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Overview

Framework:
RQF
Level:
Level 3
Unit No:
M/617/6667
Credits:
6
Guided learning hours:
48 hours

Aim

The aim of this unit is to encourage learners to explore the various components of a supply chain through a conceptual awareness of supply chain management.

Unit Learning Outcomes

1

Understand supply chain management. 

  • Supply chain management
    Meet customer expectations; maximise customer value; reduce operating costs; improve financial position; achieve a sustainable competitive advantage; synchronise supply and demand.
  • Components
    Develop a strategic plan; develop a strong supplier base; schedule production activities; plan for storage and delivery; plan for the return of goods.
  • Forward logistics
    Getting products to market; sales forecasting; hub services; pick and pack services.
  • Reverse logistics
    Returns from customers; recall of products; repairs; repackaging; recycling.

Assessment Criteria

  • 1.1

    Explain why effective supply chain management is important to an organisation.

  • 1.2

    Describe the components of an organisation’s supply chain management process.


2

Understand risk within the supply chain

Risks;

  • internal
    SWOT analysis; value chain analysis.
  • external
    PESTLE analysis; environmental scanning; competitor analysis.
  • globalisation
    Positives – global connectivity; global growth; global collaboration; global integration
    Negatives – increased risk; less predictable markets; more problems due to increased channels; climatisation.

Assessment Criteria

  • 2.1

    Describe internal and external risks to an organisation’s supply chain.

  • 2.2

    Describe the risks of globalisation to an organisation’s supply chain.


3

Understand how to improve the performance of a supply chain.

  • Lean
    Sees value from a customer’s perspective; removing activities which add no value; reducing waste in systems and processes; value stream; aiming for perfection.
  • Continuous improvement
    Ongoing attempt to improvement; reducing waste; improving quality; process improvement; drive competitive advantage.

Assessment Criteria

  • 3.1

    Explain how the concept of ‘lean’ supports improvement to an organisation’s supply chain.

  • 3.2

    Explain how the concept of ‘continuous improvement’ supports improvement to an organisation’s supply chain.


4

Understand linkages within a supply chain.

Linkages

  • upstream
    Raw material extraction; storage; transportation; production.
  • downstream
    Processing raw material; creating finished products; storage; distribution; customer service.
  • explicit
    Contracts; memorandum of understanding; codes of conduct; codes of practice.
  • Implied
    Implied demand; implied uncertainty; implied efficiency; implied availability.

Assessment Criteria

  • 4.1

    Explain the role of upstream and downstream linkages in a supply chain.

  • 4.2

    Describe the explicit and implicit links within an organisation’s supply chain.


5

Understand how globalisation impacts on a supply chain.

  • External analysis
    Application of PESTLE for each component of a global supply chain.
  • Impact
    This will be specific to an organisation and will be based on a PESTLE analysis.
  • Barriers
    These will be specific to an organisation and will be based on all previous learning in this unit.

Assessment Criteria

  • 5.1

    Analyse the external factors impacting on different elements of an organisation’s global supply chain.

  • 5.2

    Describe barriers to an organisation of improving a global supply chain.


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