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Elements and Performance Criteria

  1. Manage ongoing performance of purchasing and procurement strategies.
  2. Evaluate existing purchasing systems.

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

develop strategies to maximise efficiency of input

use written forms of communication effectively

complete consultation to generate effective purchasing strategies

plan workload with a strong focus on attainment of planned outcomes

The following knowledge must be assessed as part of this unit

relationships with stakeholders and market

formal policy and procedures in regard to

purchase and supply relationships

processing purchases

interaction with customers and suppliers

resource management

quality control

OHS

benchmarks for efficiency of supplier relationships

communication and data exchange interfaces with suppliers

legal relationship arrangements with suppliers to facilitate identification and resolution of problems and enquiries

relevant legal administrative and business supply requirements

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

development of purchasing strategies to deliver business outcomes in consultation with suppliers

effective evaluation and ongoing development of a purchasing strategy

development and implementation of formal policy and procedures to apply and support legally compliant purchasing strategies within a business

Context of and specific resources for assessment

Assessment must ensure access to

a wholesale or retail work environment

relevant information and documentation including

formal policy and procedures

relevant legislation and statutory requirements

industry codes of practice

merchandise and supplier data

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

a case study

written or verbal questioning to assess knowledge and understanding

review of portfolios of evidence and thirdparty workplace reports of onthejob performance

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.

Policy and procedures may relate to:

purchase and supply relationships

processing purchases

interaction with customers and suppliers

resource management

quality control.

Procurement or purchasing activities may include:

requisitions

tenders

competitive bids

production schedules

electronic data interchange (EDI)

just in time

ordering

bills of materials

stock and supply agreements.

Methods for requesting and receiving supply may include:

quotations

public offers

contracts

expressions of interest

requested proposals

open or restricted tendering and contracting

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

direct purchase from retail or wholesale outlets

e-commerce.

Purchase systems may be:

manual

electronic

automated.

Communication and data exchange systems may include:

electronic data exchange

telephone

fax

email

letter

face-to-face.

Input processes may include:

checking and receiving incoming stock

processes to report problems with deliveries

recording incoming inventory

pricing, labelling and storage of inventory

quality control policy and procedures.

Resource management may relate to:

people

materials

equipment and technology

budget

time.

Value adding determinants may include:

appropriateness

warranties and post-purchase support

price

timeliness of supply

variation from supply specification

supplier relationships.

Legal agreements may relate to:

licence, patent or copyright arrangements

pricing agreements.

Purchasing and supply arrangements may include:

price

quality

supply reliability

merchandise.

Relevant legislation may include:

industry codes of practice

transport, storage and handling of goods

sale of second-hand goods

Trade Practices and Fair Trading Acts

pricing procedures, including GST requirements.