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Unit of competency details

BSBPUR502 - Manage supplier relationships (Release 1)

Summary

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Is superseded by and equivalent to BSBPRC502 - Manage supplier relationships 26/Sep/2018
Supersedes and is equivalent to BSBPUR502B - Manage supplier relationshipsUpdated to meet Standards for Training Packages 24/Mar/2015

Releases:
ReleaseRelease date
1 1 (this release) 25/Mar/2015


Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  30/Jul/2015 
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Unit of competency

Modification History

Release 

Comments 

Release 1

This version first released with BSB Business Services Training Package Version 1.0.

Application

This unit describes the skills and knowledge required to manage relationships with suppliers of larger purchases or multiple smaller purchases, where the relationship is of some significance to the organisation. It covers managing purchasing agreements, resolving disagreements with suppliers, finalising agreements, and reviewing the performance of suppliers.

It applies to individuals who manage relationships with an organisation’s suppliers, and is typically undertaken by a senior purchasing officer or purchasing manager.

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

Unit Sector

Administration – Purchasing and Contracting

Elements and Performance Criteria

ELEMENT 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Manage purchasing agreements

1.1 Monitor supplier performance throughout the duration of agreements

1.2 Identify, monitor and manage risks in risk management plans throughout the duration of agreements

1.3 Identify and address potential and actual performance issues

1.4 Negotiate and resolve amendments to agreements as a consequence of addressing performance issues

1.5 Seek and obtain approval for amendments

1.6 Communicate approved amendments to suppliers and relevant personnel

2. Resolve disagreements with suppliers

2.1 Identify and investigate causes of disagreements with suppliers and assess their validity

2.2 Negotiate and resolve disagreements

2.3 Document amendments to agreements as a consequence of the resolution of disagreements

2.4 Seek and obtain approval for amendments

2.5 Communicate approved amendments to suppliers and relevant personnel

3. Finalise agreements

3.1 Confirm all supplier obligations as having been met prior to agreements being finalised

3.2 Finalise purchasing agreements on completion of contract

3.3 Document arrangements to finalise agreements

4. Review performance of suppliers

4.1 Evaluate supplier performance against the requirements of purchasing agreements

4.2 Inform suppliers of evaluation outcomes as required

4.3 Make recommendations about future use of suppliers to relevant personnel

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.

Skill 

Performance 

Criteria 

Description 

Reading

1.1, 1.2, 1.4, 2.1, 2.5, 3.1-3.3, 4.1

  • Interprets textual information from a range of sources and determines how content may be applied to organisational requirements

Writing

1.5, 1.6, 2.3-2.5, 3.3, 4.1, 4.2, 4.3

  • Documents amendments to agreements
  • Develops documentation according to organisational formats

Oral Communication

1.4-1.6, 2.1, 2.2, 2.5, 3.1, 4.2, 4.3

  • Communicates verbally using clear language and appropriate features to provide information to a variety of individuals
  • Uses active listening and questioning techniques to convey and clarify information

Numeracy

3.2

  • Interprets financial information within purchasing agreements

Navigate the world of work

3.2, 4.1

  • Understands legal and organisational obligations that underpin agreements and contracts

Interact with others

1.4-1.6, 2.1, 2.2, 2.4, 2.5, 3.1, 4.2, 4.3

  • Liaises with suppliers and relevant personnel to gain agreement on required performance levels
  • Selects the appropriate form, channel and mode of communication for a specific purpose relevant to own role

Get the work done

1.1-1.3, 2.1, 2.3, 4.1-4.3

  • Plans and implements tasks required to manage agreements, including negotiating and coordinating input from others
  • Uses analytical processes to decide on a course of action, establishing criteria for deciding between options, and seeking input and advice from others
  • Uses systematic, analytical processes to identify and solve performance problems

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 

Comments 

Equivalence status 

BSBPUR502 Manage supplier relationships

BSBPUR502B Manage supplier relationships

Updated to meet Standards for Training Packages

Equivalent unit

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10

 

Assessment requirements

Modification History

Release 

Comments 

Release 1

This version first released with BSB Business Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • successfully manage relationships with suppliers over the life of specific purchasing agreements
  • resolve a dispute with a supplier
  • finalise an agreement with a supplier
  • evaluate supplier performance and formulate recommendations about future use of supplier.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • identify key provisions of relevant legislation that affect purchasing and contracting
  • identify and describe methodologies to monitor, review and evaluate supplier performance
  • identify and outline organisation’s policies and procedures related to:
  • conduct and ethics
  • purchasing
  • tendering and contracting.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the administration – purchasing and contracting field of work and include access to:

  • organisation policies and procedures
  • purchasing strategies and relevant purchasing records
  • office equipment and supplies
  • case studies and, where possible, real situations
  • interaction with others.

Assessors must satisfy NVR/AQTF assessor requirements.

Links

Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=11ef6853-ceed-4ba7-9d87-4da407e23c10