A6

The CIPS A6 exam, "Procurement and Supply Chain Strategy," focuses on developing and implementing strategies that align procurement and supply with the overall organizational goals. The main points revolve around several key areas:

• Strategic Procurement and Supply Chain Planning: This involves understanding the organization's strategic objectives and translating them into procurement and supply chain strategies. Key aspects include:

  • Demand forecasting & planning: Accurately predicting future needs to optimize inventory and sourcing.
  • Supply market analysis: Understanding market dynamics, risks, and opportunities to inform sourcing decisions.
  • Risk management: Identifying and mitigating potential disruptions to the supply chain.
  • Developing a procurement strategy: Aligning procurement activities with overall business strategy.
  • Developing a sourcing strategy: Determining the best approach to sourcing goods and services (e.g., single sourcing, multiple sourcing).

• Supply Chain Design and Improvement: This section focuses on optimizing the flow of goods and services throughout the supply chain. Key aspects include:

  • Supply chain mapping: Visualizing the entire supply chain to identify areas for improvement.
  • Process improvement methodologies (e.g., Lean, Six Sigma): Applying techniques to eliminate waste and improve efficiency.
  • Technology and innovation in supply chains: Utilizing technology like ERP systems, blockchain, and AI to enhance efficiency and transparency.
  • Supply chain resilience: Building a robust and adaptable supply chain capable of withstanding disruptions.
  • Sustainability: Incorporating environmental and social considerations into supply chain design.

• Strategic Sourcing: This area covers the process of identifying, selecting, and managing suppliers to achieve optimal value. Key aspects include:

  • Supplier relationship management (SRM): Building strong and collaborative relationships with key suppliers.
  • Supplier selection and evaluation: Developing criteria and processes for selecting the most suitable suppliers.
  • Negotiation and contracting: Developing effective negotiation strategies and contracts that protect the organization's interests.
  • Supplier performance management: Monitoring and evaluating supplier performance to ensure compliance and continuous improvement.

• Category Management: This involves managing groups of similar purchased items strategically to maximize value. Key aspects include:

  • Market research: Understanding the market landscape for specific categories of goods and services.
  • Developing category strategies: Defining objectives and strategies for managing each category.
  • Implementing category strategies: Putting plans into action and monitoring their effectiveness.
  • Spend analysis: Analyzing the organization's spending to identify areas for improvement and cost savings.

• Stakeholder Management: Effective communication and collaboration with internal and external stakeholders are crucial. This includes understanding and managing relationships with:

  • Internal stakeholders: Different departments and functions within the organization.
  • External stakeholders: Suppliers, customers, regulatory bodies.

In summary, the CIPS A6 exam assesses your ability to think strategically about procurement and supply chain management, encompassing planning, design, execution, and continuous improvement within a broader business context. The emphasis is on applying theoretical knowledge to real-world scenarios and demonstrating a comprehensive understanding of how strategic procurement contributes to organizational success.