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Evidence Guide: SITXINV601 - Establish stock purchasing and control systems

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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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SITXINV601 - Establish stock purchasing and control systems

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

Determine stock requirements.

  1. Use business data, forecasting methods and standard measures to calculate required stock levels.
  2. Determine stock requirements for standard business periods, peak seasons and special events.
  3. Establish cost-effective purchase quantities based on business information and supplier advice.
Use business data, forecasting methods and standard measures to calculate required stock levels.

Completed
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Teacher:
Evidence:

 

 

 

 

 

 

 

Determine stock requirements for standard business periods, peak seasons and special events.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Establish cost-effective purchase quantities based on business information and supplier advice.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Establish optimum supply arrangements.

  1. Evaluate quality of supply, based on feedback from colleagues and customers.
  2. Source and review potential suppliers.
  3. Develop appropriate and accurate purchase specifications.
  4. Assess suppliers against specifications considering all relevant factors.
  5. Assess terms of purchase and negotiate with suppliers to achieve optimum supply arrangements.
  6. Adjust sources of supply and make accurate records of agreements.
Evaluate quality of supply, based on feedback from colleagues and customers.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Source and review potential suppliers.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop appropriate and accurate purchase specifications.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assess suppliers against specifications considering all relevant factors.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Assess terms of purchase and negotiate with suppliers to achieve optimum supply arrangements.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Adjust sources of supply and make accurate records of agreements.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Develop and implement stock control systems.

  1. Develop stock control systems and communicate to all relevant staff.
  2. Develop special control systems for stock with high wastage or loss.
  3. Monitor workplace systems and make adjustments according to feedback and operational experience.
  4. Initiate training of staff to minimise stock wastage.
Develop stock control systems and communicate to all relevant staff.

Completed
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Teacher:
Evidence:

 

 

 

 

 

 

 

Develop special control systems for stock with high wastage or loss.

Completed
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Evidence:

 

 

 

 

 

 

 

Monitor workplace systems and make adjustments according to feedback and operational experience.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Initiate training of staff to minimise stock wastage.

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, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

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

Evidence of the ability to:

establish and implement cost effective stock purchasing and control systems for a diverse range of stock items

monitor stock control systems, stock quality and cost-effectiveness of supply over a period of time

integrate knowledge of various stock control reports and data required to calculate cost-effective purchasing.

Context of and specific resources for assessment

Assessment must ensure use of:

a real or simulated tourism, hospitality or event industry business operation for which stock is purchased and stock control systems are developed

computers, printers and stock control software systems currently used by the tourism, hospitality or event industry

current commercial purchase specifications, stock control procedures and reports, supplier cost and contractual documentation used for the purchase of stock

suppliers with whom the individual can interact and negotiate.

Method of assessment

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

projects and activities that allow assessment of the individual’s ability to:

determine stock levels for normal and peak operating seasons

use reports and supplier information to calculate cost-effective order quantities

develop a variety of tailored stock control systems

evaluate the performance of systems and make adjustments

review of documents prepared by the individual:

stock control procedures

purchase specifications

reports evaluating the quality and cost of supply

use of problem-solving activities so the individual can develop systems to control stock with high wastage or loss

written or oral questioning to assess knowledge of:

types of storage and their suitability for different kinds of stock

stock control systems used by the industry

a range of supply sources for different types of product

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:

BSBWRT401A Write complex documents

SITXFIN501 Prepare and monitor budgets.

Required Skills and Knowledge

Required skills

communication skills to negotiate complex supply arrangements and liaise with stock suppliers

critical thinking skills to assess supplier ability to meet the needs of the organisation and evaluate and determine optimum supply arrangements

initiative and enterprise skills to negotiate cost effective supply and maximise profitability

literacy skills to:

read and interpret complex supplier cost sheets, specific terms of purchase and supplier contracts

research potential suppliers, sort and analyse information to make decisions on supply arrangements

write complex and accurate purchase specifications and stock control system documents

numeracy skills to:

work with budgets

interpret complex stock performance, wastage and stocktake reports

calculate standard methods and measures

interpret supply costs and calculate cost effective quantities for purchase

planning and organising skills to plan, establish and monitor stock control systems

problem-solving skills to monitor the quality and cost of supply, identify deficiencies and adjust purchasing arrangements

self-management skills to take responsibility for purchase and stock control decisions

teamwork skills to discuss, review and incorporate feedback from team members

technology skills to use:

a computer and keyboard

the system capabilities and functions of a stock control system.

Required knowledge

for the specific industry sector:

forecasting methods for calculating required stock levels including formulas for yield testing and use of standard measures

methods to calculate cost-effective order quantities for different stock items

different types of computer stock control systems used, their functions and features

stock security systems

types of storage and their suitability for different kinds of stock

a range of supply sources for different types of product

formats for and inclusions of purchase specifications, including appropriate terminology

for the specific organisation:

relevant stock, including product life and storage requirements for specific goods

standard business periods, peak seasons and special events

reasons for stock loss and damage and methods to control these

a range of formats for, inclusions and uses of:

stock control procedures including those for stock with high wastage or loss

various stock control reports.

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, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Data may include:

historical sales figures

stocktake figures

supplier lead time

wastage reports.

Forecasting methods may include:

moving averages

popularity index

use of sales reports for future customer bookings

yield tests:

butcher’s test

standard measures

standard yield test.

Standard measures may include:

food portion size:

count

cup

scoop

slice

measure

volume

weight

fuel consumption for:

particular road, sea or air travel conditions

types of aircraft, sea vessels and land transport vehicles

expected customer numbers for:

events

peak season

standard business periods

standard recipes

standard yields.

Stock may include:

alcohol

cleaning agents and chemicals

customer travel products:

luggage labels

travel bags

travel wallets

tickets

vouchers

event supplies

food:

dairy products

canned products

dry goods

fresh goods

frozen goods

fruit

meat

oils

poultry

seafood

vacuumed sealed items

vegetables

fuel:

aircraft

coaches

hire cars

vessels

general stores

housekeeping supplies

linen

merchandise

non-alcoholic beverages:

juice

mixers

soft drink

tea and coffee

uniforms.

Purchase specifications may include:

budget

colour

deadlines for supply

delivery or pick up requirements

detailed description

expected supply cost

fresh or frozen food

general description

grade

numbers to be purchased

product name

quality

required labelling

size

special instructions or requirements

storage procedures

upper purchase price barrier

use for product

weight.

Relevant factors may include:

ability to meet all aspects of the specification

after sales service

competitive pricing

credit terms available

delivery service, including emergency delivery

lead time

minimum and maximum order quantities

product availability

references from other customers

trading hours.

Terms of purchase may include:

centralised or decentralised purchasing

competitive or open market buying

contract buying

cooperative buying

cost plus buying

credit terms

negotiated buying

one stop buying

sealed bid buying

volume buying and warehousing.

Stock control systems may involve:

bin cards

imprest

integrated pointofsale systems

ledgers

stock control procedures and template documents and reports for:

ordering

levels

loss

performance

monitoring of quality

receipt

reorder cycles

rotation

security

stocktakes

valuation

wastage

storage requirements for different kinds of stock

use of:

electronic stock control equipment

stock control software systems.

Special control systems may involve:

controlling ordering quantities

maintaining correct environmental conditions for the storage of perishable foodstuffs, including controls for:

temperature

light

humidity

procedures for:

correct handling of perishables to avoid spoilage of stock

issue quantities

issuing only to authorised persons

stock transfer to other departments

requisitioning

segregated storage of nonfood items from food items that have potential to cross-contaminate.