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Evidence Guide: SIRXINV006A - Develop purchasing strategies

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

 

SIRXINV006A - Develop purchasing strategies

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

Manage ongoing performance of purchasing and procurement strategies.

  1. Develop policy and procedures for management of purchasing and procurement activities.
  2. Develop formal policy and procedures for processing purchases, including methods for requesting and receiving supply.
  3. Establish benchmarks for measuring efficiency of purchase systems and suppliers of purchased products and services.
  4. Develop communication and data exchange systems with product and service suppliers.
  5. Devise strategies to maximise efficiency and effectiveness of input processes to the business.
Develop policy and procedures for management of purchasing and procurement activities.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop formal policy and procedures for processing purchases, including methods for requesting and receiving supply.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Establish benchmarks for measuring efficiency of purchase systems and suppliers of purchased products and services.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop communication and data exchange systems with product and service suppliers.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Devise strategies to maximise efficiency and effectiveness of input processes to the business.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Evaluate existing purchasing systems.

  1. Analyse effectiveness of assets and resource management within the purchasing system.
  2. Set value adding determinants for each purchase.
  3. Investigate inconsistencies or non-conformance of purchasing with legal agreements.
  4. Investigate and resolve inconsistencies or non-conformance of purchasing and supply arrangements with formal policy and procedures and relevant legislation.
Analyse effectiveness of assets and resource management within the purchasing system.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Set value adding determinants for each purchase.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Investigate inconsistencies or non-conformance of purchasing with legal agreements.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Investigate and resolve inconsistencies or non-conformance of purchasing and supply arrangements with formal policy and procedures and relevant legislation.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

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

Evidence of the following is essential:

development of purchasing strategies to deliver business outcomes in consultation with suppliers

effective evaluation and ongoing development of a purchasing strategy

development and implementation of formal policy and procedures to apply and support legally compliant purchasing strategies within a business.

Context of and specific resources for assessment

Assessment must ensure access to:

a wholesale or retail work environment

relevant information and documentation, including:

formal policy and procedures

relevant legislation and statutory requirements

industry codes of practice

merchandise and supplier data.

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

observation of performance in the workplace

third-party reports from a supervisor

a case study

written or verbal questioning to assess knowledge and understanding

review of portfolios of evidence and third-party workplace reports of on-the-job performance.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.

Employability skills embedded in this unit should be assessed holistically in the context of the job role and with other relevant units that make up the skill set or qualification.

Required Skills and Knowledge

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

The following skills must be assessed as part of this unit:

develop strategies to maximise efficiency of input

use written forms of communication effectively

complete consultation to generate effective purchasing strategies

plan workload with a strong focus on attainment of planned outcomes.

The following knowledge must be assessed as part of this unit:

relationships with stakeholders and market

formal policy and procedures in regard to:

purchase and supply relationships

processing purchases

interaction with customers and suppliers

resource management

quality control

OHS

benchmarks for efficiency of supplier relationships

communication and data exchange interfaces with suppliers

legal relationship arrangements with suppliers to facilitate identification and resolution of problems and enquiries

relevant legal, administrative and business supply requirements.

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. Bold italicised wording in the performance criteria is detailed below.

Policy and procedures may relate to:

purchase and supply relationships

processing purchases

interaction with customers and suppliers

resource management

quality control.

Procurement or purchasing activities may include:

requisitions

tenders

competitive bids

production schedules

electronic data interchange (EDI)

just in time

ordering

bills of materials

stock and supply agreements.

Methods for requesting and receiving supply may include:

quotations

public offers

contracts

expressions of interest

requested proposals

open or restricted tendering and contracting

request for proposal

request for quotation

request for tender

request for offer

direct purchases using existing supply agreements such as standing offers

common-use arrangements

direct purchase from retail or wholesale outlets

e-commerce.

Purchase systems may be:

manual

electronic

automated.

Communication and data exchange systems may include:

electronic data exchange

telephone

fax

email

letter

face-to-face.

Input processes may include:

checking and receiving incoming stock

processes to report problems with deliveries

recording incoming inventory

pricing, labelling and storage of inventory

quality control policy and procedures.

Resource management may relate to:

people

materials

equipment and technology

budget

time.

Value adding determinants may include:

appropriateness

warranties and post-purchase support

price

timeliness of supply

variation from supply specification

supplier relationships.

Legal agreements may relate to:

licence, patent or copyright arrangements

pricing agreements.

Purchasing and supply arrangements may include:

price

quality

supply reliability

merchandise.

Relevant legislation may include:

industry codes of practice

transport, storage and handling of goods

sale of second-hand goods

Trade Practices and Fair Trading Acts

pricing procedures, including GST requirements.