Application
This unit describes the skills and knowledge required to develop, implement and evaluate an organisation's purchasing strategies, and implement improvements to those strategies.
It applies to individuals working in organisations in roles such as senior purchasing officer or purchasing manager, supporting the work of other employees carrying out purchasing activities. While an individual may work closely with other staff members in the organisation, they have individual responsibility and autonomy to develop, communicate and implement organisational purchasing strategies.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Determine purchasing objectives | 1.1 Research and analyse the suitability of industry benchmarks for purchasing for the organisation 1.2 Analyse organisation’s purchasing data and information 1.3 Undertake consultations with relevant stakeholders and personnel to inform development of purchasing objectives 1.4 Draft purchasing objectives in line with organisation’s goals 1.5 Gain approval from relevant personnel for purchasing objectives |
2. Develop purchasing strategies | 2.1 Develop purchasing strategies, taking into account legal requirements and purchasing objectives 2.2 Include the ‘five rights of purchasing’ criteria 2.3 Develop human resource, financial and other plans to support implementation of purchasing strategies 2.4 Make changes resulting from feedback from relevant personnel about purchasing plans and strategies 2.5 Gain approval for plans to implement purchasing plans and strategies |
3. Implement purchasing strategies | 3.1 Communicate purchasing strategies to relevant personnel and stakeholders 3.2 Access resources needed to implement purchasing strategies 3.3 Provide support to implement purchasing strategies 3.4 Monitor implementation of purchasing strategies by the organisation 3.5 Identify and address problems and issues arising during implementation of purchasing strategies 3.6 Provide reports to relevant personnel and stakeholders on the implementation of purchasing strategies |
4. Evaluate purchasing strategies and implement improvements | 4.1 Review implementation of purchasing strategies 4.2 Identify improvements to purchasing strategies from review process 4.3 Gain approval to implement improvements to purchasing strategies 4.4 Communicate improvements to relevant stakeholders and provide support to implement improvements 4.5 Monitor and review implementation of improvements to determine their effectiveness |
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.2, 1.4, 2.1, 2.3, 2.4, 3.1, 4.1, 4.5 | Interprets textual information from a range of sources and determines how content may be applied to organisational requirements |
Writing | 1.4, 2.1, 2.3-2.5, 3.1, 3.3, 4.3, 4.4 | Develops complex material to convey explicit information and results using clear and detailed language appropriate to relevant audience and context |
Oral Communication | 1.3, 1.5, 2.4, 3.1, 3.3, 4.3, 4.4 | Communicates verbally using clear language and appropriate features to provide information to a variety of individuals Uses active listening and questioning techniques to convey and clarify information |
Numeracy | 1.2 | Interprets a range of numerical data to determine purchasing objectives |
Navigate the world of work | 1.4, 2.1 | Appreciates the implications of organisational, legal and regulatory responsibilities that relate to own work |
Interact with others | 1.3, 1.5, 2.5, 3.1, 3.3, 3.6, 4.3, 4.4 | Liaises with suppliers and relevant stakeholders to negotiate agreement on purchasing strategies Selects the appropriate form, channel and mode of communication for a specific purpose relevant to own role |
Get the work done | 1.1, 1.2, 1.5, 2.4, 3.2-3.6, 4.2, 4.4, 4.5 | Accepts responsibility for planning, prioritising and sequencing complex tasks and workload Uses analytical processes to generate and evaluate possible solutions to problems Reflects on outcomes to identify possible improvements |
Sectors
Administration – Purchasing and Contracting