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CIPS Professional Stage – Core Subjects |
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| International Supply Chain Management
Aim To provide a comprehensive analysis of the principles and practices of the international supply chain and the strategic impact it has on the role of the buyer in seeking to extend and proactively manipulate the value chain. Rationale With the ever-increasing pressure of competition among companies, the move towards consolidation of global production and the improvements in communication and transportation systems, it emphasises sourcing of supply from around the world. To that end the sourcing of materials or the engagement of service providers is taking on an international perspective, this alters dramatically the role of purchasing, to a more strategic and global posture. Three forces guide the development of the supply chain: the supply chain concept, the trends within global business and a strategic shift being taken by an increasing number of enterprises toward core competencies. 1. International Supply Chain Managementa) The concept of the international supply chain b) The international supply system c) The impact of trading blocs and customs unions d) Sourcing internationally e) Sub-contracting within an international dimension Learning outcomes In the assessment the candidate may be required to: 1.1 Demonstrate a good understanding of the dynamics of the international marketplace 1.2 Explain how the theme of supply chain management, which emphasises three primary components: structure, organisational networks and processes is impacted when viewed globally 1.3 Evaluate the scope of international trade together with a sound knowledge and understanding of its principles 1.4 Identify and assess the impact of the world- wide dispersal of trading blocs and customs unions to that of the international supply chain 1.5 Compare and contrast the various approaches to sourcing the market domestically to that of internationally 1.6 Examine the growth and reliance of international sub-contracting in contributing ‘value-add’ to the organisation (weighting 20%) 2. Commercial Considerations a) Countertrade b) Reciprocal trading c) Currency management and international financing d) Economic Monetary Union and the euro e) Ethics, culture and customary practice f) Negotiation in a global perspective Learning outcomes In the assessment the candidate may be required to: 2.1 Compare and contrast the various forms of countertrade practice, looking in particular at applicability under defined trading conditions and/or commercial arrangements 2.2 Question the strategic impact on the organisation, as a whole, of reciprocal trading together with its impact on the dynamic of the supply chain 2.3 Interpret the key underpinning financial considerations linked to international supply chain management 2.4 Define and describe a Bill of Exchange 2.5 Define the purpose of and permutations of Letters of Credit 2.6 Analyse the reasons for currency fluctuations on world financial markets 2.7 Demonstrate and understanding of the implications of international finance loans linked to the facilitation of international trade flows 2.8 Relate the purpose of the International Monetary Fund 2.9 Report and debate the contemporary developments of European Economic Monetary Union 2.10 Judge the significance, to buyers buying from within the EU, of the introduction of the euro 2.11 Appraise the impact of ethics, culture and customary practice to the buyer operating in the international marketplace 2.12 Distinguish the key differences in negotiation strategies to be adopted from solely buying domestically to one of buying on an international dimension (weighting 35%) 3. Procurement Considerations a) The implications on specifications when buying internationally b) Planning considerations when buying internationally c) Contractual considerations when buying internationally d) Quality considerations when buying internationally e) Tariffs and non-tariff barriers f) Commodity markets Learning outcomes In the assessment the candidate may be required to: 3.1 Recognise the importance of national and international standards linked to buying products and services 3.2 Explain and assess the role of the International Standards Organisation 3.3 Judge the impact and importance of sound planning to international supply chain management 3.4 Illustrate the key legal considerations to be made in relation to international contracting and contract management 3.5 Articulate the importance of quality considerations to managing the international supply chain 3.6 Explain the impact of tariffs and non-tariff barriers and the work of the World Trade Organisation 3.7 Demonstrate an understanding of commodity markets and their operation (weighting 15%) 4. International Physical Distribution and Documentation a) Import considerations and implications b) Import documentation Learning outcomes In the assessment the candidate may be required to: 4.1 Differentiate the role of freight forwarders, import brokers, agents, distributors and overseas representatives 4.2 Appraise the fundamental principles of cargo insurance 4.3 Classify the various forms of import documentation required to be understood when buying globally (weighting 5%) 5. Customs Management and Planning a) Customs and international supply chain management b) The processing of the imported consignment c) Facilitation of international supply chain management Learning outcomes In the assessment the candidate may be required to: 5.1 Judge the role and impact of customs to the effective operation of the international supply chain 5.2 Interpret the importance of the contract of affreightment, including the appropriate use of Incoterms and terms of delivery 5.3 Debate the role of various import trade facilitation organisations and groupings 5.4 Critically examine the impact of Free Trade Zones and the use of customs warehouses 5.5 Assess the impact of electronic commerce (weighting 15%) 6. Managing International Logistics a) The role of international logistics b) Factors which have developed the concept of logistics c) Formulating an international logistics strategy Learning outcomes In the assessment the candidate may be required to: 6.1 Interpret the impact of international logistics by demonstrating a sound understanding of recent developments in international logistics drawing from current 'best practice' being adopted 6.2 Identify, discuss and assess the importance of supply chain management's input to the formulation of a international logistics strategy (weighting 10%) |
