This unit applies to the tourism, travel, hospitality and event industry sectors.
The unit is relevant to organisations where stock management is an integral and essential part of business operations, and where there are complex purchasing and control issues to be considered. The unit is not appropriate for situations where stock management is very simple, such as controlling stationery supplies in a small office.
It applies to senior managers who operate with significant autonomy and who are responsible for making a range of strategic management decisions.
Not applicable.
Elements describe the essential outcomes of a unit of competency. | Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
1. Determine stock requirements. | 1.1 Use business data, forecasting methods and standard measures to calculate required stock levels. 1.2 Determine stock requirements for standard business periods, peak seasons and special events. 1.3 Establish cost-effective purchase quantities based on business information and supplier advice. |
2. Establish optimum supply arrangements. | 2.1 Evaluate quality of supply, based on feedback from colleagues and customers. 2.2 Source and review potential suppliers. 2.3 Develop appropriate and accurate purchase specifications. 2.4 Assess suppliers against specifications considering all relevant factors. 2.5 Assess terms of purchase and negotiate with suppliers to achieve optimum supply arrangements. 2.6 Adjust sources of supply and make accurate records of agreements. |
3. Develop and implement stock control systems. | 3.1 Develop stock control systems and communicate to all relevant staff. 3.2 Develop special control systems for stock with high wastage or loss. 3.3 Monitor workplace systems and make adjustments according to feedback and operational experience. 3.4 Initiate training of staff to minimise stock wastage. |
Required skills |
communication skills to negotiate complex supply arrangements and liaise with stock suppliers critical thinking skills to assess supplier ability to meet the needs of the organisation and evaluate and determine optimum supply arrangements initiative and enterprise skills to negotiate cost effective supply and maximise profitability literacy skills to: read and interpret complex supplier cost sheets, specific terms of purchase and supplier contracts research potential suppliers, sort and analyse information to make decisions on supply arrangements write complex and accurate purchase specifications and stock control system documents numeracy skills to: work with budgets interpret complex stock performance, wastage and stocktake reports calculate standard methods and measures interpret supply costs and calculate cost effective quantities for purchase planning and organising skills to plan, establish and monitor stock control systems problem-solving skills to monitor the quality and cost of supply, identify deficiencies and adjust purchasing arrangements self-management skills to take responsibility for purchase and stock control decisions teamwork skills to discuss, review and incorporate feedback from team members technology skills to use: a computer and keyboard the system capabilities and functions of a stock control system. |
Required knowledge |
for the specific industry sector: forecasting methods for calculating required stock levels including formulas for yield testing and use of standard measures methods to calculate cost-effective order quantities for different stock items different types of computer stock control systems used, their functions and features stock security systems types of storage and their suitability for different kinds of stock a range of supply sources for different types of product formats for and inclusions of purchase specifications, including appropriate terminology for the specific organisation: relevant stock, including product life and storage requirements for specific goods standard business periods, peak seasons and special events reasons for stock loss and damage and methods to control these a range of formats for, inclusions and uses of: stock control procedures including those for stock with high wastage or loss various stock control reports. |
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. | |
Overview of assessment | |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | Evidence of the ability to: establish and implement cost effective stock purchasing and control systems for a diverse range of stock items monitor stock control systems, stock quality and cost-effectiveness of supply over a period of time integrate knowledge of various stock control reports and data required to calculate cost-effective purchasing. |
Context of and specific resources for assessment | Assessment must ensure use of: a real or simulated tourism, hospitality or event industry business operation for which stock is purchased and stock control systems are developed computers, printers and stock control software systems currently used by the tourism, hospitality or event industry current commercial purchase specifications, stock control procedures and reports, supplier cost and contractual documentation used for the purchase of stock suppliers with whom the individual can interact and negotiate. |
Method of assessment | A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit: projects and activities that allow assessment of the individual’s ability to: determine stock levels for normal and peak operating seasons use reports and supplier information to calculate cost-effective order quantities develop a variety of tailored stock control systems evaluate the performance of systems and make adjustments review of documents prepared by the individual: stock control procedures purchase specifications reports evaluating the quality and cost of supply use of problem-solving activities so the individual can develop systems to control stock with high wastage or loss written or oral questioning to assess knowledge of: types of storage and their suitability for different kinds of stock stock control systems used by the industry a range of supply sources for different types of product review of portfolios of evidence and third |
Guidance information for assessment | The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example: BSBWRT401A Write complex documents SITXFIN501 Prepare and monitor budgets. |
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, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. | |
Data may include: | historical sales figures stocktake figures supplier lead time wastage reports. |
Forecasting methods may include: | moving averages popularity index use of sales reports for future customer bookings yield tests: butcher’s test standard measures standard yield test. |
Standard measures may include: | food portion size: count cup scoop slice measure volume weight fuel consumption for: particular road, sea or air travel conditions types of aircraft, sea vessels and land transport vehicles expected customer numbers for: events peak season standard business periods standard recipes standard yields. |
Stock may include: | alcohol cleaning agents and chemicals customer travel products: luggage labels travel bags travel wallets tickets vouchers event supplies food: dairy products canned products dry goods fresh goods frozen goods fruit meat oils poultry seafood vacuumed sealed items vegetables fuel: aircraft coaches hire cars vessels general stores housekeeping supplies linen merchandise non-alcoholic beverages: juice mixers soft drink tea and coffee uniforms. |
Purchase specifications may include: | budget colour deadlines for supply delivery or pick up requirements detailed description expected supply cost fresh or frozen food general description grade numbers to be purchased product name quality required labelling size special instructions or requirements storage procedures upper purchase price barrier use for product weight. |
Relevant factors may include: | ability to meet all aspects of the specification after sales service competitive pricing credit terms available delivery service, including emergency delivery lead time minimum and maximum order quantities product availability references from other customers trading hours. |
Terms of purchase may include: | centralised or decentralised purchasing competitive or open market buying contract buying cooperative buying cost plus buying credit terms negotiated buying one stop buying sealed bid buying volume buying and warehousing. |
Stock control systems may involve: | bin cards imprest integrated point ledgers stock control procedures and template documents and reports for: ordering levels loss performance monitoring of quality receipt reorder cycles rotation security stocktakes valuation wastage storage requirements for different kinds of stock use of: electronic stock control equipment stock control software systems. |
Special control systems may involve: | controlling ordering quantities maintaining correct environmental conditions for the storage of perishable foodstuffs, including controls for: temperature light humidity procedures for: correct handling of perishables to avoid spoilage of stock issue quantities issuing only to authorised persons stock transfer to other departments requisitioning segregated storage of non |
Cross-Sector
This unit contains employability skills.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.