Advanced Diploma in Procurement and Supply (Level-5)
Your qualification
CIPS qualifications are regulated internationally to ensure we offer a recognised, professional standard in procurement and supply. The Advanced Diploma is designed for the more experienced members of the profession who are expected to develop, improve and fulfill functional business objectives and also formulate direction. The required knowledge and skills are developed as learners perform practical, work-related tasks with a focus on how to deal with key aspects of risk in supply chains and mitigation of those risks; processing and evaluating contracts and the impact of legal implications and nonconformance of contracts.
Who is it for?
Provides senior buyers, contract and supply chain managers with the expertise to improve organisational procurement and to fulfil organisational objectives. It gives you the knowledge base to reduce cost, improve quality and timescales, manage the supply chain and deal with legal issues.
What will I learn?
Building on the practical knowledge and understanding gained at CIPS Level 4 Diploma in Procurement and Supply you will develop a higher level of practical, theoretical and technical knowledge and understanding of procurement and supply. Your learning will focus on how to deal with key aspects of risk in supply chains and mitigation of those risks; processing and evaluating contracts and the impact of legal implications when contracts are breached. On completion of this qualification you can expect to improve your overall organisational procurement and supply performance to fulfil your organisational objectives.
Entry requirements
You will need to have achieved the CIPS Level 4 Diploma in Procurement and Supply.
Diploma Modules and Content
Managing Teams and Individuals [L5M1]
Module purpose
On completion of this module, learners will be able to evaluate the different schools of thought and the reasoning behind the variety of approaches to the management of themselves, individuals and groups or teams within organisations.
Module aim(s)
Management is the administration of an organisation, whether it be a business, a not-forprofit organisation, or government body. Management includes the activities of setting the strategy of an organisation and coordinating the efforts of its employees or volunteers to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources. In keeping with other organisational functions, those who manage procurement and supply activity must possess expertise in developing and fulfilling organisational and functional objectives. It is therefore, essential that learners gain a wider appreciation of theories and techniques that relate to managing teams and individuals involved with the procurement and supply function.
Learning outcomes, assessment criteria and indicative content(s)
1-Understand, analyse and apply management and organisational approaches
– Analyse aspects of organisational behaviour
– Analyse contemporary approaches to management and organisational behaviour Approaches
– Analyse the origins of management and organizational behaviour
– Evaluate influences that shape organizational behaviour
– Analyse contemporary approaches to management and organisational behaviour Approaches
– Analyse the origins of management and organizational behaviour
– Evaluate influences that shape organizational behaviour
2- Understand and apply approaches to managing individuals involved in the procurement and supply function
– Examine the impact of work groups or teams on effective and efficient performance
– Analyse the stages of development of work groups or teams
– Assess the characteristics of effective work groups or teams
– Analyse the nature of role relationships in work groups or teams
– Analyse the stages of development of work groups or teams
– Assess the characteristics of effective work groups or teams
– Analyse the nature of role relationships in work groups or teams
3-Understand and apply approaches to managing work groups or teams involved in the procurement and supply function
– Identify the delivery of products and services made by external suppliers
– Identify the delivery of products and services that organisations make to customers
– Define components of a supply chain
– Identify the delivery of products and services that organisations make to customers
– Define components of a supply chain
4-Understand and apply planning approaches for aspects of human resource management for the procurement and supply function
– Define the role of human resource management in organisations
– Examine the skills and knowledge requirements for personnel in the procurement and supply function
– Identify the key components of a recruitment and selection plan to meet the skills and knowledge needs of the procurement and supply function
– Identify a plan for training and development of personnel in the procurement and supply function
– Examine the skills and knowledge requirements for personnel in the procurement and supply function
– Identify the key components of a recruitment and selection plan to meet the skills and knowledge needs of the procurement and supply function
– Identify a plan for training and development of personnel in the procurement and supply function
5- Understand the application of the individual capabilities required to manage the procurement and supply function
– Examine self-development techniques that can be used to improve individual performance
– Examine organisational change and approaches to successful change management
– Assess the requirement for and approaches to diversity in the workplace
– Assess the requirement for and approaches to equality in the workplace
– Examine organisational change and approaches to successful change management
– Assess the requirement for and approaches to diversity in the workplace
– Assess the requirement for and approaches to equality in the workplace
Managing Supply Chain Risk [L5M2]
Module purpose
On completion of this module, learners will be able to appraise a variety of tools and techniques to establish the level of risk in supply chains and to recommend and apply ways of avoiding, mitigating or managing risk.
