Elements and Performance Criteria

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 uses 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.
Demand patterns may include:
seasonal peaks and troughs
steady usage
rising usage
falling usage
discontinuous or asynchronous usage across time
periodic or irregular usage
once off usage
goods and services that are only used by particular specialists or in particular regions
Data sources may include:
financial management information systems (FMIS) such as chart of accounts
tender management and reporting systems (eg Austender)
contract management and reporting systems
HR systems
asset register
maintenance records
external sources such as UNSPC codes, ASIC codes, ABS data
Procurement spend may include:
all money actually spent on procurement of goods and services, whether this is by credit card, EFT or other means of payment
money spent on leasing
project or program expenditures on goods and services
grant funding
projected contractual obligations to spend in the future
Demand means:
the quantity of a well defined good or service that the organisation is willing to buy during a particular period of time in order to deliver its organisational outcomes
Consumption means:
the goods and services actually used up in the delivery of the organisation’s outcomes
Causal links may include:
seasonal demand
unplanned increase/decrease in activity
associated or indirect activities which impact
need to meet budget
cash flow fluctuations
stock holding policy
unanticipated needs being met
disaster relief
business continuity and disaster recovery
Internal stakeholders may include:
procurement and contract management staff
senior management
users of the goods and services
financial management staff
maintenance staff
asset or fleet managers
facilities managers
logisticians, including materiel logisticians
Human Resource Management staff
IT Staff
Procurement life cycle is:
A series of steps from identification of need, acquisition processes, contract management through disposal, recycling and/or closure or transition of contract.
Communication strategies may include:
consideration of:
organisational structure
accessibility
supportability
openness
appropriate technologies
appropriate level
method
probity
sensitivity of material to be communicated
style, tone and level of content
External and market stakeholders may include:
contractors
suppliers
industry peak bodies
government
other buyers
general public
users of the goods and services (if these are not internal)
Outcome based may be:
focused on what the organisation intends to achieve, not on what the contract is producing (output)
measures of effectiveness
Appropriate systems may include:
consideration of:
accuracy
responsiveness
capabilities
capacity
user friendliness
integration potential
supportability
level of detail of information about procurement spend
Manage the demand means establishing:
criteria for selection of goods and services that can be used
limits on the quantity of particular goods and services that can be procured
universal, whole of organisation or common use contracts
Influencing factors may include:
budget available
need to meet a particular timeframe
market ‘s ability to supply
need to manage stockholdings
technology impacts
Staff skills may be:
general work skills (such as communication, use of technology etc)
discipline specific work skills (such as accounting, procurement, IT)
category specific work skills (such as knowledge of travel or office machinery)
qualifications (whether required for legal reasons or because they are beneficial)
competencies
Performance metrics may include:
measures of efficiency
measures of effectiveness
leakage from established contracts
specific measures of spend, timeliness, quality
internal measures such as staff turnover
qualitative measures such as ease of dealing with the supplier and nature of the relationship
Best practice may include:
techniques, methods, processes, activities, incentives, or rewards which conventional wisdom regards as more effective at delivering a particular outcome than any other techniques, methods, processes, etc when applied to a particular condition or circumstance
Market profile may include:
description of the market, including:
information about the main buyers of a particular good or service
information about the main sellers of a particular good or service
information about market condition including ability of the market to meet requirements
general information about the economy, demographics, trends and other issues impacting on the demand for and supply of this good or service
Market dynamics may include:
demand
resource availability
production
lead times
product life cycle
Market development may include:
timing procurements to suit the capacity of suppliers
procuring goods and services that have not been procured before
procuring goods and services in innovative ways
spreading procurement needs across a range of suppliers
assisting suppliers to develop the capacity or capability to provide goods and services
Opportunities and risks may include:
legislative change
policy
technology
geographical
demographical
supply chain vulnerabilities
cash flow optimisation
stock holdings and inventory management
product and service lead times
extending a product’s useful life through refurbishment
early settlement discounts
order consolidation

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
