SITXINV301 Purchase goods

Release 1

SITXINV301 Purchase goods

Modification History

The version details of this endorsed unit of competency set are in the table below. The latest information is at the top.

Version	Comments
1.0	New unit.

Unit Descriptor

This unit describes the performance outcomes, skills and knowledge required to determine the purchasing requirements for goods, source suppliers, discuss requirements and to assess the quality of goods before purchasing.

It does not cover the specialist skills to systematically purchase and control the supply of goods for an organisation. These skills are covered by the units:

SITXINV401 Control stock

SITXINV601 Establish stock purchasing and control systems.

Application of the Unit

This unit applies to the tourism, travel, hospitality and event industry sectors and covers the purchase of any type of goods including food and beverage supplies. Purchasing goods may involve: placing an order for future delivery or purchasing goods face-to-face and taking immediate delivery.

The unit can apply to operational personnel who operate with some level of independence and under limited supervision. This includes tour coordinators, account managers for professional conference organisers, event coordinators and banquet coordinators. In a kitchen environment it can apply to chefs of all levels including commis chefs, but in larger organisations purchasing often remains the responsibility of sous chefs and executive chefs.

Licensing/Regulatory Information

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

Pre-Requisites

Not applicable.

Employability Skills Information

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Not applicable.

Elements and 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. Determine purchasing requirements.	1.1 Access and interpret information and discuss the end product requirements with relevant personnel to ascertain goods to be purchased. 1.2 Check and assess quality and suitability of stock on hand before proceeding with new purchases. 1.3 Maximise use of suitable stock on hand to avoid wastage. 1.4 Use forecasting methods to calculate required quantity of goods. 1.5 Ascertain price limitations for the purchase of goods using job costings. 1.6 Develop purchase lists and prioritise purchasing requirements according to organisational deadlines.
2. Source suppliers and discuss requirements.	2.1 Source and review potential suppliers and comply with organisational procedures for the supply of goods. 2.2 Inform supplier of requirements and specifications. 2.3 Confirm availability of supply to meet the production requirements. 2.4 Seek price for the supply and negotiate costs within scope of individual responsibility and organisational policy. 2.5 Refer complex supply issues to a higher level staff member for action.
3. Assess quality of goods and make purchase.	3.1 Assess supplier capacity to meet price, quality and delivery expectations. 3.2 Complete an assessment of the quality of the goods. 3.3 Select supplier and purchase goods based on price, availability and quality and within scope of individual responsibility and organisational policy. 3.4 Keep accurate purchase records.

Required Skills and Knowledge

This section describes the skills and knowledge required for this unit.
Required skills
communication skills to: discuss product and purchase requirements with supervisors and managers provide clear directions to suppliers about product specifications and purchasing requirements conduct basic negotiations on the cost of goods critical thinking skills to assesses the quality of goods on offer by the supplier initiative and enterprise skills to purchase from the most cost effective supplier literacy skills to: read and interpret operational documents which describe the purchasing requirements e.g. recipes, menus, itineraries, event running sheets, and organisational procedures write purchase orders and descriptive purchase specifications for suppliers numeracy skills to interpret job costings and calculate supplier costs planning and organising skills to prioritise purchasing requirements according to organisational deadlines problem-solving skills to identify deficiencies in: current stock on hand and purchase new stock supplier quality and choose a more appropriate supplier teamwork skills to discuss production requirements with supervisors and managers to determine purchase requirements technology skills to use a calculator to assist with supply numbers and costs.
Required knowledge
for the specific industry sector and organisation: features of products sold and the expected level of quality formats for and contents of workplace documents that describe supply requirements forecasting methods for calculating required quantity of goods formats for and inclusions of job costings that describe purchase price limitations sources of product and supplier information sources of information on negotiated cost of supply, contractual arrangements and preferred supplier arrangements formats for and inclusions of supplier specifications for the purchase of goods full content of stock ordering procedures and documents individual stock ordering responsibilities.

Evidence Guide

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: interpret and confirm purchasing requirements and purchase a diverse range of goods to meet different end product requirements assesses supplier capacity to meet price, quality and delivery expectations integrate into purchasing activities, knowledge of stock ordering procedures and documents complete purchasing activities according to organisational deadlines.
Context of and specific resources for assessment	Assessment must ensure use of: a real or simulated tourism, hospitality or event business activity for which goods are purchased; for example: a function a kitchen operation a tour an event a diverse and comprehensive range of tourism, hospitality or event industry supply items that can be assessed for quality and suitability operational documentation, e.g. details of supplier contracts and job costings current commercial stock control procedures and documentation for the ordering of goods.
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: discussing purchase requirements with supervisors and managers negotiating the quality and cost of items with suppliers projects and activities that allow assessment of the individual’s ability to: assess the quality of goods on offer determine purchase requirements for particular business operation purchase goods to meet deadlines review of documents prepared by the individual: product specifications purchase lists use of problem-solving activities so the individual can suggest methods for resolving costly or substandard quality of supply written or oral questioning to assess knowledge of contractual arrangements, preferred supplier arrangements and stock ordering procedures review of portfolios of evidence and thirdparty workplace reports of onthejob 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: SITHCCC301 Produce poultry dishes SITHCCC302 Produce seafood dishes SITHCCC303 Produce meat dishes SITHCCC304 Produce and serve food for buffets SITTTSL201 Operate an online information system SITXFIN402 Manage finances within a budget.

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, 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.
Information may include:	buffet designs catering orders customer specifications: numbers special requests event orders event running sheets function orders menus operational itineraries for crew passenger itineraries passenger lists recipes reservation profiles rooming lists standard yields.
Relevant personnel may include:	chef event coordinator executive chef manager: event operations reservations sous chef supervisor.
Goods 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 fresh goods frozen goods fruit meat poultry seafood vegetables fuel: aircraft coaches hire cars vessels general stores housekeeping supplies linen merchandise non-alcoholic beverages: juice mixers soft drink tea and coffee uniforms.
Quality and suitability of stock on hand may involve:	ability to meet customer requirements: numbers special dietary requirements special requests ability to meet requirements of: event menu recipe touring itinerary for food: currency of best by or use by dates freshness size weight numbers of goods on hand.
Forecasting methods may include:	moving averages popularity index use of sales reports for future customer bookings yield tests: butcher’s test standard measures standard yield test.
Job costings may be specified in:	budgets customer quotations event costings itineraries menus recipes tour costings.
Suppliers may include:	any supplier who meets the production requirements of the end product contracted suppliers existing suppliers food markets new suppliers preferred suppliers retailers suppliers who meet quality and price specifications those located: interstate locally overseas wholesalers.
Organisational procedures for the supply of goods may involve:	completing purchase orders gaining authority to purchase limitations on which suppliers can be used who is authorised to negotiate and purchase.
Specifications may include:	budget colour deadlines for supply delivery or pick up requirements detailed description expected supply cost fresh or frozen food general description grade numbers to be purchased product name quality required labelling size special instructions or requirements storage procedures upper purchase price barrier use for product weight.
Assessment may involve:	comparing price with previous supply costs visual assessment taste test checking on other customers’ satisfaction with the supplier.
Quality of the goods may involve:	ability to meet: customer specifications organisational quality specifications portion requirements currency of best by or use by dates freshness size weight.
Purchase goods may involve:	placing an order for future delivery purchasing goods face-to-face and taking immediate delivery.

Unit Sector(s)

Cross-Sector

Competency Field

Inventory