TLIR5014A
Manage suppliers

This unit involves the skills and knowledge required to manage suppliers. It includes assessing suppliers and building a productive relationship with them; evaluating delivery of goods/services; negotiating arrangements and resolving disagreements with suppliers; and reviewing supplier performance. Licensing, legislative, regulatory or certification requirements are applicable to this unit.

Application

Work may be undertaken in various contexts within the transport and distribution industry.

The unit generally applies to those who provide leadership of others individually or in teams.

This unit is normally packaged at AQF V or above.


Prerequisites

Not Applicable


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1Assess suppliers and build productive relationship

1.1 Criteria to enable an effective evaluation of 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 supplier according to organisational policies and procedures

2Evaluate delivery of goods and/or services against agreements

2.1 The 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 in the event of supplier failure to deliver

2.4 Relationships with suppliers are managed to support effective delivery

3Negotiate arrangements with suppliers

3.1 Arrangements with suppliers are negotiated and implemented according to 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 the supplier where potential or actual problems are indicated

4Resolve 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

5Review performance of suppliers

5.1 Suppliers are continuously reviewed in regard to quality, profitability, service, delivery status and other relevant performance indicators

5.2 Supplier performance is evaluated against the requirements of purchasing agreements

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

Required Skills

REQUIRED KNOWLEDGE AND SKILLS

This describes the essential knowledge and skills and their level required for this unit.

Required knowledge:

Relevant sections of national and state or territory regulatory requirements and codes of practice related to procurement

Relevant OH&S and environmental procedures and regulations

Organisational policies, procedures, plans, guidelines and code of conduct relevant to procurement and supply contracts

Procurement approval procedures

Procedures for receipt and payment of goods and services

Organisational procedures for monitoring the performance of suppliers

Contract performance and dispute policies and procedures

Procedures for operating electronic communications equipment

Suppliers in the marketplace

Common use arrangements

Financial accountability requirements

Operation of recording, reporting and statistical analysis systems and resources

Requirements for completing relevant documentation

Steps involved in planning the work activities

Code of practice for working collaboratively with others

Probity requirements and ethical issues

Required skills:

Communicate effectively with others when managing suppliers

Read and interpret instructions, procedures, information and signs relevant to the management of suppliers

Interpret and follow operational instructions and prioritise work

Complete documentation related to work activities

Operate electronic communication equipment to required protocol

Work collaboratively with others

Adapt appropriately to cultural differences in the workplace, including modes of behaviour and interactions with others

Promptly report and/or rectify any identified problems, faults or malfunctions in accordance with regulatory requirements and workplace procedures

Implement contingency plans for unplanned events

Apply precautions and required action to minimise, control or eliminate hazards that may exist during work activities

Modify activities depending on differing operational contingencies, risk situations and environments

Monitor work activities in terms of planned schedule

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required knowledge and skills, the range statement and the assessment guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

The evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of applying:

the underpinning knowledge and skills

relevant legislation and workplace procedures

other relevant aspects of the range statement

Context of and specific resources for assessment

Performance is demonstrated consistently over a period of time and in a suitable range of contexts

Resources for assessment include:

a range of relevant exercises, case studies and/or other simulated practical and knowledge assessment, and/or

access to an appropriate range of relevant operational situations in the workplace

In both real and simulated environments, access is required to:

relevant and appropriate materials and equipment, and

applicable documentation including workplace procedures, regulations, codes of practice and operation manuals

Method of assessment

Assessment of this unit must be undertaken by a registered training organisation

As a minimum, assessment of knowledge must be conducted through appropriate written/oral tests

Practical assessment must occur:

through activities in an appropriately simulated environment at the registered training organisation, and/or

in an appropriate range of situations in the workplace


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.

Recommendations may include:

renew agreement for further purchasing

seek new sources of supply

file relevant supplier details for future reference

Disagreements can be about:

delivery schedules

costs, fees and prices

quality of goods or services, including OH&S performance standards

interpretations of specifications detailed in documents on which agreements are based

interpretations of terms and conditions detailed in agreement

Consultative processes may involve:

other employees and supervisors

suppliers of equipment

relevant authorities and institutions

management and union representatives

industrial relations and OH&S specialists

Communication in the work area may include:

phone

electronic data interchange (EDI)

fax

email

internet

RF systems

oral, aural or signed communications

Depending on the organisation concerned, workplace procedures may be called:

standard operating procedures (SOPs)

company procedures

enterprise procedures

organisational procedures

established procedures

Documentation and records may include:

organisation's policies, procedures, strategies, methods and instructions relevant to procurement and supplier management

relevant OH&S and environmental protection regulations

lists of approved suppliers and relevant personnel to consult

proformas and instructions used when evaluating suppliers and their performance

quality assurance procedures

technical instructions

relevant Australian Standards

Applicable legislation and regulations may include:

relevant sections of national and state or territory regulatory requirements and codes of practice related to procurement

relevant state/territory OH&S and environmental protection legislation

workplace relations regulations


Sectors

Not Applicable


Employability Skills

This unit contains employability skills.


Licensing Information

Refer to Unit Descriptor