PSPPCM018
Conduct demand and procurement spend analysis


Application

This unit describes the skills required to manage demand and procurement spend within an organisation.

This unit applies to those working in roles involving procurement of goods or services essential to the operation of their organisation.

The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.

Those undertaking this unit would work autonomously with management responsibilities, while performing complex tasks in familiar contexts.

No licensing, legislative or certification requirements apply to unit at the time of publication.


Elements and Performance Criteria

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section.

1. Collect and analyse demand and procurement spend data

1.1 Identify and analyse demand patterns (organisational consumption), using a range of data sources and using appropriate breakdowns such as by category, region or time period.

1.2 Identify and analyse procurement spend data, using a range of data sources and using appropriate breakdowns, including by category, region or time period.

1.3 Establish and analyse the relationship between demand, consumption and procurement spend and assess business complexity of the buying organisation based on this analysis.

1.4 Develop product usage profiles and organisational spend profiles.

1.5 Establish causal links for demand and spend patterns through engagement with internal stakeholders and analysis of data.

1.6 Map and analyse processes involved across the whole procurement life cycle to identify potential for efficiencies and improved data gathering.

1.7 Review organisational policies and processes for procurement, asset management and budget, assess the impact of these on demand and/or spend and make recommendations to improve management of demand.

2. Develop and implement demand/spend management strategy

2.1 Develop and implement effective communication strategies to engage internal stakeholders, external and market stakeholders.

2.2 Develop and implement outcome based demand and/or spend management processes across the procurement life cycle.

2.3 Identify and use appropriate systems to support procurement and financial processes.

2.4 Develop and implement processes to control and manage the demand for particular goods and services according to influencing factors.

2.5 Identify staff skills and training and development opportunities related to demand and/or procurement spend management and incorporate these into professional development plans.

2.6 Develop outcome based, transparent and manageable performance metrics to ensure best practice is achieved, whilst satisfying organisational needs.

3. Manage demand/spend risks and opportunities

3.1 Review and analyse the market profile, including opportunities to influence or develop the market.

3.2 Identify and assess market dynamics including market cycles, product life cycles and growth and/or decline.

3.3 Assess realistically the desirability and practicality of ongoing market development and undertake market development activities where these are appropriate.

3.4 Identify and consider opportunities and risks associated with managing demand and procurement spend.

Evidence of Performance

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.

consulting and negotiating with the market place, contractors and stakeholders

interpreting complex documents

gathering and analysing organisational data to build demand and spend profiles, market data, and stakeholder requirements.

planning, monitoring and implementing change management strategies

promoting change within the organisation

measuring and monitoring performance

celebrating success

applying the content of complex documents, including contracts, legislation and policy guidelines

applying complex government policy and inter-governmental agreements

interrogating corporate systems to obtain data

analysing complex supply chains to identify risk, vulnerability and opportunity

interpreting market reaction

developing effective performance measurement metrics

planning procurement processes in alignment with business and organisational goals

documenting procurement planning decisions and expected outcomes

managing and updating procurement plans and sub-plans in line with strategic plans and budgets

applying complex strategies to development of strategic plans, including corporate, budget and procurement plans and sub plans

contributing to strategic and risk planning

understanding systems architecture

identifying needs from ERPs

exploiting organisational ERPs

developing and managing electronic commerce

exploiting market opportunities and initiatives in electronic commerce


Evidence of Knowledge

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.

Commonwealth, state and/or territory, or local government legislation, regulation, policies, practices, procedures and guidelines in relation to procurement and financial management

international treaties relevant to trade and procurement practices

government and inter-governmental policy and agreements in relation to procurement practices

principles and practices associated with Corporate Social Responsibility (CSR) principles, sustainability and environmental issues as applicable to procurement and market behaviours

complex and strategic planning

research and analysis as applied to complex outcomes, trends and predictions of markets and procurement changes

codes of conduct, codes of practice and standards of individual behaviour relating to procurement decisions

government procurement environment

micro and macro-economic issues applicable to market behaviours and the impact of procurement

implications for the organisation and market (suppliers) of key procurement strategies and/or arrangements

whole of life costing considerations and value for money

financial, costing and accounting issues relevant to procurement and contracts

cultural issues relevant to strategic procurement and industry development in specific markets or market sectors


Assessment Conditions

This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.

Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.


Foundation Skills

Foundation skills are embedded within the elements and performance criteria of this unit.


Competency Field

Procurement