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CIPS Level 6 Global Strategic Supply Chain Management (L6M3)

The CIPS Level 6 Global Strategic Supply Chain Management (L6M3) unit is designed to provide learners with a deep understanding of strategic supply chain management and its role in supporting corporate business strategy. This unit explores how businesses can optimize supply chain operations to create competitive advantages, enhance profitability, and mitigate risks. The module also evaluates various approaches to strategic relationship management, supply chain design, and distribution systems, equipping learners with the knowledge to manage complex global supply chains efficiently.

This unit is crucial for senior procurement and supply professionals who aim to align supply chain strategies with corporate objectives while adapting to market changes and technological advancements. By mastering this unit, learners can contribute effectively to sustainable supply chain management, ensuring operational resilience and competitive positioning in dynamic markets.

Unit Objectives

The main objectives of learning CIPS Level 6 Global Strategic Supply Chain Management (L6M3) are given here:

  • To equip learners with the ability to strategically align supply chain management with corporate business strategy, enhancing both organizational performance and competitiveness.
  • To enable learners to assess and mitigate supply chain risks while optimizing profitability and operational efficiency.
  • To develop an understanding of supply chain segmentation, network design, and distribution systems, ensuring effective decision-making in global supply chains.
  • To provide knowledge of lean and agile supply chain approaches, helping learners implement strategies that improve flexibility and responsiveness in dynamic markets.
  • To foster skills in strategic relationship management, ensuring successful collaboration between suppliers, customers, and stakeholders within a supply chain.

Learning Outcomes

The significant learning outcomes of the unit CIPS Level 6 Global Strategic Supply Chain Management (L6M3) are demonstrated below:

LO1: Understand how strategic supply chain management can support corporate business strategy

This learning outcome focuses on the relationship between corporate, business, and functional-level strategies and how supply chain management contributes to overall business performance. Learners will assess the impact of supply chain strategies on profitability, risk management, and corporate growth. Additionally, they will explore how supply chain disruptions and external factors can affect organisational success. By mastering this learning outcome, learners will gain the ability to align supply chain strategies with corporate objectives, ensuring sustainable competitive advantage.

LO2: Understand and apply supply chain design tools and techniques

Learners will develop an understanding of supply chain segmentation, network optimisation, and distribution systems. This outcome focuses on different approaches to customer and supplier segmentation, managing supply chain tiers, and identifying value-adding activities within a network. Learners will also evaluate the impact of e-commerce, logistics design, and lean/agile supply chains in achieving efficiency. By achieving this learning outcome, learners will enhance their ability to design, implement, and optimise supply chain structures to improve operational performance.

LO3: Understand and apply techniques to achieve effective strategic supply chain management

This outcome equips learners with the ability to develop collaborative relationships across the supply chain, using data integration and shared services. Learners will explore change management strategies, including stakeholder engagement and resource allocation, to drive strategic transformation. Additionally, they will analyse various performance measurement techniques, such as KPIs, balanced scorecards, and organisational feedback mechanisms. By mastering this learning outcome, learners will be able to implement strategic supply chain initiatives that enhance efficiency, stakeholder collaboration, and continuous improvement.

LO4: Understand and apply methods to measure, improve, and optimise supply chain performance

This learning outcome focuses on evaluating the impact of supply chain operations on corporate performance. Learners will explore different measurement techniques, such as KPIs, benchmarking, and system integration, to assess and improve supply chain effectiveness. They will also study risk management approaches, collaborative forecasting, and business process reengineering (BPR) to optimise supply chain networks. Furthermore, learners will assess challenges related to strategic fit, globalisation, sustainability, and technological advancements. By attaining this outcome, learners will gain the expertise to enhance supply chain resilience, efficiency, and strategic alignment with corporate goals.

Assessment Criteria

1.0  Understand how strategic supply chain management can support corporate business strategy

1.1  Assess the relationship between functional, business and corporate levels of strategy

  • The relationship between the supply chain, business and corporate levels of strategy
  • The impact of supply chain management on business and corporate performance
  • The impact on profitability of the supply chain
  • Supply chain risks and their impact on business and corporate performance

1.2  Evaluate the contribution of strategic supply chain management

  • Creating sources of competitive advantage such as cost, improved quality, time to market, product and service differentiation
  • Enterprise profit optimisation
  • The use of outsourcing to achieve competitive advantage
  • Offshoring and sourcing from low cost countries
  • Quality improvement methodologies in the supply chain

1.3  Evaluate the impact of market change on strategic supply chain management

  • STEEPLED (social, technical, economic, environmental, legislative, ethical and demographic) factors and their impact and risks on supply chains
  • Distinguishing between disruptive and incremental change
  • Changing markets and market volatility
  • The impact of globalisation on supply chains
  • Assess the supply chain risks of achieving expected international minimum standards.

