Application
This unit describes the skills required to manage the fundamental aspects of a supply chain. This includes managing the supply chain in terms of capacity, creation of constructive competition, developing alternate methods of supply, sustainable practice, environmental and social responsibilities and cost.
This unit applies to those working in roles involving supply chain management.
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 independently seeking advice as required, performing complex tasks in a range of familiar and unfamiliar 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. Establish the business needs of the buying organisation | 1.1 Identify outcomes and strategic themes from corporate planning documents and senior management. 1.2 Determine requirements for collaborative planning and forecasting in the supply chain. 1.3 Assess the fundamental aspects of the supply chain and the importance of integrating the supply chain to achieving outcomes. 1.4 Identify and acknowledge vulnerabilities and opportunities in the supply chain. 1.5 Document the supply chain requirements. |
2. Develop strategies to manage supply chain | 2.1 Formulate and use effective communication strategies to engage internal stakeholders, external and market stakeholders. 2.2 Review the fundamental aspects of the supply chain and recommend actions to reduce vulnerability or achieve better value for money or policy outcomes. 2.3 Assess supplier capabilities and capacity against customer requirements. 2.4 Establish effective working relationships between suppliers and customers. 2.5 Encourage innovation and manage risks in the supply chain. Consider and document alternative strategies where appropriate. 2.6 Address legal, ethical, environmental, sustainability and Corporate Social Responsibility (CSR) principles through the supply chain. |
3. Develop and implement continuous improvement strategies | 3.1 Baseline current supply chain performance and measure against relevant benchmarks. 3.2 Review the effectiveness at each level of the supply chain including staff and customers. 3.3 Identify and analyse trends and changes in supply chain fundamentals and organisational influence over time. 3.4 Make, influence or recommend appropriate changes to current supply chain management strategies to support continuous improvement. |
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.
gather and analyse organisational information to build procurement profile
review and apply legislative, regulatory and policy requirements
identifying and predicting trends
applying the content of complex documents
applying complex government policy and inter-governmental agreements
interrogating corporate systems to obtain data
applying complex cost models
analysing complex supply chains to identify risk, vulnerability and opportunity
interpreting market reaction
documenting procurement planning decisions and expected outcomes
managing and update 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
exploiting organisational Enterprise Resource Planning systems (ERPs)
develop and manage electronic commerce
exploit market opportunities and initiatives in 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
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), sustainability and environmental issues as applicable to procurement and market behaviours
research and analysis as applied to complex outcomes, trends and predictions of markets and procurement changes
micro and macro-economic issues applicable to market behaviours and the impact of procurement
legal issues and determinations impacting on procurement
implications for the organisation and for the 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
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