CIPS Level 3 Advanced 3 Certifıcate in Procurement

CIPD

مجانا

CIPS Level 3 Advanced 3
Certifıcate in
Procurement
and Supply
Operations
Ref: 603/3283/9
2018 Syllabus
Version 1
Your
qualifıcation
Level 6
Professional
Diploma in
Procurement
and Supply
Entry level Entry level Highest Entry level
Level 3
Advanced
Certificate in
Procurement
and Supply
Operations
Level 2
Certificate in
Procurement
and Supply
Operations
Level 4
Diploma in
Procurement
and
Supply
Level 5
Advanced
Diploma in
Procurement
and Supply
We have created a suite of regulated, flexible and agile professional
qualifications that pave the way for a whole new generation of global
procurement and supply learners.
Kevin Hickman, FCIPS Chartered Procurement and Supply Professional, Head of Education Development and Standards, CIPS
Next steps
This qualification provides progression to the CIPS Level 4 Diploma in
Procurement and Supply.
* Refers to levels within the UK RQF. Other regulatory bodies may have different corresponding levels
Level 4
CIPS qualifications are regulated internationally to ensure we offer a recognised, professional
standard in procurement and supply. CIPS Level 3* Advanced Certificate in Procurement and
Supply Operations is a vocationally related professional qualification. Formal recognition is
included within the regulatory frameworks of an increasing number of countries such as the UK
(England, Wales and Northern Ireland), UAE (including Dubai) and Africa (including Zambia). Further
information on this recognition and the details of corresponding qualifications levels for other
international qualifications frameworks are detailed on our website. CIPS members can have the
confidence in our regulated qualifications, which reliably indicate the standard of knowledge, skills
and understanding that you, as a learner, are required to demonstrate.
This is an entry level vocationally related qualification it
is designed to follow on from the CIPS Level 2 Certificate
in Procurement and Supply Operations as learners are
expected to develop, use and apply the professional
language and skill sets introduced at Level 2 within a
practical working environment. This qualification will
prepare intermediate level learners looking to specialise
in procurement and supply and to progress onto the CIPS
Level 4 Diploma in Procurement and Supply.
Developed in close collaboration with experts from the
procurement and supply profession and businesses, and
with the providers who will be delivering the qualifications,
CIPS Level 3 Advanced Certificate in Procurement and Supply
Operations is designed for individuals who will be working at
the Tactical but moving towards the Operational level of the
CIPS Global Standard for Procurement and Supply. This is the
first level of the CIPS qualifications structure where elective
modules are introduced, giving learners the choice of a specific
professional path such as Procurement or Supply Chain.
Based on the Tactical and Operational competency levels of CIPS Global Standard
Who is it for?
This qualification will prepare intermediate level learners looking to specialise in procurement and supply and
to progress onto the CIPS Level 4 Diploma in Procurement and Supply.
What will I learn?
Learn how to apply factual, procedural and theoretical knowledge of procurement and supply. You will be able
to completes tasks and address problems that are well-defined but may be complex and non-routine. You will
understand what relevant information is required and how to interpret and review its effectiveness.
Entry requirements
This is the second entry level qualification, there are no formal entry requirements.
Credit values
To gain a qualification you are required to complete a total number of credits. This is a way of
quantifying the required number of study hours. 1 credit is equivalent to 10 hours of study.
Each module is given a credit value of 3 or 6 credits.
Total credits required for completion 30
24
Credits made
up of CORE
MANDATORY
modules
Guide to qualification content
Four CORE modules make up 24 of the required credits
Choose one ELECTIVE module to make up the final six required credits
6
Credits made up
of your choice of
ELECTIVE
module
30
Credits
required for
completion

CORE Ethical Procurement
and Supply (L3M2) 6
CREDITS
CORE Procurement and
Supply Environments (L3M1) 6
CREDITS
CORE Team Dynamics
and Change (L3M4) 6
CREDITS
CORE Contract
Administration (L3M3) 6
CREDITS

 

ELECTIVE Socially Responsible
Warehousing and Distribution
(L3M6)
6
CREDITS
ELECTIVE Socially Responsible
Procurement (L3M5) 6
CREDITS

03
cips.org/qualifications
Objective Response exam format (OR)
These questions allow you to select a response from a list of possible answers.
