This unit requires the team member to understand and consistently implement specific business policy and procedures for completing purchases, completing and recording orders and liaising with suppliers to procure products and services for a wholesale operation.

Nil

ELEMENT

PERFORMANCE CRITERIA

1

Apply purchasing and procurement procedures.

1.1

Define indicators for success of procurement and purchasing activities.

1.2

Detail purpose, impact and functions of purchasing in a wholesale business.

1.3

Apply appropriate process for purchasing decisions.

1.4

Apply procedures for processing competitive bids for goods or services.

1.5

Identify types of standards or specifications guiding product or service procurement processes.

1.6

Source and review procedures and guidelines for completing relevant purchasing activities.

2

Complete purchasing and procurement activities.

2.1

Process purchasing orders according to business procedures.

2.2

Determine scope of delegation to initiate purchase orders.

2.3

Complete, report and store information relating to purchases according to business policy and procedures.

2.4

Ensure purchase methods conform to business ordering cycle and relevant procedures.

2.5

Ensure purchased product or services conform to initial purchase order or standards.

3

Capture and record purchasing data.

3.1

Determine source of different types of procurement information accurately.

3.2

Identify type and range of procurement information.

3.3

Confirm valid information sources.

3.4

Store and administer records of completed purchasing tasks according to confidentiality, security and established business policy and procedures.

4

Liaise with suppliers to complete procurement processes.

4.1

Contact suppliers to complete purchases according to business procedures and available technology.

4.2

Utilise technology to accelerate and accurately confirm purchasing and supply arrangements.

4.3

Maintain interface with suppliers to ensure the accuracy of communication relating to purchases.

This section describes the essential skills and knowledge and their level, required for this unit.

The following skills must be assessed as part of this unit:

safe use of available business technology

application of standards applicable to purchasing processes

interpersonal communication skills to:

conduct interface with suppliers and workplace team in a facilitative manner through clear and direct communication

ask questions to identify and confirm requirements

use language and concepts appropriate to cultural differences

use and interpret non-verbal communication

planning and prioritising work schedule

literacy and numeracy skills in regard to:

purchasing reports and documentation

processing purchases

maintaining records

maintaining stock ordering and recording systems.

The following knowledge must be assessed as part of this unit:

scope of job role or function

steps involved in completing a purchase

procurement process and its impact on the business

business policy and procedures in relation to:

decision-making or approval processes for purchase and procurement

procurement standards

confidentiality and security in record keeping

inventory control

purpose, impact and functions of purchasing

purchasing and ordering cycle

basic legal and ethical obligations governing purchasing operations

OHS aspects of job.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

processes purchasing data and information in a satisfactory and timely manner according to business policy and procedures

processes routine purchase orders in an accurate and timely manner

captures and records purchase data or information

processes routine purchase data according to business policy and procedures

successfully liaises with business and direct customers to secure purchasing data required for processing orders and procurement

understands and consistently performs the full range of purchasing and procurement transactions to nominated performance standards, within scope of job role and responsibilities.

Context of and specific resources for assessment

Assessment must ensure access to:

a wholesale work environment

relevant documentation, such as:

policy and procedures for procurement and purchase of goods

supplier information

purchasing records

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

observation of performance in the workplace

third-party reports from a supervisor

review of portfolio of evidence

written or verbal questioning to assess knowledge and understanding.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.

Employability skills embedded in this unit should be assessed holistically in the context of the job role and with other relevant units that make up the skill set or qualification.

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 in the performance criteria is detailed below.

Indicators for success of procurement and purchasing activities may include:

customer relationships

supplier relationships

time management

profit and loss statements

loss prevention

inventory control.

Processing may involve:

physical means

electronic means.

Information relating to purchases may include:

requisitions

tenders

competitive bids

production schedules

electronic data interchange (EDI) records

purchase orders

bills of materials

stock and supply agreements.

Purchase methods may include:

electronic data interchange (EDI)

credit card

cheques

standing offers

cash

agreed means.

Valid informationsources may include those:

accessed using existing electronic systems

confirmed by supervisors and management

covered in enterprise procedural and operational manuals.

Business policy and procedures may relate to:

procurement and purchasing activities

stock control system

recording procedures

data security and privacy

inventory control.

Suppliers may include:

commercial companies

public agencies or organisations

governments

community and not-for-profit organisations

internal.

Supply arrangements may include:

delivery of products

provision of services

maintenance and support agreements

leasing agreements and consultancies

research and development.

Communication relating to purchases may include:

open or restricted tendering and contracting

expressions of interest

request for proposal

request for quotation

request for tender

request for offer

direct purchases using existing supply agreements, such as standing offers

common use arrangements

verbal quotations

written quotations

direct purchase from retail or wholesale outlets

electronic commerce.

Sector

Wholesale

Inventory

The required outcomes described in this unit contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit is packaged will assist in identifying employability skills requirements.