Google Links

Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

  1. Collect and analyse demand and procurement spend data
  2. Develop and implement demand/spend management strategy
  3. Manage demand/spend risks and opportunities
  4. Review and analyse the market profile, including opportunities to influence or develop the market.
  5. Identify and assess market dynamics including market cycles, product life cycles and growth/decline.
  6. Assess realistically the desirability and practicality of ongoing market development and undertake market development activities where these are appropriate.
  7. Identify and consider opportunities and risks associated with managing demand and procurement spend.

Required Skills

Required skills

communication skills to

consult and negotiate with the market place contractors and stakeholders

network within probity boundaries with the market place contractors and stakeholders

develop a business case

develop plans

interpret complex documents such as contracts legislation and policy guidelines

provide feedback

research skills to

gather and analyse organisational data to build demand and spend profiles

gather and analyse market data

gather and analyse stakeholder requirements

review and apply legislative regulatory and policy requirements

identify analyse and predict trends

change management skills to

plan monitor and implement change management strategies

garner support from management

promote change within the organisation

measure and monitor performance

maintain momentum

celebrate success

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 policy guidelines

ensure compliance with legislative and mandated policy requirements including OHampS and environmental obligations sustainability and corporate social responsibility CSRpractices and principles in the context of planning procurement and sourcing outcomes

apply complex government policy and intergovernmental agreements

interrogate corporate systems such as Financial Management Information System FMIS or asset management system to obtain data

analyse complex supply chains to identify risk vulnerability and opportunity

interpret market reaction

develop effective performance measurement metrics

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 subplans in line with strategic plans and budgets

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

contribute to 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 and government agreements

technological skills to

understand systems architecture

identify needs from ERPs

exploit organisational ERPs

develop and manage electronic commerce

exploit market opportunities and initiatives in electronic commerce

Required knowledge

Commonwealth state andor 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

OHampS

social policy

other relevant topics

international treaties relevant to trade and procurement practices

government and intergovernmental policy and agreements in relation to procurement practices

principles and practices associated with Corporate Social Responsibility CSR principles 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 macroeconomic issues applicable to market behaviours and the impact of procurement

legal issues and determinations impacting on procurement

implications for the organisation and market suppliers of key procurement strategies andor arrangements

whole of life costing considerations and value for money

financial costing and accounting issues relevant to procurement and contracts

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

relationship management

change management

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

Competency must be demonstrated in the ability to predict future needs to be procured from the market based on the analysis of past and current organisational and market data A clear understanding of commercial and business trends and behaviours is required 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 to ensure appropriate supply arrangements are in place to meet stakeholder needs under prevailing and future market conditions These arrangements should optimise the use of resources to deliver outcomes in a more efficient and effective manner

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

Assessment must confirm an ability to

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

develop and use effective performance metrics related to demand and spend management

develop and use effective demand andor spend management strategies to achieve objectives

identify and apply the people skills relevant to demand and spend management

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

contribute to complex planning documents which support core business and organisational and government outcomes

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

ensure stakeholders needs are meet whilst optimising organisational resources

contribute to and implement demand and spend management strategies and processes within an organisation based on analysis of demand and spend patterns

consider both qualitative and quantitative factors in reaching decisions or recommendations

Consistency in performance

Competency must be demonstrated by providing evidence of undertaking a range of relevant work tasks 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 details 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 andor commercial trends such as 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 on which to develop strategies to deal with future sourcing of goods andor 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 plan and implement demand and spend management

reviewing strategies and approaches adopted by other government and nongovernment organisations to manage demand and spend

reviewing 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 future demand and spend management

preparing written reports evidencing the candidates review of strategies market information market dynamics and other high level documents

preparing demand and spend management plans market profiles demand profiles procurement spend analysis or other similar documents for demand and spend management

contributing to and implementing sound demand and spend management strategies 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 competency in different situations or environments Holistic assessment with other units relevant to the industry sector workplace and job role is recommended