You will find these types of exams across all our qualifications levels and they
are marked by computer and then moderated by CIPS examiners.
Your total qualification time (TQT)
The TQT indicates the overall number of guided learning hours,
additional self-study and assessment time that is required.
Guided learning hours (GLH)
It is expected that you will undertake 200 GLH. The definition of guided learning
hours is: ‘A measure of the amount of input time required to achieve the
qualification. This includes lectures, tutorials and practicals, as well as
supervised study in, for example, learning centres and workshops’.
Self-study requirement (SSR)
Additionally, we recommend that you also commit to at least 90 SSR
hours. This includes wider reading of the subject areas and revision to give
yourself the best preparation for successfully achieving the qualification.
Total exam time
All the modules in CIPS qualifications are assessed by an examination.
300
TQT HRS
OR
90
SSR HRS
10
HRS
200
GLH HRS
About our
exams and your
study commitments
Procurement
and Supply
Environments
[L3M1]
Module purpose
On completion of this module, learners will be able to identify the range of environments
in which procurement and supply is expected to operate and the external factors that can
impact on overall success.
Module aim(s)
Procurement and supply is to operate in a varied range of environments. As well as the
public and private sectors, those responsible for the procurement and supply function may
find themselves working with those in not-for-profit organisations. This module is designed
for those who are involved in the procurement and supply function, who must recognise the
wider environment in which they work and the impacts that different types of organisations
can have on successfully meeting with overall organisational needs. They must know the
importance of the external environment and also identify the procedures that regulate
procurement and supply.
Credit value
C
CORE MODULE
6
CREDITS
CIPS GLOBAL
STANDARD
2.1 • 2.2 • 4.4 • 11.2
2
HRS
EXAM DURATION
HOURS
05
60
HRS
MODULE
LEARNING TIME
OR
OBJECTIVE
RESPONSE EXAM
Learning outcomes, assessment criteria and indicative content
1.0 Know the different sectors of procurement and supply
1.1 Define the different types and functions of the private
sector
• Definitions and different types of private sector
organisations – sole traders, partnerships, registered
companies, incorporated and unincorporated
companies, SME, multinational corporations
• The size and scope of the private sector in different
economies
• Functions of private sector organisations such
as profit, growth, market share, share price,
other financial measures, corporate and social
responsibility
1.2 Describe the role and scope of procurement and
supply in the private sector
• Sole trade, partnerships, registered companies,
incorporated and unincorporated companies
• Small and medium sized organisations (SMEs)
• Multinational organisations
• The roles of procurement and supply in the private
sector
1.3 Describe the role and scope of procurement and
supply in the public sector
• Defining the public sector
• Central and local government
• The functions of public sector organisations
• The roles of procurement and supply in the public
sector
• Commissioning and procurement
• Achieving budget savings and other sources of added
value
• Providing access to services
• Regulating organisations and individuals
1.4 Describe the role and scope of procurement and
supply in the not-for-profit and third sector
• Defining the not-for-profit and third sector
• Public accountability for the not-for-profit and third
sector
• Define the role of procurement and supply in the
not-for-profit and third sector
2.0 Understand types of pricing arrangements in
commercial agreements
2.1 Explain how pricing arrangements are used in
commercial agreements to ensure effective price and
cost management
• Pricing schedules
• Fixed pricing arrangements
• Cost plus and cost reimbursable pricing
arrangements
• Indexation and price adjustment formulae
• Incentivised gain share pricing
• Payment terms
• The use of open book costing and adjustments
3.0 Know the external environment and its impact on
procurement and supply
3.1 Identify the impact of the external environment on
procurement and supply
• The use of environmental scanning
• The use of PEST (political, economic, social
and technological) criteria or STEEPLED (social,
technological, economic, environmental, political,
legislation, ethical and demographic) criteria that
impacts on organisations’ external environment
• The five forces model
• Competitive market forces
• Demand and supply
• Market factors
• Product life cycles
cips.org/qualifications
07
3.2 Describe how the implications of economic criteria
impact on procurement and supply
• Macro-economic criteria such as interest rates,
inflation, exchange rates, level of economic activity
(GDP/ GNP) that impacts on organisations
• Micro-economic criteria such as demand and supply
