Unit 26: Supply Chain Management
Unit code D/508/0569
Unit level 5
Credit value 15
Introduction
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
economy.
Students will
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
Pass | Merit | Distinction |
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 | recommend |
organisation and present | within an organisation | improvements of a supply |
proposals for | and present proposals for | chain strategy based on |
improvement. | its improvement. | critical evaluation. |
Learning
Outcomes
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.
- Recommend
improvements to a supply chain strategy for an organisation.
Essential
Content
LO1 Apply key
supply chain concepts, principles, and processes in an organisational context
The supply
chain:
What is a
supply chain?
- How do they
differ between the service and manufacturing sectors? What is supply chain
management?
- The key
principles of supply chain management.
- Using lean
supply chain principles to enhance competitive advantage.
Resources:
- Efficient and
effective resource planning and management. Obtaining working capital and
capital investment.
Production:
- The
relationship between demand planning and production scheduling. Incorporating
project management techniques into the production process.
- Manufacturing:
- Selecting the
most appropriate strategy (e.g. make or buy). Flow management as a concept and
technique.
- Selecting the
most appropriate location for establishing a manufacturing operation, including
consideration of transport links and costs.
Impacts and
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
operations.
- Computerised
shipping, tracking and invoicing for effective logistics and distribution.
- Software and
cloud computing for real time updates on production scheduling and inventory.
LO2 Evaluate
the importance of effective supply chain management (SCM)
Supply chain
management:
- Relationships
with suppliers and logistic providers.
- Managing
service sector supply chains vs managing manufacturing sector supply chains.
- Managing
customers and meeting their needs efficiently and effectively to build a
competitive infrastructure.
- The benefits of
effective SCM.
Procurement:
- Developing
procurement strategies, policies and procedures. Consideration of demand
management, forecasting and planning.
- Supplier
landscape analysis:
- 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?
Vendor
relations:
- Giving
consideration to negotiations, contracts and purchase orders.
LO3 Evaluate
the interrelationships between supply chain and other areas of an organisation
Supply chain
integration:
- Holistic and
integrated approach to a supply chain and supply chain management.
- Relationship
between the supply chain and other business functions.
- Factors
influencing decisions to integrate a supply chain, including the size of the
business, its structure, geographic location(s), target market and competitor
profile.
Supply chain
logistics:
- Aspects of
logistics, including transportation and warehousing and inventory management.
- Customising
logistics networks to meet service requirements. Customer demand planning and
the product life-cycle.
Supply chain
management:
- 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.
LO4 Recommend
improvements to a supply chain strategy for an organisation
Analysing a
supply chain:
- Taking a
critical and objective approach to identify negative and positive trends.
Identifying and analysing issues and problems within a supply chain.
- Developing
justified recommendations for change:
- Critical,
creative and retrospective thinking supported by evidence to inform plausible
and appropriate recommendations.
Effective
record keeping:
- Lessons learnt
logs, feedback reports and fault registers.
- Encouraging
internal identification and record of issues/problems with suggestions for a
resolution
