BSBPUR504B
Manage a supply chain

This unit specifies the outcomes required to manage a supply chain, including the relationships between an organisation and its supply and demand partners along the chain. It covers implementing a demand driven supply chain management strategy, managing the supply chain, and evaluating and improving supply chain effectiveness.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application

This unit applies to individuals who are responsible for managing a supply chain 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 supply chain management functions.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1. Implement demand driven supply chain management strategy

1.1. Assign responsibility for supply chain management within the organisation in accordance with supply chain management strategy

1.2. Access and operationalise technology and software for implementation of the supply chain management system within the requirements of the strategy and budgetary allocation

1.3. Design policies and procedures to guide business relations and operations in accordance with the strategy

1.4. Design or re-design supporting business processes to support implementation of the strategy

1.5. Provide support to staff, customers and supply chain to assist in implementation of the supply chain management strategy

2. Manage supply chain

2.1. Manage communication and information exchange with strategic partners and suppliers in accordance with the supply chain management strategy

2.2. Facilitate and collaborate with supply chain organisations to determine demand at each level of the supply chain in accordance with the supply chain management strategy

2.3. Manage sales and payments in accordance with supply chain and risk management strategies, and legal and ethical requirements

2.4. Implement actions to build trust and foster a supply chain culture in accordance with the supply chain management strategy

2.5. Identify opportunities to adjust policies and procedures to respond to the changing needs of customers, supply chain and the organisation

3. Evaluate and improve supply chain effectiveness

3.1. Monitor demand chain management and supply chain management in accordance with the supply chain management strategy

3.2. Review and identify improvements in the effectiveness of the supply chain with each level of the supply chain, including staff and customers

3.3. Compare business data and reports to outcomes, budgets, timelines and forecasts to actual performance

3.4. Review technology performance and make recommendations for improvements to hardware, software and/or their use in accordance with strategy and budget

3.5. Use feedback and evaluation results to plan and improve future supply chain management strategies

Required Skills

Required skills

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

communication and interpersonal skills to establish working relationships with customers, supply chain members and internal colleagues

literacy skills to document policies and procedures for supply chain management and to write reports containing complex concepts

leadership skills to coordinate supply chain management policy development and successfully implement those policies

technology skills to use software applicable to managing a supply chain.

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

organisation policies and procedures related to:

business terms and conditions for purchasing, tendering and contracting

contracting and tendering

ethical behaviour

purchasing

supply chain management

product knowledge related to goods and services required by the organisation

techniques to establish collaborative relationships.

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:

implementation of a supply chain management strategy

successful management of a supply chain

evaluation and formulation of recommendations for improvement to supply chain management strategy.

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 supply chain management strategies

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

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.

Supply chain management refers to:

management of the entire cycle from raw materials to producers, component suppliers, manufacturers, wholesalers, third party service providers, retailers, customers and recyclers, plus freight, distribution and cash flow

Supporting business processes may include:

accounting

administration

data input

delivering and receiving

ordering

payments

online and other technological inventory management or supply chain integration software

Support may include:

intranet site information

mentoring and coaching arrangements

policies, procedures and guidelines

provision of a help-desk or contact persons

workshops, briefings and training programs

written documentation in the form of manuals, help books, protocols, etc

Demand chain management is:

a collaborative process that involves determining how much product needs to be produced at each level of the supply chain through to the end consumer

Improvements in the supply chain may include:

the role of 'middlemen' or other middle supply chain elements being reduced or made redundant as newer more efficient supply chain methodologies and technologies are implemented

new value being created between producers and consumers


Sectors

Unit sector


Competency Field

Administration - Purchasing and Contracting


Employability Skills

This unit contains employability skills.


Licensing Information

Not applicable.