What is ITC’s Modular Learning System in Supply Chain Management?

1. Introduction
The MLS-SCM programme consists of a series of complete and up to date training packs on supply chain
management and a professional certification programme. The  symbol signifies the power of purchasing
which is one key element of this programme.

This programme prepares enterprises to connect with global supply chains by offering high quality training
which is at the same time easily accessible (in terms of learning approach) and affordable. It responds to
enterprises’ rapidly growing need to develop skills in Supply Chain Management, a key area for
competitiveness and export performance. The MLS-SCM is aimed specifically at staff responsible for
managing purchasing and supply chain operations in enterprises.

The programme network covers more than 50 countries. Over 1,500 trainers attached to these institutions
are involved in teaching the programme and more than 30,000 professionals have benefited from this
training since the programme started in 2001.

The MLS-SCM programme offers an interesting business model for local institutions where these
institutions are given access to internationally validated materials, to trainers trained on modern training
techniques as well as to an internationally recognised professional certification programme which these
institutions can offer to their local markets.

This programme is particularly successful with institutions that are keen to develop high quality training
services and that are willing to make initial investments in terms of staff time, marketing and other
preparatory activities while expecting to recover these investments later on. Many current network member
institutions today generate good income from the programme and it is estimated that the programme has
generated total revenue of more than 10 million US$ for the participating institutions to date.

The support given by ITC to network member institutions is in the form of training of trainers and assistance
in course design, etc. but all local costs related to preparatory workshops, marketing and getting ready to
start offering the programme in a particular country are covered entirely by the local network member
institutions.

The MLS-SCM is currently available in English, Spanish and Chinese and partly in French and Arabic.

2. The MLS-SCM Modules & Technical Materials

The MLS-SCM materials consist of a series of complete training modules covering all key aspects of
purchasing and supply chain management in a practical and structured manner.

The MLS-SCM currently consists of the following Modules:

1. Understanding the Corporate Environment Coverage: The Total Supply Chain
2. Specifying Requirements & Planning Supply
3. Analysing Supply Markets
4. Developing Supply Strategies
5. Appraising & Short-listing Suppliers
6. Obtaining & Selecting Offers
7. Negotiating
8. Preparing the Contract
9. Managing the Contract & Supplier Relationships
10. Managing Logistics in the Supply Chain
11. Managing Inventory
12. Measuring and Evaluating Performance
13. Environmental Procurement
14. Group Purchasing
15. E-procurement
16. Customer Relationship Management
17. Operations Management
18. Managing Finance along the Supply Chain
19. Packaging in the Supply Chain
SME Training Pack - Supply Chain Management for SMEs (Independent training pack)

1
New Module on SCM for SMEs

We are very pleased to announce the launch of a new Module on SCM for SMEs in 2013 as part of our new
initiative to help SMEs connect with global supply chains.

KEY CONTENTS

 SUPPLY CHAINS AND SMES

 SUPPLY CHAIN MANAGEMENT OBJECTIVES & STRATEGY

 UNDERSTANDING THE MARKETPLACE

 MANAGING OPERATIONS

 MANAGING PURCHASING & SUPPLY

 MANAGING SUPPLY CHAIN PARTNER RELATIONS

 MANAGING LOGISTICS

 MANAGING SUPPLY CHAIN PERFORMANCE

The new SCM for SMEs Module will be available to institutions already having a license for the MLS-SCM
programme as well as to new users under separate agreements.

Each Module training pack consists of:

 A Coursebook for the participants – in full colour – containing text materials and figures
 A Workbook, also for the participants, with various levels of exercises and learning checks
 An Answerbook for trainers
 PowerPoint slides for trainers
For certain Modules, games, role-plays and additional training resources are available.

