19019
28-Jun-16
1 of 4
LOGISTICS OPERATIONS
Demonstrate knowledge of supply chain
management in a logistics operation
level:
5
credit:
5
planned review date:
February 2004
sub-field:
Logistics
purpose:
People credited with this unit standard are able to: explain
the concept of supply chain management; demonstrate
knowledge of the 'just-in-time' (JIT) philosophy; describe
effective supply chain management in a logistics operation;
and analyse the supply chain process in a logistics
operation.
entry information:
Open.
accreditation option:
Evaluation of documentation and visit by NZQA and industry.
moderation option:
A centrally established and directed national moderation
system has been set up by the NZ Motor Industry Training
Organisation (Incorporated).
special notes:
Definitions
Organisational procedures refer to formally documented
instructions in the workplace which are available to
candidates, providers, and assessors.
A distribution centre is a facility where customer orders are
processed and normally includes the facility to store,
although the product does not necessarily go into storage.
 New Zealand Qualifications Authority 2016
19019
28-Jun-16
2 of 4
LOGISTICS OPERATIONS
Demonstrate knowledge of supply chain
management in a logistics operation
Elements and Performance Criteria
element 1
Explain the concept of supply chain management.
performance criteria
1.1
The explanation includes the terminology used in supply chain management.
Range:
1.2
The explanation includes the concept of inter- and intra-organisational
integration.
Range:
1.3
includes but is not limited to – decoupling points, channel
structures, trade-offs, information flow, materials flow, process
management.
integration includes but is not limited to – internal customer,
supplier, technology and planning, measurement, relationship.
The typical structure of a supply chain is described in relation to distribution
operations.
element 2
Demonstrate knowledge of the 'just-in-time' (JIT) philosophy.
performance criteria
2.1
The philosophy of JIT is explained with respect to the supplier and the
purchaser.
2.2
Activities which create barriers to the implementation of JIT are identified.
 New Zealand Qualifications Authority 2016
19019
28-Jun-16
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LOGISTICS OPERATIONS
Demonstrate knowledge of supply chain
management in a logistics operation
2.3
Waste elimination is compared with cost minimisation for maximum benefit in a
manufacturing plant and in a distribution centre situation.
2.4
The relationship between low inventory and customer services is described in
terms of costs and benefits.
2.5
Opportunities for improvement created by implementing JIT are described in
terms of costs and benefits.
element 3
Describe effective supply chain management in a logistics operation.
performance criteria
3.1
The benefits of supply chain management are described with respect to the
supplier and to the purchaser.
3.2
Five factors which indicate effective supply chain management and the means
of measuring them are identified.
3.3
The contribution of transportation to effective supply chain management is
described for two different links in the supply chain.
element 4
Analyse the supply chain process in a logistics operation.
performance criteria
4.1
The analysis includes diagrammatical representations of the supply chain.
Range:
two diagrams depicting two supply chain arrangements.
 New Zealand Qualifications Authority 2016
19019
28-Jun-16
4 of 4
LOGISTICS OPERATIONS
Demonstrate knowledge of supply chain
management in a logistics operation
4.2
Effectiveness of a given supply chain arrangement is analysed in terms of
inventory, time, process, layout, added value, and added cost.
Comments to:
NZ Motor Industry Training Organisation (Incorporated)
Unit Standard Revision
PO Box 10803
Wellington 6143
by February 2004.
Please Note:
Providers must be accredited by the Qualifications Authority
before they can offer programmes of education and training
assessed against unit standards.
Accredited providers assessing against unit standards must
engage with the moderation system that applies to those unit
standards. [Please refer to relevant Plan ref: 0092]
 New Zealand Qualifications Authority 2016