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CIPS Level 5 – Logistics Management (L5M10)

Logistics management is an essential function in modern supply chain operations. The CIPS Level 5 Logistics Management (L5M10) unit aims to equip professionals with the skills and knowledge needed to manage logistics efficiently, ensuring cost-effectiveness, seamless operations, and strategic alignment with business objectives. The unit delves into key logistics functions, including transportation, warehousing, inventory management, and the role of technology in optimizing logistics operations. Learners will develop a comprehensive understanding of integrated logistics, capacity planning, and control measures to enhance operational efficiency and customer satisfaction.

Unit Objectives

The primary objectives of CIPS Level 5 Logistics Management (L5M10) include:

• Understanding the core principles of logistics management and its role within supply chain operations.
• Exploring the integration of logistics functions, including procurement, production, distribution, and after-sales services.
• Evaluating competitive advantages gained through effective logistics strategies.
• Understanding the impact of technology-driven logistics solutions, including RFID, warehouse management systems, and order tracking technologies.
• Learning how to apply capacity planning and control techniques to meet fluctuating demand while minimizing operational inefficiencies.
• Examining the importance of reverse logistics and the challenges of managing product returns.

Learning Outcomes

The significant learning outcomes of the unit CIPS Level 5 Logistics Management (L5M10) are demonstrated below:

LO1: Understand the concept of logistics management

This learning outcome focuses on developing a strong understanding of logistics management and its key activities. Learners will define logistics and explore its core elements, including information integration, transportation, inventory, warehousing, material handling, packaging, and security. Additionally, they will examine different areas of logistics, such as procurement, production, distribution, after-sales, and disposals. Learners will also differentiate between logistics and supply chain management, enhancing their ability to align logistics strategies with business objectives.

Moreover, learners will analyse the concept of integrated logistics, including the total logistics and total costs concepts, pipeline inventory management, and multimodal transportation. They will evaluate competitive advantages that can be achieved through logistics, such as customer service levels, service lifecycle management, and financial impact. Lastly, learners will critically appraise the role of technology in logistics management, covering key innovations like RFID, barcoding, Auto Identification Data Capture (AIDC), e-fulfilment, and warehouse management systems (WMS).

By mastering this learning outcome, learners will develop strategic and operational insights into logistics management and its role in business success.

LO2: Understand capacity planning and control in logistics management

This learning outcome focuses on the planning and control techniques used in logistics management. Learners will analyse how businesses balance planning and control, respond to demand fluctuations, and apply techniques such as loading, sequencing, and scheduling to optimise logistics operations.

Additionally, learners will explore capacity management techniques, including defining capacity, handling capacity constraints, forecasting demand, and measuring capacity. They will assess capacity planning strategies such as level capacity plans, chase demand plans, and demand management approaches, ensuring a responsive and efficient logistics process.

Learners will also analyse the role of Materials Requirements Planning (MRP) Systems in logistics. They will gain insights into MRP, MRP II, Enterprise Resource Planning (ERP), master production scheduling, bills of materials, and inventory data management. Moreover, they will evaluate the limitations of MRP systems, helping them make informed decisions about logistics planning and control.

Finally, learners will analyse the importance of reverse logistics, focusing on customer returns, returns policies, and redistribution within the supply chain. By achieving this learning outcome, learners will develop expertise in capacity planning, inventory management, and demand forecasting, ensuring efficiency and cost-effectiveness in logistics management.

Assessment Criteria

1.0 Understand the concept of logistics management

1.1 Analyse the role and activities of logistics management

• 1.1.1 Defining logistics
• 1.1.2 The elements of logistics management: integration of information, transportation, inventory, warehousing, material handling, packaging and security
• 1.1.3 The different areas of logistics: procurement, production, distribution, after sales and disposals
• 1.1.4 Logistics and supply chain management

1.2 Analyse the concept of integrated logistics

• 1.2.1 The total logistics concept
• 1.2.2 The total costs concept of logistics
• 1.2.3 Pipeline inventory and logistics
• 1.2.4 Multimodal transportation

1.3 Evaluate aspects of competitive advantage that can be achieved through logistics management

• 1.3.1 Sources of competitive advantage through logistics
• 1.3.2 Matching logistics to business strategy
• 1.3.3 Levels of customer service
• 1.3.4 Measuring customer service
• 1.3.5 Service lifecycle management
• 1.3.6 The financial impact of logistics

1.4 Critically appraise the use of technology in logistics management

• 1.4.1 Coding and bar coding in logistics
• 1.4.2 Order tracking technologies
• 1.4.3 Auto Identification Data Capture (AIDC) technology in logistics
• 1.4.4 Radio Frequency Identification (RFID) in logistics
• 1.4.5 E-fulfilment in logistics
• 1.4.6 Warehouse management systems (WMS)
• 1.4.7 Integrating systems in the logistics supply chain

2.0 Understand capacity planning and control in logistics management

2.1 Analyse techniques that can be applied to planning and control in logistics management

• 2.1.1 Achieving balance between planning and control
• 2.1.2 Responding to demand
• 2.1.3 Loading, sequencing and scheduling

2.2 Explain techniques that can be applied to capacity management

• 2.2.1 Defining capacity
• 2.2.2 Capacity constraints
• 2.2.3 Planning and controlling capacity
• 2.2.4 Forecasting demand fluctuations
• 2.2.5 Measuring capacity
• 2.2.6 Capacity planning through level capacity plans, chase demand plans or demand management

2.3 Analyse the use of Materials Requirements Planning (MRP) Systems technology for planning and control in Logistics management

• 2.3.1 MRP and MRP II
• 2.3.2 ERP
• 2.3.3 Master production scheduling
• 2.3.4 Bills of materials
• 2.3.5 Inventory data
• 2.3.6 MRP calculations
• 2.3.7 The limitations of MRP systems

2.4 Analyse the use of reverse logistics as a process

• 2.4.1 The challenge of customer returns and returns management
• 2.4.2 Customer returns policies
• 2.4.3 Redistribution of returns to the supply chain

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