Module aim(s)
Risk management is a central part of an organisation’s strategy. It is a process whereby the organisation will identify, record and then address the risks associated with their activities with the aim of driving out or controlling those risks to the overall benefit of organisational efficiency and effectiveness. The supply chain is by its very nature a complex activity which is therefore susceptible to risk and its associated impacts. This module is designed to enable learners to examine the nature of supply chain risk and to evaluate mitigation techniques which are available to them as they deal with the associated challenges. They will undertake risk analysis and consider the advantages of a risk register as they apply a range of appropriate risk management tools and techniques to the supply chain.
Learning outcomes, assessment criteria and indicative content(s)
1-Understand the nature of risk affecting supply chains
– Define the different types of risk that can impact on supply chains
– Assess operational risks in supply chains
– Compare methods for eliminating bribery, corruption and fraud in supply chains
– Contrast risks in supply chains that can impact on organizational corporate social responsibility and sustainability standards
– Analyse the use of outsourced third parties in risk management in supply chains
– Assess the use of insurances for protection against risks in supply chains
– Examine the use of contingency plans to overcome risks in supply chains
– Assess operational risks in supply chains
– Compare methods for eliminating bribery, corruption and fraud in supply chains
– Contrast risks in supply chains that can impact on organizational corporate social responsibility and sustainability standards
– Analyse the use of outsourced third parties in risk management in supply chains
– Assess the use of insurances for protection against risks in supply chains
– Examine the use of contingency plans to overcome risks in supply chains
2-Understand processes in managing risk in supply chains
– Examine the use of contractual remedies for managing risks in supply chains
3-Understand risk mitigation strategies in supply chains
– Identify the use of probability and impact assessments to manage risks in supply chains
– Analyse a risk assessment and a risk register to mitigate risks in a supply chain
– Explain the development of a risk management culture and strategy to improve supply chains
– Compare strategic approaches to mitigate risks in supply chains
– Analyse a risk assessment and a risk register to mitigate risks in a supply chain
– Explain the development of a risk management culture and strategy to improve supply chains
– Compare strategic approaches to mitigate risks in supply chains
Managing Contractual Risk [L5M3]
Module purpose
On completion of this module, learners will be able to evaluate the legal and process issues relating to the formation of contracts and the legal implications of contractual nonconformance. They will also assess the impacts of breach of contract and examine coping remedies and provisions that are available under such circumstances.
Module aim(s)
As organisations outsource more and more activity it is vital that they ensure that the associated contracts deliver expected services and/or products. Hence, a fundamental area that those who are tasked with managing the procurement and supply function are faced with is the identification, monitoring and management of contractual risk. This module is designed to enable learners to examine the nature of contract risk and the associated legal implications that relate to contract formation and non-conformance. They will also consider the impact of breach of contract and coping strategies to address such breaches.
Learning outcomes, assessment criteria and indicative content(s)
1-Understand the legal and process issues relating to the formation of contracts
– Identify the issues relating to the formation of contracts and the associated risks
– Analyse the implications of the various elements of contractual documentation and process on overall risk
– Analyse the implications of the various elements of contractual documentation and process on overall risk
2- Understand the impacts of breach of contract and coping strategies and provisions that are available
– Analyse the different levels of breach of contract and their impact
– Compare and contrast the tools and techniques available to resolve a breach of contract
– Explain different organisational responses to a breach of contract
– Compare and contrast the tools and techniques available to resolve a breach of contract
– Explain different organisational responses to a breach of contract
3-Understand the legal implications of contractual nonconformance in procurement and supply
– Contrast remedies that apply to the non
-performance
– Analyse the legal consequences of terminating a relationship in procurement and supply
– Compare mechanisms for dispute resolution for resolving conflicts in procurement and supply
-performance
– Analyse the legal consequences of terminating a relationship in procurement and supply
– Compare mechanisms for dispute resolution for resolving conflicts in procurement and supply
Advanced Contract and Financial Management [L5M4]
Module purpose
On completion of this module, learners will be able to develop measures to ensure and improve contract performance as they assess the concept and use of strategic sourcing and also consider financial aspects that may impact procurement and supply activity.