Institutions wishing to offer this programme in their home countries sign license agreements with ITC. The
license and other fees as indicated below will apply:

Country category
1 2 3
LDCs DCs & ETs Industrialised
1. Initial license fee covering the full set of MLS-SCM
materials (including the SCM for SMEs pack) to be paid US$ 2,500 US$ 3,500 US$ 10,000
upon signature of the agreement
2. Initial license fee for the SCM for SMEs pack to be paid
upon signature of the agreement (for institutions wishing to US$ 250 US$ 500 US$ 1,000
acquire a license only for the SME pack)
3. Yearly license renewal fee (full programme) to be paid at
the end of each calendar year starting from the second year US$ 200 US$ 500 US$ 800
of joining the network

1
LDCs = Least Developed Countries, as per the UN definition: ANGOLA, AFGHANISTAN, BANGLADESH, BENIN, BHUTAN, BURKINA FASO, BURUNDI, CAMBODIA, CENTRAL
AFRICAN REPUBLIC, CHAD, COMOROS, DJIBOUTI, TIMOR LESTE, EQUATORIAL GUINEA, ETHIOPIA, ERITREA, GAMBIA, GUINEA, GUINEA BISSAU, HAITI, KIRIBATI, LAO
PDR, LESOTHO, LIBERIA, MADAGASCAR, MALAWI, MALI, MAURITANIA, MOZAMBIQUE, MYANMAR, NEPAL, NIGER, RWANDA, SAMOA, SAO TOME, AND PRINCIPE,
SENEGAL, SIERRA LEONE, SOLOMON ISLANDS, SOMALIA, SUDAN, TANZANIA, TOGO, TUVALU, UGANDA, VANUATU, YEMEN, DEM. REPUBLIC OF THE CONGO and
ZAMBIA. South Sudan is also included although it has not yet been officially given LDC status.
2
DCs & ETs = other developing countries and economies in transition.
3
Industrialised = Industrialised countries.
2
 4
4. Royalties per Module Participant (person trained and
Module) for all participants except those employed by
5 5% 5% 5%
SMEs at the time of studying the programme.
(or a minimum (or a minimum (or a minimum
A percentage of the course fee charged by the network
of US$ 3) of US$ 7) of US$ 20)
member institution (excluding exam fees) or the minimum
rates will apply.
5. Royalties for participants employed by SMEs at the time
of studying the programme
3% 3% 3%
(or a minimum (or a minimum (or a minimum
A percentage of the course fee charged by the network of US$ 2) of US$ 5) of US$ 20)
member institution (excluding exam fees) or the minimum
rates will apply.
6. Fee per candidate: International Professional Certification US$ 20 per US$ 35 per US$ 100 per
programme (3 levels) individual exam individual exam individual exam
NB: ITC will launch a new exam structure in 2014 which will (or US$ 120 per (or US$ 210 per (or US$ 600 per
involve a reduced number of exams. level) level) level)

One-time cost payable to ITC

Initial license fee, network membership and delivery of the MLS-SCM start-up pack – US$ 3,500 for
developing countries (US$ 2,500 for LDCs & US$ 10,000 for industrialised countries). Agreements with
active network member institutions are renewed every three years at no costs.

Recurrent costs payable to ITC

1. Yearly license renewal fee
A yearly license renewal fee of US$ 800 will apply to institutions in industrialized countries, and a fee of
US$ 500 to institutions in developing countries that train fewer than 500 Module participants per year
and to institutions in developing countries with a population of more than 3 million people. For those
training more than 500 Modules participants, this fee will be waived.

A yearly license renewal fee of US$ 200 will apply to institutions in all least developed countries and in
developing countries of a population of 3 million or below that train fewer than 200 Module participants
per year. For those training more than 200 Module participants, this fee will be waived.

2. Royalties & examination fees

 Royalty fees of 5% of the course fee charged by the institution per person and Module or a minimum
of US$ 3,7 or US$ 20
 Reduced royalty fees of 3% of the course fee charged by the institution per person and Module or a
minimum of US$ 2,5 and US$ 20 will apply to all professionals from SMEs
 Examination fees – US$ 35 per module exam (US$ 20 for LDCs and US$ 100 for industrialised
countries)

Other recurrent costs for member institutions

 Administration of the courses – e.g. organisation & marketing / advertising
 Training implementation costs – e.g. hiring of trainers and venues, etc.
 Exam implementation costs – e.g. hiring of invigilators and venues, courier costs to return the exam
papers to ITC, and hiring of computers (if applicable, for online exams).

