Unit of competency details

Release 

Comments 

Release 1

This version first released with BSB07 Business Training Package version 6.0.

Revised unit. Required knowledge and Range Statement changed to include environmentally sustainable practices.

Replaces BSBPUR501B Develop, implement and review purchasing strategies

Element 

Performance Criteria 

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1. Determine purchasing objectives

1.1 Research and analyse the suitability of industry benchmarks for purchasing for the organisation

1.2 Analyse organisation’s purchasing data and information

1.3 Undertake consultations with relevant stakeholders  and personnel  to inform development of purchasing objectives

1.4 Draft purchasing objectives in line with organisation’s goals

1.5 Gain approval from relevant personnel for purchasing objectives

2. Develop purchasing strategies

2.1 Develop purchasing strategies , taking into account legal requirements  and purchasing objectives

2.2 Include five rights  in purchasing criteria

2.3 Develop human resource, financial and other plans to support implementation of purchasing strategies

2.4 Make changes resulting from feedback from relevant personnel about purchasing plans and strategies

2.5 Gain approval for plans to implement purchasing plans and strategies

3. Implement purchasing strategies

3.1 Communicate purchasing strategies to relevant personnel and stakeholders

3.2 Access resources  needed to implement purchasing strategies

3.3 Provide support  to implement purchasing strategies

3.4 Monitor implementation of purchasing strategies by the organisation

3.5 Identify and address problems and issues arising during implementation of purchasing strategies

3.6 Provide reports to relevant personnel and stakeholders on the implementation of purchasing strategies

4. Evaluate purchasing strategies and implement improvements

4.1 Review implementation of purchasing strategies

4.2 Identify improvements to purchasing strategies from review process

4.3 Gain approval to implement improvements to purchasing strategies

4.4 Communicate improvements to relevant stakeholders and provide support to implement improvements

4.5 Monitor and review implementation of improvements to determine their effectiveness

Overview of assessment 

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

Evidence of the following is essential:

• development of purchasing objectives and strategies for an organisation
• implementation of those purchasing strategies in an organisation
• evaluation and implementation of improvements to purchasing strategies in an organisation.

Context of and specific resources for assessment 

Assessment must ensure:

• access to an actual workplace or simulated environment
• access to office equipment and resources
• organisation’s purchasing strategies and relevant purchasing records.

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:

• analysis of responses to case studies and scenarios
• assessment of documented purchasing objectives and strategies
• direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
• oral or written questioning to assess knowledge
• review testimony from team members, colleagues, supervisors or managers
• review of authenticated documents from the workplace or training environment.

Guidance information for assessment 

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

• other purchasing units.

Relevant stakeholders  may include:

• clients
• contractors
• customers
• suppliers
• tenderers.

Personnel  may include:

• Board members
• CEOs
• coordinators
• internal users of purchased goods and services
• leaders
• managers
• owners
• relevant staff in other work sections
• staff in own work section, team members and colleagues
• supervisors.

Purchasing strategies  may include:

• criteria for evaluating purchasing performance
• different policies, procedures and strategies for different dollar values of purchases
• key performance indicators for purchasing
• limits of authority to approve purchases
• methodology for evaluating purchasing performance
• organisational and industry codes of conduct and ethics
• policies, procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers
• requirements for fairness and transparency in purchasing
• environmentally sustainable purchase and supply of goods and services.

Legal requirements  may include issues in relation to:

• access and equity
• accreditation, licence, patent and copyright
• codes of practice
• data collection, storage and retrieval
• ethical conduct and governance
• industrial relations
• insurance
• occupational health and safety
• operation, maintenance and service of tools, equipment, plant and machinery
• planning
• privacy and confidentiality
• professional development
• standards (Australian and international)
• warranties.

The five rights  are:

• right supplier:

• demonstrable expertise and experience
• due diligence requirements
• ethical conduct requirements
• evidence of past legal compliance
• requirements to use organisations linked by ownership, partnership, alliance or other arrangements

• right price:

• cost/price analysis
• value-for-money

• right quantity:

• supply guarantees

• right quality:

• confidentiality and probity requirements
• key performance indicators
• measures to manage risk
• quality accreditation

• right time:

• supply guarantees.

Resources  may include human, physical and other resources such as:

• documentation required for purchasing, such as proformas, order forms, standard tender documentation and basic standard contracts
• software systems for inventory management or online purchasing
• staff to undertake or assist with purchasing.

Support  may include:

• information sessions and briefings
• training programs
• written information including procedures and internet or intranet-based information.