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

Global Strategic Supply Chain Management


Module purpose

On completion of this module, learners will be able to evaluate the influence of strategic supply chain management and assess the methods which are available to measure, improve and optimise supply chain performance.

Module aim(s)

One of the significant impacts of globalisation has been a marked increase in the complexity of the supply chain and associated networks. These challenges require procurement and supply leaders to develop and lead modern day supply chains and understand the vital role that they have in the overall success of corporate and business strategy. This module is designed for such professionals as it focuses on the development, implementation, monitoring and optimisation of global supply chains and on the strategic influence of such chains on the achievement of competitive advantage.

Learning outcomes, assessment criteria and indicative content

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

2.0 Understand and apply supply chain design tools and techniques

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


• 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

2.1 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

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

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 organizational 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

4.1 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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