Module aim(s)
In any organisation, a significant element of the procurement and supply function is based around the contracting process. Those involved in the formulation and management of contracts with external suppliers must therefore have a clear understanding of the strategic nature of contractual performance measures in procurement and supply. Financial management refers to the efficient and effective management of money (funds) to accomplish organisational objectives. This module is designed for those working in the procurement and supply field, with responsibility for contracting elements of the procurement and supply function who must also have a strategic awareness of the impact of financial aspects of their discipline.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand and apply tools and techniques that can be used to measure and develop contract performance in procurement and supply
– Assess the use of Key Performance Indicators (KPIs)
– Evaluate methods of measuring and improving supply chain performance
– Examine approaches available for supplier development
– Assess innovative measures to improve the supply chain
– Evaluate methods of measuring and improving supply chain performance
– Examine approaches available for supplier development
– Assess innovative measures to improve the supply chain
2- Understand and apply the concept of strategic sourcing
– Assess the market factors that influence strategic sourcing
– Examine the assessment of sourcing options for strategic supplies of products and/or services
– Analyse a strategic assessment plan for a key supplier using modelling and analytical techniques
– Examine the assessment of sourcing options for strategic supplies of products and/or services
– Analyse a strategic assessment plan for a key supplier using modelling and analytical techniques
3- Understand and apply financial techniques that affect supply chains
– Analyse how costs and finance can impact on supply chains
– Critically assess methods for managing the volatility of currencies in supply chains
– Analyse methods for managing the volatility of commodities in supply chains
– Critically assess methods for managing the volatility of currencies in supply chains
– Analyse methods for managing the volatility of commodities in supply chains
4- Analyse and apply financial and performance measures that can affect the supply chain
– Assess financial measures that can be applied to
– Examine the impact of stakeholder feedback on the supply chain strategy
– Analyse approaches to benchmarking that can be applied to measuring the performance of the supply chain
– Examine the impact of stakeholder feedback on the supply chain strategy
– Analyse approaches to benchmarking that can be applied to measuring the performance of the supply chain
Managing Ethical Procurement and Supply [L5M5]
Module purpose
On completion of this module, learners will be able to explain the impact of and initiatives to improve, sustainability and the managerial approaches to promote ethical practices in procurement and supply.
Module aim(s)
The global economy and the associated advantages of sourcing from a global base of suppliers requires organisations to be prepared to address the ethical challenges that such approaches may present to their procurement and supply activity. Similarly, the concept of sustainability and its impact on the supply chain should not be underestimated as organisations strive to be seen to play their part in the global agenda. This module is designed to give those who have managerial responsibility for the procurement and supply function an understanding of the impact of ethics and sustainability on the supply chain, and the opportunity to analyse initiatives to improve practice and ensure organisational compliance with international standards in respect of ethical and sustainable procurement and supply chain management.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand the impact of ethics and sustainability in supply chains
– Analyse the implications of ethics and sustainability in supply chains
– Contrast the drivers of globalisation in supply chains
– Differentiate between the cultural and social issues in supply chains
– Contrast the potential conflicts that may arise between the needs of stakeholders in supply chains
– Contrast the drivers of globalisation in supply chains
– Differentiate between the cultural and social issues in supply chains
– Contrast the potential conflicts that may arise between the needs of stakeholders in supply chains
2- Understand the importance of compliance with standards to achieve ethical and sustainable supply chains
– Contrast levels of complexity in supply chains and how they impact on compliance with standards for ethics and sustainability
– Evaluate how contractual terms can support compliance with standards for sustainability in supply chains
– Evaluate the use of third party organisations to promote compliance with standards for sustainability in supply chains
– Critically assess how relationships with suppliers should deal with infringements of standards for sustainability
– Evaluate how contractual terms can support compliance with standards for sustainability in supply chains
– Evaluate the use of third party organisations to promote compliance with standards for sustainability in supply chains
– Critically assess how relationships with suppliers should deal with infringements of standards for sustainability
3- Understand initiatives and standards to improve ethical and sustainable practices in procurement and supply
– Assess how the use of labour codes can help achieve ethical and sustainable supply chains
– Analyse how the standards on environmental purchasing can help to achieve ethical and sustainable supply chains
– Analyse how standards can achieve improved fair trade
– Examine approaches to achieve responsible procurement and help promote ethical and sustainable management
– Analyse how the standards on environmental purchasing can help to achieve ethical and sustainable supply chains
– Analyse how standards can achieve improved fair trade
– Examine approaches to achieve responsible procurement and help promote ethical and sustainable management
Category Management [L5M6]
Module purpose
On completion of this module, learners will be able to evaluate approaches that can be adopted to develop category management of both direct and indirect organisational expenditure and plan for the associated strategic processes.
