L6M10

The CIPS Level 6 Diploma in Procurement and Supply, Module 10 (Strategic Supply Chain Management) focuses on the holistic view and strategic leadership required to manage a successful supply chain. The main points typically covered include:

1. Strategic Supply Chain Design and Structure:

• Supply chain mapping and analysis: Understanding current state, identifying bottlenecks and inefficiencies, and visualizing the flow of goods and information.
• Designing future state supply chains: Considering factors like globalization, technology, sustainability, risk, and resilience. This often involves choosing between different supply chain models (e.g., agile, lean, responsive).
• Supply chain network design: Optimizing the location of facilities, transportation modes, and supplier relationships.
• Supply chain integration and collaboration: Fostering strong relationships with suppliers, customers, and other stakeholders to improve efficiency and responsiveness.

2. Strategic Supply Chain Planning & Control:

• Demand planning and forecasting: Accurate forecasting to ensure right product, right quantity, right time. Methods and techniques for effective forecasting will be examined.
• Capacity planning: Matching supply capacity with projected demand.
• Inventory management: Optimizing inventory levels to balance the costs of holding stock with the risks of stockouts. Various inventory control techniques will be explored.
• Supply chain risk management: Identifying, assessing, and mitigating potential disruptions to the supply chain (e.g., natural disasters, political instability, supplier failure). Developing contingency plans.

3. Strategic Sourcing and Supplier Relationship Management (SRM):

• Strategic sourcing processes: Developing and implementing sourcing strategies aligned with overall business objectives. This may involve global sourcing, supplier selection, and contract negotiation.
• Supplier relationship management (SRM): Building and managing long-term relationships with key suppliers, fostering collaboration and mutual benefit. Different SRM models and their applications are crucial.
• Supplier performance management: Monitoring and measuring supplier performance against agreed-upon metrics. Addressing underperformance and improving supplier capabilities.

4. Technology and Innovation in Supply Chain Management:

• The role of technology: Understanding and applying technologies such as ERP systems, blockchain, AI, and IoT to enhance supply chain visibility, efficiency, and decision-making.
• Supply chain digitalization: Strategies for implementing and managing digital transformation within the supply chain.
• Innovation in supply chain practices: Exploring new and innovative approaches to improve supply chain performance, sustainability, and resilience.

5. Performance Measurement and Improvement:

• Supply chain KPIs (Key Performance Indicators): Selecting and using appropriate metrics to measure the performance of the supply chain (e.g., lead time, inventory turnover, on-time delivery).
• Benchmarking: Comparing performance against industry best practices.
• Continuous improvement methodologies: Applying methodologies like Lean and Six Sigma to improve efficiency and effectiveness.

In summary: The CIPS L6M10 exam tests your ability to apply strategic thinking to the design, planning, execution, and improvement of a complex supply chain. It emphasizes a holistic approach, considering all aspects from sourcing and supplier management to technology and risk mitigation. Understanding the interdependencies between different elements and applying relevant methodologies are key to success.