Each network member institution has the full freedom to decide how to offer the programme (e.g. in terms of
duration of each course, frequency, profile of participants, etc.) but has to provide detailed reports in their
activities (including summary evaluations of all courses offered) to ITC. Member institutions decide on the
course & exam fees for the participants in their programmes.

4
Modules Participants = the number of participants multiplied by the number of modules they have studied. If for example 20 persons study 10 Modules,
this is equivalent to 200 Module Participants.
5
Evidence may be requested by ITC. Please note that the official definition of an SME in the country concerned will apply.

3
It is highly recommended that the trainers employed by member institutions to deliver the programme should
be practitioners with substantial supply chain management experience of their own. Many institutions, for
example, offer the courses during evenings or weekends in order to make it easy for both trainers (who are
often working professionals) and participants to attend.

Institutions interested in offering this programme should apply for a license to ITC. The completed license
application form (downloadable from www.scm-learningnet.org) should be sent by e-mail to
mls-scm@intracen.org. Any type of training institution is eligible to apply for an MLS-SCM license.

3. The International Professional Certification Programme

International Exams leading to an International Certificate, Advanced
Certificate and Diploma in Supply Chain Management based on the MLS-
SCM have been offered since 2002. This programme offers three levels of
professional recognition as follows:

 The International Certificate in Supply Chain Management, awarded after

successful completion of the exams for Modules 1-6.

 The Advanced International Certificate in Supply Chain Management, awarded after successful completion of
the exams for the above Modules plus Modules 7-12.

 The International Diploma in Supply Chain Management, awarded upon successful completion of all the 12
Modules plus Modules 13-18

Exams are taken in the home country, with the local MLS-SCM network member institution being
responsible for handling all local arrangements.

The certificates & diplomas carry the logos of ITC and of the local network member institution. Certificates
are signed by (1) the Executive Director of ITC (2) the head of the local network member institution and (3)
by the Chairman of the MLS-SCM Advisory Board.

A certification programme for SME staff (based on the new SCM for SMEs Module) is also in the pipeline.

4. Assistance offered by ITC to Network Member Institutions

ITC can assist institutions having acquired the MLS-SCM license to get started as needed. This assistance
can take the form of advice and guidance in some or all of the following areas:

1. Identification and selection of trainers

2. Training of trainers (technical training as well as training techniques)
3. Target group identification & needs assessment, course design and curriculum development
4. Planning and preparation to start offering the programmes, costing and pricing, etc.
5. Awareness creation, marketing and promotion of the programme and related activities
6. Networking amongst institutions and specialists

The network is also supported by a network website offering options such as viewing & contacting other
members; posting news & announcements; downloading materials; posting & publicising training events;
registration for exams & viewing exam results, etc.

4
5. List of MLS-SCM Modules
Module 1 - Understanding the Corporate Environment
The corporate environment, including ownership and size, corporate culture, mission, goals, policies and strategy directly
influence the way in which the purchasing & supply chain management function is organised and operates. The objectives,
policies and strategies of the purchasing & supply chain management function must be aligned with those of the rest of the
enterprise.

Module 2 - Specifying Requirements & Planning Supply

Specifying what an enterprise needs to purchase – along with how much it needs and when and where it is required – is the
first, critical step in the purchasing & supply process. It must be done correctly if the rest of the process is to be successful.

Module 3 - Analysing Supply Markets

Knowing supply markets is the basis for understanding supply risks, opportunities and costs, and for making correct supply
decisions. Monitoring and analysing supply markets helps the buyer to recognise how supply markets function and to
compare and assess supply market options.

Module 4 - Developing Supply Strategies

Supply strategy should be based on assessed requirements and supply market conditions. It will depend on the buyer’s
levels of expenditure and of the supply risks involved. Supply strategy involves considering issues such as: the number and
types of suppliers to use, the type of supplier relationships to develop and of contracts to use, and which types of purchase
operations (such as e-purchasing) to apply.

Module 5 - Appraising & Short-listing Suppliers

Selecting the right supplier is the fundamental basis for effective purchasing & supply. Alternative suppliers must be located,
screened, further researched and assessed using appropriate criteria that relate to the type of purchase that is being carried
out. This will involve reviewing suppliers’ motivation and capabilities, including their financial situation.

