Assessor Resource
PSPPROC513
Conduct demand and procurement spend analysis
Assessment tool
Version 1.0
Issue Date: April 2024
The unit applies to those engaged in specialist procurement and contracting roles and is equally applicable to those in broader logistics roles.
This unit covers managing demand and procurement spend within an organisation.
This is fundamental to any organisation in dealing with fluctuations in demand, maximising available resource, meeting stakeholder needs, ensuring efficient procurement process and controlling cost. Demand and spend management is based on balancing the needs of customers, especially in changing circumstances, with the capacity of the market to deliver, whilst still achieving sound financial management within the organisation. Effective demand and spend management is reliant on accurate analysis of client needs and market capability, closely integrated with planning and management of cost and cash flow. Causal links must be identified and managed to ensure the proper management of demand and spend.
In practice demand and spend management should be integrated throughout the organisation’s strategic, corporate and budget planning. The process will also be specifically impacted by procurement plans, legislation, regulation, policy and procedures. Broader government policy and government to government agreements may also impact.
Analysis of relevant markets and the identification and incorporation of market information into the planning processes is an essential element.
Consideration and incorporation of Corporate Social Responsibility (CSR) principles, sustainment and environmental issues are also essential.
No licensing, legislative, regulatory or certification requirements apply to this unit.
You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)