This unit applies to individuals who are required to prepare for complex purchasing agreements up to and including the point at which the organisation selects, without prejudice, a supplier. This is done with strict adherence to legal requirements and the organisation's purchasing strategies, and traditionally by a purchasing officer working under supervision of a purchasing manager or in consultation with senior management.

The purchasing role addressed in this unit involves significant risk and/or significant expenditure and detailed legal and documentation arrangements.

ELEMENT

PERFORMANCE CRITERIA

1. Prepare invitations to offer

1.1. Obtain specifications for goods and services to be purchased from relevant personnel and clarify as required

1.2. Select purchasing methods most appropriate to particular purchases

1.3. Prepare invitations to offer

1.4. Obtain approval of invitations to offer

2. Identify suppliers

2.1. Review organisation's records for potential suppliers

2.2. Identify sources of supply

2.3. Invite suppliers

2.4. Evaluate sources of supply against requirements of purchasing strategies

3. Issue invitations to offer

3.1. Distribute invitations to offer

3.2. Conduct briefings as required

3.3. Clarifyissues arising with suppliers in line with purchasing strategies

4. Prepare recommendations to purchase

4.1. Receive offer documents from suppliers

4.2. Assess offer documents against requirements of purchasing strategies

4.3. Seek further information from suppliers as required

4.4. Obtain specialist expertise to assist with evaluation as required

4.5. Evaluate offers against requirements of purchasing strategies

4.6. Prepare shortlists of suppliers that make offers and who meet purchasing criteria

4.7. Select preferred offers

4.8. Make recommendations about preferred offers and seek approval by relevant personnel

4.9. Obtain approval for recommended offers

Required skills

communication skills to negotiate and liaise with potential suppliers and relevant personnel involved in purchasing planning

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

information technology skills to use software relevant to conducting purchasing planning activity

information management skills to ensure all aspects of purchasing planning are conducted in sufficient detail

literacy skills to write tender or quotation documents and written reports containing complex concepts

organisational and time management skills to sequence tasks and meet timelines.

Required knowledge

identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

consumer protection legislation

contract law

import of goods and services, where relevant

sale of goods legislation

Trade Practices Act

organisational practices, policies and procedures for purchasing

product knowledge about the goods and services being supplied

purchasing and procurement principles for:

accountability

probity and transparency

risk management

value for money.

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

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

Evidence of the following is essential:

documents containing preparations to offer

evaluation of suppliers

issuing of an invitation to offer

formation of recommendation to purchase.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources

organisation's purchasing strategies and relevant purchasing records.

Method of assessment

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

analysis of responses to case studies and scenarios

assessment of written reports documenting the procurement planing process

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

observation of preparation and issuing of invitations to offer

oral or written questioning to assess knowledge

review testimony from team members, colleagues, supervisors or managers.

Guidance information for assessment

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

other purchasing units.

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 used 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.

Relevant personnel may include:

CEO

coordinators

internal users of purchased goods and services

leaders

managers

other persons authorised to commit the organisation to purchases

owner and Board

specialist personnel involved in purchasing, asset maintenance and finance

supervisors

Purchasing methods may include:

direct negotiations

direct purchases using supply agreements

electronic trading

invitation of open or select tenders

written quotations

Invitations to offer may include:

criteria for selection of suppliers from offers received

delivery schedules

draft contracts and agreements

quality requirements

required supplier capacity

requirements for off-site storage and warehousing

specifications of goods and/or services required

Purchasing strategies may include:

criteria for evaluating purchasing performance

different policies, procedures and strategies for different dollar values of purchases

limits of authority to approve purchases

methodology for evaluating purchasing performance

organisational and industry codes of conduct and ethics

requirements for fairness and transparency in purchasing

the organisation's documented strategies for things such as:

purchasing

covering policies

procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers

Clarify issues may include:

requests for further information about specifications not responded to, misinterpretations of specifications and supplementary/add on products or services

Further information may include:

requests about specifications not responded to, misinterpretations of specifications and supplementary/add on products or services

supplier briefings and presentations

Unit sector

Administration - Purchasing and Contracting

This unit contains employability skills.