Level 5 – Purchasing Management

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  • Choose how you study, pass units and gain your accredited qualification.
  • Course materials designed by industry experts.

The Level 5 qualification is intended for students with extensive experience working at management level within the supply chain sector and looking to progress to a senior management role. The course allows students to develop management skills and sector specific knowledge to support career development and operational efficiency.

*Through completion of the IoSCM Level 5 – Purchasing Management you will receive certification from IoSCM and also a regulated qualification, Level 5 in Supply Chain and Operations, via our partnership with SFEDI Awards as the Ofqual regulated Awarding Organisation.

Course Delivery

By enrolling with IoSCM, you’ll gain access to a customised learning platform in which you can take mock tests, utilise a huge library of resources and interact with other students across the globe. As well as unlimited first-class materials, there is self-assessments available online show the results immediately to give you direction on what you’re doing well and what you might need to take another look at.

You can take and retake the practise self-tests as many times as you like. By doing this, we’re increasing your confidence in your ability to succeed and therefore, also ensuring you pass the first time.

Because IoSCM qualifications can be studied entirely online, you can study in your own time and in the comfort of your own home. You can revisit materials and resources as often as required, simply log in to your personal learning platform.

We do, however, offer free monthly face to face or online workshops for you to attend if necessary. We understand that every individual is different, so we encourage you to learn at your own pace and in a way that suits you.

Course Requirements

  • For the Award complete 1 core unit
  • For the Certificate complete 1 core and any 2 other units
  • For the Diploma complete 1 core unit and any other 3 units.
  • For the Advanced Diploma, complete 1 core unit and other 6 units

Core Units

  • Key roles of management: Purchasing management, Purchasing cycle, Market analysis, Porters Five Forces, Stakeholder analysis
  • Impact of legislation: Breach of contract, Consumer law
  • Working relationships with suppliers: Supplier risk management, Supplier appraisal, Risks and barriers in supplier relationships, Supplier Relationship Spectrum
  • Effective negotiating skills: Tools and techniques for effective negotiating, Supplier management
  • Operations management: Inputs and outputs, Volume, variety, variation and visibility, Managing operations and operations functions, Performance objectives, Planning and control, Macroeconomic factors, Implementation of business strategy, Judging performance against competitors, The operation’s contribution
  • Operations processing: Operations management four generic processes, Process mapping, Materials requirement planning (MRP), Supply and demand, Supply network, Outsourcing, Process technologies
  • Relationship between operations management and strategic planning: Strategic decisions, The balanced scorecard, Operations strategy, Quality, Speed, Dependability, Flexibility & Cost, Performance measurement systems
  • Operations improvement techniques: Cost leadership strategy, Focus strategy, Value chain, Performance measurements, Performance standards, Benchmarking, Lean manufacturing, Agile manufacturing, Total quality management, PESTLE analysis, Business excellence models
  • Organisational challenges: Globalisation, Social responsibility, Environmental responsibility, Technology

