--- title: Inventory, Logistics and Expediting [L2M5]© description: "On completion of this module, learners will be able to identify the key role that inventory has to play and define the principles and processes associated with effective logistics control, explaining how effective expediting can be achieved in procurement and supply" image: https://blog.fhyzics.net/hubfs/Inventory%2c%20Logistics%20and%20Expediting%20%5BL2M5%5D%C2%A9.jpg --- ![Fhyzics-logo](https://blog.fhyzics.net/hs-fs/hubfs/Fhyzics-logo.png?width=100&name=Fhyzics-logo.png "Fhyzics-logo") ![Fhyzics-logo](https://blog.fhyzics.net/hs-fs/hubfs/Fhyzics-logo.png?width=100&name=Fhyzics-logo.png "Fhyzics-logo") [![Request Quote](https://no-cache.hubspot.com/cta/default/3112120/9f3d168c-6bf2-4090-8529-bd721423c14e.png)](https://cta-redirect.hubspot.com/cta/redirect/3112120/9f3d168c-6bf2-4090-8529-bd721423c14e) [![Click me](https://no-cache.hubspot.com/cta/default/3112120/717ff434-4d3d-4712-819e-dccb5a46efda.png)](https://cta-redirect.hubspot.com/cta/redirect/3112120/717ff434-4d3d-4712-819e-dccb5a46efda) ![hero-img1](https://cdn2.hubspot.net/hub/5152923/hubfs/Creative_Theme/image/hero-img1.jpg?width=1810&name=hero-img1.jpg "hero-img1") - [**](https://www.facebook.com/sharer/sharer.php?u=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/inventory-logistics-and-expediting-l2m5&title=Inventory,%20Logistics%20and%20Expediting%20[L2M5]©&description=On%20completion%20of%20this%20module,%20learners%20will%20be%20able%20to%20identify%20the%20key%20role%20that%20inventory%20has%20to%20play%20and%20define%20the%20principles%20and%20processes%20associated%20with%20effective%20logistics%20control,%20explaining%20how%20effective%20expediting%20can%20be%20achieved%20in%20procurement%20and%20supply) - [**](https://twitter.com/intent/tweet?source=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/inventory-logistics-and-expediting-l2m5&text=Inventory,%20Logistics%20and%20Expediting%20[L2M5]©%20-%20https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/inventory-logistics-and-expediting-l2m5) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/inventory-logistics-and-expediting-l2m5&title=Inventory,%20Logistics%20and%20Expediting%20[L2M5]©&summary=On%20completion%20of%20this%20module,%20learners%20will%20be%20able%20to%20identify%20the%20key%20role%20that%20inventory%20has%20to%20play%20and%20define%20the%20principles%20and%20processes%20associated%20with%20effective%20logistics%20control,%20explaining%20how%20effective%20expediting%20can%20be%20achieved%20in%20procurement%20and%20supply) 24 April 2020 Friday ## Inventory, Logistics and Expediting [L2M5]© By [Venkadesh Narayanan](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/author/venkadesh-narayanan) In: [CIPS](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/tag/cips) **0** Comments **Module Purpose: ** On completion of this module, learners will be able to identify the key role that inventory has to play and define the principles and processes associated with effective logistics control, explaining how effective expediting can be achieved in procurement and supply. **Module Aim: ** Inventories can account for a significant cost for many organisations. This module has been designed to enable learners to appreciate the concept of inventory and to explain contemporary methods for reviewing and planning effective inventory control. The module also focuses on the logistics challenge and on effective logistics control measures. Finally, learners will be able to explain how effective expediting can be achieved in procurement and supply through effective planning and processing. [![CIPS Level-4 Certification and Training or Course-0099](https://blog.fhyzics.net/hs-fs/hubfs/CIOP%20Banner.jpg?width=5000&name=CIOP%20Banner.jpg)](https://pages.fhyzics.net/ciop) Certified Inventory Optimization Professional CIOP is a global supply chain management and inventory management certification program exclusively developed for corporations to optimize the inventory in their supply chain. CIOP teaches the global best practices in 30 modules over 90 hours of live, faculty-led, online training. It is founded on Inventory Management Body of Knowledge (IMBoK) version 3.0. CIOP is a comprehensive program includes training, reference material, Learning Management and Assessment System (LMAS), examination and certificate. The LMAS contains classroom presentations, classroom notes, video lessons, audio lessons, quizzes, reference materials, terminologies and articles recommended by faculty. The CIOP Examination is 3 hours, online, proctored examination with 180 multiple-choice questions. The participant needs to secure 70% of the maximum score (360 marks) to pass in the examination. You can learn more about the CIOP certification in the below links: CIOP Website: [https://pages.fhyzics.net/ciop](https://pages.fhyzics.net/ciop)  Faculty Profile: [https://pages.fhyzics.net/principal-consultant](https://pages.fhyzics.net/principal-consultant) > [Click here](https://share.hsforms.com/1WiInHtVRRc-bC6fbsMaFHg1upbs) to request quote for the CIOP certification program. **![CIPS Level-4 Certification and Training or Course-0100](https://blog.fhyzics.net/hs-fs/hubfs/CIOP%20Border.jpg?width=5000&name=CIOP%20Border.jpg)** *Fhyzics Business Consultants is an Approved Study Centre of Chartered Institute of Procurement and Supply (CIPS), UK and offering all the modules under Level-2, Level-3, Level-4, Level-5, and Level-6. During this current COVID-19 pandemic, the classes are offered in distance and self-study modes. For more questions related to our CIPS programs, please speak to our Manager-Certifications at +91-900-304-9000 or email at certifications@fhyzics.net.