Application
This unit focuses on working with businesses in the supply chain that provide products and services required by a business to meet operational and customer requirements. | |
Prerequisites
Nil | |
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA | ||
1 | Manage ongoing performance of purchasing and procurement strategies. | 1.1 | Develop policy and procedures for management of purchasing and procurement activities. |
1.2 | Develop formal policy and procedures for processing purchases, including methods for requesting and receiving supply. | ||
1.3 | Establish benchmarks for measuring efficiency of purchase systems and suppliers of purchased products and services. | ||
1.4 | Develop communication and data exchange systems with product and service suppliers. | ||
1.5 | Devise strategies to maximise efficiency and effectiveness of input processes to the business. | ||
2 | Evaluate existing purchasing systems. | 2.1 | Analyse effectiveness of assets and resource management within the purchasing system. |
2.2 | Set value adding determinants for each purchase. | ||
2.3 | Investigate inconsistencies or non-conformance of purchasing with legal agreements. | ||
2.4 | Investigate and resolve inconsistencies or non-conformance of purchasing and supply arrangements with formal policy and procedures and relevant legislation. |
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: develop strategies to maximise efficiency of input use written forms of communication effectively complete consultation to generate effective purchasing strategies plan workload with a strong focus on attainment of planned outcomes. |
The following knowledge must be assessed as part of this unit: relationships with stakeholders and market formal policy and procedures in regard to: purchase and supply relationships processing purchases interaction with customers and suppliers resource management quality control OHS benchmarks for efficiency of supplier relationships communication and data exchange interfaces with suppliers legal relationship arrangements with suppliers to facilitate identification and resolution of problems and enquiries relevant legal, administrative and business supply requirements. |
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: development of purchasing strategies to deliver business outcomes in consultation with suppliers effective evaluation and ongoing development of a purchasing strategy development and implementation of formal policy and procedures to apply and support legally compliant purchasing strategies within a business. |
Context of and specific resources for assessment | Assessment must ensure access to: a wholesale or retail work environment relevant information and documentation, including: formal policy and procedures relevant legislation and statutory requirements industry codes of practice 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 a case study 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. | |
Policy and procedures may relate to: | purchase and supply relationships processing purchases interaction with customers and suppliers resource management quality control. |
Procurement or purchasing activities may include: | requisitions tenders competitive bids production schedules electronic data interchange (EDI) just in time ordering bills of materials stock and supply agreements. |
Methods for requesting and receiving supply may include: | quotations public offers contracts expressions of interest requested proposals open or restricted tendering and contracting 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 direct purchase from retail or wholesale outlets e-commerce. |
Purchase systems may be: | manual electronic automated. |
Communication and data exchange systems may include: | electronic data exchange telephone fax letter face-to-face. |
Input processes may include: | checking and receiving incoming stock processes to report problems with deliveries recording incoming inventory pricing, labelling and storage of inventory quality control policy and procedures. |
Resource management may relate to: | people materials equipment and technology budget time. |
Value adding determinants may include: | appropriateness warranties and post-purchase support price timeliness of supply variation from supply specification supplier relationships. |
Legal agreements may relate to: | licence, patent or copyright arrangements pricing agreements. |
Purchasing and supply arrangements may include: | price quality supply reliability merchandise. |
Relevant legislation may include: | industry codes of practice transport, storage and handling of goods sale of second-hand goods Trade Practices and Fair Trading Acts pricing procedures, including GST requirements. |
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.