PSPETHCB Promote the values and ethos of public service

PSPETHC501B Promote the values and ethos of public service

PSPGOVA Undertake negotiations

PSPGOV507A Undertake negotiations

PSPLEGNB Promote compliance with legislation in the public sector

PSPLEGN501B Promote compliance with legislation in the public sector

PSPOHSA Monitor and maintain workplace safety

PSPOHS501A Monitor and maintain workplace safety

PSPPROCB Manage contract performance

PSPPROC503B Manage contract performance

PSPPROCB Finalise contracts

PSPPROC504B Finalise contracts

PSPPROCA Manage procurement risk

PSPPROC505A Manage procurement risk

PSPPROCA Plan to manage a contract

PSPPROC506A Plan to manage a contract

PSPPROCA Plan for procurement outcomes

PSPPROC507A Plan for procurement outcomes

PSPPROCA Make procurement decisions

PSPPROC508A Make procurement decisions

PSPPROCA Participate in budget and procurement review processes

PSPPROC509A Participate in budget and procurement review processes


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 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.

Demand patterns may include:

seasonal peaks and troughs

steady usage

rising usage

falling usage

discontinuous or asynchronous usage across time

periodic or irregular usage

once off usage

goods and services that are only used by particular specialists or in particular regions

Data sources may include:

financial management information systems (FMIS) such as chart of accounts

tender management and reporting systems (eg Austender)

contract management and reporting systems

HR systems

asset register

maintenance records

external sources such as UNSPC codes, ASIC codes, ABS data

Procurement spend may include:

all money actually spent on procurement of goods and services, whether this is by credit card, EFT or other means of payment

money spent on leasing

project or program expenditures on goods and services

grant funding

projected contractual obligations to spend in the future

Demand means:

the quantity of a well defined good or service that the organisation is willing to buy during a particular period of time in order to deliver its organisational outcomes

Consumption means:

the goods and services actually used up in the delivery of the organisation’s outcomes

Causal links may include:

seasonal demand

unplanned increase/decrease in activity

associated or indirect activities which impact

need to meet budget

cash flow fluctuations

stock holding policy

unanticipated needs being met

disaster relief

business continuity and disaster recovery

Internal stakeholders may include:

procurement and contract management staff

senior management

users of the goods and services

financial management staff

maintenance staff

asset or fleet managers

facilities managers

logisticians, including materiel logisticians

Human Resource Management staff

IT Staff

Procurement life cycle is:

A series of steps from identification of need, acquisition processes, contract management through disposal, recycling and/or closure or transition of contract.

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

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)

Outcome based may be:

focused on what the organisation intends to achieve, not on what the contract is producing (output)

measures of effectiveness

Appropriate systems may include:

consideration of:

accuracy

responsiveness

capabilities

capacity

user friendliness

integration potential

supportability

level of detail of information about procurement spend

Manage the demand means establishing:

criteria for selection of goods and services that can be used

limits on the quantity of particular goods and services that can be procured

universal, whole of organisation or common use contracts

Influencing factors may include:

budget available

need to meet a particular timeframe

market ‘s ability to supply

need to manage stockholdings

technology impacts

Staff skills may be:

general work skills (such as communication, use of technology etc)

discipline specific work skills (such as accounting, procurement, IT)

category specific work skills (such as knowledge of travel or office machinery)

qualifications (whether required for legal reasons or because they are beneficial)

competencies

Performance metrics may include:

measures of efficiency

measures of effectiveness

leakage from established contracts

specific measures of spend, timeliness, quality

internal measures such as staff turnover

qualitative measures such as ease of dealing with the supplier and nature of the relationship

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

Market profile may include:

description of the market, including:

information about the main buyers of a particular good or service

information about the main sellers of a particular good or service

information about market condition including ability of the market to meet requirements

general information about the economy, demographics, trends and other issues impacting on the demand for and supply of this good or service

Market dynamics may include:

demand

resource availability

production

lead times

product life cycle

Market development may include:

timing procurements to suit the capacity of suppliers

procuring goods and services that have not been procured before

procuring goods and services in innovative ways

spreading procurement needs across a range of suppliers

assisting suppliers to develop the capacity or capability to provide goods and services

Opportunities and risks may include:

legislative change

policy

technology

geographical

demographical

supply chain vulnerabilities

cash flow optimisation

stock holdings and inventory management

product and service lead times

extending a product’s useful life through refurbishment

early settlement discounts

order consolidation