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Evidence Guide: TLIR5006A - Develop, implement and review 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

 

TLIR5006A - Develop, implement and review purchasing strategies

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

Determine purchasing objectives

  1. Industry benchmarks for purchasing are researched and analysed for suitability to organisation
  2. Organisation's purchasing data and information are analysed
  3. Consultations are undertaken with relevant stakeholders and personnel to inform development of purchasing objectives
  4. Purchasing objectives in line with organisation's goals are drafted
  5. Approval is gained from relevant personnel for purchasing objectives
Industry benchmarks for purchasing are researched and analysed for suitability to organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Organisation's purchasing data and information are analysed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consultations are undertaken with relevant stakeholders and personnel to inform development of purchasing objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Purchasing objectives in line with organisation's goals are drafted

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Approval is gained from relevant personnel for purchasing objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop purchasing strategies

  1. Purchasing strategies are developed, taking into account legal requirements and purchasing objectives
  2. Purchasing criteria include the five rights
  3. Human resource, financial and other plans are developed to implement purchasing strategies
  4. Approval is gained for plans to implement purchasing strategies
  5. Changes resulting from approval process are made to plans and strategies, as required
Purchasing strategies are developed, taking into account legal requirements and purchasing objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Purchasing criteria include the five rights

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Human resource, financial and other plans are developed to implement purchasing strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Approval is gained for plans to implement purchasing strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Changes resulting from approval process are made to plans and strategies, as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement purchasing strategies

  1. Purchasing strategies are communicated to relevant personnel and stakeholders
  2. Resources needed to implement purchasing strategies are accessed
  3. Support is provided to implement purchasing strategies
  4. Implementation of purchasing strategies by the organisation is monitored
  5. Problems and issues arising during implementation are identified and addressed
  6. Reports are provided to relevant personnel and stakeholders on implementation of purchasing strategies
Purchasing strategies are communicated to relevant personnel and stakeholders

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Resources needed to implement purchasing strategies are accessed

Completed
Date:

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Support is provided to implement purchasing strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implementation of purchasing strategies by the organisation is monitored

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Problems and issues arising during implementation are identified and addressed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reports are provided to relevant personnel and stakeholders on implementation of purchasing strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate purchasing strategies and implement improvements

  1. Implementation of purchasing strategies is reviewed
  2. Improvements to purchasing strategies are identified from review process
  3. Approval is gained to implement improvements to purchasing strategies
  4. Improvements are communicated to relevant stakeholders and support is provided to implement improvements
  5. Implementation of improvements is monitored and reviewed to determine effectiveness of improvements
Implementation of purchasing strategies is reviewed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Improvements to purchasing strategies are identified from review process

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Approval is gained to implement improvements to purchasing strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Improvements are communicated to relevant stakeholders and support is provided to implement improvements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implementation of improvements is monitored and reviewed to determine effectiveness of improvements

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 knowledge and skills, the range statement and the assessment guidelines for this Training Package.

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

The evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of applying:

the underpinning knowledge and skills

relevant legislation and workplace procedures

other relevant aspects of the range statement

Context of and specific resources for assessment

Performance is demonstrated consistently over a period of time and in a suitable range of contexts

Resources for assessment include:

a range of relevant exercises, case studies and/or other simulated practical and knowledge assessment, and/or

access to an appropriate range of relevant operational situations in the workplace

In both real and simulated environments, access is required to:

relevant and appropriate materials and equipment, and

applicable documentation including workplace procedures, regulations, codes of practice and operation manuals

Method of assessment

Assessment of this unit must be undertaken by a registered training organisation

As a minimum, assessment of knowledge must be conducted through appropriate written/oral tests

Practical assessment must occur:

through activities in an appropriately simulated environment at the registered training organisation, and/or

in an appropriate range of situations in the workplace

Required Skills and Knowledge

REQUIRED KNOWLEDGE AND SKILLS

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

Required knowledge:

