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Elements and Performance Criteria

  1. Manage purchasing agreements
  2. Resolve disagreements with suppliers
  3. Finalise agreements
  4. Review performance of suppliers

Required Skills

Required skills

communication and negotiation skills to liaise with suppliers and relevant personnel and gain agreement on required performance levels

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

literacy skills to write reports containing complex concepts

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

methodologies to monitor review and evaluate supplier performance

organisations policies and procedures related to

conduct and ethics

OHS

purchasing

tendering and contracting

product knowledge related to goods and services required by the organisation

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

successfully managed relationships with suppliers over the life of specific purchasing agreements

resolution of a dispute with a supplier

finalisation of an agreement with a supplier

evaluation of supplier performance and formulation of recommendations about future use of supplier

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

access to organisations policy and procedures for purchasing

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

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

observation of actions taken to resolve disagreements with suppliers

oral or written questioning to assess knowledge

review of 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.

Agreements may include:

all conditions applying from commencement to completion and closure of agreement

conditions set out in a contract, memorandum of understanding or other documented agreement

Risk management plans may include:

documentation of outcomes of risk analysis including occupational health and safety, and how risks are to be addressed

Relevant personnel may include:

CEOs

managers

leaders

coordinators

OHS specialists and supervisors

internal users of supplied goods and services

personnel involved in purchasing

Disagreements may include:

costs, fees and prices

delivery schedules

interpretations of specifications detailed in documents on which agreements are based

interpretations of terms and conditions detailed in agreement

quality of goods or services, including OHS performance standards

Completion of purchasing agreement may include:

after agreed number or volume of items have been supplied

at end of fixed time period

mutually-agreed time, including prior to that specified in agreement

Recommendations may include:

to file relevant supplier details for future reference

to renew agreement for further purchasing

to seek new sources of supply