Unit of competency Outline

Date retreived
22/07/2026 7:57 PM AWST

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Manage suppliers

Manage suppliers

Unit of competency
National Code
SIRXINV407
State Code
WD968
TGA Status
Deleted
DTWD Status
Deleted
Current Release Number
1.00
Current Release Date
13/06/2012
State Implementation and Classification
Approved Date
12/11/2012
Field of Education
080501 - Sales
Original Release Date
12/11/2012
Nominal Hours
25
Description
This unit describes the performance outcomes, skills and knowledge required to identify and engage new suppliers, establish and sustain supplier relationships, negotiate supply of goods, monitor supplier performance and discontinue unsatisfactory suppliers.
Notes
Elements and Performance Criteria
1. Develop and manage suppliers.
  • 1.1.Establish performance indicators for supplier performance, according to store policy.
  • 1.2.Identify and engage new suppliers with required merchandise range and determine their ability to meet performance indicators.
  • 1.3.Develop cooperative relationships with supplier representatives according to store policy.
  • 1.4.Monitor performance of existing suppliers against performance indicators.
  • 1.5.Discontinue relations with existing suppliers who do not meet performance indicators, according to store policy.
2. Negotiate and manage supply of goods.
  • 2.1.Negotiate and implement arrangements with suppliers according to store policy and procedures, and communicate to relevant personnel.
  • 2.2.Authorise special pricing arrangements and customer payment agreements and communicate to relevant staff and management according to store policy.
  • 2.3.Monitor records of suppliers and stock for accuracy and legibility and take appropriate action where necessary.
  • 2.4.Identify market factors affecting supply and communicate to relevant personnel.
  • 2.5.Produce complete and accurate records of negotiations and agreements, and convey to relevant personnel within designated timelines.
  • 2.6.Take immediate corrective action where potential or actual problems with supply are indicated.
  • 2.7.Analyse, evaluate and amend stock range and source of supply according to feedback from management, staff and customers.
3. Monitor merchandise quality control.
  • 3.1.Confirm merchandise quality standards with suppliers according to legal requirements, customer requirements and store policy.
  • 3.2.Monitor and ensure quality of merchandise during supply, manufacture and delivery processes.
  • 3.3.Record and analyse stock return figures against target figures.
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 individual, accessibility of the item, and local industry and regional contexts) may also be included.
Performance indicators may include:
merchandise range
performance
price
profitability
quality
service
supply reliability.
Negotiationprocess may include:
strategies to maximise profits
terms of trade.
Pricing arrangements may include:
cash on delivery (COD)
cheque
credit card
invoice
GST.
Market factors may include:
fashion trends
product availability
sales performance.
Legal requirements may include:
licence, patent or copyright arrangements
pricing procedures, including GST requirements
sale of second-hand goods
Australian Consumer Law.
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.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
applies store policy and procedures, industry codes of practice, statutory requirements and regulations in regard to managing suppliers
identifies suppliers and maintains supplier relations
monitors quality control
negotiates supply of goods
rationalises stock.
Context of and specific resources for assessment
Assessment must ensure access to:
a retail work environment
organisational buying policy and procedures
relevant store systems, information and documentation, including:
a stock management system
records of suppliers and stock range
stock returns data.
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:
observation of performance in the workplace
customer feedback
written or verbal questioning to assess knowledge and understanding
review of portfolios of evidence and third-party workplace reports of on-the-job performance.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Replaces
State Code National Code Title Type
S6144 SIRXINV004A Buy merchandise Unit of competency
State Code National Code Title Type
J151 SIR50112 Diploma of Retail Management Qualification
J150 SIR40212 Certificate IV in Retail Management Qualification