---
title: Supply Network Design [L6M9]©
description: On completion of this module, learners will be able to evaluate the strategic nature, influence and contribution of supply network design and operations to overall business strategy and assess the strategic value of resource planning and control.
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23 April 2020 Thursday

## Supply Network Design [L6M9]©

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 evaluate the strategic nature, influence and contribution of supply network design and operations to overall business strategy and assess the strategic value of resource planning and control.

**Module Aim **  
Every organisation is part of a wider interconnected network of other businesses and organisations; this is termed the supply network. At a strategic level the design and leadership of such networks is crucial to the effectiveness and efficiency of the associated supply chains, it is the operations processes which form a fundamental element of an organisation’s strategic advantage. If materials and/or information are to flow smoothly through the supply network and add value as a result, effective resource planning and control are essential to organisational success. This module is designed for procurement and supply leaders who require knowledge and understanding of the concept of the strategic supply network, its configuration and influence and be able to assess the impact of operational strategy and resource planning and control

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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.

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*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 Supply Network Design [L6M9] Module of Professional Diploma in Procurement and Supply, CIPS, UK

[**![CIPS Level-4 Certification and Training or Course-0209](https://blog.fhyzics.net/hs-fs/hubfs/CIPS%20Online%20Courses.jpg?width=150&name=CIPS%20Online%20Courses.jpg)**](https://smbcart.com/products/cips-level-6-online-instruction-one-module)

**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**: L6M9 Study Guide  
**Level-6:** Professional Diploma in Procurement and Supply

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# Supply Network Design - LEARNING OUTCOMES

**1.0 Understand the strategic nature and influence of supply network design**  
**1.1 Assess the meaning of supply network design and the influence that it has on the organisation**  
• What is supply network design  
• Supply network terminology and structures  
• Supply network vs. supply chain  
• Where are operations located in the supply network  
– logistical impact  
• What influence does capacity and resources have on the supply network  
• Value adding and competitive advantage  
**1.2 Evaluate how a strategic supply chain network should be configured**  
• Influence of the internet – ‘disintermediation’  
• The value net and four players - suppliers, customers, competitors and complementors  
• Decisions such as:  
• Make or buy  
• Insource or outsource   
• Vertical integration  
• Outsourcing and offshoring  
**1.3 Assess the influence of capacity on strategic supply chain design**  
• Optimum capacity  
• Large vs. small capacity – advantages and disadvantages  
• The timing of capacity change  
• Capacity increments:  
• Capacity leading and lagging strategies  
• Inventory ‘smoothing’  
• Break even analysis for capacity expansion  
**2.0 Understand operations strategy and its contribution to overall business success**  
**2.1 Assess the meaning of operations strategy and the impact that it has on the organisation**  
• What is operations strategy  
• How to identify if an organisation has an operations strategy  
• Is the operations strategy relevant and aligned to the overall business strategy  
• Does the operations strategy align with market requirements and available resources  
• The contribution of operations strategy to competitive advantage and added value  
**2.2 Evaluate the key elements of an operations strategy**  
• Should include key elements such as:  
• A clear vision and objectives  
• The 4 stages model of operations – internal neutrality, external neutrality, internally supportive and externally supportive   
• Performance objectives – quality, speed, dependability, flexibility and cost  
• Reconcile strategic decisions to objectives  
• capacity and resources vs. timescales and outputs  
**2.3 Assess the role of improvement in operations strategy**  
• Continuous improvement  
• Drivers for effectiveness and efficiency  
• Improving operations through trade-offs between performance objectives  
• Trade-offs and the efficient frontier  
• Improving operational effectiveness by overcoming trade-offs

**3.0 Assess the strategic value of resource planning and control**  
**3.1 Evaluate the concept of strategic resource planning and control**  
• What is resource planning and control  
• Influences on resource planning such as:  
• Translating customer need into operational delivery  
• Customer expectation and management  
• Forecasting, capacity, resources, priorities, scheduling, monitoring, control  
• Information and data gathering and management  
**3.2 Assess the key elements of a resource strategic planning and control system**  
• Core mechanics of the process such as:  
• Loading  
• Prioritisation and sequencing  
• Scheduling  
• Monitoring and control  
• Decision mechanism:  
• Planning and control staff  
• Planning and control information system  
• Customer interface  
• Supply interface  
• Other business functions  
**3.3 Contrast methods of monitoring and controlling the  strategic operation**  
• Degree of difficulty in controlling operations  
• Consider methods of control such as:  
• Push and pull  
• Theory of constraints (TOC) and drum (bottleneck), buffer stock and rope  
• MRP and MRP II  
• Web-integrated and supply network ERP

---

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### 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/)

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- [Supplier Relationship Manager (2)](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/tag/supplier-relationship-manager)
- [Supplier Support Specialist  (1)](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/tag/supplier-support-specialist)
- [Supply Chain - Specialist  (1)](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/tag/supply-chain-specialist)
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- [Transport Logistic Assistant (1)](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/tag/transport-logistic-assistant)
- [Transport Operation Executive (1)](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/tag/transport-operation-executive)
- [Transportation Manager (1)](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/tag/transportation-manager)
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## [Socially Responsible Warehousing and Distribution [L3M6]©](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/socially-responsible-warehousing-and-distribution-l3m6)

**Module Purpose:** On completion of this module, learners will be able to describe methods for the storage and movement of inventory and identify the environmental and social impact of warehousing and distribution operations.

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[**](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/socially-responsible-warehousing-and-distribution-l3m6)

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## [Socially Responsible Procurement [L3M5]©](https://blog.fhyzics.net/chartered-institute-of-procurement-and-supply-cips/socially-responsible-procurement-l3m5)

**Module Purpose** : On completion of this module, learners will be able to explain the concepts and implications of sustainability and Corporate Social Responsibility and recognise the potential environmental impact of procurement and supply operations.

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**Module Purpose: ** On completion of this module, learners will be able to identify the influence that people and teams can have on procurement and supply success and recognise the challenges associated with and methods to achieve, organisational change

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