1.1 Assess the use of Key Performance Indicators (KPIs)

• Cost
• Quality
• Delivery
• Safety

1.2 Evaluate methods of measuring and improving supply chain performance

• Collate and analyse data
• Measure supplier innovation against agreed matrix
• Measure time to market against agreed timescales
• Create e-systems integration across the organisation and its supplier network
• Cost and benefits of investments measurement
• Ensure a balance between qualitative and quantitative measures of performance
• Measure return on investment

1.3 Examine approaches available for supplier development

• Knowledge and technology transfer
• Collaborative product/service development
• Continuous improvement reviews and strategies
• Supplier capability assessments
• Identify opportunities to use technology

1.4 Assess innovative measures to improve the supply chain

• Cross-functional working
• Simultaneous engineering
• Early supplier involvement
• Supplier forums and associations

2.1 Assess the market factors that influence strategic sourcing

• Industry dynamics
• Pricing behaviour
• Financial data on suppliers
• Market demand and supply factors
• Business motivations, cost margins and working practices of key suppliers
• Internal stakeholder involvement

2.2  Examine the assessment of sourcing options for strategic supplies of products and/or services

• Contract type and duration
• Competitive vs. non-competitive sourcing
• Number of suppliers and letting strategies
• The use of e-sourcing
• Competition
• Direct negotiation
• Joint proposition improvement

2.3 Analyse a strategic assessment plan for a key supplier using modelling and analytical techniques

• Capacity and capability
• Planning
• Quality control systems
• Security
• Technical expertise
• Reputation and time established
• Investment plans
• Trading with competitors
• Financial reports
• Analysing potential sales
• Future expansion opportunities – partnership Potential

3.1 Analyse how costs and finance can impact on supply chains

• The financial objectives of different organisations (e.g. value for money, maximising shareholder wealth and providing a surplus)
• The costs of materials, labour and overheads
• Funding working capital and credit insurance
• Project funding
• Medium- and long-term financing options
• Corporate financing decisions in investment, finance and dividends

3.2 Critically assess methods for managing the volatility of currencies in supply chains

• Fixed and floating exchange rates
• Demand and supply factors in foreign exchange and the reasons for exchange rate volatility
• Spot, forward and derivative instruments in foreign exchange
• Services provided by the banking sector in foreign exchange

3.3 Analyse methods for managing the volatility of commodities in supply chains

• Demand and supply factors in commodities
• The differentiation of commodities
• Soft and hard commodity markets
• Speculation in commodity markets
• The use of spot, forward, futures and hedging in the buying and selling of commodities
• The use of a Contract for Difference (CFD) in the buying and selling of commodities

4.1 Assess financial measures that can be applied to measuring the performance of the supply chain

• The measurement of costs, timescales, processing, quality and satisfaction
• Financial measures such as profitability, return on investment, sales growth, cash flow
• The use of balanced scorecard methodologies

4.2 Examine the impact of stakeholder feedback on the supply chain strategy

• Articulating the supply chain strategy
• Determining measurable outcomes of success
• Devising metrics of performance including feedback from 3rd parties and suppliers, and other stakeholders
• Reporting structures and processes

4.3 Analyse approaches to benchmarking that can be applied to measuring the performance of the supply chain

• The use of benchmarking in supply chains
• Comparisons of business unit, competitors or other industry players
• Gap analysis and performance improvement