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Evidence Guide: PSPPCM018 - Conduct demand and procurement spend analysis

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

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PSPPCM018 - Conduct demand and procurement spend analysis

What evidence can you provide to prove your understanding of each of the following citeria?

Collect and analyse demand and procurement spend data

  1. Identify and analyse demand patterns (organisational consumption), using a range of data sources and using appropriate breakdowns such as by category, region or time period.
  2. Identify and analyse procurement spend data, using a range of data sources and using appropriate breakdowns, including by category, region or time period.
  3. Establish and analyse the relationship between demand, consumption and procurement spend and assess business complexity of the buying organisation based on this analysis.
  4. Develop product usage profiles and organisational spend profiles.
  5. Establish causal links for demand and spend patterns through engagement with internal stakeholders and analysis of data.
  6. Map and analyse processes involved across the whole procurement life cycle to identify potential for efficiencies and improved data gathering.
  7. Review organisational policies and processes for procurement, asset management and budget, assess the impact of these on demand and/or spend and make recommendations to improve management of demand.
Identify and analyse demand patterns (organisational consumption), using a range of data sources and using appropriate breakdowns such as by category, region or time period.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and analyse procurement spend data, using a range of data sources and using appropriate breakdowns, including by category, region or time period.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Establish and analyse the relationship between demand, consumption and procurement spend and assess business complexity of the buying organisation based on this analysis.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop product usage profiles and organisational spend profiles.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Establish causal links for demand and spend patterns through engagement with internal stakeholders and analysis of data.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Map and analyse processes involved across the whole procurement life cycle to identify potential for efficiencies and improved data gathering.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Review organisational policies and processes for procurement, asset management and budget, assess the impact of these on demand and/or spend and make recommendations to improve management of demand.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop and implement demand/spend management strategy

  1. Develop and implement effective communication strategies to engage internal stakeholders, external and market stakeholders.
  2. Develop and implement outcome based demand and/or spend management processes across the procurement life cycle.
  3. Identify and use appropriate systems to support procurement and financial processes.
  4. Develop and implement processes to control and manage the demand for particular goods and services according to influencing factors.
  5. Identify staff skills and training and development opportunities related to demand and/or procurement spend management and incorporate these into professional development plans.
  6. Develop outcome based, transparent and manageable performance metrics to ensure best practice is achieved, whilst satisfying organisational needs.
Develop and implement effective communication strategies to engage internal stakeholders, external and market stakeholders.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop and implement outcome based demand and/or spend management processes across the procurement life cycle.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and use appropriate systems to support procurement and financial processes.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop and implement processes to control and manage the demand for particular goods and services according to influencing factors.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify staff skills and training and development opportunities related to demand and/or procurement spend management and incorporate these into professional development plans.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop outcome based, transparent and manageable performance metrics to ensure best practice is achieved, whilst satisfying organisational needs.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Manage demand/spend risks and opportunities

  1. Review and analyse the market profile, including opportunities to influence or develop the market.
  2. Identify and assess market dynamics including market cycles, product life cycles and growth and/or decline.
  3. Assess realistically the desirability and practicality of ongoing market development and undertake market development activities where these are appropriate.
  4. Identify and consider opportunities and risks associated with managing demand and procurement spend.
Review and analyse the market profile, including opportunities to influence or develop the market.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and assess market dynamics including market cycles, product life cycles and growth and/or decline.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assess realistically the desirability and practicality of ongoing market development and undertake market development activities where these are appropriate.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and consider opportunities and risks associated with managing demand and procurement spend.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Collect and analyse demand and procurement spend data

