Release 1.  This is the first release of this unit of competency in the TLI Transport and Logistics Training Package.

This unit of competency describes the skills and knowledge required to work with the fundamental aspects of supply chains. It includes determining fundamental aspects, monitoring fundamental aspects, implementing continuous improvement strategies and reporting on fundamental aspects.

Fundamental aspects of a supply chain includes all activities that relate to the integration, operation, purchasing and distribution of products and goods that are critical to the success of a business. Failure to manage the fundamental aspects of a supply chain can have a significant impact on the ability of a business to survive in the market place.

The unit is applicable to individuals working in supply chain management roles. Typically, they will work independently and perform complex tasks in a range of familiar and unfamiliar contexts.

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

Not applicable

X - Logistics

Cross sector

ELEMENTS 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

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

1 

Determine fundamental aspects  

1.1 

Status of fundamental aspects of the supply chain are verified

1.2 

Key Performance Indicators (KPIs) for fundamental aspects are identified from strategic supply chain documentation

1.3 

Supply chain planning and forecasting requirements are determined

1.4 

Vulnerabilities and opportunities in the supply chain are identified

1.5 

Digital systems and applications used to support fundamental aspects of the supply chain are confirmed

1.6 

Supply chain stakeholders are identified

1.7 

Level of authority for performance in the supply chain is verified

2 

Monitor fundamental aspects  

2.1 

Communication channels and strategies to engage supply chain stakeholders are reviewed

2.2 

Supply chain operations and outcomes are evaluated and actions to reduce vulnerabilities and achieve better value for money are developed

2.3 

Supplier capacity and capability is examined, in accordance with supply chain procedures, to ensure customer requirements are being met

2.4 

Stakeholder relationships are monitored, in accordance with supply chain procedures

2.5 

Supply chain purchasing channels and distribution outcomes are monitored, in accordance with supply chain procedures

2.6 

Legal, ethical, environmental, corporate social responsibility principles and sustainability issues are addressed, in accordance with supply chain policies and procedures

2.7 

Supply chain risks are managed and alternative strategies are developed, as required

3 

Implement continuous improvement strategies 

3.1 

Supply chain performance is baselined and measured against recognised industry benchmarks using approved methods and tools

3.2 

Supply chain flows and KPIs are examined to ensure fundamental aspects of the supply chain are working cohesively

3.3 

Stakeholder feedback is analysed to measure satisfaction

3.4 

Data on supply chain discrepancies and inconsistencies is analysed and remediation actions are implemented

3.5 

Digital systems and applications in the supply chain are reviewed for effectiveness

4 

Report on fundamental aspects  

4.1 

Trends and challenges in fundamental aspects of the supply chain are identified and reviewed, in accordance with supply chain procedures

4.2 

Strategies that support continuous improvement of fundamental aspects are evaluated and recommendations for improvement are developed

4.3 

Report on continuous improvement actions is prepared and disseminated to approved stakeholders

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Range is restricted to essential operating conditions and any other variables essential to the work environment.

Non-essential conditions may be found in the Companion Volume Implementation Guide.

This is a new unit. There is no equivalent unit.

Release 1.  This is the first release of this unit of competency in the TLI Transport and Logistics Training Package.

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

• addressing legal, ethical, envrionemental, corporate social responsibility principles and sustainability issues in supply chains
• analysing discrepencies, inconsistencies in data and stakeholder feedback
• applying supply chain policies and procedures
• implementing remediation actions
• determining:

• baseline measurements and industry benchmarks
• strategic supply chain documentation
• supply chain planning and forecasting requirements
• supply chain vulnerabilities and opportunities

• evaluating strategies that support continuous improvement
• examining supplier capacity and capability
• developing strategies and recommendations that support continuous improvement activities
• making recommendations for improvement
• managing risks and developing alternative strategies
• monitoring supply chain:

• commercial and customer relationships
• distribution and purchasing channels
• flows
• Key Performance Indicators (KPIs)
• operations and outcomes

• preparing reports that address trends and challenges in supply chain fundemental aspects
• reviewing digital systems, applications, communication strategies and channels
• verifying level of authority for performance.

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

• baseline measurements and industry benchmarks
• communication strategies and channels used in supply chains
• digital systems and applications used in fundemental aspects of a supply chain
• discrepancies, inconsistencies and remediation actions
• Key Performance Indicators (KPIs)
• legal, ethical, envrionementl and corporate social responsibility principles and sustainability issues
• supply chain policies and procedures
• report preparation
• requirements for planning and forecasting
• risk management and the development of alternative strategies
• supplier capabilities and capacities
• supply chain flows
• supply chain operations including:

• commercial agreements and contractual requirements
• customer service levels
• delivery time frames
• inventory flow and management
• investment returns and cost controls
• methods of pricing and payment terms
• product sourcing
• purchasing and distribution channels
• quality control standards
• value adds

• stakeholder relationships
• strategic supply chain documentation
• strategies that support continuous improvement activities
• trends and changes in fundemental aspects
• vulnerabilities and opportunities in fundemental aspects.

Assessors must hold credentials specified within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must satisfy the Principles of Assessment and Rules of Evidence and all regulatory requirements included within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so. Where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment must include access to a range of

• exercises, case studies or other simulations
• materials, tools and equipment used in industry
• documentation including organisational policies and procedures, industry standards, regulations, codes of practice, operational manuals and equipment specifications.