Application
This unit describes the skills required to analyse, influence and develop markets and implement activities for highly complex, innovative and often long-term strategic procurement within established guidelines, policies and procedures.
Strategic procurement is high risk, often involving political elements. The unit includes undertaking market analysis, influencing and developing markets, and implementing strategic procurement activities.
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. Undertake market analysis | 1.1 Identify organisation’s strategic procurement requirements and commercial and policy factors impacting procurement. 1.2 Research the extent to which a competitive market exists to meet the organisation’s needs. 1.3 Identify the number of suppliers, their market share and the degree and type of competition between suppliers. 1.4 Analyse the nature, quality and maturity of the supply chain. 1.5 Identify and analyse environmental, sustainability and corporate social responsibility factors affecting the supply market. 1.6 Engage expert assistance, as necessary, to assist with market analysis. |
2. Influence and develop markets | 2.1 Identify and analyse supply markets and strategic industries to ascertain emerging and predicted trends. 2.2 Analyse supply markets and strategic industries, including capabilities, limitations, financial standing and past performance of existing and potential suppliers. 2.3 Use market development strategies to develop and influence market capability, within probity boundaries. 2.4 Identify implications of procurement threats and opportunities imposed by supply markets and communicate to stakeholders. |
3. Implement strategic procurement activities | 3.1 Determine procurement methodologies according to organisation’s strategic procurement plan. 3.2 Design requirements to deliver business outcomes and provide value for money, including whole-of-life considerations. 3.3 Effect methodologies by constraints, complexity and importance of procurement requirement and the marketplace. 3.4 Determine procurement activities and form teams to manage strategic procurement activities. 3.5 Determine performance measures to suit the range of procurement activities. 3.6 Analyse performance against measures, and implement methods that continuously improve procurement performance. |
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.
networking, within probity boundaries, with stakeholders
writing complex documents
managing teams of experts in functions, including finance, legal, technical and engineering
modelling effective management and leadership approaches
applying decision-making processes or methodologies
identifying and resolving strategic procurement issues
identifying and assessing opportunities for development of strategic markets/industries
undertaking research and business analysis
managing financial and procurement projects
operating organisational IT systems and electronic procurement templates
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 or territory, and local government legislation, policies, practices and guidelines relating to strategic procurement.
organisational procurement policies, practices and approval processes
aspects of contract law, trade practices law, and commercial law relating to contract management in the context of strategic procurement
probity principles and issues
codes of conduct, codes of practice and standards of individual behaviour relating to procurement
competition policy theory, including competitive neutrality
supply chain management
legal requirements of government procurement
financial rules and regulations
implications of particular market arrangements
whole-of-life considerations
supplier issues and supply chain management in the context of strategic procurement
procurement management processes
cultural issues relating to strategic procurement and industry development
relationship management at all personnel levels
environmental, sustainability and corporate social responsibility principles relevant to strategic procurement
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