Application
This unit involves the skills and knowledge required to manage international purchasing of specific goods in accordance with workplace policies and procedures, and regulatory frameworks, in various contexts within the transport and logistics industry.
It includes developing, documenting and implementing regular and complex international purchasing strategies, determining payment strategies, arranging barter or counter trading and determining logistics strategies. It also includes evaluating international purchasing strategies and implementing identified improvements.
The unit generally applies to those who lead individuals or teams.
No licensing, legislative or certification requirements apply to this 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. | ||
1 | Develop and document strategies for international purchasing | 1.1 | Strategic implications for international purchasing are researched and analysed |
1.2 | International market structures are researched | ||
1.3 | Export requirements of supplier country are researched and analysed | ||
1.4 | Strategies for international purchasing are drafted and submitted for approval | ||
2 | Implement international purchasing strategies | 2.1 | International purchasing strategies are communicated to relevant personnel and stakeholders |
2.2 | Support is provided to stakeholders to implement international purchasing strategies | ||
2.3 | Implementation of international purchasing strategies is monitored | ||
2.4 | Problems and issues arising from implementation of international purchasing strategies are identified and addressed | ||
3 | Undertake more complex international purchasing | 3.1 | Export markets and cultural considerations having a potential impact on international purchasing are researched and appropriate markets are chosen |
3.2 | International legal requirements on sale of goods and Australian regulatory controls applicable to imports into Australia are researched and applied as appropriate | ||
3.3 | Relevant Incoterms and trade terms are applied | ||
3.4 | Exception clauses to business conditions are drafted | ||
3.5 | Discrepancies are clarified and resolved to the satisfaction of all parties | ||
4 | Determine payment strategies | 4.1 | Financial risk management is analysed and available controls are implemented |
4.2 | Source and availability of funds for payment are identified | ||
4.3 | Currency payment methods - hedging, letters of credit, and payment by cheque upon/after shipment - are researched and analysed | ||
4.4 | Currency payment methods appropriate to the situation are selected | ||
4.5 | Expenditure phasing is planned and implemented | ||
5 | Arrange barter or countertrade | 5.1 | Strategic implications of arranging specific barter or countertrade are researched and analysed |
5.2 | Suppliers willing to engage in international barter or countertrade are determined | ||
5.3 | Commercial conditions for proposed barter or countertrade are negotiated, and agreement is reached with partners | ||
5.4 | Draft contract is prepared and legal expertise is accessed to check legality of contract agreement | ||
5.5 | Contracts are approved and issued | ||
6 | Determine logistics strategies | 6.1 | Requirements for pre-shipment inspection are ascertained and arrangements are made |
6.2 | Shipping and other transport risks and facilities are researched and analysed | ||
6.3 | Regulatory compliance requirements for importation into Australia are researched and analysed | ||
6.4 | Logistics strategies for the organisation are developed to take account of appropriate transport, insurance and regulatory compliance requirements | ||
6.5 | Approval is gained from relevant personnel for implementation of logistics strategies | ||
7 | Evaluate international purchasing strategies and implement identified improvements | 7.1 | Implementation of international purchasing strategies is reviewed |
7.2 | Improvements to international purchasing strategies are identified from the review process | ||
7.3 | Approval is gained to implement improvements to international purchasing strategies | ||
7.4 | Changes are communicated to relevant stakeholders and support is provided to implement improvements | ||
7.5 | Implementation of changes is monitored and reviewed to determine effectiveness of improvements | ||
Evidence of Performance
Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include: |
applying relevant legislation and workplace procedures communicating and working effectively with others when managing international purchasing completing documentation related to work activities developing, implementing, managing and evaluating international purchasing strategies modifying activities depending on operational contingencies, risk situations and environments monitoring and prioritising work activities in terms of planned schedule operating electronic communications equipment to required protocol reading and interpreting instructions, procedures, information and signs relevant to work activities reporting and/or rectifying identified problems, faults or malfunctions promptly, in accordance with regulatory requirements and workplace procedures working systematically with required attention to detail without injury to self or others, or damage to goods or equipment. |
Evidence of Knowledge
Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements performance criteria and include knowledge of: |
agencies involved in arranging importation such as customs brokers, freight forwarders, logistics and transport companies and consultants commonwealth/state/territory government procurement guidelines contracting requirements disposals considerations equal employment opportunity, equity and diversity principles and legislation ethical issues financial and accounting issues relevant to the contract Incoterms international markets and cultural considerations relevant to purchasing in supplier countries legal aspects of negotiation legal considerations legislation, codes of practice and national standards including the Trade Practices Act, contract law, commercial law, quarantine legislation methods of payment applicable to international purchasing including barter and countertrade organisational procurement policies and practices for international purchasing procedures for accepting goods or services procurement approval processes procurement negotiation practices relevant insurance brokers and types of policies to cover risks relevant sections of national and state/ territory regulatory requirements and codes of practice relating to restrictions and prohibitions on imports requirements for completing relevant documentation source of information and assistance external to the organisation such as regulatory authorities, customs brokers, Austrade, state/territory government departments or agencies, chambers of commerce whole-of-life considerations. |
Assessment Conditions
As a minimum, assessors must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.
As a minimum, assessment must satisfy applicable regulatory requirements, which include requirements in the Standards for Registered Training Organisations, current at the time of assessment.
Assessment must occur in workplace operational situations where it is appropriate to do so; where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.
Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.
Resources for assessment include:
a range of relevant exercises, case studies and/or other simulations
relevant and appropriate materials, tools, equipment and personal protective equipment currently used in industry
applicable documentation including workplace procedures, regulations, codes of practice and operation manuals.
Foundation Skills
Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.
Range Statement
Range is restricted to essential operating conditions and any other variables essential to the work environment.
Non-essential conditions can be found in the Companion Volume Implementation Guide.
Sectors
Not applicable.
Competency Field
R - Contract Procurement