1.4  Contrast approaches to develop and implement strategic relationship management

  • Models of strategic alignment
  • Customer and supplier relationship management
  • Methodologies for the implementation of strategic relationship management

2.0  Understand and apply supply chain design tools and techniques

2.1  Compare approaches to segmentation

  • Approaches to segmenting customers and suppliers
  • Managing the product and service mix
  • Creating strategies for the different tiers of a supply chain

2.2 Assess approaches to developing networked supply chains

  • Supply chain flows and the use of supply chain and value stream
  • Tiering in supply chains and the use of network sourcing
  • Identifying value added activities and the value chain in supply chain networks
  • Network optimisation modelling
  • The use of reverse logistics in supply chain networks

2.3 Assess the role of distribution systems

  • Channel design
  • The impact of e-commerce on distribution networks
  • Logistics flow path design
  • Physical network configuration
  • Challenges in transportation management
  • Locations of distribution centres
  • Positioning in local, regional and global chains

2.4 Evaluate ways to achieve lean and agile supply chains

  • Comparing lean and agile supply chains by variety and volume
  • Implementing lean supply and lean thinking
  • Matching supply with demand
  • The impact of promotions and causal events on demand
  • Improving demand planning accuracy and the use of statistical forecasting
  • Using technology to communicate data in supply chains

3.0  Understand and apply techniques to achieve effective strategic supply chain management

3.1  Evaluate approaches to developing and implementing supply chain collaboration

  • Supply chain evolution from transactional information sharing to collaborative approaches in supply chain management
  • Applying PADI (Pragmatic/Performance, Administrative, Divergent/Development and Integration) frameworks for collaboration
  • Creating collaborative relationships with customers and suppliers
  • The use of shared services in supply chains
  • Data integration in supply chains

3.2 Evaluate approaches to change management when working with stakeholders

  • Communicating plans with customers, suppliers senior management and other organisational functions
  • Gauging resources for strategic supply chain management
  • The role of the change agent
  • Gauging the acceptance of strategic change

3.3 Analyse approaches to measuring supply chain performance

  • Measuring processes and the use of Key Performance Indicators (KPIs) in supply chain management
  • Measure of organisational, functional, team and individual performance
  • The use of surveys to obtain feedback
  • Applying balanced scorecards in the supply chain

3.4 Analyse how the development of knowledge and skills can help achieve effective strategic supply chain management

  • The concept of knowledge management within the organisation and with suppliers
  • Developing procurement and supply chain competences
  • Training and development to improve knowledge and skills within the organisation and with suppliers
  • Approaches to measurement, analysis, improvement and control to develop knowledge and skills

4.0  Understand and apply methods to measure, improve and optimise supply chain performance

4.1  Evaluate the impact of the supply chain on corporate performance

  • Ensuring added value outcomes
  • Timely reporting of data to senior management and stakeholders
  • Matching supply with demand

4.2  Assess methods to measure supply chain performance

  • KPIs
  • The use of technology to communicate supply chain data
  • Systems integration strategies
  • Measurement of safety, quality, costs and deliverables
  • The use of benchmarking
  • The development and application of balanced scorecards for supply chain performance

4.3  Assess methods to improve and optimise supply chain performance

  • Number of operating facilities and their locations
  • Number of suppliers
  • Flow of items through the supply chain network
  • Network Optimisation Models (NOM)
  • Risk identification and management
  • Collaborative Planning, Forecasting and Replenishment (CPFR)
  • Business Process Reengineering (BPR)

4.4  Assess tools and techniques that are available to help the organisation to achieve strategic fit

  • Understand customer and supply chain uncertainty:
  • Customer need for each targeted segment and associated uncertainty
  • Define desired cost and service requirements
  • Identify the unpredictability of demand, supply,disruption and delay that supply chain must deal with
  • Understand the supply chain capabilities:
  • What is the supply chain designed to do well?
  • What does the supply chain struggle to achieve?
  • Achieving strategic fit:
  • Restructure supply chain to support competitive strategy
  • Change competitive strategy to exploit supply chain design
  • Cost-responsiveness frontier
  • The responsiveness spectrum
  • The zone of strategic fit

4.5  Assess the challenges to achieving and maintaining strategic fit

  • Increasing product variety and shrinking life cycles
  • Globalisation and increasing uncertainty
  • Fragmentation and increased complexity of the supply chain
  • Changing technology and the business environment
  • The environment and sustainability

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