Module aim(s)
Category management involves applying the end-to-end procurement process to a specific range of goods or services. This involves pre-award processes such as category analysis and demand management, sourcing and contract negotiation, and the post-award processes such as performance management. It is essential that those involved in managing procurement and supply activity can evaluate approaches to develop category management and are able to create process plans which ensure category management success. This module is designed for those who have responsibility for category management as it focuses on the differing approaches for category management using the tools and techniques which are available to assist with the creation of the associated processes for direct or indirect expenditure.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand approaches that can be used to develop category management strategies
– Critically compare strategic and conventional sourcing processes and their role in category management
– Critically compare models for the adoption of category management
– Identify the technical and behavioural skills required to implement category management
– Critically compare models for the adoption of category management
– Identify the technical and behavioural skills required to implement category management
2- Understand the concepts, tools and techniques associated with managing expenditure
– Contrast the types of expenditure that can be analysed for category management processes
– Compare and contrast the tools and techniques that can be applied to map categories of direct and indirect expenditure
– Compare and contrast the tools and techniques that can be applied to map categories of direct and indirect expenditure
3- Understand the strategic impact of a category management process
– Analyse the data required for the development of a category management process
– Examine the requirements for initiating and preparing the introduction of a category management process
– Analyse supply market factors that impact on the development of a category management process
– Examine the requirements for initiating and preparing the introduction of a category management process
– Analyse supply market factors that impact on the development of a category management process
Achieving Competitive Advantage Through the Supply Chain [L5M7]
Module purpose
On completion of this module, learners will be able to assess a range of processes that support the achievement of competitive advantage and improvements in organisational performance through its supply chain.
Module aim(s)
Competitive advantage is associated with the processes and procedures that an organisation has at its disposal to outperform its competitors. Many organisations see their supply chains as a significant source of achieving competitive advantage. It is therefore important that those with responsibility for managing the supply chain have a clear understanding of the approaches and techniques that are available to leverage the supply chain to achieve competitive advantage. This module is designed for such managers responsible for formulating plans and approaches to achieve competitive advantage for their organisations through the supply chain.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand the dynamics of supply chains
– Compare supply chains, supply network and supply chain management
– Analyse the added value that effective supply chain management can deliver for the organisation
– Analyse the relationship between organizational infrastructure and process management in supply chain management
– Compare approaches to improving supply chains
– Analyse the added value that effective supply chain management can deliver for the organisation
– Analyse the relationship between organizational infrastructure and process management in supply chain management
– Compare approaches to improving supply chains
2- Understand improvement methodologies that can be used in supply chains
– Compare approaches to total quality management for supply chain improvement
– Analyse the use of statistical methods to achieve supply chain improvement
– Critically appraise processes that can be used for supply chain improvement
– Examine how business process re-engineering (BPR)
– Analyse the use of statistical methods to achieve supply chain improvement
– Critically appraise processes that can be used for supply chain improvement
– Examine how business process re-engineering (BPR)
3- Understand measures required to achieve competitive advantage in supply chains
– Evaluate sources of competitive advantage
– Analyse pricing arrangements that can be used to achieve competitive advantage in the supply chain
– Analyse cost reduction activities for a supply chain to achieve competitive advantage
– Assess methods to promote greater collaboration in supply chains to support the achievement of competitive advantage
– Analyse pricing arrangements that can be used to achieve competitive advantage in the supply chain
– Analyse cost reduction activities for a supply chain to achieve competitive advantage
– Assess methods to promote greater collaboration in supply chains to support the achievement of competitive advantage
Project and Change Management [L5M8]
Module purpose
On completion of this module, learners will be able to assess the impact and implications of projects, examine approaches applied to the planning and management of projects and recognise the challenges associated with and methods to manage, achieve and maintain organisational change..
Module aim(s)
The speed of development and the drive for maintaining organisational competitiveness mean that change is inevitable in the modern workplace. Consequently, those who work and manage in organisations will be expected to deal with change initiatives and to manage those projects which are generated as a direct consequence. 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 be prepared to apply the tools and techniques that will ultimately lead to the successful management of projects and change initiatives.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand aspects of projects in organisations
– Analyse aspects of projects in organisations
– Evaluate the impact on supply chain relationships of undertaking projects
– Analyse the resources for projects
– Analyse the project life cycles of projects
– Evaluate the impact on supply chain relationships of undertaking projects
– Analyse the resources for projects
– Analyse the project life cycles of projects
2- Understand the concept of organisational change and how it can be achieved
– Analyse the types of organisational change
– Analyse situations that lead to organisational change
– Evaluate organisational responses to change
– Analyse methods to manage, achieve and maintain change
– Analyse situations that lead to organisational change
– Evaluate organisational responses to change
– Analyse methods to manage, achieve and maintain change
3- Understand approaches to the planning and management of projects and change initiatives
– Evaluate structures for corporate governance
– Analyse the common objectives for projects
– Analyse approaches to the management of risks for projects
– Critically compare methodologies for the planning of projects
– Analyse the common objectives for projects
– Analyse approaches to the management of risks for projects
– Critically compare methodologies for the planning of projects
Operations Management [L5M9]
Module purpose
On completion of this module, learners will be able to understand the concepts of operations management that link to the efficiency and effectiveness of the supply chain and explain plans, designs, processes and systems for the improved control or improvement of supply chain operations.
