CIPS Level 2 – M5 | Inventory, Logistics and Expediting
What Is CIPS?
CIPS — the Chartered Institute of Procurement & Supply — is an international professional body dedicated to developing knowledge and skills in procurement and supply. CIPS qualifications provide a structured learning pathway for those starting their careers and professionals seeking to advance their expertise.
SCM by BMS is a CIPS Approved Study Centre. We support learners in developing their knowledge through CIPS qualification programmes and preparing for their examinations.
About the Module
L2 – M5: Inventory, Logistics and Expediting introduces the role of inventory, the principles of effective logistics control and the activities that help ensure timely delivery.
Inventory can represent a significant cost for many organisations. This module helps learners understand the concept of inventory and explore contemporary methods for reviewing and planning effective inventory control. It also addresses logistics challenges, control measures and the monitoring of orders to support on-time delivery.
Module Purpose
On completion of this module, learners will be able to identify the key role of inventory and explain the principles and processes associated with effective logistics control.
Learners will also be able to explain how effective expediting can be achieved in procurement and supply through appropriate planning and processing.
The module focuses on planning inventory control, monitoring logistics processes and following up on the progress of orders to help ensure that deliveries are completed on time.
Who Is This Module For?
Those starting a career in procurement and supply;
Employees involved in inventory management and warehouse operations;
Individuals working in logistics, order monitoring and delivery coordination;
Those wishing to develop a basic understanding of inventory control, logistics and expediting.
This module develops essential knowledge of inventory, logistics and expediting as part of the CIPS Level 2 Certificate in Procurement and Supply Operations.
Exam Format
Objective Response Examination (OR)
This format allows you to select a response from a list of possible answers. Responses are marked by computer and then moderated by CIPS examiners.
Total Qualification Time (TQT)
Total Qualification Time indicates the overall time required for guided learning, additional self-study and assessment to achieve the qualification.
The following figures apply to the full Level 2 qualification.
Guided Learning Hours (GLH)
The Level 2 qualification includes 120 guided learning hours. These cover lectures, tutorials, practical sessions and supervised study.
Self-Study Requirement (SSR)
For the Level 2 qualification, an additional minimum of 54 hours of self-study is recommended. This includes wider reading of the subject areas and revision.
Total Examination Time for the Qualification: 6 Hours
All modules within the Level 2 qualification are assessed by examination. The combined examination time across all modules is 6 hours.
Module Learning Time
Learning time for L2 – M5: 30 hours.
CIPS Level 2 – M5 | Inventory, Logistics and Expediting
Learning Outcomes, Assessment Criteria and Indicative Content
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 and finished goods
Obsolescent and redundant stock
Direct and indirect supplies
ABC classifications of stock that may apply
Dependent demand and independent demand items of stock
1.2 Identify the direct and indirect costs of holding inventory
Direct and indirect costs associated with holding inventories
Options to reduce costs whilst mitigating any negative impact on service levels
1.3 Identify techniques associated with inventory control
Re-order quantities
Re-order levels
MRP and MRPII
ERP
Just in Time
Bar coding
Subjective and objective forecasting
1.4 Identify the key aspects associated with the handling, packaging and storage of supplies
The use of materials handling equipment, palletisation and unit loads, packing and packaging, and 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
The 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
Pipeline
2.3 Identify types of Incoterms in international logistics
E, F, C and D terms
Incoterms rules and incorporation into the sales contract
2.4 Identify legislative regulations that affect international sourcing
How to ensure compliance with legislation and regulations for supplies from international sources
2.5 Describe the documentation used in the transportation of supplies
The Single Administrative Document
Packing list, waybill, consignment notes and bill of lading
Certificate of origin
Letters of credit or other financial documentation
3.0 Know how effective expediting can be achieved in procurement and supply
3.1 Explain the assessment of inventory costs and the cost of stock-outs
Monitoring inventory levels and taking action to mitigate oversupply and minimise the risk of stock-outs
The use of forecasting to achieve timely delivery of supplies
Tracking deliveries and documentation
The use of forecasting, difficulties and techniques
3.2 Explain the planning process associated with expediting delivery
Use of problem-solving techniques
Planning milestones and activities
3.3 Explain the significance of payment to suppliers and cash flow
Tracking deviations from planned payments and taking remedial action to mitigate disruptions caused by cash flow difficulties