that impacts on organisations
3.3 Describe how the implications of political and
legislative criteria that impact on procurement and
supply
• Political criteria such as stability and instability that
impacts on organisations, different economic sectors
and on countries
• Legislation that impacts on organisations such as
on standards, health and safety, environmental
standards and employment law
3.4 Describe how the implications of environmental and
ethical criteria impact on procurement and supply
• Environmental criteria such as natural risks, waste
emissions, pollution and energy efficiency that
impact on organisations
• Ethical and social criteria such as ethical codes,
employment rights, community benefits,
working conditions and standards that impact on
organisations
3.5 Describe how the implications of social criteria impact
on procurement and supply
• Changing societal preferences, tastes and fashions,
demographics, labour and fair-trade standards and
how these can impact on organisations
• Corporate social responsibility
4.0 Understand procedures that regulate procurement
and supply
4.1 Describe the types of documentation used in
procurement and supply
• Requisitions
• Orders
• Delivery notes
• Invoices
• Other documents typically used in procurement and
supply
4.2 Explain how documented policies and procedures are
used within procurement and supply
• The responsibilities for procurement
• Regulations relating to competition
• Levels of delegated authority
• Responsibilities for the stages of the sourcing
process
• Responsibilities for ensuring invoice clearance and
payment
• Responsibilities for ensuring that requisitions,
orders and invoices are clear and correct and clarify
requirements for stakeholders
• Corporate governance
cips.org/qualifications
Ethical
Procurement
and Supply
[L3M2]
Module purpose
On completion of this module, learners will be able to identify the significance of ethics
for procurement and supply and define each stage of the sourcing process, explaining
how operational performance can be measured and improved in support of added value
operations.
Module aim(s)
The significant impact on reputation and customer perception mean that ethics and
responsible procurement should be at the heart of all organisational procurement and
supply activity. A successful organisation will strive to add value at every stage of its
operations and will seek ways to measure and improve performance. This module is
designed for those responsible for the application of ethical codes of conduct on the
procurement and supply operation and who are expected to know how to address potential
conflicts of interest. They must also define tasks associated with each stage of the sourcing
process and identify the techniques available to achieve added value, recognising how
operational performance can be measured and improved.
Credit value
C
CORE MODULE
6
CREDITS
CIPS GLOBAL
STANDARD
4.4 • 7.1 • 8.2 • 11.2
2
HRS
EXAM DURATION
HOURS
60
HRS
MODULE
LEARNING TIME
OR
OBJECTIVE
RESPONSE EXAM
09
Learning outcomes, assessment criteria and indicative content
1.0 Know techniques that can achieve added value and its
contribution to organisational success
1.1 Explain how to use techniques to obtain supplies to
the purchaser’s requirements
• Defining sources of added value
• Defining value for money
• Applying the five rights to procurements of both
products and services
• Discuss the concept of life time costs
1.2 Identify the contribution that value for money has to
make to organisational success
• Efficiency
• Effectiveness
• Economies of scale vs. quality of product/service
• Value engineering
• Value analysis
1.3 Explain how to use techniques that are available to
achieve quality supplies
• Defining quality
• Quality standards, processes and procedures
• The use of quality assurance
• The concept of zero defects
• Assessing quality of supplies of products and services
1.4 Identify techniques to secure required quantities
within required timescales
• Internal, external and total lead time
• Expediting and measuring delivery performance
• Planning milestones and activities
• The use of scheduling
• Inventories and their costs
1.5 Identify value for money criteria
• Pricing/costs
• Delivered quality
• Timescales, quantities and location requirements
• Measuring the achievement of quality and timescales
• Evaluate data to measure and improve the
performance of external suppliers
2.0 Know tasks associated with each stage of the sourcing
process
2.1 Describe how procurement needs are established
• Liaison with users and customers and understanding
their commercial needs
• Reviewing needs from customers
• The make or buy decision
• Definitions of specifications
2.2 Identify criteria that should be applied in creating
specifications
• The importance of specifications in contracts with
external customers and suppliers
• Creating specifications for products and services
• Conformance and output or outcome based
approaches to developing specifications
• The role of Key Performance Indicators (KPIs)
