SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply fundamental concepts and principles of supply chain management 
SAQA US ID UNIT STANDARD TITLE
244025  Apply fundamental concepts and principles of supply chain management 
ORIGINATOR
SGB Transport and Logistics Operations 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 11 - Services Transport, Operations and Logistics 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  20 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
Learners credited with this unit standard will demonstrate a clear understanding of the fundamental concepts of Supply Chain Management namely, Procurement, Operations, Distribution and Logistics. They will be able to compare the philosophy of Supply Chain Management with traditional business models giving practical examples of the advantages and disadvantages of adhering to a Supply Chain Philosophy.

A person credited with this unit standard is able to:
  • Identify and apply the fundamental concepts and principles of supply chain management.
  • Apply supply chain management policies and procedures.
  • Utilise supply chain management systems and resources to fulfil the function effectively.
  • Secure and manage supplier contracts. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that the learner is competent in:
  • Communication Literacy at NQF Level 4.
  • Mathematical Literacy at NQF Level 4.

    All competencies reflected in the learning assumed to be in place could be achieved through the recognition of prior learning. 

  • UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Identify and apply the fundamental concepts and principles of supply chain management. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The elements of a world-class supply chain management system are identified and described in accordance to supply chain management principles and philosophy. 

    ASSESSMENT CRITERION 2 
    The evolution and importance of supply chain management systems are explained and described in accordance to supply chain management principles and philosophy. 

    ASSESSMENT CRITERION 3 
    Legislation relating to supply chain management and its impact on the strategy of the organisation are explained and applied in accordance to supply chain principles and philosophy applicable to the organisation. 
    ASSESSMENT CRITERION RANGE 
    Legislation pertaining to supply chain management includes but is not limited to BEE (Black Economic Empowerment) policies and principles, the Municipal Finance Management Act, the Public Finance Management Act, Occupational Health and Safety, National Road Transport Act, Employment Equity Act.
     

    ASSESSMENT CRITERION 4 
    The concepts and sub-sectors relating to the supply chain are determined and applied as they relate to company procedures. 

    ASSESSMENT CRITERION 5 
    A supply chain management model is developed to identify all parties involved as well as their respective roles within the supply chain. 

    SPECIFIC OUTCOME 2 
    Apply organisational supply chain management policies and procedures. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The spanning functional boundaries of supply chain management nationally as well as internationally are identified and listed to ensure the achievement of a supply chain management strategy. 

    ASSESSMENT CRITERION 2 
    Processes to make decisions about quality and quantity, supplier selection, pricing decisions and lead times are applied to satisfy customer and organisational needs regarding product, place, time and costs. 

    ASSESSMENT CRITERION 3 
    Contractual principles, policies and procedures relating to supply chain management are applied according to organisational policies and procedures. 

    ASSESSMENT CRITERION 4 
    Organisational ethics and codes of conduct associated with supply chain management are applied in accordance to the organisational value system. 

    ASSESSMENT CRITERION 5 
    Reporting processes pertaining to supply chain management codes of conduct are applied in accordance to organisational policies and procedures and relevant legislation. 

    SPECIFIC OUTCOME 3 
    Utilise supply chain management systems and resources to achieve organisational objective. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Strategic objectives are transformed into a supply chain optimisation framework and forecasts are drawn up in accordance to supply chain management strategy. 

    ASSESSMENT CRITERION 2 
    Appropriate systems and resources are utilized to ensure supply chain optimisation in accordance to supply chain management strategy. 

    ASSESSMENT CRITERION 3 
    Different inventory systems are distinguished to enhance management of inventories in accordance to supply chain management strategy. 

    ASSESSMENT CRITERION 4 
    The organisation's logistics operational system is integrated with the organisation's particular information system and with the systems of other participants in the international supply chain according to the supply chain management strategy. 

    ASSESSMENT CRITERION 5 
    Customer-service standards are achieved in a cost-effective and appropriate manner through supply chain optimisation and according to the supply chain management strategy. 