Module aim(s)
In order to ensure success an organisation must create and adopt processes that ensure the consistent production of products and/or services that meet customer demand, both in terms of quantity and quality. This is the responsibility of those who manage the supply chain operations function. This module is designed to enable those involved in procurement and supply to assess techniques that are aimed at improving supply chain operations to the overall benefit of the organisation.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand the concept and scope of operations management
– Analyse the role and activities of operations management in organisations
– Critically assess the objectives and strategies of operations management
– Evaluate operations management processes
– Analyse the application of operations management across supply chains
– Critically assess the objectives and strategies of operations management
– Evaluate operations management processes
– Analyse the application of operations management across supply chains
2- Understand improvement methodologies that can be applied in operations management
– Analyse tools for improving performance in operations management
– Explain techniques in failure prevention and recovery that can be applied in operations management
– Evaluate the role of total quality management in operations management
– Analyse techniques for quality improvement that can be applied in operations management
– Explain techniques in failure prevention and recovery that can be applied in operations management
– Evaluate the role of total quality management in operations management
– Analyse techniques for quality improvement that can be applied in operations management
Logistics Management [L5M10]
Module purpose
On completion of this module, learners will be able to understand the concepts of logistics management that link to the efficiency and effectiveness of the supply chain and explain plans, designs, processes and systems for the improved control or improvement of supply chain logistics.
Module aim(s)
In order to ensure success an organisation must create and adopt processes that ensure the consistent delivery of products and/or services that meet customer demand, both in terms of quantity and quality. This is the responsibility of those who manage the supply chain logistics function. This module is designed to enable those involved in procurement and supply to assess techniques that are aimed at improving supply chain logistics to the overall benefit of the organisation.
Learning outcomes, assessment criteria and indicative content(s)
1- Understand the concept of logistics management
– Analyse the role and activities of logistics management
– Analyse the concept of integrated logistics
– Evaluate aspects of competitive advantage that can be achieved through logistics management
– Critically appraise the use of technology in logistics management
– Analyse the concept of integrated logistics
– Evaluate aspects of competitive advantage that can be achieved through logistics management
– Critically appraise the use of technology in logistics management
2- Understand capacity planning and control in logistics management
– Analyse techniques that can be applied to planning and control in logistics management
– Explain techniques that can be applied to capacity management
– Analyse the use of Materials Requirements Planning (MRP) Systems technology for planning and control in Logistics management
– Analyse the use of reverse logistics as a process
– Explain techniques that can be applied to capacity management
– Analyse the use of Materials Requirements Planning (MRP) Systems technology for planning and control in Logistics management
– Analyse the use of reverse logistics as a process
Advanced Negotiation [L5M15]
Module purpose
On completion of this module learners will be able to examine the key stages of the negotiation process and the influence of relationships and ethics on the process. They will also assess the methods and behavioural factors which can influence others.
Module aim(s)
Those involved in procurement and supply activity will create and manage formal agreements which will be critical to organisational success. Part of the developmental process for such agreements will rely upon effective negotiations with stakeholders and/or suppliers and also the ability to influence the individuals and groups involved. This module is designed for those managers who may be faced with preparing for and completing negotiations
Learning outcomes, assessment criteria and indicative content(s)
1- Understand the key stages which impact on the negotiation process and outcomes
– Analyse pre-negotiation and the associated preparation that should be made
– Examine negotiation and the associated strategies, tools and techniques
– Examine post-negotiation actions
– Assess the changing relationships within the negotiation process
– Analyse ethics and its influence on the negotiation process
– Examine negotiation and the associated strategies, tools and techniques
– Examine post-negotiation actions
– Assess the changing relationships within the negotiation process
– Analyse ethics and its influence on the negotiation process
2- Understand methods and behavioural factors which can influence others
– Assess methods to influence individuals and groups
– Assess the behavioural factors that might influence individuals
– Assess the behavioural factors that might influence individuals