  1. Identify and analyse demand patterns (organisational consumption), using a range of data sources and using appropriate breakdowns such as by category, region or time period.
  2. Identify and analyse procurement spend data, using a range of data sources and using appropriate breakdowns, including by category, region or time period.
  3. Establish and analyse the relationship between demand, consumption and procurement spend and assess business complexity of the buying organisation based on this analysis.
  4. Develop product usage profiles and organisational spend profiles.
  5. Establish causal links for demand and spend patterns through engagement with internal stakeholders and analysis of data.
  6. Map and analyse processes involved across the whole procurement life cycle to identify potential for efficiencies and improved data gathering.
  7. Review organisational policies and processes for procurement, asset management and budget, assess the impact of these on demand and/or spend and make recommendations to improve management of demand.
Identify and analyse demand patterns (organisational consumption), using a range of data sources and using appropriate breakdowns such as by category, region or time period.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and analyse procurement spend data, using a range of data sources and using appropriate breakdowns, including by category, region or time period.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Establish and analyse the relationship between demand, consumption and procurement spend and assess business complexity of the buying organisation based on this analysis.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop product usage profiles and organisational spend profiles.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Establish causal links for demand and spend patterns through engagement with internal stakeholders and analysis of data.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Map and analyse processes involved across the whole procurement life cycle to identify potential for efficiencies and improved data gathering.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Review organisational policies and processes for procurement, asset management and budget, assess the impact of these on demand and/or spend and make recommendations to improve management of demand.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop and implement demand/spend management strategy

  1. Develop and implement effective communication strategies to engage internal stakeholders, external and market stakeholders.
  2. Develop and implement outcome based demand and/or spend management processes across the procurement life cycle.
  3. Identify and use appropriate systems to support procurement and financial processes.
  4. Develop and implement processes to control and manage the demand for particular goods and services according to influencing factors.
  5. Identify staff skills and training and development opportunities related to demand and/or procurement spend management and incorporate these into professional development plans.
  6. Develop outcome based, transparent and manageable performance metrics to ensure best practice is achieved, whilst satisfying organisational needs.
Develop and implement effective communication strategies to engage internal stakeholders, external and market stakeholders.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop and implement outcome based demand and/or spend management processes across the procurement life cycle.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and use appropriate systems to support procurement and financial processes.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop and implement processes to control and manage the demand for particular goods and services according to influencing factors.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify staff skills and training and development opportunities related to demand and/or procurement spend management and incorporate these into professional development plans.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop outcome based, transparent and manageable performance metrics to ensure best practice is achieved, whilst satisfying organisational needs.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Manage demand/spend risks and opportunities

  1. Review and analyse the market profile, including opportunities to influence or develop the market.
  2. Identify and assess market dynamics including market cycles, product life cycles and growth and/or decline.
  3. Assess realistically the desirability and practicality of ongoing market development and undertake market development activities where these are appropriate.
  4. Identify and consider opportunities and risks associated with managing demand and procurement spend.
Review and analyse the market profile, including opportunities to influence or develop the market.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and assess market dynamics including market cycles, product life cycles and growth and/or decline.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assess realistically the desirability and practicality of ongoing market development and undertake market development activities where these are appropriate.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and consider opportunities and risks associated with managing demand and procurement spend.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section.

1. Collect and analyse demand and procurement spend data

1.1 Identify and analyse demand patterns (organisational consumption), using a range of data sources and using appropriate breakdowns such as by category, region or time period.

1.2 Identify and analyse procurement spend data, using a range of data sources and using appropriate breakdowns, including by category, region or time period.

1.3 Establish and analyse the relationship between demand, consumption and procurement spend and assess business complexity of the buying organisation based on this analysis.

1.4 Develop product usage profiles and organisational spend profiles.

1.5 Establish causal links for demand and spend patterns through engagement with internal stakeholders and analysis of data.

1.6 Map and analyse processes involved across the whole procurement life cycle to identify potential for efficiencies and improved data gathering.

1.7 Review organisational policies and processes for procurement, asset management and budget, assess the impact of these on demand and/or spend and make recommendations to improve management of demand.

2. Develop and implement demand/spend management strategy

2.1 Develop and implement effective communication strategies to engage internal stakeholders, external and market stakeholders.

2.2 Develop and implement outcome based demand and/or spend management processes across the procurement life cycle.

2.3 Identify and use appropriate systems to support procurement and financial processes.

2.4 Develop and implement processes to control and manage the demand for particular goods and services according to influencing factors.

2.5 Identify staff skills and training and development opportunities related to demand and/or procurement spend management and incorporate these into professional development plans.

2.6 Develop outcome based, transparent and manageable performance metrics to ensure best practice is achieved, whilst satisfying organisational needs.

3. Manage demand/spend risks and opportunities

3.1 Review and analyse the market profile, including opportunities to influence or develop the market.

3.2 Identify and assess market dynamics including market cycles, product life cycles and growth and/or decline.

3.3 Assess realistically the desirability and practicality of ongoing market development and undertake market development activities where these are appropriate.

3.4 Identify and consider opportunities and risks associated with managing demand and procurement spend.

Required Skills and Knowledge

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section.

1. Collect and analyse demand and procurement spend data

1.1 Identify and analyse demand patterns (organisational consumption), using a range of data sources and using appropriate breakdowns such as by category, region or time period.

1.2 Identify and analyse procurement spend data, using a range of data sources and using appropriate breakdowns, including by category, region or time period.

1.3 Establish and analyse the relationship between demand, consumption and procurement spend and assess business complexity of the buying organisation based on this analysis.

1.4 Develop product usage profiles and organisational spend profiles.

1.5 Establish causal links for demand and spend patterns through engagement with internal stakeholders and analysis of data.

1.6 Map and analyse processes involved across the whole procurement life cycle to identify potential for efficiencies and improved data gathering.

1.7 Review organisational policies and processes for procurement, asset management and budget, assess the impact of these on demand and/or spend and make recommendations to improve management of demand.

2. Develop and implement demand/spend management strategy

2.1 Develop and implement effective communication strategies to engage internal stakeholders, external and market stakeholders.

2.2 Develop and implement outcome based demand and/or spend management processes across the procurement life cycle.

2.3 Identify and use appropriate systems to support procurement and financial processes.

2.4 Develop and implement processes to control and manage the demand for particular goods and services according to influencing factors.

2.5 Identify staff skills and training and development opportunities related to demand and/or procurement spend management and incorporate these into professional development plans.

2.6 Develop outcome based, transparent and manageable performance metrics to ensure best practice is achieved, whilst satisfying organisational needs.

3. Manage demand/spend risks and opportunities

3.1 Review and analyse the market profile, including opportunities to influence or develop the market.

3.2 Identify and assess market dynamics including market cycles, product life cycles and growth and/or decline.

3.3 Assess realistically the desirability and practicality of ongoing market development and undertake market development activities where these are appropriate.

3.4 Identify and consider opportunities and risks associated with managing demand and procurement spend.

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.

consulting and negotiating with the market place, contractors and stakeholders

interpreting complex documents

gathering and analysing organisational data to build demand and spend profiles, market data, and stakeholder requirements.

planning, monitoring and implementing change management strategies

promoting change within the organisation

measuring and monitoring performance

celebrating success

applying the content of complex documents, including contracts, legislation and policy guidelines

applying complex government policy and inter-governmental agreements

interrogating corporate systems to obtain data

analysing complex supply chains to identify risk, vulnerability and opportunity

interpreting market reaction

developing effective performance measurement metrics

planning procurement processes in alignment with business and organisational goals

documenting procurement planning decisions and expected outcomes

managing and updating procurement plans and sub-plans in line with strategic plans and budgets

applying complex strategies to development of strategic plans, including corporate, budget and procurement plans and sub plans

contributing to strategic and risk planning

understanding systems architecture

identifying needs from ERPs

exploiting organisational ERPs

developing and managing electronic commerce

exploiting market opportunities and initiatives in electronic commerce

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.

Commonwealth, state and/or territory, or local government legislation, regulation, policies, practices, procedures and guidelines in relation to procurement and financial management

international treaties relevant to trade and procurement practices

government and inter-governmental policy and agreements in relation to procurement practices

principles and practices associated with Corporate Social Responsibility (CSR) principles, sustainability and environmental issues as applicable to procurement and market behaviours

complex and strategic planning

research and analysis as applied to complex outcomes, trends and predictions of markets and procurement changes

codes of conduct, codes of practice and standards of individual behaviour relating to procurement decisions

government procurement environment

micro and macro-economic issues applicable to market behaviours and the impact of procurement

implications for the organisation and market (suppliers) of key procurement strategies and/or arrangements

whole of life costing considerations and value for money

financial, costing and accounting issues relevant to procurement and contracts

cultural issues relevant to strategic procurement and industry development in specific markets or market sectors