Unit of competency Outline

Date retreived
22/07/2026 1:39 PM AWST

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Improve supply and distribution chains

Improve supply and distribution chains

Unit of competency
National Code
SIRXPRO007A
State Code
S6177
TGA Status
Deleted
DTWD Status
Deleted
Current Release Number
2.00
Current Release Date
13/06/2012
View on TGA
State Implementation and Classification
Approved Date
13/12/2011
Field of Education
089901 - Purchasing, Warehousing And Distribution
Original Release Date
13/12/2011
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to identify, evaluate and implement ways to improve supply and distribution chains for a retail or wholesale business.
Notes
Elements and Performance Criteria
1. Confirm features of specific supply chains.
  • 1.1.Determine position of the business in the supply chain.
  • 1.2.Analyse features and impact of business relationships with suppliers to the business.
  • 1.3.Establish benchmarks of supply chain efficiency.
2. Maintain information on suppliers.
  • 2.1.Obtain and store information on suppliers of products and services to a retail or wholesale business according to business policy and procedures.
  • 2.2.Update and regularly review information on suppliers of products and services to a business.
  • 2.3.Store information on nature and feature of business relationship with suppliers to a retail or wholesale business and report, according to confidentiality, security, and business requirements.
3. Review distribution arrangements.
  • 3.1.Review, compare and analyse sales, customer satisfaction and performance reports.
  • 3.2.Review factors affecting supply of retail or wholesale products and services.
4. Devise policy and procedures for distribution and supply.
  • 4.1.Establish policy and procedures for supply and distribution to business customers and end consumers.
  • 4.2.Establish procedures to collect and analyse information on distribution chain management.
5. Forecast future contingencies affecting supply chain management.
  • 5.1.Analyse forecasted market demand to confirm future requirements.
  • 5.2.Communicate forward supply needs for the business to suppliers according to policy and contract provisions.
  • 5.3.Confirm factors affecting forward purchasing and supply arrangements.
  • 5.4.Set standards for supply of products and services to the business in qualitative and quantitative terms.
  • 5.5.Communicate procedures for enforcing quality of supply to the business to relevant internal and external personnel.
6. Improve supply and distribution chain effectiveness.
  • 6.1.Evaluate supply chain against agreed benchmarks and overall impact on business performance.
  • 6.2.Benchmark comparative performance of supply chain against best in class or competitors.
  • 6.3.Assess factors affecting future distribution and supply of products.
  • 6.4.Make recommendations to relevant personnel to respond to opportunities for improvements in customer supply and distribution relationships.
  • 6.5.Confirm impact of proposed improvements to supply and distribution activities against budget and operational plans.
  • 6.6.Use prevailing trading terms to enhance supply and distribution chain management.
  • 6.7.Generate reports on business relationships with suppliers to the business using available business technology and agreed measures.
  • 6.8.Complete reports to relevant personnel (internal and external to operational unit) to promote recommended implementation of improvement to supply and distribution chain.
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 in the performance criteria is detailed below.
Business relationships may be influenced by:
due diligence requirements
risk sharing
market position
planning cycles and timing
cost and price analysis
terms and conditions agreed
intellectual property and technology rights
value management
continuous improvement
supply chain management
infrastructural and capital outlay requirements
organisational systems integration and compatibility.
Suppliers may be:
commercial companies
public agencies or organisations
governments
community and not-for-profit organisations
internal.
Benchmarks may include:
Australian standards
international standards
professional standards
industry standards
performance indicators
quality measures and criteria
planning milestones and timeframes
manufacturer and supplier standards.
Information on suppliers may include:
representative's name and contact details
range of products and/or services
transaction records
contact history
account terms
prices
dispatch and shipping procedures
records of supplier performance
details of items supplied or returned.
Business policy and procedures may relate to:
purchasing
supply and distribution of products or services
approval processes
storage and transport of goods.
Methods used to store information may be:
manual
electronic or digital.
Factors affecting future distribution and supply of retail or wholesale products and services may include:
merchandise availability
transport availability
time requirements
budget requirements
logistics.
Relevant personnel may include:
manager or supervisor
colleagues
business or area manager
specialist or technical personnel.
Reports may be delivered:
verbally
in writing
in groups
individually.
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
evaluates and seizes opportunities to improve supply chain for a product or service within an operational context
identifies and understands a range of current and emerging supply chain management models
applies tools to measure and quantify supply chain quality standards and efficiency for a retail or wholesale business
develops clear and effective policy and procedures for wholesale or retail distribution or supply activities
develops and implements realistic and measurable performance benchmarks for supply and distribution into a business.
Context of and specific resources for assessment
Assessment must ensure access to:
a retail or wholesale work environment
relevant sources of supply chain information
relevant documentation, such as:
policy and procedure manuals
supply and distribution reports
supplier records
a range of suppliers.
Methods 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
third-party reports from a supervisor
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
N0778 WRWPL508A Improve supply and distribution chains Unit of competency