Competency must be demonstrated in the ability to predict future needs to be procured from the market, based on the analysis of past and current organisational and market data. A clear understanding of commercial and business trends and behaviours is required. Current planning, emerging legislative, regulatory, social, business and market trends must also be assessed in order to predict future market activities. Strategies must be developed to ensure appropriate supply arrangements are in place to meet stakeholder needs under prevailing and future market conditions. These arrangements should optimise the use of resources to deliver outcomes in a more efficient and effective manner.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Assessment must confirm an ability to:
gather and analyse complex financial, business and market information and develop procurement, market and supplier profiles
develop and use effective performance metrics related to demand and spend management
develop and use effective demand and/or spend management strategies to achieve objectives
identify and apply the people skills relevant to demand and spend management
identify and interpret complex legislation, regulation, policy, including international treaties, principles of CSR, sustainability, environmental and social trends
contribute to complex planning documents which support core business and organisational and government outcomes
assess local and international markets, identify trends and develop strategies to ensure organisational market placement necessary to meet future needs
ensure stakeholders’ needs are meet whilst optimising organisational resources
contribute to and implement demand and spend management strategies and processes within an organisation based on analysis of demand and spend patterns
consider both qualitative and quantitative factors in reaching decisions or recommendations
Consistency in performance
Competency must be demonstrated by providing evidence of undertaking a range of relevant work tasks in an actual or simulated procurement environment on a least two separate occasions.
Context of and specific resources for assessment
This unit of competency is to be assessed in the workplace or a simulated workplace environment.
Participants may need to access:
sample data on finance, procurement and markets to analyse and then to build recommendations
corporate planning documents including strategic procurement, finance, technology, logistics and human capital planning
relevant legislation
current details relevant to CSR, sustainability, environment and social legislation, trends and expectations
relevant market information
workplace scenarios and case studies relating to organisational expectations for future and strategic development of core business
emerging market and/or commercial trends, such as PPP, strategic alliance, e commerce, holistic service solution, engaging the corporate sector to deliver on behalf of or instead of government
Case studies that incorporate challenges on which to develop strategies to deal with future sourcing of goods and/or services and the methods that may need to be employed to secure future requirements.
Method of assessment
Suggested assessment methods include:
questioning to assess understanding of key subject matter areas, such as research, analysis, markets, legislation, planning, decision making, communication and mechanisms to plan and implement demand and spend management
reviewing strategies and approaches adopted by other government and non-government organisations to manage demand and spend
reviewing market information, best practice guides, planning documents and strategies, business models and budgets, lobby group predictions, political philosophies and policies, community expectations, technological advancements and other relevant material and develop possible scenarios for future demand and spend management
preparing written reports evidencing the candidate’s review of strategies, market information, market dynamics and other high level documents
preparing demand and spend management plans, market profiles, demand profiles, procurement spend analysis or other similar documents for demand and spend management
contributing to and implementing sound demand and spend management strategies based on analysis and reviews
demonstrating research, communication, consultation and negotiation skills
In all cases, practical assessment should be supported by questions to assess underpinning knowledge and those aspects of competency which are difficult to assess directly. Questioning techniques should suit the language and literacy levels of the candidate, but not compromise the integrity of the assessment.
Guidance information for assessment
Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply competency in different situations or environments. Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
PSPETHC501B Promote the values and ethos of public service
PSPGOV507A Undertake negotiations
PSPLEGN501B Promote compliance with legislation in the public sector
PSPOHS501A Monitor and maintain workplace safety
PSPPROC503B Manage contract performance
PSPPROC504B Finalise contracts
PSPPROC505A Manage procurement risk
PSPPROC506A Plan to manage a contract
PSPPROC507A Plan for procurement outcomes
PSPPROC508A Make procurement decisions
PSPPROC509A Participate in budget and procurement review processes