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Elements and Performance Criteria

  1. Apply purchasing and procurement procedures.
  2. Complete purchasing and procurement activities.
  3. Capture and record purchasing data.
  4. Liaise with suppliers to complete procurement processes.

Required Skills

This section describes the essential skills and knowledge and their level required for this unit

The following skills must be assessed as part of this unit

safe use of available business technology

application of standards applicable to purchasing processes

interpersonal communication skills to

conduct interface with suppliers and workplace team in a facilitative manner through clear and direct communication

ask questions to identify and confirm requirements

use language and concepts appropriate to cultural differences

use and interpret nonverbal communication

planning and prioritising work schedule

literacy and numeracy skills in regard to

purchasing reports and documentation

processing purchases

maintaining records

maintaining stock ordering and recording systems

The following knowledge must be assessed as part of this unit

scope of job role or function

steps involved in completing a purchase

procurement process and its impact on the business

business policy and procedures in relation to

decisionmaking or approval processes for purchase and procurement

procurement standards

confidentiality and security in record keeping

inventory control

purpose impact and functions of purchasing

purchasing and ordering cycle

basic legal and ethical obligations governing purchasing operations

OHS aspects of job

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge the range statement and the Assessment Guidelines for this TrainingPackage

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

Evidence of the following is essential

processes purchasing data and information in a satisfactory and timely manner according to business policy and procedures

processes routine purchase orders in an accurate and timely manner

captures and records purchase data or information

processes routine purchase data according to business policy and procedures

successfully liaises with business and direct customers to secure purchasing data required for processing orders and procurement

understands and consistently performs the full range of purchasing and procurement transactions to nominated performance standards within scope of job role and responsibilities

Context of and specific resources for assessment

Assessment must ensure access to

a wholesale work environment

relevant documentation such as

policy and procedures for procurement and purchase of goods

supplier information

purchasing records

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge The following examples are appropriate for this unit

observation of performance in the workplace

thirdparty reports from a supervisor

review of portfolio of evidence

written or verbal questioning to assess knowledge and understanding

Holistic assessment with other units relevant to the industry sector workplace and job role is recommended

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors How these skills are applied varies between occupations and qualifications due to the different work functions and contexts

Employability skills embedded in this unit should be assessed holistically in the context of the job role and with other relevant units that make up the skill set or qualification


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 in the performance criteria is detailed below.

Indicators for success of procurement and purchasing activities may include:

customer relationships

supplier relationships

time management

profit and loss statements

loss prevention

inventory control.

Processing may involve:

physical means

electronic means.

Information relating to purchases may include:

requisitions

tenders

competitive bids

production schedules

electronic data interchange (EDI) records

purchase orders

bills of materials

stock and supply agreements.

Purchase methods may include:

electronic data interchange (EDI)

credit card

cheques

standing offers

cash

agreed means.

Valid informationsources may include those:

accessed using existing electronic systems

confirmed by supervisors and management

covered in enterprise procedural and operational manuals.

Business policy and procedures may relate to:

procurement and purchasing activities

stock control system

recording procedures

data security and privacy

inventory control.

Suppliers may include:

commercial companies

public agencies or organisations

governments

community and not-for-profit organisations

internal.

Supply arrangements may include:

delivery of products

provision of services

maintenance and support agreements

leasing agreements and consultancies

research and development.

Communication relating to purchases may include:

open or restricted tendering and contracting

expressions of interest

request for proposal

request for quotation

request for tender

request for offer

direct purchases using existing supply agreements, such as standing offers

common use arrangements

verbal quotations

written quotations

direct purchase from retail or wholesale outlets

electronic commerce.