Unit of competency details

Unit descriptor 

This unit specifies the outcomes required to determine purchasing requirements, and make and receive purchases.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Application of the unit 

This unit applies to individuals who conduct low risk, low expenditure purchasing for an organisation using established and documented purchasing strategies. The unit may be undertaken by someone working in a small organisation who has general responsibility for conducting purchasing within an organisation, or by a purchasing specialist working in a large organisation.

Some judgement may be required to make decisions in the implementation of purchasing strategies and work is generally conducted under the supervision of others.

Prerequisite units 

Employability skills 

This unit contains employability skills.

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.

ELEMENT 

PERFORMANCE CRITERIA 

1. Understand purchasing and own requirements

1.1. Read, understand and clarify organisation's purchasing strategies  as required

1.2. Determine own role and limits  of authority in consultation with relevant personnel 

2. Make purchases

2.1. Receive purchase specifications from relevant personnel and clarify as required

2.2. Select purchasing methods  most appropriate to particular purchases within limits of own role

2.3. Obtain approvals for purchases as required

2.4. Obtain quotations from suppliers as required

2.5. Select suppliers, place orders and make purchases

3. Receive purchases

3.1. Receive goods or make arrangements to receive services

3.2. Advise relevant personnel of receipt of purchase

3.3. Ensure goods received are checked for compliance with specifications

3.4. Take action to resolve non-compliance with specifications

3.5. Facilitate registration of new assets

3.6. File and store purchase records 

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities
• communication skills to liaise with suppliers and end users of purchases
• literacy skills to document purchases and write reports on purchasing activities
• information management and research skills to analyse and assess purchasing options and offers
• technology skills to use of software to keep records of purchases made
• data collection skills to keep records related to purchasing.

Required knowledge 

• codes of ethics and conduct
• identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

• consumer protection legislation
• contract law
• import of goods and services, where relevant
• sale of goods legislation
• Trade Practices Act

• organisation policy and procedures relating to:

• purchasing strategies
• record-keeping systems related to purchasing and assets
• standard contracting arrangements

• product knowledge about the goods and services being supplied
• purchasing and procurement principles for:

• accountability
• probity and transparency
• risk management
• value for money.

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 following is essential:

• obtaining quotes from prospective suppliers for a low risk, low expenditure good to be purchased
• selection of appropriate purchasing methods for a low risk, low expenditure purchase
• receipt, checking and documentation of a low risk, low expenditure purchase.

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 written reports documenting purchasing requirements and records of purchases made
• direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
• observation of obtaining quotes form suppliers
• oral or written questioning to assess knowledge
• review testimony from team members, colleagues, supervisors or managers.

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.

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.

Purchasing strategies  may include:

• criteria for making purchasing decisions
• legal requirements and policies and procedures that underpin strategies and that are relevant to role
• policies, procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers

Limits  may include:

• approval processes for purchases
• expenditure approval limits

Relevant personnel  may include:

• CEOs
• managers
• leaders
• coordinators
• supervisors
• other persons authorised to commit the organisation to purchases
• internal users of purchased goods and services
• owner
• Board members
• specialist personnel involved in purchasing, asset maintenance and finance

Purchasing methods  may include:

• credit card purchases
• direct purchases from retail outlets
• online purchases
• petty cash
• purchases using standing agreements or accounts with suppliers
• written and/or verbal quotations
• written and/or verbal supply agreements

Purchase records  may include:

• corporate credit card transaction documentation
• invoices, statements and payment requests
• petty cash vouchers
• purchase requests and orders
• receipt advices for goods and services
• records of supplier performance

Unit sector 

Competency field 

Administration - Purchasing and Contracting

Co-requisite units