2.3 Describe approaches to the sourcing of supplies
• Surveying the market
• Supplier appraisal
• Inviting quotations and tenders
• Assessing quotations and tenders
• The use of e-sourcing technologies
• Measuring supplier performance
2.4 Describe approaches to the formation of agreements
with external organisations
• Dealing with queries and clarifications
• Ensuring transparency and fairness with suppliers
• Mistakes and second bids in tenders
• The use of reverse auctions/e-auctions
• Forming agreements with customers and suppliers
• Transition and mobilisation arrangements
3.0 Understand the significance of ethics for procurement
and supply
3.1 Explain the importance of the CIPS Code of Conduct in
procurement and supply
• Enhancing and protecting the standing of the
profession
• Maintaining the highest standard of integrity in all
business relationships
• Promoting the eradication of unethical business
relationships
• Enhancing the proficiency and stature of the
profession
• Ensuring compliance with laws and regulations
3.2 Describe the use of codes of ethics in procurement
and supply
• The importance and role of codes of ethics
• Monitor the work of stakeholders to ensure that
codes of ethics are upheld
• How to deal with and escalate to senior management
any suspected breaches of codes of ethics
3.3 Explain the conflicts of interest that can exist in the
work of procurement and supply and how to deal with
them
• Identifying potential conflicts of interest
• How to address potential conflicts of interest
• How to ensure that ethical practices are maintained
and prioritised
4.0 Understand how operational performance of the
procurement and supply function can be measured
and improved
4.1 Recognise the importance of delivering customer
service and how to improve
• Methods to evaluate customer service and
stakeholder satisfaction
• How to develop action plans to improve performance
4.2 Explain ways to measure cycle times for the sourcing
process
• Methods to evaluate the timescales for sourcing
processes
• How to identify the causes of delays and take
appropriate actions to reduce timescales when
required
4.3 Explain methods to assess the performance of and
control budgets
• Methods to analyse departmental budgets and
evaluate the reasons for variances between
forecasted and actual expenditures
• Define methods and actions to mitigate future
variances
cips.org/qualifications
11
Contract
Administration
[L3M3]
Module purpose
On completion of this module, learners will be able to explain administrative processes
behind contract development and how to measure contract performance. They will identify
how to achieve competitive pricing and be able to describe how effective tendering is
achieved.
Module aim(s)
In any organisation, a significant element of the procurement and supply function is
based around the contracting process. This module is designed for those involved in the
development and subsequent administration and performance monitoring of contracts. To
ensure success, such individuals must demonstrate knowledge and comprehension of how
to achieve competitive pricing and also how effective tendering is achieved.
Credit value
C
CORE MODULE
6
CREDITS
CIPS GLOBAL
STANDARD
6.2 • 7.3 • 8.3
2
HRS
EXAM DURATION
HOURS
60
HRS
MODULE
LEARNING TIME
OR
OBJECTIVE
RESPONSE EXAM
Learning outcomes, assessment criteria and indicative content
1.0 Know the administrative content and key tasks
associated with commercial contracts
1.1 Identify types of contracts and agreements
• Spot purchases
• Term contracts
• Framework agreements (or blanket orders/panel
agreements)
• Call offs
1.2 Describe the purpose of the documents that compose
a contract for the purchasing or supply of goods and/
or services
• The specification
• The key performance indicators (KPIs)
• The contract terms
• The pricing schedule
• Other schedules (such as health and safety, use of
subcontractors)
• Non-disclosure/confidentiality agreements
1.3 Describe the stages involved in forming contracts for
the purchasing or supply of goods and/or services
• Requests for quotations/information/tender
enquiries
• Quotations/tenders received
• Orders/acceptance of tenders
• Delivery notes/acknowledgements
• Invoicing and payment
• The use of contract registers
1.4 Describe how to develop and present business cases
to justify expenditure on supplies, services or projects
• Costs
• Benefits
• Options
• Alignment with organisational needs
• Timescales
2.0 Understand how to achieve competitive pricing and
the role of negotiation in procurement and supply
2.1 Explain the use and comparison of competition to
obtain quotations on price
• The use of competitive pricing with suppliers through
monitoring prices and obtaining quotations
• Comparing historical prices with newly quoted
prices and evaluating the reasons for any significant
discrepancies
• Taking appropriate actions to secure competitive
pricing
2.2 Recognise the role of commercial negotiations in the
work of procurement and supply
• Definitions of commercial negotiation
