Application
This unit requires the team member to plan and implement inventory control systems to meet current and forecasted operational and customer demand, and to monitor inventory control systems for improvement. | |
Prerequisites
Nil | |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA | ||
1 | Forecast inventory demands | 1.1 | Identify links between enterprise planning, sales forecasts and stock levels. |
1.2 | Determine means to forecast demands on inventory. | ||
1.3 | Establish importance of monitoring market trends and technology changes as part of managing inventory demands. | ||
1.4 | Anticipate impact of special events on future inventory demands. | ||
2 | Implement inventory control systems. | 2.1 | Identify and describe the role of inventory control systems in inventory management. |
2.2 | Establish operational performance standards or benchmarks to measure and control inventory levels. | ||
2.3 | Manage scheduling to assist logistics planning and control inventory levels. | ||
2.4 | Establish and manage relationship between distribution systems and inventory control. | ||
2.5 | Compare and contrast different approaches to the management and control of inventory levels to achieve specific operational outcomes. | ||
2.6 | Adopt operations management approaches to achieve wholesale business and inventory plans, including the use of material resource planning, manufacturing requirements planning and just in time. | ||
2.7 | Devise maintenance plans or processes for inventory equipment, tools and facilities. | ||
2.8 | Establish purchasing systems. | ||
2.9 | Ensure inventory supply arrangements meets demand. | ||
3 | Monitor and improve inventory plans. | 3.1 | Determine relationship between inventory control systems and competitive advantage for the business. |
3.2 | Regularly review existing ordering and inventory control tools and procedures. | ||
3.3 | Continually improve industrial standards or performance benchmarks for inventory control systems. | ||
3.4 | Review and improve stock control and monitoring systems. | ||
3.5 | Identify strategies to improve inventory control systems and report to relevant personnel. |
Required Skills
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: interpersonal communication skills to: report strategies to improve inventory control systems to relevant personnel through clear and direct communication use language and concepts appropriate to cultural differences use and interpret non-verbal communication evaluating and analysing: market trends and projections inventory levels projected demands on inventory inventory control systems time management complex planning literacy skills in regard to: generating reports maintaining inventory recording systems numeracy skills in regard to assessing, analysing and recording inventory figures implement inventory control procedures. |
The following knowledge must be assessed as part of this unit: inventory and operations management approaches inventory control systems and equipment for inventory recording and control relationships between inventory and distribution relationships between marketing and inventory management forecasting as it affects inventory special events affecting specific business operations or planning cycles legal, administrative and business supply requirements industrial or performance standards systems used to measure and monitor inventory levels and performance business policy and procedures in regard to: inventory control and distribution systems OHS. |
Evidence Required
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: maintenance of accurate and appropriate inventory levels accurate forecasts of inventory demand plans for inventory required to meet special events or contingencies implementation of appropriate operations, inventory control and monitoring approaches ongoing review and improvement of inventory plans. |
Context of and specific resources for assessment | Assessment must ensure access to: a real or simulated work environment relevant documentation, such as: policy and procedures on inventory planning and control industry codes of practice OHS legislation and codes of practice access to: a stock control system stock control equipment merchandise and supplier data. |
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 written or verbal questioning to assess knowledge and understanding review of portfolios of evidence and third-party workplace reports of on-the-job performance. 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. |
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 in the performance criteria is detailed below. | |
Enterprise planning may include: | sales marketing strategic business purchasing and procurement disposal human resources public relations contingency risk management environmental. |
Forecasts may be based on: | database or internet searches modelling telephone fax formal discussions formal and informal correspondence. |
Demands on inventory may vary according to: | customer demand seasonal cycles selling approaches environmental factors quality demands advances in technology. |
Special events may include: | sales and discounting holiday periods product launches supplier and enterprise promotions. |
Inventory control systems may include: | manual or electronic inventory tracking systems stocktaking monitoring stock levels cyclical counts minimisation of out-of-date stock quality control. |
Performance standards or benchmarks may include: | Australian standards international standards professional standards industry standards performance indicators quality measures and criteria planning milestones and timeframes design brief manufacturer and supplier standards. |
Logistics may include: | phases or stages of the supply and distribution chain timeframes milestones payment schedule targets outputs infrastructural resources levels of service. |
Inventory equipment, tools and facilities may include: | electronic bar coding equipment weighing machines thermometers climate control cold storage units storage fixtures trolley return equipment portable data entry cutting equipment protective clothing. |
Purchasing systems may include: | requisitions tenders competitive bids production schedules electronic data interchange (EDI) just in time ordering bills of materials stock and supply agreements. |
Inventory supply arrangements may include: | delivery of products provision of services maintenance and support agreements leasing agreements and consultancies research and development. |
Relevant personnel may include: | employees supervisors human resources personnel team and area manager. |
Sectors
Sector | Cross-Sector |
Competency Field
Inventory | |
Employability Skills
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. | |
Licensing Information
Not applicable.