This unit of competency describes the skills and knowledge required to administer inventory systems. It includes identifying inventory systems, tracking inventory, planning and administering inventory systems and completing inventory audits and reports.

Inventory is defined as the quantity of goods owned and stored by an organisation that is intended either for resale or is raw materials and components used in producing goods that are then sold.

Inventory systems provide visibility and integration in the supply chain and they are used to record transactions associated with receiving, reducing or writing inventory off. An inventory system can include desktop software, barcode scanners, barcode labels, mobile devices and applications.

The unit is applicable to those with responsibilities for inventory systems within a supply chain.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1

Identify inventory systems

1.1

Software, applications and devices used in the inventory system are identified

1.2

Third party inventory control operations are verified

1.3

Demand forecasting methods and tools are determined

1.4

Inventory system policies, procedures and processes are confirmed

2

Plan and administer inventory

2.1

Inventory characteristics are ascertained

2.2

Stock specifications, locations, labels and reference numbers are validated using the inventory system

2.3

Receipt and despatch stock is securely stored in designated locations and the inventory system is updated, as required

2.4

Stock is monitored and reordered to meet optimum replenishment requirements, in accordance with organisational inventory procedures

2.5

Stock is requisitioned and documentation is updated on the inventory system, as required

2.6

Stock sorting, recycling and disposal is undertaken, in accordance with organisational inventory procedures

2.7

Stock damage and losses against forecasts are assessed and investigations are completed into unacceptable cases

2.8

Stock security is maintained, in accordance with organisational inventory procedures

3

Track inventory

3.1

Inventory is monitored and tracked using the inventory system

3.2

Buyers are kept informed of stock levels, in accordance with organisational inventory procedures

3.3

Inventory transactions are monitored, in accordance with organisational inventory procedures

3.4

Reorder cycles are adjusted to maintain consistent supply, as required

3.5

Discrepancies, out of specification and redirection opportunities are managed and reported using the inventory system

3.6

Inventory reports are analysed and corrective action is taken, as required

3.7

Vendor Managed Inventory (VMI) systems are used to manage inventory, as required

4

Complete inventoryaudits and reports

4.1

Inventory audits and cycle counts are performed, in accordance with organisational inventory procedures

4.2

Report on inventory system management is produced, in accordance with organisational inventory procedures

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all the requirements of the elements and performance criteria on at least one occasion and includes

assessing and managing stock quality including analysing discrepancies, out of specification and redirection opportunities

categorising and labelling stock

checking inventory specifications

ensuring handling, sorting, disposal and recycling of stock is performed

following organisational inventory policies and procedures

identifying inventory characteristics

maintaining and managing optimum stock levels

meeting inventory system documentation requirements

monitoring stock security

reading and interpreting information and data related to inventory systems

recording and maintaining inventory information

undertaking quality control

using the inventory system including inventory software and applications

utilising Vendor Managed Inventory (VMI) systems

validating third party inventory control operations.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all the requirements of the elements and performance criteria and includes knowledge of

features of inventory systems

financial implications of inventory management

inventory documentation and reporting requirements including those for discrepancies, out of specification and redirection opportunities

inventory loss and damage control

inventory policies and procedures

inventory tracking and security

layout of inventory storage areas

maintenance and monitoring of stock quality and levels

methods for categorising and labelling inventory

principles of inventory management

principles of quality control

reorder cycles

storage conditions for the maintenance of inventory including product life cycles, maximising use, rotation and replenishment requirements

third party inventory control operations

types of inventory systems

valuation methods for different inventory items

Vendor Managed Inventory (VMI) systems.

Assessors must hold credentials specified within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must satisfy the Principles of Assessment and Rules of Evidence and all regulatory requirements included within 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 must include access to a range of

exercises, case studies or other simulations

materials, tools and equipment used in industry including:

inventory systems and stock control equipment and tools

documentation including organisational policies and procedures, industry standards, regulations, codes of practice, operational manuals and equipment specifications.

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Range is restricted to essential operating conditions and any other variables essential to the work environment.

Non-essential conditions may be found in the Companion Volume Implementation Guide.

Cross sector

X - Logistics