Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

SIRRMRM007 Mapping and Delivery Guide
Negotiate and establish supply arrangements

Version 1.0
Issue Date: March 2024


Qualification -
Unit of Competency SIRRMRM007 - Negotiate and establish supply arrangements
Description
Employability Skills
Learning Outcomes and Application This unit describes the performance outcomes, skills and knowledge required to negotiate and formalise agreements with suppliers for the supply of merchandise. It requires the ability to evaluate suppliers, both new and existing, to determine their suitability and establish agreed terms of supply. This unit applies to senior personnel working in a diverse range of sectors and business contexts. They operate with independence and are responsible for making a range of operational business decisions. No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Skills must be demonstrated in a retail environment. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

relevant documentation:

organisational policies and procedures related to supplier engagement

sources of supplier information

supplier contract templates

supplierswithwhomtheindividualcan interact. Thesecanbe:

suppliersinanindustryworkplace,or

supplierswhoparticipateinroleplaysorsimulatedactivities setupforthepurposeofassessment,inasimulated industryenvironment.

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors, and:

have worked in the retail industry for at least three years where they have applied the skills and knowledge within this unit of competency.

Prerequisites/co-requisites
Competency Field Merchandise Management
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities
Slides
PPT
Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Evaluate suppliers.
  • Access and review relevant merchandise planning documents to determine supply needs and seek any required clarification.
  • Develop supplier selection criteria based on organisational supply needs and expectations.
  • Access and review supplier evaluation data to assess existing suppliers and determine ability to meet ongoing supply needs.
  • Identify and assess potential new suppliers against supplier selection criteria and determine ability to meet supply needs.
  • Assess ethical and sustainability performance of suppliers.
  • Shortlist preferred suppliers that meet supplier selection criteria and supply needs.
       
Element: Conduct supplier negotiations.
  • Prepare for supplier negotiations and determine negotiables, non-negotiables and desired outcomes.
  • Communicate purchase and supply specifications to suppliers and ensure mutual understanding.
  • Negotiate supplier pricing, trading terms and delivery with preferred suppliers and select suppliers based on supply requirements.
  • Negotiate and agree on promotional activity with supplier.
  • Develop supplier performance indicators and evaluation criteria and gain supplier agreement.
  • Ensure consistent and agreed understanding of negotiation outcomes.
  • Ensure negotiations are conducted in a professional manner in the relevant cultural context.
       
Element: Formalise supplier agreements.
  • Draft supplier contracts in line with organisational policies and procedures and legal requirements.
  • Seek advice from relevant personnel to confirm the legality and validity of draft contracts.
  • Finalise supplier contracts and obtain approval as required.
  • Distribute contracts to suppliers and resolve discrepancies or disagreements to ensure satisfaction of all parties.
  • Obtain signed copies of supplier contracts and store according to organisational policies and procedures.
       
Element: Monitor supplier performance.
  • Review supplier performance against performance indicators and confirm contractual obligations are being met.
  • Take prompt corrective action in consultation with supplier where potential or actual problems occur.
  • Make any required amendments to contracts.
  • Evaluate supplier performance against performance indicators and document in supplier performance report.
  • Continuously review alternative options for supply to enhance product supply and improve ethics and sustainability in supply chain.
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Evaluate suppliers.

1.1. Access and review relevant merchandise planning documents to determine supply needs and seek any required clarification.

1.2. Develop supplier selection criteria based on organisational supply needs and expectations.

1.3. Access and review supplier evaluation data to assess existing suppliers and determine ability to meet ongoing supply needs.

1.4. Identify and assess potential new suppliers against supplier selection criteria and determine ability to meet supply needs.

1.5. Assess ethical and sustainability performance of suppliers.

1.6. Shortlist preferred suppliers that meet supplier selection criteria and supply needs.

2. Conduct supplier negotiations.

2.1. Prepare for supplier negotiations and determine negotiables, non-negotiables and desired outcomes.

2.2. Communicate purchase and supply specifications to suppliers and ensure mutual understanding.

2.3. Negotiate supplier pricing, trading terms and delivery with preferred suppliers and select suppliers based on supply requirements.

