ELEMENT S 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

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

1 

Determine purchasing objectives 

1.1

Industry benchmarks for purchasing are researched and analysed for organisational suitability

1.2

Organisation’s purchasing data and information are analysed

1.3

Consultations are undertaken with relevant stakeholders and personnel to inform development of purchasing objectives

1.4

Purchasing objectives are drafted in line with organisational goals

1.5

Approval is gained from relevant personnel for purchasing objectives

2 

Develop purchasing strategies 

2.1

Purchasing strategies are developed, taking into account legal requirements and purchasing objectives

2.2

Five Rights are included in purchasing criteria

2.3

Human resources, financial and other plans are developed to support the implementation of purchasing strategies

2.4

Approval is gained to implement plans and purchasing strategies

2.5

Changes resulting from approval processes are made to plans and strategies, as required

3 

Implement purchasing strategies 

3.1

Purchasing strategies are communicated to relevant personnel and stakeholders

3.2

Resources needed to implement purchasing strategies are identified and accessed

3.3

Support is provided to implement purchasing strategies

3.4

Implementation of purchasing strategies by the organisation is monitored

3.5

Problems and issues arising during implementation are identified and addressed

3.6

Reports are provided to relevant personnel and stakeholders on implementation of purchasing strategies

4 

Evaluate purchasing strategies and implement improvements 

4.1

Implementation of purchasing strategies is reviewed

4.2

Improvements to purchasing strategies are identified from review process

4.3

Approval is gained to implement improvements to purchasing strategies

4.4

Improvements are communicated to relevant stakeholders and support is provided to implement improvements

4.5

Implementation of improvements is monitored and reviewed to determine effectiveness of improvements

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria on at least one occasion and include:

• applying relevant legislation and workplace procedures
• communicating effectively with others when developing, implementing and reviewing purchasing strategies, including consulting and negotiating with stakeholders, writing policies and procedures, and supporting staff to implement strategies
• developing human resources, financial and other plans when developing, implementing and reviewing purchasing strategies
• identifying and addressing problems relating to developing, implementing and reviewing purchasing strategies
• monitoring, reviewing and evaluating purchasing strategies
• planning and prioritising work activities, and researching and analysing data
• preparing reports appropriate to developing, implementing and reviewing purchasing strategies
• reading and interpreting instructions, procedures and information relevant to work activities.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria and include knowledge of:

• concept of the ‘Five Rights’:

• right price
• right quality
• right quantity
• right supplier
• right time

• information about industry benchmarks for purchasing, including information from peak bodies, industry associations and Australian standards
• organisational policies and procedures related to purchasing; contracting and tendering; business terms and conditions for purchasing, tendering and contracting; and ethical behaviour
• product knowledge related to goods and services required by the organisation
• relevant legislation, codes of practice, national and international standards, such as Trade Practices Act, contract law, sale of goods legislation, and legislation related to the import of goods and services.