Modification History
The version details of this endorsed unit are in the table below. The latest information is at the top.
Release |
Comments |
Second Release |
Editorial updates |
Unit Descriptor
This unit describes the performance outcomes, skills and knowledge required to develop and evaluate the systems, policy and procedures necessary to manage purchasing and procurement activities.
Application of the Unit
This unit applies to personnel who work with businesses in the supply chain that provide products and services required by a business to meet operational and customer requirements.
Licensing/Regulatory Information
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Pre-Requisites
Nil
Employability Skills Information
This unit contains employability skills.
Elements and Performance Criteria Pre-Content
Elements and Performance Criteria
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. Manage ongoing performance of purchasing and procurement strategies. |
1.1.Develop policy and procedures for management of purchasing and procurement activities . 1.2.Develop formal policy and procedures for processing purchases, including methods for requesting and receiving supply . 1.3.Establish benchmarks for measuring efficiency of purchase systems and suppliers of purchased products and services. 1.4.Develop communication and data exchange systems with product and service suppliers. 1.5.Devise strategies to maximise efficiency and effectiveness of input processes to the business. |
2. Evaluate existing purchasing systems. |
2.1.Analyse effectiveness of assets and resource management within the purchasing system. 2.2.Set value adding determinants for each purchase. 2.3.Investigate inconsistencies or non conformance of purchasing with legal agreements . 2.4.Investigate and resolve inconsistencies or non conformance of purchasing and supply arrangements with formal policy and procedures and relevant legislation . |
Required Skills and Knowledge
This section describes the essential skills and knowledge and their level, required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package. |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the following is essential:
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Context of and specific resources for assessment |
Assessment must ensure access to:
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Methods of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
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Guidance information for assessment |
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended. |
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 in the performance criteria is detailed below. |
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Policy and procedures may relate to: |
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Procurement or purchasing activities may include: |
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Methods for requesting and receiving supply may include: |
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Purchase systems may be: |
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Communication and data exchange systems may include: |
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Input processes may include: |
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Resource management may relate to: |
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Value adding determinants may include: |
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Legal agreements may relate to: |
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Purchasing and supply arrangements may include: |
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Relevant legislation may include: |
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Unit Sector(s)
Cross-Sector
Competency field
Inventory