept of the international supply
chain
b) The international supply system
c) The impact of trading blocs and customs unions
d) Sourcing internationally
e) Sub-contracting within an international dimension
Learning outcomes
In the assessment the candidate may be required to:
1.1 Demonstrate a good understanding of the dynamics of the
international marketplace
1.2 Explain how the theme of supply chain management, which
emphasises three primary components: structure, organisational
networks and processes is impacted when viewed globally
1.3 Evaluate the scope of international trade together with a sound
knowledge and understanding of its principles
1.4 Identify and assess the impact of the world- wide dispersal of
trading blocs and customs unions to that of the international supply
chain
1.5 Compare and contrast the various approaches to sourcing the
market domestically to that of internationally
1.6 Examine the growth and reliance of international sub-contracting
in contributing 'value-add' to the organisation
(weighting 20%)
2. Commercial Considerations
a) Countertrade
b) Reciprocal trading
c) Currency management and international financing
d) Economic Monetary Union and the euro
e) Ethics, culture and customary practice
f) Negotiation in a global perspective
Learning outcomes
In the assessment the candidate may be required to:
2.1 Compare and contrast the various forms of countertrade practice,
looking in particular at applicability under defined trading
conditions and/or commercial arrangements
2.2 Question the strategic impact on the organisation, as a whole,
of reciprocal trading together with its impact on the dynamic of the
supply chain
2.3 Interpret the key underpinning financial considerations linked
to international supply chain management
2.4 Define and describe a Bill of Exchange
2.5 Define the purpose of and permutations of Letters of Credit
2.6 Analyse the reasons for currency fluctuations on world financial
markets
2.7 Demonstrate and understanding of the implications of
international finance loans linked to the facilitation of
international trade flows
2.8 Relate the purpose of the International Monetary Fund
2.9 Report and debate the contemporary developments of European
Economic Monetary Union
2.10 Judge the significance, to buyers buying from within the EU, of
the introduction of the euro
2.11 Appraise the impact of ethics, culture and customary practice
to the buyer operating in the international marketplace
2.12 Distinguish the key differences in negotiation strategies to be
adopted from solely buying domestically to one of buying on an
international dimension
(weighting 35%)
3. Procurement Considerations
a) The implications on specifications when buying internationally
b) Planning considerations when buying internationally
c) Contractual considerations when buying internationally
d) Quality considerations when buying internationally
e) Tariffs and non-tariff barriers
f) Commodity markets
Learning outcomes
In the assessment the candidate may be required to:
3.1 Recognise the importance of national and international standards
linked to buying products and services
3.2 Explain and assess the role of the International Standards
Organisation
3.3 Judge the impact and importance of sound planning to
international supply chain management
3.4 Illustrate the key legal considerations to be made in relation
to international contracting and contract management
3.5 Articulate the importance of quality considerations to managing
the international supply chain
3.6 Explain the impact of tariffs and non-tariff barriers and the
work of the World Trade Organisation
3.7 Demonstrate an understanding of commodity markets and their
operation
(weighting 15%)
4. International Physical Distribution and Documentation
a) Import considerations and implications
b) Import documentation
Learning outcomes
In the assessment the candidate may be required to:
4.1 Differentiate the role of freight forwarders, import brokers,
agents, distributors and overseas representatives
4.2 Appraise the fundamental principles of cargo insurance
4.3 Classify the various forms of import documentation required to
be understood when buying globally
(weighting 5%)
5. Customs Management and Planning
a) Customs and international supply chain management
b) The processing of the imported consignment
c) Facilitation of international supply chain management
Learning outcomes
In the assessment the candidate may be required to:
5.1 Judge the role and impact of customs to the effective operation
of the international supply chain
5.2 Interpret the importance of the contract of affreightment,
including the appropriate use of Incoterms and terms of delivery
5.3 Debate the role of various import trade facilitation
organisations and groupings
5.4 Critically examine the impact of Free Trade Zones and the use of
customs warehouses
5.5 Assess the impact of electronic commerce
(weighting 15%)
6. Managing International Logistics
a) The role of international logistics
b) Factors which have developed the concept of logistics
c) Formulating an international logistics strategy
Learning outcomes
In the assessment the candidate may be required to:
6.1 Interpret the impact of international logistics by demonstrating
a sound understanding of recent developments in international
logistics drawing from current 'best practice' being adopted
6.2 Identify, discuss and assess the importance of supply chain
management's input to the formulation of a international logistics
strategy
(weighting 10%)
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CIPS
- MCG Centre Number - 005031578