Module 6 - Obtaining & Selecting Offers

Purchasing & supply practice means knowing how to best obtain and select offers from suppliers. Depending on the type of
purchase being made, different purchasing approaches and processes will be used (ranging from simple informal contacts to
formal tendering). The method of evaluating offers will also vary depending on what is being bought.

Module 7 - Negotiating
Negotiation starts with effective preparation, including setting realistic and achievable negotiation objectives and determining
the best possible strategy to be used. Conducting the negotiation itself involves applying the arts of active listening and o f
questioning, and using appropriate tactics and persuasion techniques.

Module 8 - Preparing the Contract

The contract specifies the buyer’s and seller’s main obligations, and determines the overall context under which the business
relationship will be developed. It is important to understand which terms and conditions relate to the desired type of
contractual relationship, and how to deal with issues such as applicable law, contractual default and the settlement of
disputes.

Module 9 - Managing the Contract & Supplier Relationships

Once a contract is signed, it is important to ensure its effective implementation and to successfully manage the relationship
with suppliers. The various issues involved in managing the contract must be understood, as well as the roles and
responsibilities of each side’s contract management team.

Module 10 - Managing Logistics in the Supply Chain

Managing logistics means dealing with the processes and operations of importation, internal distribution, scheduling and
routing, the selection of transport partners, the choice of logistics equipment and packaging, and the implementation of
improvements and cost reductions in the logistics process.

Module 11 - Managing Inventory

Good management of inventories is essential to improving enterprise effectiveness. This involves optimising inventory levels,
evaluating opportunities to reduce variety of supplies and holding costs, achieving high levels of internal and external
customer service, minimising stock error rates and achieving international standards of traceability and quality.

5
Module 12 - Measuring and Evaluating Performance
Evaluating purchasing and supply performance requires identifying which measurements are best suited to a company's
needs. It involves collecting, analysing and interpreting evaluation data, and using this information to improve purchasing &
supply effectiveness and efficiency.

Module 13 – Environmental Procurement

This Module gives comprehensive information and practical examples of approaches to environmentally preferable
purchasing

Module 14 – Group Purchasing

Group purchasing can bring significant benefits for both buyers and suppliers. This Module gives practical advice on how to
go about this with special emphasis on SMEs

Module 15 – E-Procurement
This Module will allow readers to take full advantage of the opportunities and cost savings potentially offered by
e-procurement. It covers practical guidance to readers at the planning, preparation and implementation stages.

Module 16 – Customer Relationship Management

This Module offers a framework CRM model, highlights the main competencies required to be a successful CRM company,
as well as practical guidelines and advice for making it happen.

Module 17 – Operations Management

Operations Management involves the planning, scheduling and controlling of organizational processes that add value, to
ensure efficient, effective production of goods and/or services for customers. The Operations function is at the heart of most
enterprises, playing a vital role in improving productivity, quality, lead-times, availability, and improving competitiveness.

Module 18 – Managing Finance along the Supply Chain

The management of money, banking, working capital, credit, assets and investments associated with international trade will
facilitate imports and exports in the commercial activities of the supply chain. Trade Finance management includes assessing
financial needs, methods of payment, financing techniques, planning, sources of finance, business planning, legal
implications, and how they impact supply chain management

Module 19 – Packaging in the Supply Chain

The main objective of this Module is to provide purchasing and SC managers with sufficient knowledge to make informed
decisions about the choice of packaging. The Module provides the reader with an understanding of many of the technical
aspects of packaging including the different types of packaging materials, packaging processes, labelling and traceability.

SME Training Pack – SCM for SMEs

This Module aims to help the leader of an Small Medium-sized Enterprise (SME) to better manage his or her business’s
supply chain processes by dealing effectively with the importance of effective supply chain management (SCM) for SMEs,
SCM objectives & strategies, managing demand, business’s operations, purchasing & supply, logistics processes and the
business’s relations with its supply chain partners, as well as, the supply chain technologies and how to monitor and assess
the business’s supply chain performance.

For more information see www.scm-learningnet.org or please contact:

Mr. Kofi Essuman

Enterprise Competitiveness
International Trade Centre
Palais des Nations, CH-1211
Geneva 10, Switzerland
essuman@intracen.org