By completing this module, learners will be able to:

• Understand different classifications of inventory and their role in supply.
• Identify direct and indirect costs associated with holding inventory.
• Apply basic inventory-control techniques such as reorder levels, MRP, ERP, JIT and forecasting.
• Understand handling, packaging, storage and warehouse operations.
• Compare major freight transportation modes.
• Understand the use of Incoterms in international logistics.
• Identify key transportation and international sourcing documentation.
• Assess inventory and stock-out costs.
• Understand delivery expediting and milestone planning.
• Recognise the relationship between supplier payments, cash flow and supply continuity.

1.0 Know the Key Elements of Effective Inventory Control

1.1 Identify the Classifications of Different Types of Inventory

• Opening stock
• Work in progress
• Safety stock
• Finished goods
• Obsolescent and redundant stock
• Direct and indirect supplies
• ABC classifications
• Dependent demand and independent demand items

1.2 Identify the Direct and Indirect Costs of Holding Inventory

• Direct costs associated with holding inventory
• Indirect inventory costs
• Options for reducing inventory costs
• Balancing inventory costs against service levels

1.3 Identify Techniques Associated with Inventory Control

• Reorder quantities
• Reorder levels
• MRP and MRPII
• ERP
• Just in Time (JIT)
• Barcoding
• Subjective forecasting
• Objective forecasting

1.4 Identify the Key Aspects Associated with the Handling, Packaging and Storage of Supplies

• Materials-handling equipment
• Palletisation and unit loads
• Packing and packaging
• Automation in warehousing

2.0 Understand the Principles and Processes Associated with Effective Logistics Control

2.1 Identify the Key Principles of Stores and Warehousing Facilities

• Effective and efficient flows of inventory
• Reduction of life-cycle costs
• Space optimisation

2.2 Identify the Strengths and Weaknesses Associated with Modes of Freight Transportation

• Road
• Rail
• Air
• Sea
• Inland waterways
• Pipeline

2.3 Identify Types of Incoterms in International Logistics

• E, F, C and D terms
• Incoterms rules
• Incorporation of Incoterms into sales contracts

2.4 Identify Legislative Regulations that Affect International Sourcing

• Regulations affecting international supplies
• Compliance requirements for internationally sourced goods
• The importance of meeting applicable legislation and regulations

2.5 Describe the Documentation Used in Transportation of Supplies

• Single Administrative Document
• Packing lists
• Waybills
• Consignment notes
• Bills of lading
• Certificates of origin
• Letters of credit and other financial documentation

3.0 Know How Effective Expediting Can Be Achieved in Procurement and Supply

3.1 Explain the Assessment of Costs of Inventory and the Cost of Stock-Outs

• Monitoring inventory levels
• Actions to mitigate oversupply
• Minimising stock-out risks
• Forecasting for timely delivery
• Tracking deliveries and documentation
• Stock-keeping records
• Forecasting difficulties and techniques

3.2 Explain the Planning Process Associated with Expediting Delivery

• Problem-solving techniques
• Planning milestones and activities
• Monitoring delivery progress
• Identifying potential delays
• Taking corrective action

3.3 Explain the Significance of Payment to Suppliers and Cash Flow

• Monitoring planned supplier payments
• Identifying deviations from payment plans
• Taking remedial action
• Understanding how supplier cash-flow issues can affect supply continuity

5 Days

• Inventory classification exercises
• Inventory-cost analysis
• Reorder-level and stock-control scenarios
• Warehouse and storage planning exercises
• Freight-mode comparisons
• Incoterms-based logistics scenarios
• Transportation-document identification
• Stock-out and oversupply scenarios
• Delivery-tracking exercises
• Expediting and milestone-planning activities
• Supplier payment and cash-flow scenarios
• Problem-solving exercises involving delayed deliveries

Certification: CIPS Level 2 Certificate in Procurement and Supply Operations

Duration: 1 hour

• Procurement Assistants
• Purchasing Officers
• Supply Chain Assistants
• Inventory Coordinators
• Logistics Coordinators
• Warehouse and Stores Personnel
• Expediting Officers
• Procurement Administrators
• Supply Chain Professionals beginning their careers
• Professionals preparing for the CIPS Level 2 Certificate

• New to procurement and supply.
• Starting a career in purchasing or supply chain.
• Moving from another business function into procurement.
• Working in inventory, logistics or warehouse operations.
• Preparing for the CIPS Level 2 Certificate in Procurement and Supply Operations.