- BSBPUR502B - Manage supplier relationships
BSBPUR502B
Manage supplier relationships
Application
This unit applies to individuals who mange the relationships with the suppliers to an organisation. The unit is typically undertaken by a senior purchasing officer or purchasing manager. While they may work closely with other staff members in the organisation, they have individual responsibility and autonomy to establish, maintain and develop supplier relationships and resolve any disputes arising with suppliers. Individuals undertaking this unit support the work of other employees in maintaining supplier relationships. |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Manage purchasing agreements | 1.1. Monitor supplier performance throughout the duration of agreements 1.2. Identify, monitor and manage risks in risk management plans throughout the duration of agreements 1.3. Identify and address potential and actual performance issues 1.4. Negotiate and resolve amendments to agreements as a consequence of addressing performance issues 1.5. Seek and obtain approval for amendments 1.6. Communicate approved amendments to suppliers and relevant personnel |
2. Resolve disagreements with suppliers | 2.1. Identify and investigate causes of disagreements with suppliers and assess heir validity 2.2. Negotiate and resolve disagreements 2.3. Document amendments to agreements as a consequence of the resolution of disagreements 2.4. Seek and obtain approval for amendments 2.5. Communicate approved amendments to suppliers and relevant personnel |
3. Finalise agreements | 3.1. Confirm all supplier obligations as having been met prior to agreements being finalised 3.2. Finalise purchasing agreements on completion of contract 3.3. Document arrangements to finalise agreements |
4. Review performance of suppliers | 4.1. Evaluate supplier performance against the requirements of purchasing agreements 4.2. Inform suppliers of evaluation outcomes as required 4.3. Make recommendations about future use of suppliers to relevant personnel |
Required Skills
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Required skills |
communication and negotiation skills to liaise with suppliers and relevant personnel and gain agreement on required performance levels culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities literacy skills to write reports containing complex concepts. |
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 methodologies to monitor, review and evaluate supplier performance organisation's policies and procedures related to: conduct and ethics OHS purchasing tendering and contracting product knowledge related to goods and services required by the organisation. |
Evidence Required
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: successfully managed relationships with suppliers over the life of specific purchasing agreements resolution of a dispute with a supplier finalisation of an agreement with a supplier evaluation of supplier performance and formulation of recommendations about future use of supplier. |
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 access to organisation's policy and procedures for purchasing. |
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 direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate observation of actions taken to resolve disagreements with suppliers oral or written questioning to assess knowledge review of testimony from team members, colleagues, supervisors or managers review of authenticated documents from the workplace or training environment. |
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. |
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, 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. | |
Agreements may include: | all conditions applying from commencement to completion and closure of agreement conditions set out in a contract, memorandum of understanding or other documented agreement |
Risk management plans may include: | documentation of outcomes of risk analysis including occupational health and safety, and how risks are to be addressed |
Relevant personnel may include: | CEOs managers leaders coordinators OHS specialists and supervisors internal users of supplied goods and services personnel involved in purchasing |
Disagreements may include: | costs, fees and prices delivery schedules interpretations of specifications detailed in documents on which agreements are based interpretations of terms and conditions detailed in agreement quality of goods or services, including OHS performance standards |
Completion of purchasing agreement may include: | after agreed number or volume of items have been supplied at end of fixed time period mutually-agreed time, including prior to that specified in agreement |
Recommendations may include: | to file relevant supplier details for future reference to renew agreement for further purchasing to seek new sources of supply |
Sectors
Unit sector |
Competency Field
Administration - Purchasing and Contracting |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.