Optional Units

  • Drivers and Decision Makers of Central and Local Government: Drivers and decision makers of Central Government; Drivers and decision makers for Local Government; Public Sector Procurement; Procurement for Political purposes
  • Measures for protecting against Fraud: Procurement Fraud; Investigative Framework; Key Risks in Procurement; Mitigating Risk in Procurement
  • Financial accountability for Procurement policy and practice: Criteria for a Procurement Policy Manual; What is Ethical Procurement; Performance Management and Measurement
  • The Role of Marketing in an Organisation: The role of Marketing in a typical organisation; Marketing principles; Development of a Marketing Strategy; Marketing services procurement; Marketing Spend Categories
  • The Analysis of Marketing Information: The different methods of Market Research; Sourcing plan; Marketing Information Systems
  • The Components of the Marketing Mix: The use of the 7Ps within the Marketing Mix; The purpose of a marketing partnership; Product Strategy and Categorisation
  • Managing customer relationships: Customer relationship management; Methods used; Customer service strategy; Customer service levels; Best practice
  • Customer focused culture: Customer care; Improving service delivery; Culture change
  • Customer satisfaction: Return on investment; Assessing customer satisfaction; Customer care charter
  • Managing customer complaints: Current practices; Customer loyalty; Complaints policies and procedures
  • The different types of Contracts: Different types of contracts; Contract management procedures; Legal and regulatory requirements for governing contracts
  • The processes used to monitor and evaluate the performance of Contractors: Building relationships with contractors; The procedures involved for communicating with contractors and other stakeholders; The procedures for Contractor performance monitoring; The Legal and regulatory requirements for Contractor Compliance; Evaluation of contractors
  • Warehouse policies: Benefits of warehousing, Types of warehouses, Warehouse policies and procedures, Warehouse exit strategy – in house, Warehouse exit strategy – outsourcing
  • Requirements: Warehouse activity, Storage system design, Warehouse layout, Product layout, Material flows, Resource planning, Material handling, Warehouse personnel
  • Inventory strategy: Integrated supply chain, Supply chain management, Supply chain measurement, Performance evaluation, Quality management, Supply chain performance measures, Supply chain strategy, Product life cycle, Service levels, Transportation, Inventory and planning control
  • Legislation: Health and safety legislation, Prevention, Risk assessment, Manual Handling Regulations, Licencing and permits, Training, Insurance
  • Technology advances: Warehouse Management System, Materials Requirement Planning, Manufacturing Resource Planning, Information Communications Technology, Automated Storage and Retrieval Systems, Conveyor systems, Barcode technology, Radio Frequency Identification Technology, Electronic Data Interchange (EDI), Electronic Point of Sale (EPOS), Key performance indicators, Inventory reduction
  • Financial systems: Budgeting, Performance measurement, Warehouse costs, Activity based costing (ABC), Payback period, Rate of return, Performance indicators, Balanced scorecard
  • Nature and purpose of transport planning: Demand for goods movement, Demand for travel, Types of transport, Journey planning and modal choices, Access and mobility requirements
  • Land use: Land density, Transport infrastructure, Brown field developments
  • Sustainability: Planning strategy and process, Environmental issues in transport provision, Sustainability, The role of central Government, Four stage transport plan
  • Transport demand: Demand for movement, Demand for travel, Demand drivers, Warehousing, Hazardous goods, Forecasting demand, Future of transport planning
  • Movement of freight: Freight operations, Environmentally sustainable transport, Conventional and emerging issues in transport
  • Effective management and control: Supply chain management, Supply chain risks and strengths, Strategic factors, Provide competitive advantage, Operations management
  • Physical and information flows: Product and information flows, Supply chain objectives, Supply chain integration and harmonisation
  • Why supply chain may not function correctly:  Barriers and risk, Forecast methods, Supply chain drivers, Strategic fit, Benchmarking
  • Strategic and operational planning: Supply chain planning decisions, Operations strategy, Supply chain improvement models, ISO 9000, Agility, The seven wastes
  • Impact of technology: Technological advances in supply chain, Data processing systems, Improvements towards agility, Information systems infrastructure, Communication
  • The concept of quality management: What is Quality, The concept of Quality Management in a business, The importance of quality within an organisation, The theories of Quality Management, Quality Management Tools and Techniques
  • Embedding quality management: Teamwork in Quality Management, Training and development in Quality Management, Embedding quality management into the culture of an organisation, Promoting continuous quality improvement within an organisation’s culture