Legislation, codes of practice, national and international standards, for example Trade Practices Act, contract law, sale of goods legislation, and legislation related to the import of goods and services, if relevant

Occupational health and safety (OH&S) issues relevant to goods and services purchased by the organisation

Organisation policies and procedures related to purchasing; contracting and tendering; business terms and conditions for purchasing, tendering and contracting; and ethical behaviour

Product knowledge related to goods and services required by the organisation

Information about industry benchmarks for purchasing, including information from peak bodies and industry associations and Australian Standards

Required skills:

Communicate effectively with others when developing, implementing and reviewing purchasing strategies, including consulting and negotiating with stakeholders, using writing skills to document policies and procedures, and supporting staff to implement strategies

Read and interpret instructions, procedures and information relevant to work activities

Prepare reports appropriate to the development, implementation and review of purchasing strategies

Plan and prioritise work activities and research and analyse data

Develop human resource, financial and other plans when developing, implementing and reviewing purchasing strategies

Use monitoring, review and evaluation skills when developing, implementing and reviewing purchasing strategies

Identify and address any problems relating to the development, implementation and review of purchasing strategies

Adapt appropriately to cultural differences in the workplace, including modes of behaviour and interaction with others

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.

Relevant stakeholders may include:

clients and customers

tenderers, suppliers and contractors

Relevant personnel may include:

internal users of purchased goods and services

owner and Board

CEO, managers, leaders, coordinators, supervisors and other persons authorised to commit the organisation to purchases

specialist personnel involved in purchasing, asset maintenance and finance

Purchasing strategies include:

policies, procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers

criteria for evaluating purchasing performance

methodology for evaluating purchasing performance

key performance indicators for purchasing

different policies, procedures and strategies for different dollar values of purchases

limits of authority to approve purchases

requirements for fairness and transparency in purchasing

organisational and industry codes of conduct and ethics

Legal requirements may include issues in relation to:

access and equity

codes of practice

data collection, storage and retrieval

ethical conduct and governance

industrial relations

insurance

accreditation, licence, patent and copyright

operation, maintenance and service of tools, equipment, plant and machinery

occupational health and safety

planning

privacy and confidentiality

professional development

standards (Australian and international)

warranties

The five rights are:

right supplier

due diligence requirements

demonstrable expertise and experience

evidence of past legal compliance

ethical conduct requirements

requirements to use organisations linked by ownership, partnership, alliance or other arrangements

right price

value-for-money

cost/price analysis

right quantity:

supply guarantees

right quality

confidentiality and probity requirements

measures to manage risk

key performance indicators

quality accreditation

right time

supply guarantees

Resources include:

human, physical and other resources such as:

software systems

staff to undertake or assist with purchasing

documentation required for purchasing, such as proformas, order forms, standard tender documentation and basic standard contracts

Further information may include:

training programs

written information including procedures and internet or intranet-based information

information sessions and briefings

Consultative processes may involve:

other employees and supervisors

relevant authorities and institutions

management and union representatives

industrial relations and OH&S specialists

Communication in the work area may include:

phone

electronic data interchange (EDI)

fax

email

internet

RF systems

oral, aural or signed communications

Depending on the organisation concerned, workplace procedures may be called:

standard operating procedures (SOPs)

company procedures

enterprise procedures

organisational procedures

established procedures

Documentation and records may include:

relevant workplace policies, procedures and codes of conduct relating to purchasing and business management

relevant OH&S and environmental protection regulations

quality assurance procedures

operations manuals, job specifications and induction documentation

relevant Australian Standards

Applicable legislation and regulations may include:

relevant legislation from all levels of government that affects business operation

relevant industry codes of practice

Australian and international regulations and codes of practice for the transport of dangerous goods and hazardous substances

relevant state/territory OH&S and environmental protection legislation

workplace relations regulations

award and enterprise agreements and relevant industrial instruments