Unit of competency details

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Replaces but is not equivalent to SITXINV002A Control and order stock.

Title simplified. Re-worked Elements, Performance Criteria, Required Skills and Knowledge to more fully articulate content. Technology skills and knowledge added. Prerequisites removed.

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. Maintain stock levels and records.

1.1 Use stock control systems  and equipment to administer all stock control and ordering processes.

1.2 Monitor and maintain stock  levels to meet organisational requirements.

1.3 Monitor stock security and adjust procedures as required.

1.4 Inform colleagues of their individual stock ordering responsibilities.

1.5 Maintain records of stock levels and create reports according to organisational procedures.

1.6 Monitor stock performance, and identify and report fast or slow selling items.

1.7 Monitor and adjust stock reorder cycles.

2. Process stock orders.

2.1 Process orders  for stock according to organisational procedures.

2.2 Maintain stock levels and record current accurate details.

2.3 Check and record incoming stock against purchase and supply agreements.

3. Minimise stock losses.

3.1 Regularly check the storage of stock and ensure its protection .

3.2 Identify, record and report stock losses .

3.3 Identify avoidable losses and establish reasons for them.

3.4 Recommend solutions and implement procedures to prevent future losses.

4. Follow up orders.

4.1 Monitor the delivery of stock to ensure agreed deadlines are met.

4.2 Liaise with suppliers to ensure continuity of supply.

4.3 Resolve routine supply problems or refer to appropriate person for action.

4.4 Distribute stock within the organisation according to required allocations.

5. Organise and administer stocktakes.

5.1 Organise stocktakes at appropriate intervals.

5.2 Allocate stocktaking responsibilities to staff and supervise the operation of the stocktake.

5.3 Produce accurate stocktake reports within designated timelines.

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

Required skills 

• communication skills to:

• liaise with suppliers about deliveries and discrepancies
• discuss reasons for stock losses with staff
• provide clear directions to staff about their stocktaking responsibilities

• critical thinking skills to analyse stock performance, and identify fast or slow-selling items
• literacy skills to:

• read and interpret supplier purchasing agreements, purchase orders, records of incoming stock and organisational procedures
• write detailed reports on stock levels, performance, losses and stocktakes

• numeracy skills to calculate supplier costs and complex order costs, reconcile incoming stock and invoices against purchase orders, calculate complex details of stock on hand and stock losses and produce complex numerically based reports
• planning and organising skills to efficiently order and maintain stock so that stock levels meet organisational requirements
• problem-solving skills to identify reasons for stock losses, recommend solutions and implement procedures to prevent future losses
• teamwork skills to direct staff on ordering responsibilities and supervise staff participation in stocktakes
• technology skills to use:

• a computer and keyboard
• the system capabilities and functions of a stock control system
• electronic equipment used for stock control.

Required  knowledge 

• principles of stock control, including:

• rotation and replenishment
• product life cycle and maximising the use of all stock
• checking for slow moving items
• segregation of non-food items from food items that have potential to cross-contaminate

• for the specific industry sector:

• different types of computer stock control systems used, their functions and features
• electronic equipment used for stock control; their functions and features
• stock security systems
• types of storage and their suitability for different kinds of stock
• methods to monitor and maintain stock  levels

• for the specific organisation:

• relevant stock, including product life and storage requirements for specific goods
• departmental or individual stock ordering responsibilities
• full content of stock control and security procedures
• sources of information on negotiated cost of supply, contractual arrangements and preferred supplier arrangements
• full content of stock ordering procedures and documents
• stock reorder cycles
• stock level reports
• stock performance reports
• stock loss reports
• full content of stocktake procedures, documents and reports

• reasons for stock loss and damage and methods to control these.

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 ability to:

• order, control and administer continuous and efficient supply of a diverse range of stock
• monitor and maintain stock levels over a stock life-cycle period which includes a stocktake
• produce and distribute multiple and diverse stock control reports
• complete stocktakes
• integrate, into daily work activities, knowledge of stock control procedures
• complete stock order and reporting activities within commercial time constraints.

Context of and specific resources for assessment 

Assessment must ensure use of:

• a real or simulated tourism, hospitality or event industry stock control environment where stock levels are monitored and maintained
• computers, printers and stock control software systems currently used by the tourism, hospitality or event industry
• electronic equipment used for stock control
• a diverse and comprehensive range of tourism, hospitality or event industry stock items that are monitored and maintained
• current commercial stock control procedures and documentation for the ordering, monitoring and maintenance of stock.

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:

• direct observation, using role plays, of the individual:

• resolving stock delivery issues with suppliers
• supervising the operation of a stocktake

• projects and activities that allow assessment of the individual’s ability to:

• process stock orders
• monitor and maintain stock levels over a stock life-cycle period which includes a stocktake

• review of reports prepared by the individual:

• stock level
• stock performance
• stock loss

• use of problem-solving activities so the individual can suggest methods for minimising stock losses
• written or oral questioning to assess knowledge of the principles of stock control, procedures for stock management and stocktakes
• review of portfolios of evidence and third-party workplace reports of on-the-job performance by the individual.

Guidance information for assessment 

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:

• BSBWRT401A Write complex documents
• SITXMGT401 Monitor work operations
• SITXWHS401 Implement and monitor work health and safety practices.

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.

Stock control systems  may involve:

• bin cards
• imprest
• integrated point-of-sale systems
• ledgers
• stock control procedures, template documents and reports for:

• ordering
• levels
• loss
• performance
• monitoring of quality
• receipt
• reorder cycles
• rotation
• security
• stocktakes
• valuation
• wastage

• storage requirements for different kinds of stock
• use of :

• electronic stock control equipment
• stock control software systems.

Stock  may include:

• alcohol
• cleaning agents and chemicals
• customer travel products:

• luggage labels
• travel bags
• travel wallets
• tickets
• vouchers

• event supplies
• food:

• dairy products
• dry goods
• frozen goods
• fruit
• meat
• poultry
• seafood
• vegetables

• fuel:

• aircraft
• coaches
• hire cars
• vessels

• general stores
• housekeeping supplies
• linen
• merchandise
• non-alcoholic beverages:

• mixers
• juice
• soft drink
• tea coffee

• uniforms.

Process orders  may involve:

• any method of ordering:

• electronic
• email
• on-line
• telephone
• face-to-face

• placing an order for future delivery
• purchasing goods face-to-face and taking immediate delivery.

Protection  may involve:

• avoiding cross contamination
• correct application of humidity and temperature controls
• correct ventilation
• securing stock
• storing stock in correct location and conditions to avoid damage
• treating pest and vermin infestations.

Stock losses  may involve:

• inappropriate storage conditions
• lack of rotation leading to product deterioration
• overstocking
• pests or vermin
• theft.