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CIPS Level 6 Global Logistics Strategy (L6M10)

The CIPS Level 6 Global Logistics Strategy (L6M10) unit focuses on the strategic implications of logistics in a globalised economy. It provides learners with an in-depth understanding of logistical challenges, supply chain governance, and reverse logistics. This unit equips procurement and supply chain professionals with the essential knowledge to manage logistical complexities, optimise international supply chains, and mitigate risks. Learners will explore key elements such as inventory management, transportation pipelines, global governance, and sustainability in logistics.

This unit is crucial for senior procurement and supply chain professionals who need to develop strategic approaches to global logistics. It enhances decision-making abilities regarding inventory holding, cost trade-offs, and risk mitigation while considering international regulations. With globalisation reshaping logistics, understanding these principles is vital for maintaining a competitive edge in international markets.

Unit Objectives

The primary objectives of studying CIPS Level 6 Global Logistics Strategy (L6M10) include:

• Developing strategic logistics management skills to navigate challenges in a globalised economy.
• Understanding the relationship between global trade, inventory management, and transportation networks.
• Analysing global supply chain governance and the impact of international regulations.
• Evaluating reverse logistics strategies and their role in sustainability.

Learning Outcomes

The significant learning outcomes of the unit CIPS Level 6 Global Logistics Strategy (L6M10) are demonstrated below:

LO1: Understand the strategic logistical implications of globalisation

This learning outcome focuses on the challenges that globalisation presents in logistics and supply chain management. Learners will evaluate the consequences of global supply chains, including inventory handling, transportation complexities, and cost fluctuations. They will also assess the trade-offs between responsiveness to local markets and economies of scale, helping organisations optimise their global logistics operations. Additionally, learners will explore the structure of global logistics networks, understanding aspects such as layering and tiering, information flow, and the role of 3PL and 4PL providers. By mastering this learning outcome, learners will gain insights into strategic logistical risks, such as geopolitical threats, security concerns, and transportation breakdowns, and develop risk mitigation strategies through inventory policies, transport network redesign, and contingency planning.

LO2: Understand global governance of the supply chain

This learning outcome focuses on the governance and legal considerations associated with managing a global supply chain. Learners will contrast different strategic governance models, including decentralised vs. centralised structures and the challenges of managing geographically dispersed supply networks. They will assess the impact of international laws and regulations on supply chain operations, including legal jurisdiction, contract enforcement, dispute resolution, and compliance with international trade laws. Understanding these governance factors will enable learners to effectively navigate global regulatory environments, ensuring smooth supply chain operations and risk minimisation.

LO3: Understand the concept of reverse logistics and its impact on global logistics strategy

Learners will explore reverse logistics as a critical aspect of global supply chain management. This includes understanding waste reduction strategies, product returns, repairs, reuse, and recycling. The learning outcome also covers strategic factors influencing reverse logistics, such as government regulations, economic considerations, environmental sustainability, and corporate social responsibility (CSR). Learners will compare internal and external factors affecting reverse logistics, including legislation, customer demand, cost-benefit analysis, and resource availability. Finally, learners will assess the challenges in implementing a reverse logistics strategy, such as lack of infrastructure, forecasting difficulties, and additional costs. By mastering this outcome, learners will be able to develop efficient reverse logistics strategies that align with sustainability goals and cost-effectiveness.

Assessment Criteria

The assessment of CIPS Level 6 Global Logistics Strategy (L6M10) is directly linked to the learning outcomes. Learners will be required to:

• Analyse case studies of global supply chain networks and logistical challenges.
• Evaluate risk mitigation strategies in a global logistics context.
• Assess the impact of international trade laws on supply chain governance.
• Develop strategic reverse logistics plans aligned with sustainability goals.

LO1: Understand the strategic logistical implications of globalisation

1.1 Evaluate the logistics challenges that globalisation presents

This outcome focuses on assessing the complexities of global logistics, including:

• Inventory handling and transportation: Centralised vs. regionalised inventory, extended transportation pipelines, storage and handling challenges.
• Economic factors: Price and currency fluctuations, economies of scale, cost trade-offs.
• Freight and transportation: Multiple freight modes, cost considerations, and global consolidation.
• Market responsiveness: Trade-offs between efficiency and local market needs.

1.2 Assess the structure of a global strategic logistics and supply chain network

Learners will examine:

• Global supply chain tiers: Understanding 3PL and 4PL logistics models.
• The role of OEMs: How Original Equipment Manufacturers influence logistics networks.
• Supply chain flexibility: Adapting to local market conditions while maintaining efficiency.
• Government incentives: Tax regulations, infrastructure development, and trade agreements affecting global logistics.

1.3 Assess the strategic logistical risks of globalisation and the associated responses

This section covers:

• Geopolitical risks: Political instability, trade restrictions, and currency fluctuations.
• Supply chain disruptions: Transportation breakdowns, pipeline security threats, and contingency planning.
• Risk mitigation strategies: Diversifying suppliers, inventory buffer strategies, and transportation network redesign.

LO2: Understand global governance of the supply chain

2.1 Contrast the strategic influences on globalised supply chain governance

Learners will understand:

• Global supply chain complexity: Coordination between supply chain units, centralised vs. decentralised models.
• Corporate governance models: How embedded teams and virtual centralisation influence decision-making.
• Flow of goods vs. flow of ownership: Managing supply chain transparency and accountability.

2.2 Assess the impact of international legislation on the globalised supply chain

This section explores:

• Legal jurisdictions: Determining which legal system governs contracts, disputes, and trade compliance.
• International trade regulations: The role of courts, insurance policies, customs clearance, and payment security.
• Regulatory compliance: Ensuring adherence to global trade laws to avoid penalties and supply chain disruptions.

LO3: Understand the concept of reverse logistics and its impact on global logistics strategy

3.1 Assess the concept and requirements of reverse logistics

Reverse logistics refers to the process of returning products from the consumer back to the manufacturer or supplier. Key aspects include:

• Product returns and recalls: Managing return policies and defect resolution.
• Repairs, refurbishment, and recycling: Optimising product lifecycle management.
• Waste reduction strategies: Minimising disposal costs and supporting circular economy initiatives.

3.2 Assess the strategic factors which influence reverse logistics

Learners will examine:

• Government policies: Environmental laws, waste disposal regulations, and sustainability standards.
• Economic factors: Cost-benefit analysis of reverse logistics, landfill cost reduction, and profit from recycled materials.
• Corporate Social Responsibility (CSR): The role of green logistics and sustainable supply chain management.

3.3 Contrast factors that influence strategic reverse logistics

Key internal and external influences include:

• External factors: Customer demand, government incentives, compliance requirements.
• Internal factors: Cost-effectiveness, volume of returns, and resource allocation.
• Integration and coordination: How firms align reverse logistics with supply chain operations.

3.4 Compare factors which affect the implementation of reverse logistics strategy

Challenges in implementing reverse logistics strategies include:

• Lack of infrastructure: Inadequate storage, transport, and processing capabilities.
• Unpredictability of returns: Difficulty in forecasting reverse supply chain flows.
• Cost constraints: Reverse logistics often viewed as an additional expense rather than a strategic advantage.
• Compliance-driven approach: Some firms only implement reverse logistics due to legal obligations rather than identifying its business value.

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