Unit of competency details

TLIL5055A - Manage a supply chain (Release 1)


Usage recommendation:
Is superseded by and equivalent to TLIL5055 - Manage a supply chainUpdated to align with the Standards for Training Packages. 18/Oct/2015
Supersedes and is equivalent to TLIL5507A - Manage a supply chain06/Mar/2011

ReleaseRelease date
1 1 (this release) 07/Mar/2011


SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 089901 Purchasing, Warehousing And Distribution  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 089901 Purchasing, Warehousing And Distribution  02/Sep/2011 
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Modification History

Not Applicable

Unit Descriptor

Unit Descriptor 

This unit involves the skills and knowledge required to manage a supply chain, including the relationships between an organisation and its supply and demand partners along the chain. It covers implementing a demand-driven supply chain management strategy, managing the supply chain, and evaluating and improving supply chain effectiveness. This unit has been derived from BSBPUR504A Manage a supply chain. Licensing, legislative, regulatory or certification requirements are applicable to this unit.

Application of the Unit

Application of the Unit 

Work may be undertaken in various contexts within the transport and distribution industry.

The unit generally applies to those who provide leadership of others individually or in teams.

This unit is normally packaged at AQF V or above.

Licensing/Regulatory Information

Refer to Unit Descriptor


Not Applicable

Employability Skills Information

Employability Skills 

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the required performance needed to demonstrate achievement of the element. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria



Implement demand-driven supply chain management strategy 

1.1 Responsibility for supply chain management within the organisation is assigned in accordance with supply chain management strategy

1.2 Technology and software for implementation of the supply chain management system is accessed and operationalised within the requirements of the strategy and budgetary allocation

1.3 Policies and procedures are designed to guide business relations and operations in accordance with the strategy

1.4 Supporting business processes are designed or re-designed to support implementation of the strategy

1.5 Support is provided to staff, customers and supply chain to assist in implementation of the supply chain management strategy

Manage supply chain 

2.1 Communication and information exchange with strategic partners and suppliers is managed in accordance with the supply chain management strategy

2.2 Collaboration with supply chain organisations is facilitated to determine demand at each level of the supply chain in accordance with the supply chain management strategy

2.3 Sales and payments are managed in accordance with supply chain and risk management strategies, and legal and ethical requirements

2.4 Actions to build trust and foster a supply chain culture are implemented in accordance with the supply chain management strategy

2.5 Opportunities are identified to adjust policies and procedures to respond to the changing needs of customers, supply chain and the organisation

Evaluate and improve supply chain effectiveness 

3.1 Demand chain management and supply chain management are monitored in accordance with the supply chain management strategy

3.2 The effectiveness of the supply chain is reviewed with each level of the supply chain, including staff and customers and areas identified for improvement

3.3 Business data and reports are used to compare outcomes, budgets, timelines and forecasts to actual performance

3.4 Technology performance is reviewed and recommendations are made for improvements to hardware, software and/or their use in accordance with strategy and budget

3.5 Feedback and evaluation results are used to plan and improve future supply chain management strategies

Required Skills and Knowledge


This describes the essential knowledge and skills and their level required for this unit.

Required knowledge :

  • Legislation, codes of practice and national and international standards, for example Trade Practices Act, Sale of Goods Act and contract law
  • Specific OH&S issues relevant to goods and services purchased
  • Legislation related to importation of commodities, if relevant
  • Organisation policies and procedures related to supply chain management, purchasing, and contracting and tendering
  • Business terms and conditions for purchasing, tendering and contracting
  • Ethical behaviour
  • Product knowledge related to goods and services required by the organisation
  • Ways to build trust and collaboration as opposed to competition
  • Procedures for operating electronic communications equipment
  • Requirements for completing relevant documentation

Required skills :

  • Negotiate and liaise with suppliers and relevant stakeholders using verbal skills
  • Use policy development and implementation support skills
  • Use appropriate technology, including software
  • Work with attention to detail and thoroughness
  • Focus on the customer
  • Work collaboratively with others
  • Adapt appropriately to cultural differences in the workplace, including modes of behaviour and interactions with others
  • Implement contingency plans for unplanned events such as problems arising during the implementation and management of the supply chain

Evidence Guide


The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required knowledge and skills, the range statement and the assessment guidelines for this Training Package.

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

  • The evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of applying:
  • the underpinning knowledge and skills
  • relevant legislation and workplace procedures
  • other relevant aspects of the range statement

Context of and specific resources for assessment 

  • Performance is demonstrated consistently over a period of time and in a suitable range of contexts
  • Resources for assessment include:
  • a range of relevant exercises, case studies and/or other simulated practical and knowledge assessment, and/or
  • access to an appropriate range of relevant operational situations in the workplace
  • In both real and simulated environments, access is required to:
  • relevant and appropriate materials and equipment, and
  • applicable documentation including workplace procedures, regulations, codes of practice and operation manuals

Method of assessment 

  • Assessment of this unit must be undertaken by a registered training organisation
  • As a minimum, assessment of knowledge must be conducted through appropriate written/oral tests
  • Practical assessment must occur:
  • through activities in an appropriately simulated environment at the registered training organisation, and/or
  • in an appropriate range of situations in the workplace

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.

Improvements in the supply chain may include:

  • the role of 'middlemen' or other middle supply chain elements being reduced or made redundant as newer more efficient supply chain methodologies and technologies are implemented
  • new value being created between producers and consumers

Demand chain management is:

  • a collaborative process that involves determining how much product needs to be produced at each level of the supply chain through to the end consumer

Support to staff and others may include:

  • policies, procedures and guidelines
  • intranet site information
  • workshops, briefings and training programs
  • written documentation in the form of manuals, help books, protocols
  • provision of a help-desk or contact persons
  • mentoring and coaching arrangements

Supporting business processes may include:

  • data input
  • administration
  • ordering
  • delivering and receiving
  • accounting
  • payments

Supply chain management is:

  • management of the entire cycle from raw materials to producers, component suppliers, manufacturers, wholesalers, third party service providers, retailers, customers and recyclers, plus freight, distribution and cash flow

Depending on the organisation concerned, workplace procedures may be called:

  • standard operating procedures (SOPs)
  • company procedures
  • enterprise procedures
  • organisational procedures
  • established procedures

Documentation and records may include:

  • relevant OH&S and environmental protection regulations
  • quality assurance procedures
  • documentation of policies and procedures associated with managing the supply chain strategy within the organisation
  • dangerous goods declarations and material safety data sheets, where applicable
  • goods manifest
  • relevant Australian Standards and certification requirements

Applicable legislation and regulations may include:

  • relevant industry codes of practice
  • relevant Australian and state/territory regulations and codes of practice
  • workplace relations regulations
  • Sale of Goods Act, Trade Practices Act
  • relevant legislation related to the importation of commodities, if relevant

Unit Sector(s)

Not Applicable

Competency Field

Competency Field 

L - Resource Management