* > Online, Instructor-Led Training Program on Inventory, Logistics and Expediting [L2M5] Module of Professional Diploma in Procurement and Supply, CIPS, UK [**![CIPS Level-4 Certification and Training or Course-0101](https://blog.fhyzics.net/hs-fs/hubfs/CIPS%20Online%20Courses.jpg?width=150&name=CIPS%20Online%20Courses.jpg)**](https://smbcart.com/collections/supply-chain-certification/products/cips-level-2-online-instruction-introducing-procurement-and-supply) **Mode of Delivery:** Online **Mode of Teaching**: Using the Presentation Deck from CIPS, UK **Duration**: 3 Hours **Faculty**: Venkadesh Narayanan, CIPS Recognized Instructor **Reference Material**: L2M5 Study Guide **Level-2:** Certifıcate in Procurement and Supply Operations [![CIPS Level-4 Certification and Training or Course-0102](https://blog.fhyzics.net/hs-fs/hubfs/inventory-logistics-and-expediting.jpg?width=255&name=inventory-logistics-and-expediting.jpg)](https://smbcart.com/collections/cips-level-2/products/l2m5-inventory-logistics-and-expediting-core-study-guide-ebook) [![CIPS Level-4 Certification and Training or Course-0103](https://blog.fhyzics.net/hs-fs/hubfs/ebook-CIPS%20%20Online%20Books.jpg?width=169&name=ebook-CIPS%20%20Online%20Books.jpg)](https://smbcart.com/collections/cips-level-2/products/l2m5-inventory-logistics-and-expediting-core-study-guide-ebook)   # STAKEHOLDER RELATIONSHIPS  - LEARNING OUTCOMES **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 that are 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 and palletisation and unit loads, packing and packaging and the use of 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 that is used in transportation of supplies** • The single administrative document • Packing list, waybill, consignment notes, 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 costs of inventory and the cost of stock outs** • Monitor levels of inventories and take actions to mitigate over supply and minimise the risk of stock  outs • The use of forecasting to achieve timely delivery of supplies • Track 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** • Track any deviations from planned payments and take remedial actions to mitigate disruptions that may be created through difficulties with cash flow --- ***Keywords: **eprocurements, e procurement, procurement, purchase, purchase order, purchase order format, e procurement tenders, purchase meaning in hindi, e procurement tata steel, purchase meaning, ntpc eprocurement, defence eprocurement, e procurement tatasteel, central e procurement, po system, govtprocurement, iocl e procurement, cg e procurement, bpcl eprocurement, purchase requisition, procure to pay, ntpc e procurement, online tendering, procurement process, hire purchase meaning, purchasing management, procurement is, strategic sourcing, procurement management, eprocurement ntpc, 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[**](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/inventory-logistics-and-expediting-l2m5&title=Inventory,%20Logistics%20and%20Expediting%20[L2M5]©&summary=On%20completion%20of%20this%20module,%20learners%20will%20be%20able%20to%20identify%20the%20key%20role%20that%20inventory%20has%20to%20play%20and%20define%20the%20principles%20and%20processes%20associated%20with%20effective%20logistics%20control,%20explaining%20how%20effective%20expediting%20can%20be%20achieved%20in%20procurement%20and%20supply) ### Written by [Venkadesh Narayanan](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/author/venkadesh-narayanan) Venkadesh is a Mechanical Engineer and an MBA with 30 years of experience in the domains of supply chain management, business analysis, new product development, business plan and standard operating procedures. He is currently working as Principal Consultant at Fhyzics Business Consultants. He is also serving as President, PDMA-India (an Indian affiliate of PDMA, USA) and Recognised Instructor of APICS, USA and CIPS, UK. He is a former member of Indian Civil Services (IRAS). Fhyzics offers consulting, certification, and executive development programs in the domains of supply chain management, business analysis and new product development. - [**](https://www.linkedin.com/in/venkadesh/) PREVIOUS POST [** Systems Technology [L2M4]© ](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/systems-technology-l2m4) [![](https://cdn2.hubspot.net/hubfs/5152923/Creative_Theme/image/chevron.png) ](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips) Next Post [Procurement and Supply Environments [L3M1]© **](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/procurement-and-supply-environments-l3m1) ## Leave a Reply [Content Title](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/inventory-logistics-and-expediting-l2m5#) Description [![Cerversity](https://blog.fhyzics.net/hubfs/Cerversity.png "Cerversity")](https://pages.fhyzics.net/certversity) [![CIOP](https://blog.fhyzics.net/hubfs/CIOP.png "CIOP")](https://pages.fhyzics.net/ciop) [![IMBoK - 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