  • Systems that support quality management: Monitoring Quality Management, Controlling Quality Management, Evaluate quality standards that support Quality Management
  • Production planning: Sales and operations planning; Demand management programme; Master production schedule; Materials requirement planning; Production control; Settlement; Materials management; Profitability and productivity; Production in the supply chain; Customer service
  • Production planning, sales planning and forecasting: Budgeting methods; Predicting demand; Demand management
  • Master Scheduling terminology: Master production schedule; Capacity planning; Materials requirement planning; Rough cut capacity planning; Production control
  • Development of manufacturing and control systems: Planning principles; Production planning systems
  • Improve planning performance: Benchmarking; Quality; Total quality management; Planning performance objectives; Production planning and control; Performance measures; Lean manufacturing
  • Shipping and international trade: Ships and the shipping system, Tramp & liner service markets, International trade patterns, International maritime passages
  • Business strategy in shipping: Corporate strategy for shipping, Financial strategy for shipping, Costs, Bargaining power of buyers and suppliers, International shipping law, Regulation and finance, Maritime laws
  • Port operations management: Terminals, Physical flows in a port, Product and information flow, Terminal performance indicators, Productivity, utilisation and service measures
  • Agile ports: Characteristics of an agile port, Lean logistics
  • Port development: Containerisation, concentration, collaboration and competition, Emerging trends
  • Principles and Practices in relation to the Movement of Goods: Definition of the movement of goods, What is Logistics, Modes of Transport used to move goods (Air, Road, Rail, Sea)
  • The characteristics of goods and the impact on their handling: Types and characteristics of Goods, Handling of different types of goods, Safety and Security measures relating to the different types of goods, Unitisation of goods
  • The considerations that influence the flow of goods: Supply and Demand, Variations in Demand for goods, Load planning, Resource planning, Modal planning and Scheduling, The use of Third Party Logistics (3PL)
  • Logistical requirements of a supply chain: What is logistics?, Who is the customer?, The supply chain, The large player, Integration, Networks, Deregulation and privatisation
  • Customer needs: E-logistics, Electronic data interchange (EDI), Scheduling methods & issues, Planning framework, PESTLE analysis, Planning
  • Optimise use of logistics: Inventory management systems, Factors in the use of resources, Measuring and managing logistics performance, The balanced scorecard, The Supply Chain Operations Reference Model, Key performance indicators
  • Modes of transport: Rail, Road, Air, Sea
  • Technology, Information & communication technology, Evolution of technology, Improvements in technology
  • Quality: Outsourcing, Reverse logistics, Green logistics, Total quality management, Quality inspections, Continuous improvement strategy
  • Purpose of inventory management: Inventory, Inventory management, Competitive advantage
  • Fixed period & fixed quantity models: Plan inventory requirements, Forecasting, Qualitative & quantitative techniques, Fixed order or continuous review system, Order quantity models, Economic Ordering Quantity
  • Effect of inventory management on supply chain   : A-B-C approach, Economic Ordering Quantity model, Fixed order or continuous review system, Quantity discount model, Continuous inventory systems, Periodic inventory systems, Quantitative and qualitative forecasting
  • Modern inventory systems: Inventory control systems, Contemporary logistics strategies, Performance indicators, Increase operational efficiency, Increase customer service satisfaction
  • Minimising stock level: Inventory allocation, Material requirements planning, Distribution requirements planning, Single period / multi period inventory systems

Job title & Salaries

Purchasing Manager£27,000 – £41,000
Business Operations Manager£30,000 – £46,000

*Salaries are based on national averages and may vary depending on location

Business Improvements

  • By understanding lead times, Inventory levels can be optimised and avoid stock outs
  • Ensure that your organisation never runs out of inventory, by ensuring that buffer stocks are held

“I chose to study an IoSCM Level 5 Diploma to improve my knowledge of the industry and to further my career progression. I undertook much research, as I wanted to find the best course to suit my needs, and I felt the choice of units and the flexibility of study provided by the IoSCM was the best option for me.

I have had a very good experience of studying with the Institute of Supply Chain Management; I found the course material to be very helpful and the student support team were fantastic in providing me with guidance and advice to ensure I progressed through my studies with ease.

I would definitely recommend the IoSCM and their courses to others. The optional units have helped me to develop new skills and knowledge that are specific to my job role and will help me to progress my career in future.”

Magloire Muyembe

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