CIPS Exam Report for Learner Community:

Qualification:
Unit:
Exam series:

Professional diploma in procurement and supply

PD3 - Strategic supply chain management
May2016

Each element of a question carries equal weighting unless otherwise stated.

Question 1

Mark

Evaluate the contribution of supply chain management in creating sources of

competitive advantage for Whirlpool in the FOUR areas of cost reduction,
improved quality, time to market, and product and service differentiation.

25 marks

Learning outcome addressed 1.2

Command word explanation: Evaluate calculate or judge the value of something
Examples of good content/good approaches in answers:
There are a number of examples in the case of how Whirlpools supply chain management creates sources of
competitive advantage within the four required areas. Cost reduction: regionalisation, outsourcing,
integration, improved productivity, lower inventory, warehouse and transport cost saving, lean operations,
route planning, warehouse layout, energy efficiency, full truckloads, and backhauling. Improved quality:
domestic manufacturing, skilled workforce, Malcolm Baldridge Award, reduced forecasting errors, improved
supplier relationships, damage reduction, control towers, codes of conduct, performance metrics, continuous
improvement culture. Time to market: R&D spending, innovation, design focus, new product development,
customer focus, early supplier involvement, agility. Product and service differentiation: reputation, brands,
customer segmentation, product availability, lead times, service levels, delivery integrity, sustainability,
intelligent appliances, web-based presence.
Most candidates were able to evaluate a range of initiatives from the case. However, they were not always
organised within the four required areas. Time to market was poorly understood. This refers to product
development rather than product availability.
Examples of content for merit/distinction grade answers:
Strong answers evaluated a range of examples from the case, clearly demonstrating how they achieve
competitive advantage within the four required areas. There was a clear understanding of the concepts,
including time to market.
Examples of poorer content/ poorer approaches in answers:
Weaker answers did not provide sufficient examples, did not differentiate between the four required areas,

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did not understand the time to market concept, or did not clearly demonstrate an understanding of
competitive advantage.

Question 2 Learning Outcome 2

Mark

(a) Discuss the factors that would influence the design of Whirlpools distribution
systems.
(b) Having considered the factors in part (a), summarise the approach adopted
by Whirlpool to address each of the following areas of its distribution system:
i. channel design.
ii. Physical network and transportation arrangements.

15 marks
10 marks

Learning outcome addressed 2.3

Command word explanation:
Discuss - consider something by writing about it from different points of view.
Summarise give a brief, concise account of the main points, leaving out details and examples.
Examples of good content/good approaches in answers:
(a) There are a wide range of factors that would influence the design of Whirlpools distribution system:
location of customers and suppliers, types of customers and their specific requirements, use of
intermediaries, size and location of warehouses and distribution centres, inventory policy, speed of delivery,
availability of transport networks, outsourcing arrangements, integration and collaboration strategies,
application of technology. These could have been applied to the case situation.
(b) The coverage of channel design should have included a summary of Whirlpools customer segments
(retailers/builders/consumers) and the arrangements provided to satisfy the delivery requirements of each
one. The coverage of physical network and transportation arrangements should have included a summary of
the tiered distribution system, the rationalisation of warehouses, the appointment of the 4PL provider, finalmile delivery, rail versus road, intermodal transport, and control towers.
The answers to (a) were mixed. Many candidates did not identify any factors, but just described supply chain
initiatives from the case or listed the supply chain issues that appeared on page 5. Insufficient detail was
another concern. The answers to (b) were better but it is important to remember that this question is
concerned with physical distribution rather than broader supply chain issues. There is also some overlap
between the different parts of the question, therefore careful planning was required. Answers were often
out-of-balance, with insufficient detail in response to (a) and too much detail in relation to (b).
Examples of content for merit/distinction grade answers:
Strong answers produced a structured framework of design factors in response to (a) which were thoroughly

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applied to the case situation, and summarised the relevant issues relating to (b). Answers were well-planned
across the different parts of the question.
Examples of poorer content/ poorer approaches in answers:
Weaker answers did not identify any design factors in relation to (a), provided too much detail in relation to
(b), or failed to focus on physical distribution issues. Answers were not planned across the different parts of
the question, resulting in repetition.

Question 3 Learning Outcome 3

Mark

Identify FIVE performance measures or metrics that Whirlpool could use to

assess its supply chain performance and explain how these could be applied to
improve Whirlpools performance.

25 marks

Learning outcome addressed 3.3

Command word explanation:
Identify mention items separately in number order.
Explain give reasons so that it is clear to understand.
Examples of good content/good approaches in answers:
There are a wide range of performance measures that appear throughout the case in relation to: sales
revenue, profitability, working capital, new product development, product availability, inventory levels, lead
times, forecasting errors, warehousing and transportation costs, improved quality, order-fill rates, customer
satisfaction, supplier relationship improvement, carbon emissions, fuel consumption, and ethical
performance. Candidates could have chosen five of these measures, justified why each one is important, and
explained how each measure could be applied to improve performance.
Many candidates misunderstood the term performance measures and discussed performance management
methods such as benchmarking, dashboards, scorecards etc. Fortunately the question refers to how
performance measures could be applied so there was some scope to award marks for a discussion of
methods. However, some candidates did not mention any measures at all and these answers did not achieve
a pass mark. Providing a general discussion rather than five specific measures was another problem.
Examples of content for merit/distinction grade answers:
Strong answers clearly provided five performance measures, justified why they are important, and explained
how they could be applied to improve Whirlpools performance.

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Examples of poorer content/ poorer approaches in answers:

Weaker answers did not provide five measures, did not justify their inclusion, or discussed performance
methods rather than performance measures.

Question 4

Mark

Explain how Whirlpool could ensure that the changes in its approach to
distribution are sustained and how Whirlpool could overcome any potential
resistance to change.

25 marks

Learning outcome addressed 4.1

Command word explanation
Explain give reasons so that it is clear to understand.
Examples of good content/good approaches in answers:
This is a question about change management and there are many examples in the case of how Whirlpool
managed the re-design programme in order to make it sustainable and to overcome resistance: customer
focus, stakeholder engagement, benchmarking the competition, prioritising actions, defining a strategy,
scenario analysis, seeking guidance, influencing, selling the vision, flexible plans, business case, pilot studies,
collaboration, developing metrics, project management, quick wins, chunking of activities, use of change
agents, monitoring progress, continuous improvement, reinforcement, building an organisational structure,
and developing skills.
Given that four pages are devoted to the change programme, it is rather surprising that many candidates just
described change management models without application to the case. Some picked up on the word
sustained and discussed environmental sustainability. Others described a range of supply chain initiatives in
the case rather than focus on change management.
This question was invariably answered last and a number of responses were incomplete or rushed. This
demonstrates the importance of time management during the exam.
Examples of content for merit/distinction grade answers:
Strong answers utilised a robust change management conceptual framework which was thoroughly and
logically applied to the case situation. They clearly differentiated between the two aspects of the question:
how the change could be sustained and how resistance could be overcome.
Examples of poorer content/ poorer approaches in answers:
Weaker answers merely described change management models, did not refer to case examples, did not
clearly address the question requirements, or were incomplete.

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