• Collaborative win-win integrative approaches to
negotiation
• Distributive win-lose distributive approaches to
negotiation
• Negotiation in relation to the stages of the sourcing
process
• Sources of conflict that can arise in the work of
procurement and supply
• The influence of stakeholders in negotiation
2.3 Explain approaches to negotiate competitive prices
• The link between costs, price, margins and mark-ups
• Use available data on submitted prices
• Retain or improve other aspects of value for money
such as quality, availability and sustainability within
the negotiation process
• Analyse actual outcomes from the negotiation
process with planned outcomes and evaluate the
reasons behind any differences
cips.org/qualifications
13
3.0 Know how effective tendering is achieved
3.1 Identify the initial actions processes associated with
the tendering process
• Supply/market research
• Early supplier engagement
• Pre-contract dialogue
• Develop and improve commercial and technical
solutions
3.2 Describe initial tender process documentation and
associated content
• Invitations to tender
• KPIs
• Contract terms
• Pricing schedule and other special to type schedules
• Prequalification questionnaires
3.3 Identify the tender evaluation and acceptance process
• Check tender details and take any necessary
remedial actions
• Assess tender proposals against initial requirements
• Awareness of specification creep
3.4 Outline the regulations that can impact on the
tendering process
• International frameworks
• Non-discrimination
• Free movement of goods
• Freedom to provide services
• Freedom of establishment
• Equality of treatment
• Transparency
• Mutual recognition
• Code of ethics
• Codes of conduct
4.0 Understand how to measure contract performance
4.1 Describe the use of data as a contract performance
measure
• Types of data
• Data gathering and analysis methods
• Actions to address under performance
• Penalty clauses
4.2 Explain the use of Key Performance Indicators (KPI)
• Quality performance
• Cost management
• Resources and delivery
• The use of audits to verify performance and costs
• The use of SMART targets for supplier performance
and agree their application with suppliers and other
stakeholders
• Agree mitigating actions with suppliers and other
stakeholders
4.3 Explain types of contractual risk and how to manage
them
• Use of risk registers
• Internal organisational risk
• Market economic risk
• Performance based risk
cips.org/qualifications
Team Dynamics
and Change
[L3M4]
Module purpose
On completion of this module, learners will be able to identify the influence that people
and teams can have on procurement and supply success and recognise the challenges
associated with and methods to achieve, organisational change.
Module aim(s)
Individuals with responsibility for procurement and supply activity are to operate in a
range of environments and within a correspondingly broad variety of teams. The influence
of the individual and that of the team on overall organisational success should not be
underestimated. Those who work in organisations will, more often than not be expected to
cope with change be it small or large, and must therefore understand the triggers that lead
to change, the associated responses and methods to ensure and maintain lasting change.
This module is designed for those who are involved in the procurement and supply function,
who must recognise the wider environment in which they work and the impacts that
different types of individuals and team dynamics have to play on organisational success.
They must also identify with need for and responses to change, and recognise the coping
mechanisms which ensure and maintain change.
Credit value
C
CORE MODULE
6
CREDITS
CIPS GLOBAL
STANDARD
9.1 • 9.2
2
HRS
EXAM DURATION
HOURS
60
HRS
MODULE
LEARNING TIME
OR
OBJECTIVE
RESPONSE EXAM
15
Learning outcomes, assessment criteria and indicative content
1.0 Know how the individual can support overall
organisational success in procurement and supply
1.1 Identify the personal attributes required to support
overall organisational success
• Personal knowledge
• Personal values
• Self-development and awareness
• An understanding of the procurement and supply
process
• Further the aims of the procurement and supply
profession
1.2 Describe the roles of staff with devolved
responsibilities for procurement and supply
• • Advise other members of staff that have
responsibilities for procurement and supply activities
• Ensure compliance with organisational procedures
and processes
• Work towards achieving value for money outcomes
in procuring goods and/or services
1.3 Explain the importance of liaising with internal
customers and other stakeholders
• Serve internal stakeholders efficiently and effectively
to promote customer service and support
• Advise on pricing, quality, delivery, demand,
quantities and place aspects
• The role or personnel involved in procurement and
supply activity
• The structure and objectives of the procurement and
supply function.
