Unit 26: Supply Chain Management
Unit code D/508/0569
Unit level 5
Credit value 15
The aim of this
unit is to enhance a student’s understanding of the nature, role and
contribution of supply chain management to a business. The growth of global
business has led to organisations becoming increasingly reliant on logistics
and supply chain management in order to keep up with the demands of a global
explore the purpose of supply chain management and its benefits to an
organisation, their customers and their suppliers.
The unit will
consider the design, development, implementation, control and future
development stages of supply chain. There is an emphasis on practical
employability skills throughout this unit.
Learning Outcomes and Assessment Criteria
LO1 Apply key supply chain concepts, principles and processes in an organisational context
P1 Demonstrate how key supply chain concepts, principles and processes are applied throughout the stages of resourcing, product design and development, logistics and distribution.
M1 Evaluate how integration of supply chain concepts, principles and processes improve organisational efficiency.
LO1, LO2 and LO3
D1 Critically evaluate supply chain concepts, principles and processes, and their interrelationships with other areas of an organisation.
LO2 Evaluate the importance of effective supply chain management (SCM)
P2 Evaluate the importance of effective SCM from the perspective of customers, suppliers, distributors and retailers.
M2 Critically evaluate the importance of physical, information and financial flow management within the supply chain.
LO3 Evaluate the interrelationships between supply chain and other areas of an organisation
P3 Evaluate the cross functional and integrated approach of SCM with other areas of an organisation.
M3 Examine the implications of interrelationships between the supply chain and other functional areas using theories, concepts and/or models.
LO4 Recommend improvements to a supply chain
strategy for an organisation
P4 Evaluate a supply
M4 Critically evaluate a
D2 Justify and
chain strategy within an
supply chain strategy
organisation and present
within an organisation
improvements of a supply
and present proposals for
chain strategy based on
By the end of
this unit a student will be able to:
- Apply key
supply chain concepts, principles, and processes in an organisational context.
- Evaluate the
importance of effective supply chain management (SCM).
- Evaluate the
interrelationships between supply chain and other areas of an organisation.
improvements to a supply chain strategy for an organisation.
LO1 Apply key
supply chain concepts, principles, and processes in an organisational context
What is a
- How do they
differ between the service and manufacturing sectors? What is supply chain
- The key
principles of supply chain management.
- Using lean
supply chain principles to enhance competitive advantage.
- Efficient and
effective resource planning and management. Obtaining working capital and
relationship between demand planning and production scheduling. Incorporating
project management techniques into the production process.
- Selecting the
most appropriate strategy (e.g. make or buy). Flow management as a concept and
- Selecting the
most appropriate location for establishing a manufacturing operation, including
consideration of transport links and costs.
application of technology:
- The use of real
time automated delivery notification systems for tracking and monitoring the
delivery of products.
- The application
of barcode scanning, digital cameras and smartphones, etc. in warehouse
shipping, tracking and invoicing for effective logistics and distribution.
- Software and
cloud computing for real time updates on production scheduling and inventory.
the importance of effective supply chain management (SCM)
with suppliers and logistic providers.
service sector supply chains vs managing manufacturing sector supply chains.
customers and meeting their needs efficiently and effectively to build a
- The benefits of
procurement strategies, policies and procedures. Consideration of demand
management, forecasting and planning.
- Cost/price –
how much does it cost? Quality – what is the quality of the product? Time – how
long will it take to deliver?
- Place – where
is the supplier?
- Scale – can
they meet anticipated future demand?
consideration to negotiations, contracts and purchase orders.
the interrelationships between supply chain and other areas of an organisation
- Holistic and
integrated approach to a supply chain and supply chain management.
between the supply chain and other business functions.
influencing decisions to integrate a supply chain, including the size of the
business, its structure, geographic location(s), target market and competitor
- Aspects of
logistics, including transportation and warehousing and inventory management.
logistics networks to meet service requirements. Customer demand planning and
the product life-cycle.
- A holistic
approach to managing and optimising the effectiveness of a supply chain.
- The use of the
SCOR model to address, improve and communicate SCM.
improvements to a supply chain strategy for an organisation
- Taking a
critical and objective approach to identify negative and positive trends.
Identifying and analysing issues and problems within a supply chain.
justified recommendations for change:
creative and retrospective thinking supported by evidence to inform plausible
and appropriate recommendations.
- Lessons learnt
logs, feedback reports and fault registers.
internal identification and record of issues/problems with suggestions for a