The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Competency must be demonstrated in the ability to predict future procurement needs, based on the analysis of past and current organisational and market data. Current planning, emerging legislative, regulatory, social, business and market trends must also be assessed in order to predict future market activities. Strategies must be developed against those predictions and appropriate arrangements made for managing the fundamental aspects of the supply chain.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Assessment must confirm the ability to:

gather and analyse complex financial, business and market information and develop procurement, market and supplier profiles

identify and apply the people skills relevant to supply chain management

identify and interpret complex legislation, regulation and policy, including international treaties, principles of CSR, sustainability, environmental and social trends

develop and integrate complex planning documents which support core strategic and government outcomes

develop and use effective category management strategies to achieve objectives

assess local and international markets, identify trends and develop strategies to ensure market positioning necessary to meet future needs

identify and secure future market sources to meet core business needs

devise and implement supply chain management strategies and processes within an organisation based on analysis of the characteristics of the supply chain

consider both qualitative and quantitative factors in reaching decisions or recommendations

Consistency in performance

Competency should be demonstrated by providing evidence of undertaking a range of relevant work task in an actual or simulated procurement environment on a least two separate occasions.

Context of and specific resources for assessment

This unit of competency is to be assessed in the workplace or a simulated workplace environment.

Participants may need to access:

sample data on finance, procurement and markets to analyse and then to build recommendations

corporate planning documents including strategic procurement, finance, technology, logistics and human capital planning

relevant legislation

current information relevant to CSR, sustainability, environment and social legislation, trends and expectations

relevant market information

workplace scenarios and case studies relating to organisational expectations for future and strategic development of core business

emerging market trends, such as Private Public Partnerships (PPP), strategic alliance, e commerce, holistic service solution, engaging the corporate sector to deliver on behalf of or instead of government

case studies that incorporate challenges from which strategies can be developed to deal with future sources of goods and/or services and the methods that may need to be employed to secure future requirements

Method of assessment

Suggested assessment methods include:

questioning to assess understanding of key subject matter areas, such as research, analysis, markets, legislation, planning, decision making, communication and mechanisms to secure market sources

preparing written reports evidencing review of strategies and approaches adopted by other government and non government organisations to manage supply chains

preparing written reports evidencing review of market information, best practice guides, planning documents and strategies, business models and budgets, lobby group predictions, political philosophies and policies, community expectations, technological advancements and other relevant material and develop possible scenarios for managing supply chains

preparing risk and opportunity assessments of supply chains

preparing supply chain reviews and continuous improvement recommendations

developing sound supply chain management strategies and planning outcomes based on analysis and reviews

demonstrating research, communication, consultation and negotiation skills

In all cases, practical assessment should be supported by questions to assess underpinning knowledge and those aspects of competency which are difficult to assess directly. Questioning techniques should suit the language and literacy levels of the candidate, but not compromise the integrity of the assessment.

Guidance information for assessment

Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments. Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

PSPETHC601B Maintain and enhance confidence in the public service

PSPGOV602A Establish and maintain strategic networks

PSPLEGN601B Manage compliance with legislation in the public sector

PSPMNGT608B Manage risk

PSPMNGR607B Develop a business case

PSPOHS602A Manage workplace safety

PSPPROC604B Plan for strategic procurement

PSPPROC605B Coordinate strategic procurement

PSPPROC606B Negotiate strategic procurement

PSPPROC607A Manage strategic procurement

PSPMNGT604B Manage Change

PSPMNGT 609B Formulate business strategies

PSPMNGT 612A Review and improve business performance

Required skills

communication skills to:

consult and negotiate with contractors and stakeholders

network, within probity boundaries, with contractors and stakeholders

write a business case

read complex documents, such as contracts, legislation and policy guidelines

provide feedback

research skills to:

gather and analyse organisational information to build procurement profile

gather and analyse market information

gather and analyse stakeholder requirements

review and apply legislative, regulatory and policy requirements

identify and predict trends

teamwork skills to:

model effective team management approaches

respond to diversity

respond to and manage issues that arise

initiative and enterprise skills to:

apply the content of complex documents such as contracts, legislation and guidelines

ensure compliance with legislative and mandated policy requirements including OH&S and environmental obligations, sustainability and corporate social responsibility practices and principles in the context of planning procurement and sourcing outcomes

apply complex government policy and inter-governmental agreements

interrogate corporate systems, such as Financial Management Information Systems (FMIS ) or asset management system to obtain data

apply complex cost models

analyse complex supply chains to identify risk, vulnerability and opportunity

interpret market reaction

planning and organising skills to:

undertake research and business analysis

plan procurement processes in alignment with business and organisational goals

document procurement planning decisions and expected outcomes

manage and update procurement plans and sub-plans in line with strategic plans and budgets

