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Elements and Performance Criteria

1. Understand purchasing and own requirements
   • Read, understand and clarify organisation's purchasing strategies as required
   • Determine own role and limits of authority in consultation with relevant personnel
2. Make purchases
   • Receive purchase specifications from relevant personnel and clarify as required
   • Select purchasing methods most appropriate to particular purchases within limits of own role
   • Obtain approvals for purchases as required
   • Obtain quotations from suppliers as required
   • Select suppliers, place orders and make purchases
3. Receive purchases
   • Receive goods or make arrangements to receive services
   • Advise relevant personnel of receipt of purchase
   • Ensure goods received are checked for compliance with specifications
   • Take action to resolve non-compliance with specifications
   • Facilitate registration of new assets
   • File and store purchase records

Required Skills

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities communication skills to liaise with suppliers and end users of purchases literacy skills to document purchases and write reports on purchasing activities information management and research skills to analyse and assess purchasing options and offers technology skills to use of software to keep records of purchases made data collection skills to keep records related to purchasing

Required knowledge

codes of ethics and conduct identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations codes of practice and national standards such as consumer protection legislation contract law import of goods and services where relevant sale of goods legislation Trade Practices Act organisation policy and procedures relating to purchasing strategies recordkeeping systems related to purchasing and assets standard contracting arrangements product knowledge about the goods and services being supplied purchasing and procurement principles for accountability probity and transparency risk management value for money

Evidence Required

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
Critical aspects for assessment and evidence required to demonstrate competency in this unit	Evidence of the following is essential obtaining quotes from prospective suppliers for a low risk low expenditure good to be purchased selection of appropriate purchasing methods for a low risk low expenditure purchase receipt checking and documentation of a low risk low expenditure purchase
Context of and specific resources for assessment	Assessment must ensure access to an actual workplace or simulated environment access to office equipment and resources organisations purchasing strategies and relevant purchasing records
Method of assessment	A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit analysis of responses to case studies and scenarios assessment of written reports documenting purchasing requirements and records of purchases made direct questioning combined with review of portfolios of evidence and third party workplace reports of onthejob performance by the candidate observation of obtaining quotes form suppliers oral or written questioning to assess knowledge review testimony from team members colleagues supervisors or managers
Guidance information for assessment	Holistic assessment with other units relevant to the industry sector workplace and job role is recommended for example other purchasing units

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Range Statement

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 used 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.
Purchasing strategies may include:	criteria for making purchasing decisions legal requirements and policies and procedures that underpin strategies and that are relevant to role policies, procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers
Limits may include:	approval processes for purchases expenditure approval limits
Relevant personnel may include:	CEOs managers leaders coordinators supervisors other persons authorised to commit the organisation to purchases internal users of purchased goods and services owner Board members specialist personnel involved in purchasing, asset maintenance and finance
Purchasing methods may include:	credit card purchases direct purchases from retail outlets online purchases petty cash purchases using standing agreements or accounts with suppliers written and/or verbal quotations written and/or verbal supply agreements
Purchase records may include:	corporate credit card transaction documentation invoices, statements and payment requests petty cash vouchers purchase requests and orders receipt advices for goods and services records of supplier performance

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