2.0 Understand team dynamics and their influence on
procurement and supply
2.1 Describe the purpose and challenges of cross
functional teams in procurement and supply
• Identifying behaviours to further the aims of
procurement and supply
• Developing positive relationships with team
members and other cross functional stakeholders
2.2 Explain the contribution and challenges of team
working
• Identifying barriers to team working
• Actions to overcome resistance and conflict within
teams
• Developing positive relationships with team
members
3.0 Understand the challenges associated with, and
methods to achieve organisational change
3.1 Describe the types of organisational change
• Evolution
• Adaption
• Revolution
• Reconstruction
• Closed, contained and open-ended change
3.2 Describe triggers for change
• Political, Economic, Social and Technological (PEST)
factors
• Internal triggers
• Future trends and innovation
3.3 Explain organisational responses to change
• Environmental turbulence
• Resistance to change
• Cynicism and scepticism
• The challenge of maintaining change
• The change cycle – loss, doubt, discomfort, discovery,
understanding, integration
3.4 Identify and explain methods to achieve change
• Clarify goals
• Refine methods and procedures
• Empowerment and ownership
• Incremental adjustment
• Collaborate, communicate, direct and coerce
cips.org/qualifications
Socially
Responsible
Procurement
[L3M5]
Module purpose
On completion of this module, learners will be able to explain the concepts and implications
of sustainability and Corporate Social Responsibility and recognise the potential
environmental impact of procurement and supply operations.
Module aim(s)
Company reputation can be severely damaged if the organisation or one of its suppliers,
is seen to be neglecting sustainability and corporate social responsibility. Similarly, against
a background of increasing public and governmental concern for the environment,
organisations have come under increasing pressure to reduce the environmental impact of
their operations. This module is designed for those working in procurement and supply who
should recognise the responsibility which they have for ensuring sustainable and socially
responsible practices and the importance of the environmental impact of their decisions
and approaches.
Credit value
E
ELECTIVE MODULE
6
CREDITS
CIPS GLOBAL
STANDARD
11.1 • 11.2 • 11.3
2
HRS
EXAM DURATION
HOURS
60
HRS
MODULE
LEARNING TIME
OR
OBJECTIVE
RESPONSE EXAM
17
Learning outcomes, assessment criteria and indicative content
1.0 Understand the concepts of sustainability and
Corporate Social Responsibility (CSR)
1.1 Explain the concept of sustainability and the practical
implications for procurement and supply
• Meeting the needs of the present, without
compromising the ability of future generations to
meet their needs.
• Adopting a broader range of decision-making criteria
other than traditional economic criteria.
• Extending procurement decision-making criteria
away from just price and quality
• Including environmental merits and social impacts of
alternative solutions
1.2 Explain the importance of Corporate Social
Responsibility (CSR)
• Extension of corporate goals and decisions to include
organisational objectives and financial measures of
performance.
• Promoting good corporate citizenship and
responsibility for corporate actions
• Encouraging positive impact on all stakeholders
• Social, economic and cultural diversity
2.0 Understand the environmental impact of
procurement and supply
2.1 Describe the impact of environmental sustainability
• Globalisation vs. green logistics
• Public awareness
• External pressure on organisations
• International legislation and agreements
2.2 Explain the environmental impact of transportation
and storage
• Air pollution and atmospheric emissions
• Carbon footprint calculation
• Noise pollution
• Accidents
• Vibration
• Land-take
• Visual intrusion
2.3 Explain the role of government in promoting
environmental sustainability
• Define sustainability
• Define environmental impact
• Greener modes of transport
• Energy efficiency
• Reducing emissions
3.0 Know the implications of CSR for the procurement and
supply function
3.1 Identify procurement and supply processes and
practices that the organisation may adopt to support
CSR
• Adoption of sustainable practices, standards and
specifications in the supply chain
• Consideration of the social impact of the
organisation’s behaviours.