    SPECIFIC OUTCOME 4 
    Secure and manage supplier contracts. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Contract and relationship management techniques, tools and philosophies are utilised to foster synergistic opportunities within supply chain management. 

    ASSESSMENT CRITERION 2 
    Contracts are reviewed and adapted to effectively secure supplier relations according to the supply chain management strategy. 

    ASSESSMENT CRITERION 3 
    Terms and conditions relating to different types of contracts are identified and explained according to the supply chain management principles. 

    ASSESSMENT CRITERION 4 
    Contract administration is undertaken on an ongoing basis to ensure proactive management of contracts according to the supply chain management strategy. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • This Unit Standard will be assessed by an assessor and moderated by a moderator registered with the relevant ETQA.
  • Assessors should be in possession of a relevant qualification that is at least one level higher than the level of this unit standard.
  • Training Providers must be accredited by the relevant ETQA.
  • Assessment should include both formative and summative assessment. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    In the effective planning, co ordination and operation of multiple movements within the supply chain, to the satisfaction of customer requirements, for the availability of goods, the individual must be able to apply the fundamental concepts, principles, processes and procedures relating to:

    Terminology (including):
  • Supply Chain.
  • Supply Chain integration.
  • Cross-functional integration.
  • Logistics concepts.
  • Materials Requirements Planning (MRP).
  • Distribution Requirements Planning (DRP).
  • Benchmarking.
  • Supply Chain Management Concepts.
  • Distribution channels and channel selection.
  • Partnerships.

    Inventory Management and Planning:
  • Forecasting.
  • Safety stock.
  • Re-order levels.
  • Role of information systems.

    Information Technology:
  • IT in planning and controlling.
  • IT in problem solving depot selection.
    > Vehicle scheduling.
  • EDI.
  • Internet.
  • Bar coding.

    Modal Selection:
  • Sea, air, road, rail.
  • Advantages, disadvantages.
  • Safety and security.
  • Urgency, cost and value relationship.

    Materials handling:
  • Packaging.
  • Unitisation.
  • Warehousing - management.
    > Receiving and dispatch.
    > Stock location and rotation.
    > Picking.
    > Storage identification.
    > Equipment.
    > Security.
    > Fleet Management.
    > Vehicle selection.
    > Route scheduling.
    > Outsourcing.

    Economic and Financial Considerations:
  • Economics of distribution.
  • Demand and supply of goods.
  • Pricing and profitability.
  • Types of costs.
  • Stock valuation.
  • Obsolescence.
  • Total logistics costs.

    Role of the forwarder:
  • Traditional versus new.
  • Integrated logistics customer service.
    > Supply chain management.
    > Functional issues.
    > Implementation. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems using critical and creative thinking processes to manage supply chains optimally. 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team, group, organization or community to create collaborative working relationships with suppliers. 

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage oneself and one's activities responsibly and effectively in order to ensure that all supply chain management principles, tools and policies are integrated into overall business strategy. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organize and critically evaluate information in order to source and evaluate suitable suppliers. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and/or language in the modes of oral and/or written persuasion to convey information pertaining to supply chain management. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically, showing responsibility to the environment and health of others in ensuring that supply chain management policies and procedures comply with overall Supply Chain Management Strategy. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of interrelated systems by recognising that supply chain problem-solving contexts do not exist in isolation and form part of a national and international process. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Participating as responsible citizens in the life of local, national and global communities by ensuring that supply chain management also supports the upliftment of emerging organisations according to SA`s BEE plan. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  58473   National Diploma: Freight Handling Logistics  Level 5  NQF Level 05  Reregistered  2023-06-30  TETA 
    Core  80686   National Diploma: Supply Chain Management: Sensitive Consumer Products  Level 6  NQF Level 06  Reregistered  2023-06-30  FOODBEV 
    Elective  79406   National Certificate: Maintenance Coordination  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered" 
    2015-06-30  MERSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Aldabri 106 Institute for Quality Pty Ltd 
    2. Centre for Logistics Excellence (Pty) Ltd 
    3. Makwedeng Training 
    4. SA Maritime School and Transport College 
    5. Skills Development Specialists 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.