Application
This unit involves the skills and knowledge required to manage suppliers in various contexts within the transport and logistics industry.
It includes assessing and building productive relationships with suppliers, and evaluating the delivery of goods/services against agreements. It also includes negotiating arrangements, resolving disagreements with suppliers and reviewing supplier performance.
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 | Assess suppliers and build productive relationships | 1.1 | Criteria to effectively evaluate supplier services are developed and documented |
1.2 | Existing suppliers are assessed against criteria | ||
1.3 | Availability and suitability of alternate suppliers who can meet the service support requirements within legislative requirements are identified | ||
1.4 | Terms and conditions of suppliers to achieve service requirements are established and communicated | ||
1.5 | Cooperative relationships are developed with suppliers in accordance with organisational policies and procedures | ||
2 | Evaluate delivery of goods and/or services against agreements | 2.1 | Quality of goods and services supplied is assessed against criteria |
2.2 | Non-compliance is identified, documented and corrective action is implemented within the terms of contractual arrangements | ||
2.3 | Contingency plans are developed should suppliers fail to deliver | ||
2.4 | Relationships with suppliers are managed to support effective delivery | ||
3 | Negotiate arrangements with suppliers | 3.1 | Arrangements with suppliers are negotiated and implemented in accordance with organisational policies and procedures |
3.2 | Market factors that may affect the supply of goods and services are identified and communicated to relevant personnel | ||
3.3 | Immediate corrective action is taken in consultation with suppliers where potential or actual problems are indicated | ||
4 | Resolve disagreements with suppliers | 4.1 | Disagreements with suppliers are investigated to identify validity and causes |
4.2 | Disagreements are negotiated and resolved | ||
4.3 | Amendments to agreements, as a consequence of the resolution of disagreements, are documented | ||
4.4 | Approval is sought and obtained for amendments | ||
4.5 | Approved amendments are communicated to suppliers and relevant personnel | ||
5 | Review performance of suppliers | 5.1 | Suppliers are continuously reviewed for quality, profitability, service, delivery status and other relevant performance indicators |
5.2 | Supplier performance is evaluated against purchasing agreement requirements | ||
5.3 | Suppliers are informed of evaluation outcomes as required | ||
5.4 | Recommendations about future use of suppliers are made to relevant personnel | ||
5.5 | Suppliers are deleted from supplier shortlist according to criteria | ||
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 suppliers completing documentation related to work activities implementing contingency plans 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 managing suppliers reporting and/or rectifying identified problems, faults or malfunctions promptly, in accordance with regulatory requirements and workplace procedures sourcing, managing, evaluating and reviewing suppliers. |
Evidence of Knowledge
Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of: |
code of practice for working collaboratively with others common use arrangements contract performance and dispute policies and procedures financial accountability requirements operation of recording, reporting and statistical analysis systems and resources organisational policies, procedures, plans, guidelines and code of conduct relevant to procurement and supply contracts organisational procedures for monitoring the performance of suppliers probity requirements and ethical issues procedures for operating electronic communications equipment procedures for receipt and payment of goods and services procurement approval procedures relevant sections of national and state/territory regulatory requirements and codes of practice related to procurement requirements for completing relevant documentation steps involved in planning the work activities suppliers in the marketplace. |
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