apply complex strategies to development of strategic plans, including corporate, budget and procurement plans and sub plans

influence strategic and risk planning

learning and development skills to:

stay abreast of best practice models relevant to procurement, contracting, logistics and enterprise market management

remain current with legislation, regulation, policy, government agreements, and legal determinations

technological skills to:

exploit organisational Enterprise Resource Planning systems (ERPs)

develop and manage electronic commerce

exploit market opportunities and initiatives in e commerce

Required knowledge

Commonwealth, state and/or territory, or local government legislation, regulation, policies, practices, procedures and guidelines in relation to:

procurement

financial management

public sector obligations (eg Codes of Conduct)

consumer law

OH&S

social policy

other relevant topics

international treaties relevant to trade and procurement practices

government and inter-governmental policy and agreements in relation to procurement practices

principles and practices associated with Corporate Social Responsibility (CSR), sustainability and environmental issues as applicable to procurement and market behaviours

complex and strategic planning for a range of outcomes

research and analysis as applied to complex outcomes, trends and predictions of markets and procurement changes

decision making processes and methodologies

probity principles and issues

codes of conduct, codes of practice and standards of individual behaviour relating to procurement decisions

government procurement environment

micro and macro economic issues applicable to market behaviours and the impact of procurement

legal issues and determinations impacting on procurement

implications for the organisation and for the market (suppliers) of key procurement strategies and/or arrangements

whole of life costing considerations and value for money

financial, costing and accounting issues relevant to procurement and contracts

cultural issues relevant to procurement and industry development in specific markets or market sectors

relationship management

change management

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if uses in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Outcomes and strategic themes may include:

what the organisation intends to achieve and how it intends to structure the business activities of the organisation to aid deliverables

Senior management may include:

executive management

middle management

Board of Directors

program and Project managers

key operations managers

Fundamental aspects of the supply chain will include:

capacity

flexibility

adaptability

schedule/timeliness

availability

ability to deliver

cost

longevity and stability of the market

environment

social

cohesion or integration of the supply chain

choice of suppliers and partners in the chain

ability to influence contractual relationships

performance of the whole chain, not just the component parts

Vulnerabilities and opportunities may include:

nature of the supplier market – size, competitiveness, reliability, location of suppliers, barriers to entry

availability of raw materials or components in the supply chain

nature of transport/freight arrangements

type of pricing strategies used in supplier market (e.g. product differentiation, price discounts)

sophistication of the supplier market

sophistication of the buying organisation

level of data available to the buying organisation

changing lead times

technological issues and opportunities

legislative changes and changes in standards

social change

force majeure vulnerabilities in supply chain

Communication strategies may include:

consideration of:

organisational structure

accessibility

supportability

openness

appropriate technologies

appropriate level

method

probity

sensitivity of material to be communicated

style, tone and level of content

Internal stakeholders may include:

procurement and contract management staff

senior management

users of the goods and services

financial management staff

legal advisers

maintenance staff

asset or fleet managers

facilities managers

logisticians, including materiel logisticians

Human Resource Management staff

IT Staff

External and market stakeholders may include:

contractors

suppliers

industry peak bodies

government

other buyers

general public

users of the goods and services (if these are not internal)

Supplier capabilities may include:

financial viability/capacity

past performance

skills and expertise

quality accreditations

continuous improvement practices

technological placement

compliance with CSR, sustainability and environmental requirements and emerging trends

staff loyalty, development and succession planning

business continuity plans/disaster recovery

Capacity may include:

the ability of the market to:

meet demand

surge capacity

be adaptable

to embrace change

be creative and/or innovative

maintain compliance with Australian and/or international standards

comply with local and regional requirements

Innovation may include:

paradigm shift

achievement of similar outcomes with vastly improved performance metrics

alternative products or service to achieve better outcomes

process improvement

technological improvement

Risks may include:

Technical

Commercial

Reputational and political

CSR principles may include:

triple bottom line reporting

managing up and down stream in the business relationship

people, plant, profit

fair work practices

commitment to environmental and sustainability practices

better community outcomes

Benchmarks means:

a standard by which comparative measurement can be made, could include:

quality

time

price

cost

generally used in conjunction with ‘best practice’

Best practice may include:

techniques, methods, processes, activities, incentives, or rewards which conventional wisdom regards as more effective at delivering a particular outcome than any other techniques, methods, processes, etc. when applied to a particular condition or circumstance

Trends may include:

changes in conditions that may lead to long term change such as:

competition

technology

regulation

demand

Organisational influence may include:

influence on the market, including:

buying capacity

continuous or regular consumption

level of spend

reputation and influence

ease of doing business

relationship building

developing future opportunities

price leverage

innovation

ability to influence legislation, regulation or policy