Application
This unit applies to individuals who are responsible for managing international purchasing in an organisation. These individuals develop and implement relevant supply chain management strategies, and manage and review the implementation of improvements to international purchasing strategies.
Individuals undertaking this unit support the work of other employees carrying out international purchasing functions.
Prerequisites
Not applicable.
Elements and Performance Criteria
1. Develop and document strategies for international purchasing | 1.1 Research and analyse 1.2 Research international market structures 1.3 Research and analyse 1.4 Draft and submit organisation’s strategies for international purchasing for approval |
2. Implement international purchasing strategies | 2.1 Communicate international purchasing strategies to relevant personnel and stakeholders 2.2 Provide support to stakeholders to implement international purchasing strategies 2.3 Monitor implementation of international purchasing strategies within the organisation 2.4 Identify and address problems and issues arising from implementation of international purchasing strategies |
3. Undertake more complex international purchasing | 3.1 Ensure that export markets and 3.2 Research and apply relevant 3.3 Apply relevant 3.4 Draft exception clauses to business conditions 3.5 Clarify and resolve any discrepancies to the satisfaction of all parties 3.6 Prepare draft contract and access legal expertise to check legality of contract agreement |
4. Determine payment strategies | 4.1 Analyse financial risk and implement available 4.2 Identify source and availability of funds for payment 4.3 Research and analyse 4.4 Select currency payment methods 4.5 Plan and implement expenditure phasing |
5. Arrange barter or countertrade | 5.1 Research and analyse strategic implications of arranging specific 5.2 Determine suppliers willing to engage in international 5.3 Negotiate and reach agreement with partners on commercial conditions for proposed 5.4 Prepare draft contract and access legal expertise to check legality of contract agreement 5.5 Approve and issue contracts 5.6 Investigate and resolve any disagreements and discrepancies to the satisfaction of all parties |
6. Determine logistics strategies | 6.1 Arrange inspection following ascertaining 6.2 Research and analyse shipping facilities and other transport risks 6.3 Research and analyse 6.4 Develop logistics strategies for the organisation taking into account appropriate transport, insurance and regulatory compliance requirements 6.5 Gain approval from relevant personnel for implementation of logistics strategies |
7. Evaluate international purchasing strategies and implement identified improvements | 7.1 Review implementation of international purchasing strategies 7.2 Identify improvements to international purchasing strategies from the review process 7.3 Gain approval to implement improvements to international purchasing strategies 7.4 Communicate changes to relevant stakeholders and support provided to implement improvements 7.5 Monitor and review implementation of changes is to determine effectiveness of improvements |
Required Skills
Required skills
culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities
literacy skills to develop and document international purchasing strategies, draft contracts and produce international purchasing documentation
negotiation and verbal communication skills to successfully conduct international purchasing activities in a cross cultural context and within organisation
organisational and time management skills to ensure international purchasing activities are conducted in a timely manner
problem-solving skills to overcome obstacles arising in international purchasing activities
research skills to analyse international markets and regulatory requirements affecting international purchasing
risk management skills.
Required knowledge
international markets and cultural considerations relevant to purchasing in supplier countries
international issues in environmentally sustainable supply chain management
knowledge of INCOTERMS
methods of payment applicable to international purchasing, including barter and countertrade
organisational policies and procedures for international purchasing
range of available agencies involved in arranging importation arrangements such as:
consultants
customs brokers
freight forwarders
range of available insurance brokers and types of policies to cover identified risks
sources of information and assistance external to organisation, for example:
Austrade
chambers of commerce
customs brokers
regulatory authorities, such as ACS and AQIS
state/territory government departments or agencies
range of available logistics and transport companies.
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: completion of documented international purchasing strategies for an organisation implementation of international purchasing strategies in an organisation completion of a complex international purchase completion of a barter or countertrade implementation an evaluation of transport and logistics strategies to obtain goods purchased internationally. |
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 documented international purchasing strategies direct questioning combined with review of portfolios of evidence and third party workplace reports of on observation of actions undertaken to achieve an international purchase oral or written questioning to assess knowledge review 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.
Strategic implications | business risks compliance requirements economic and financial implications establishment of overseas branches and agencies or representatives knowledge and information requirements environmental sustainability supply chain requirements. |
Export requirements | business processes and practices of supplier country compliance with legislation international treaties quotas tariffs trading agreements. |
Cultural considerations | attitudes beliefs business processes and practices within supplier country culturally appropriate communication styles perception of Australia values. |
International legal requirements | international law international trade agreements and treaties legislation applicable to supplier country. |
Australian regulatory controls | Australian Customs Service (ACS) requirements Australian Quarantine Inspection Service (AQIS) requirements Australian Taxation Office requirements requirements of other government departments and agencies Trade Practices Act. |
INCOTERMS | the set of international rules for the interpretation of trade terms published by ICC (International Chamber of Commerce) and applied to imports and exports to specify transportation and payment conditions. |
Controls | guarantees insurance other strategies to minimise or transfer risk selection or rejection of particular payment methods specifying a particular currency for payment. |
Currency payment methods may include: | hedging letters of credit payment by cheque upon/after shipment. |
Barter | the simultaneous exchange of goods between the importer and exporter. |
Countertrade | a trading transaction where export sales to a particular market are made on the condition that imports from that particular market are accepted in return. |
Requirements for pre-shipment inspection | checks made of things such as: checks of condition of goods prior to shipment labelling of goods and containers packaging (including condition of containers) quality quantities separation of goods to comply with Australian regulations such as Dangerous Goods Act. |
Regulatory compliance requirements | fumigation and quarantine regulations labelling requirements legislation and regulations related to prohibited imports separation of goods to comply with Australian regulations such as Dangerous Goods Act. |
Sectors
Administration – Purchasing and Contracting
Employability Skills
This unit contains employability skills.
Licensing Information
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.