• Design procurement processes to deliver positive
social outcomes
• Expanding reporting frameworks to include
ecological and social performance
• Defining organisational value for money to include
social outcomes – such as the use of local labour
and participation of disadvantaged and/or minority
groups
3.2 Describe the triple bottom line concept and how it
should apply to procurement and supply
• Three pillars of social responsibility such as:
• People
• Profit
• Planet
3.3 Describe the key metrics that can be used to measure
and report on sustainability
• Environmental – such as energy consumption, water
consumption, greenhouse gas emissions, waste
generation
• Social – such as demographic trends, use of local
labour, disadvantaged and/ or minority groups
4.0 Understand methods to monitor Corporate Social
Responsibility (CSR) in procurement and supply
4.1 Describe the key methods that can be used to monitor
CSR compliance
• Discuss methods such as:
• KPIs
• Audits
• Supplier appraisals
• The use of regulatory frameworks
cips.org/qualifications
Socially
Responsible
Warehousing and
Distribution
[L3M6]
Module purpose
On completion of this module, learners will be able to describe methods for the storage and
movement of inventory and identify the environmental and social impact of warehousing
and distribution operations.
Module aim(s)
Warehousing and distribution are key components of organisational success. The transport,
storage and handling of products as they move from raw material, through production
systems to the final point of sale has been fundamental to economic development for
millennia. In more recent times, against a background of increasing public and governmental
concern for the environment, organisations have come under increasing pressure to reduce
the environmental impact of their warehousing and distribution processes. Similarly, company
reputation can be severely damaged if the organisation or one of its suppliers, is seen to be
neglecting sustainability and corporate social responsibility (CSR). This module is designed for
those working in procurement and supply who have responsibility for product storage and
distribution. It takes as its focus the storage and movement of inventory but also recognises
the impact of such operations on environmental sustainability and CSR.
Credit value
E
ELECTIVE MODULE
6
CREDITS
CIPS GLOBAL
STANDARD
11.1 • 11.2 • 11.3
2
HRS
EXAM DURATION
HOURS
60
HRS
MODULE
LEARNING TIME
OR
OBJECTIVE
RESPONSE EXAM
19
Learning outcomes, assessment criteria and indicative content
1.0 Understand the concepts of sustainability and
Corporate Social Responsibility (CSR)
1.1 Explain the concept of sustainability and the practical
implications for procurement and supply
• Meeting the needs of the present, without
compromising the ability of future generations to
meet their needs
• Adopting a broader range of decision-making criteria
other than traditional economic criteria
• Extending procurement decision-making criteria
away from just price and quality
• Including environmental merits and social impacts of
alternative solutions
1.2 Explain the importance of Corporate Social
Responsibility (CSR)
• Extension of corporate goals and decisions to include
organisational objectives and financial measures of
performance
• Promoting good corporate citizenship and
responsibility for corporate actions
• Encouraging positive impact on all stakeholders
• Social, economic and cultural diversity
2.0 Understand the environmental impact of
procurement and supply
2.1 Describe the impact of environmental sustainability
• Globalisation vs. green logistics
• Public awareness
• External pressure on organisations
• International legislation and agreements
2.2 Explain the environmental impact of transportation
and storage
• Air pollution and atmospheric emissions
• Carbon footprint calculation
• Noise pollution
• Accidents
• Vibration
• Land-take
• Visual intrusion
2.3 Explain the role of government in promoting
environmental sustainability
• Define sustainability
• Define environmental impact
• Greener modes of transport
• Energy efficiency
• Reducing emissions
3.0 Understand methods for the storage and movement
of inventory
3.1 Recognise the principles of store and warehouse
design
• Location of stores and warehouses
• Store and warehouse design
• Factors that influence store and warehouse layout
• Flow, space utilisation and flexibility
3.2 Explain the different types and uses of warehousing
equipment
• Materials handling equipment
• Palletisation and unit loads
• Packing and packaging
• Environmental standards for packaging
• The use of automation in warehousing
4.0 Understand the environmental impact of warehousing
and distribution
4.1 Explain the impact of environmental sustainability
• Discuss issues such as:
• Globalisation vs. green logistics
• Public awareness
• External pressure on organisations
• International legislation and agreements
4.2 Explain the environmental impact of warehousing and
distribution
• Air pollution and atmospheric emissions
• Carbon footprint calculation
• Noise pollution
• Accidents
• Vibration
• Land-take
• Visual intrusion
4.3 Explain the environmental cost of warehousing and
logistics
• Global warming
• Greenhouse gases
• Cost of environmental damage
• Cost of avoiding environmental damage
• International vs. national
4.4 Describe the role of government in promoting
environmental sustainability
• Policy on sustainable logistics
• Reducing freight transport intensity and improving
utilisation
• Greener modes of transport
• Energy efficiency
• Reducing emissions
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