Unit of competency Outline
Date retreived
23/07/2026 4:48 AM AWST
23/07/2026 4:48 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Plan and implement strategic sourcing
Plan and implement strategic sourcing
Unit of competency
National Code
PSPPCM016
PSPPCM016
State Code
AWU30
AWU30
TGA Status
Current
Current
DTWD Status
Approved
Approved
State Implementation and Classification
Approved Date
21/07/2016
Field of Education
080301 - Business Management
Original Release Date
21/07/2016
Nominal Hours
45
Description
This unit describes the skills required to plan and implement strategic sourcing for goods or services essential or critical to an organisation’s ability to conduct its core business. It includes developing a procurement profile of the buying organisation, conducting strategic assessment of the supply market, developing strategies to source goods or services from the market and securing, monitoring and reviewing strategic market sources.This unit applies to those working in roles involving procurement of goods or services essential to the operation of their organisation.The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.Those undertaking this unit would work autonomously consulting others as required, performing sophisticated tasks in a range of familiar contexts.No licensing, legislative or certification requirements apply to unit at the time of publication.
Notes
Elements and Performance Criteria
1. Develop a procurement profile of the buying organisation
- 1.1 Gather and analyse long term data about the strategic implications related to the buying organisation’s level of spend on various types of goods and services, including how, where and from whom the goods or services are procured.
- 1.2 Profile the organisation’s existing suppliers, with particular emphasis on each supplier’s capability and capacity, vulnerability, and adherence to Corporate Social Responsibility (CSR) principles, WHS, legislative compliance, market position and ownership structure.
- 1.3 Identify and engage relevant communication strategies to engage internal, external and market stakeholders.
- 1.4 Assess the buying organisation’s market position (how the market views the organisation as a potential customer).
- 1.5 Identify and consider opportunities and risks associated with developing a stronger market position as a buyer.
2. Conduct strategic assessment of the supply market
- 2.1 Gather and analyse market information to determine capacity, competition, legislative and regulatory compliance, vulnerabilities and risk within the supply market.
- 2.2 Monitor and analyse market trends and emerging changes to the current supply market place.
- 2.3 Analyse and assess the supply market’s ability to meet the buying organisation’s needs, including supply chain management issues.
- 2.4 Identify and assess innovative and/or creative opportunities within the market.
- 2.5 Assess local and international supply market factors that may influence the ability to supply goods and services.
3. Develop strategies to source goods or services from the market
- 3.1 Assess the suitability of current and emerging commercial trends within the market to the needs of the buying organisation.
- 3.2 Identify and consider the application of commercial best practice models to strategic sourcing activities across the procurement life cycle.
- 3.3 Identify and test possible benchmarks of better strategic sourcing practice.
- 3.4 Assess the suitability of alternative market sources of supply.
- 3.5 Develop strategic supply market plans which reflect analysis of both the buying organisation and the supply market.
- 3.6 Devise tendering strategies and type of contracting arrangement appropriate to the goods or services being procured and the nature of the supply market which will supply them, taking contract management strategies into consideration.
- 3.7 Review the application of existing legislation, regulations, policies, practices and procedures to strategic sourcing activities and recommend changes to these where this would yield better results for the buying organisation or at the whole of government level.
4. Secure, monitor and review strategic market sources
- 4.1 Conduct procurement processes which consider strategic sourcing issues and are appropriate to the goods and services being sought.
- 4.2 Negotiate with potential suppliers to secure the best supply arrangements.
- 4.3 Develop and implement transition plans from current to new market sources as needed to ensure a smooth transition and the continuous provision of strategic goods and services to the buying organisation.
- 4.4 Implement contract management strategies to ensure that goods and services are delivered as contracted.
- 4.5 Monitor and review new strategic sourcing arrangements for continuous improvement opportunities.
No information
No information
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| WE666 | PSPPROC511 | Plan and implement strategic sourcing | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| BFT3 | BSB50120 | Diploma of Business | Qualification |
| BDZ7 | BSB51518 | Diploma of Business (Procurement) | Qualification |
| AZY6 | PSP50616 | Diploma of Procurement and Contracting | Qualification |