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

Elements and Performance Criteria

  1. Evaluate suppliers.
  2. Conduct supplier negotiations.
  3. Formalise supplier agreements.
  4. Monitor supplier performance.

Performance Evidence

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

develop supplier selection criteria for the supply of merchandise and use these criteria to document an evaluation of three different suppliers

conduct negotiations with one supplier to agree on supply arrangements:

supply specifications

cost

logistics

performance indicators

document the above agreements in a supplier contract and ensure:

compliance with legal and trading requirements

alignment with organisational policies and procedures related to supplier engagement

evaluate the performance of one supplier against performance indicators and prepare a supplier performance report.


Knowledge Evidence

Demonstrated knowledge required to complete the tasks outlined in the elements and performance criteria of this unit:

key aspects of supplier evaluation criteria

key aspects of legal and ethical compliance requirements as related to the supply of merchandise:

Trade Practices Act

ethical sourcing

environmental sustainability

contract law:

terms and obligations of contract

methods of contractual agreement

exclusion clauses

dispute resolution

termination of contracts

other legal requirements that impact negotiations and agreements in the relevant industry sector including consumer protection

supply chain and logistic considerations as related to supply arrangements:

customers

duties

taxes

freight

third-party arrangements

processes

factory locations and access

critical path and its role in supply arrangements:

launch and promotional dates

sample due dates

supplier holidays

freight timing

order due date

strategies and techniques for use in supplier negotiations

key aspects of supplier negotiations:

supply specifications

cost

logistics

performance indicators

supplier contract formats and inclusions

promotional-based supply arrangements in the retail industry

performance indicators for supplier evaluation:

level of service and responsiveness

reputation

financials

product quality

speed

delivery in-full and on-time

accuracy

ethical practices

techniques for measuring supplier performance against performance indicators.