2.4. Negotiate and agree on promotional activity with supplier.

2.5. Develop supplier performance indicators and evaluation criteria and gain supplier agreement.

2.6. Ensure consistent and agreed understanding of negotiation outcomes.

2.7. Ensure negotiations are conducted in a professional manner in the relevant cultural context.

3. Formalise supplier agreements.

3.1. Draft supplier contracts in line with organisational policies and procedures and legal requirements.

3.2. Seek advice from relevant personnel to confirm the legality and validity of draft contracts.

3.3. Finalise supplier contracts and obtain approval as required.

3.4. Distribute contracts to suppliers and resolve discrepancies or disagreements to ensure satisfaction of all parties.

3.5. Obtain signed copies of supplier contracts and store according to organisational policies and procedures.

4. Monitor supplier performance.

4.1. Review supplier performance against performance indicators and confirm contractual obligations are being met.

4.2. Take prompt corrective action in consultation with supplier where potential or actual problems occur.

4.3. Make any required amendments to contracts.

4.4. Evaluate supplier performance against performance indicators and document in supplier performance report.

4.5. Continuously review alternative options for supply to enhance product supply and improve ethics and sustainability in supply chain.

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.

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.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Evaluate suppliers.

1.1. Access and review relevant merchandise planning documents to determine supply needs and seek any required clarification.

1.2. Develop supplier selection criteria based on organisational supply needs and expectations.

1.3. Access and review supplier evaluation data to assess existing suppliers and determine ability to meet ongoing supply needs.

1.4. Identify and assess potential new suppliers against supplier selection criteria and determine ability to meet supply needs.

1.5. Assess ethical and sustainability performance of suppliers.

1.6. Shortlist preferred suppliers that meet supplier selection criteria and supply needs.

2. Conduct supplier negotiations.

2.1. Prepare for supplier negotiations and determine negotiables, non-negotiables and desired outcomes.

2.2. Communicate purchase and supply specifications to suppliers and ensure mutual understanding.

2.3. Negotiate supplier pricing, trading terms and delivery with preferred suppliers and select suppliers based on supply requirements.

2.4. Negotiate and agree on promotional activity with supplier.

2.5. Develop supplier performance indicators and evaluation criteria and gain supplier agreement.

2.6. Ensure consistent and agreed understanding of negotiation outcomes.

2.7. Ensure negotiations are conducted in a professional manner in the relevant cultural context.

3. Formalise supplier agreements.

3.1. Draft supplier contracts in line with organisational policies and procedures and legal requirements.

3.2. Seek advice from relevant personnel to confirm the legality and validity of draft contracts.

3.3. Finalise supplier contracts and obtain approval as required.

3.4. Distribute contracts to suppliers and resolve discrepancies or disagreements to ensure satisfaction of all parties.

3.5. Obtain signed copies of supplier contracts and store according to organisational policies and procedures.

4. Monitor supplier performance.

4.1. Review supplier performance against performance indicators and confirm contractual obligations are being met.

4.2. Take prompt corrective action in consultation with supplier where potential or actual problems occur.

4.3. Make any required amendments to contracts.

4.4. Evaluate supplier performance against performance indicators and document in supplier performance report.

4.5. Continuously review alternative options for supply to enhance product supply and improve ethics and sustainability in supply chain.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Access and review relevant merchandise planning documents to determine supply needs and seek any required clarification. 
Develop supplier selection criteria based on organisational supply needs and expectations. 
Access and review supplier evaluation data to assess existing suppliers and determine ability to meet ongoing supply needs. 
Identify and assess potential new suppliers against supplier selection criteria and determine ability to meet supply needs. 
Assess ethical and sustainability performance of suppliers. 
Shortlist preferred suppliers that meet supplier selection criteria and supply needs. 
Prepare for supplier negotiations and determine negotiables, non-negotiables and desired outcomes. 
Communicate purchase and supply specifications to suppliers and ensure mutual understanding. 
Negotiate supplier pricing, trading terms and delivery with preferred suppliers and select suppliers based on supply requirements. 
Negotiate and agree on promotional activity with supplier. 
Develop supplier performance indicators and evaluation criteria and gain supplier agreement. 
Ensure consistent and agreed understanding of negotiation outcomes. 
Ensure negotiations are conducted in a professional manner in the relevant cultural context. 
Draft supplier contracts in line with organisational policies and procedures and legal requirements. 
Seek advice from relevant personnel to confirm the legality and validity of draft contracts. 
Finalise supplier contracts and obtain approval as required. 
Distribute contracts to suppliers and resolve discrepancies or disagreements to ensure satisfaction of all parties. 
Obtain signed copies of supplier contracts and store according to organisational policies and procedures. 
Review supplier performance against performance indicators and confirm contractual obligations are being met. 
Take prompt corrective action in consultation with supplier where potential or actual problems occur. 
Make any required amendments to contracts. 
Evaluate supplier performance against performance indicators and document in supplier performance report. 
Continuously review alternative options for supply to enhance product supply and improve ethics and sustainability in supply chain. 

Forms

Assessment Cover Sheet

SIRRMRM007 - Negotiate and establish supply arrangements
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:


Assessment Record Sheet

SIRRMRM007 - Negotiate and establish supply arrangements

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: