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Evidence Guide: SIRRMRM007 - Negotiate and establish supply arrangements

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!

From the Wiki University

 

SIRRMRM007 - Negotiate and establish supply arrangements

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

Evaluate suppliers.

  1. Access and review relevant merchandise planning documents to determine supply needs and seek any required clarification.
  2. Develop supplier selection criteria based on organisational supply needs and expectations.
  3. Access and review supplier evaluation data to assess existing suppliers and determine ability to meet ongoing supply needs.
  4. Identify and assess potential new suppliers against supplier selection criteria and determine ability to meet supply needs.
  5. Assess ethical and sustainability performance of suppliers.
  6. Shortlist preferred suppliers that meet supplier selection criteria and supply needs.
Access and review relevant merchandise planning documents to determine supply needs and seek any required clarification.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop supplier selection criteria based on organisational supply needs and expectations.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Access and review supplier evaluation data to assess existing suppliers and determine ability to meet ongoing supply needs.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Identify and assess potential new suppliers against supplier selection criteria and determine ability to meet supply needs.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assess ethical and sustainability performance of suppliers.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Shortlist preferred suppliers that meet supplier selection criteria and supply needs.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Conduct supplier negotiations.

  1. Prepare for supplier negotiations and determine negotiables, non-negotiables and desired outcomes.
  2. Communicate purchase and supply specifications to suppliers and ensure mutual understanding.
  3. Negotiate supplier pricing, trading terms and delivery with preferred suppliers and select suppliers based on supply requirements.
  4. Negotiate and agree on promotional activity with supplier.
  5. Develop supplier performance indicators and evaluation criteria and gain supplier agreement.
  6. Ensure consistent and agreed understanding of negotiation outcomes.
  7. Ensure negotiations are conducted in a professional manner in the relevant cultural context.
Prepare for supplier negotiations and determine negotiables, non-negotiables and desired outcomes.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Communicate purchase and supply specifications to suppliers and ensure mutual understanding.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Negotiate supplier pricing, trading terms and delivery with preferred suppliers and select suppliers based on supply requirements.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Negotiate and agree on promotional activity with supplier.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop supplier performance indicators and evaluation criteria and gain supplier agreement.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Ensure consistent and agreed understanding of negotiation outcomes.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Ensure negotiations are conducted in a professional manner in the relevant cultural context.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Formalise supplier agreements.

  1. Draft supplier contracts in line with organisational policies and procedures and legal requirements.
  2. Seek advice from relevant personnel to confirm the legality and validity of draft contracts.
  3. Finalise supplier contracts and obtain approval as required.
  4. Distribute contracts to suppliers and resolve discrepancies or disagreements to ensure satisfaction of all parties.
  5. Obtain signed copies of supplier contracts and store according to organisational policies and procedures.
Draft supplier contracts in line with organisational policies and procedures and legal requirements.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Seek advice from relevant personnel to confirm the legality and validity of draft contracts.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Finalise supplier contracts and obtain approval as required.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Distribute contracts to suppliers and resolve discrepancies or disagreements to ensure satisfaction of all parties.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Obtain signed copies of supplier contracts and store according to organisational policies and procedures.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Monitor supplier performance.

  1. Review supplier performance against performance indicators and confirm contractual obligations are being met.
  2. Take prompt corrective action in consultation with supplier where potential or actual problems occur.
  3. Make any required amendments to contracts.
  4. Evaluate supplier performance against performance indicators and document in supplier performance report.
  5. Continuously review alternative options for supply to enhance product supply and improve ethics and sustainability in supply chain.
Review supplier performance against performance indicators and confirm contractual obligations are being met.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Take prompt corrective action in consultation with supplier where potential or actual problems occur.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Make any required amendments to contracts.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Evaluate supplier performance against performance indicators and document in supplier performance report.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Continuously review alternative options for supply to enhance product supply and improve ethics and sustainability in supply chain.

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.

1. Evaluate suppliers.

1.1. Access and review relevant merchandise planning documents to determine supply needs and seek any required clarification.

1.2. Develop supplier selection criteria based on organisational supply needs and expectations.

1.3. Access and review supplier evaluation data to assess existing suppliers and determine ability to meet ongoing supply needs.

1.4. Identify and assess potential new suppliers against supplier selection criteria and determine ability to meet supply needs.

1.5. Assess ethical and sustainability performance of suppliers.

1.6. Shortlist preferred suppliers that meet supplier selection criteria and supply needs.

2. Conduct supplier negotiations.

2.1. Prepare for supplier negotiations and determine negotiables, non-negotiables and desired outcomes.

2.2. Communicate purchase and supply specifications to suppliers and ensure mutual understanding.

2.3. Negotiate supplier pricing, trading terms and delivery with preferred suppliers and select suppliers based on supply requirements.

2.4. Negotiate and agree on promotional activity with supplier.

2.5. Develop supplier performance indicators and evaluation criteria and gain supplier agreement.

2.6. Ensure consistent and agreed understanding of negotiation outcomes.

2.7. Ensure negotiations are conducted in a professional manner in the relevant cultural context.

3. Formalise supplier agreements.

3.1. Draft supplier contracts in line with organisational policies and procedures and legal requirements.

3.2. Seek advice from relevant personnel to confirm the legality and validity of draft contracts.

3.3. Finalise supplier contracts and obtain approval as required.

3.4. Distribute contracts to suppliers and resolve discrepancies or disagreements to ensure satisfaction of all parties.

3.5. Obtain signed copies of supplier contracts and store according to organisational policies and procedures.

4. Monitor supplier performance.

4.1. Review supplier performance against performance indicators and confirm contractual obligations are being met.

4.2. Take prompt corrective action in consultation with supplier where potential or actual problems occur.

4.3. Make any required amendments to contracts.

4.4. Evaluate supplier performance against performance indicators and document in supplier performance report.

4.5. Continuously review alternative options for supply to enhance product supply and improve ethics and sustainability in supply chain.

Required Skills and Knowledge

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Evaluate suppliers.

1.1. Access and review relevant merchandise planning documents to determine supply needs and seek any required clarification.

1.2. Develop supplier selection criteria based on organisational supply needs and expectations.

1.3. Access and review supplier evaluation data to assess existing suppliers and determine ability to meet ongoing supply needs.

1.4. Identify and assess potential new suppliers against supplier selection criteria and determine ability to meet supply needs.

1.5. Assess ethical and sustainability performance of suppliers.

1.6. Shortlist preferred suppliers that meet supplier selection criteria and supply needs.

2. Conduct supplier negotiations.

2.1. Prepare for supplier negotiations and determine negotiables, non-negotiables and desired outcomes.

2.2. Communicate purchase and supply specifications to suppliers and ensure mutual understanding.

2.3. Negotiate supplier pricing, trading terms and delivery with preferred suppliers and select suppliers based on supply requirements.

2.4. Negotiate and agree on promotional activity with supplier.

2.5. Develop supplier performance indicators and evaluation criteria and gain supplier agreement.

2.6. Ensure consistent and agreed understanding of negotiation outcomes.

2.7. Ensure negotiations are conducted in a professional manner in the relevant cultural context.

3. Formalise supplier agreements.

3.1. Draft supplier contracts in line with organisational policies and procedures and legal requirements.

3.2. Seek advice from relevant personnel to confirm the legality and validity of draft contracts.

3.3. Finalise supplier contracts and obtain approval as required.

3.4. Distribute contracts to suppliers and resolve discrepancies or disagreements to ensure satisfaction of all parties.

3.5. Obtain signed copies of supplier contracts and store according to organisational policies and procedures.

4. Monitor supplier performance.

4.1. Review supplier performance against performance indicators and confirm contractual obligations are being met.

4.2. Take prompt corrective action in consultation with supplier where potential or actual problems occur.

4.3. Make any required amendments to contracts.

4.4. Evaluate supplier performance against performance indicators and document in supplier performance report.

4.5. Continuously review alternative options for supply to enhance product supply and improve ethics and sustainability in supply chain.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

develop supplier selection criteria for the supply of merchandise and use these criteria to document an evaluation of three different suppliers

conduct negotiations with one supplier to agree on supply arrangements:

supply specifications

cost

logistics

performance indicators

document the above agreements in a supplier contract and ensure:

compliance with legal and trading requirements

alignment with organisational policies and procedures related to supplier engagement

evaluate the performance of one supplier against performance indicators and prepare a supplier performance report.

Demonstrated knowledge required to complete the tasks outlined in the elements and performance criteria of this unit:

key aspects of supplier evaluation criteria

key aspects of legal and ethical compliance requirements as related to the supply of merchandise:

Trade Practices Act

ethical sourcing

environmental sustainability

contract law:

terms and obligations of contract

methods of contractual agreement

exclusion clauses

dispute resolution

termination of contracts

other legal requirements that impact negotiations and agreements in the relevant industry sector including consumer protection

supply chain and logistic considerations as related to supply arrangements:

customers

duties

taxes

freight

third-party arrangements

processes

factory locations and access

critical path and its role in supply arrangements:

launch and promotional dates

sample due dates

supplier holidays

freight timing

order due date

strategies and techniques for use in supplier negotiations

key aspects of supplier negotiations:

supply specifications

cost

logistics

performance indicators

supplier contract formats and inclusions

promotional-based supply arrangements in the retail industry

performance indicators for supplier evaluation:

level of service and responsiveness

reputation

financials

product quality

speed

delivery in-full and on-time

accuracy

ethical practices

techniques for measuring supplier performance against performance indicators.