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Elements and Performance Criteria

  1. Determine purchasing objectives
  2. Develop purchasing strategies
  3. Implement purchasing strategies
  4. Evaluate purchasing strategies and implement improvements

Required Skills

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

communication and negotiation skills to liaise with suppliers and relevant stakeholders and negotiate agreement appropriate purchasing strategies

literacy skills to write purchasing policies and procedures and reports containing complex concepts

financial management skills to create and manage a budget framework for conducting purchasing activities

technology skills to operate software relating to online purchasing

Required knowledge

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

information about industry benchmarks for purchasing including information from

peak bodies and industry associations

Australian Standards organisation policies and procedures related to

business terms and conditions for purchasing tendering and contracting

contracting and tendering

ethical behaviour

purchasing

product knowledge related to goods and services required by the organisation

range of software programs used in online purchasing

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

development of purchasing objectives and strategies for an organisation

implementation of those purchasing strategies in an organisation

evaluation and implementation of improvements to purchasing strategies in an organisation

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 documented purchasing objectives and strategies

direct questioning combined with review of portfolios of evidence and third party workplace reports of onthejob performance by the candidate

oral or written questioning to assess knowledge

review testimony from team members colleagues supervisors or managers

review of authenticated documents from the workplace or training environment

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


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.

Relevant stakeholders may include:

clients

contractors

customers

suppliers

tenderers

Personnel may include:

Board members

CEOs

coordinators

internal users of purchased goods and services

leaders

managers

owners

relevant staff in other work sections

staff in own work section, team members and colleagues

supervisors

Purchasing strategies may include:

criteria for evaluating purchasing performance

different policies, procedures and strategies for different dollar values of purchases

key performance indicators for purchasing

limits of authority to approve purchases

methodology for evaluating purchasing performance

organisational and industry codes of conduct and ethics

policies, procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers

requirements for fairness and transparency in purchasing

Legal requirements may include issues in relation to:

access and equity

accreditation, licence, patent and copyright

codes of practice

data collection, storage and retrieval

ethical conduct and governance

industrial relations

insurance

occupational health and safety

operation, maintenance and service of tools, equipment, plant and machinery

planning

privacy and confidentiality

professional development

standards (Australian and international)

warranties

The five rights are:

right supplier:

demonstrable expertise and experience

due diligence requirements

ethical conduct requirements

evidence of past legal compliance

requirements to use organisations linked by ownership, partnership, alliance or other arrangements

right price:

cost/price analysis

value-for-money

right quantity:

supply guarantees

right quality:

confidentiality and probity requirements

key performance indicators

measures to manage risk

quality accreditation

right time:

supply guarantees

Resources may include human, physical and other resources such as:

documentation required for purchasing, such as proformas, order forms, standard tender documentation and basic standard contracts

software systems for inventory management or online purchasing

staff to undertake or assist with purchasing

Support may include:

information sessions and briefings

training programs

written information including procedures and internet or intranet-based information