Unit of competency Outline
Date retreived
22/07/2026 7:45 AM AWST
22/07/2026 7:45 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.
Develop and maintain supplier relationships
Develop and maintain supplier relationships
Unit of competency
National Code
LGADMIN422A
LGADMIN422A
State Code
C1917
C1917
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
20/01/2006
Field of Education
080301 - Business Management
Original Release Date
20/01/2006
Nominal Hours
30
Description
This unit covers developing and maintaining effective relationships with suppliers to the organisation to ensure efficient supply chain processes. The unit is appropriate for those responsible for supply chain processes within a unit or the organisation as a whole.
Notes
Elements and Performance Criteria
1. Plan for procurement of goods and services
- 1.1 The purpose and specifications of required goods and services are identified.
- 1.2 A market assessment is used to identify options for acquiring goods and services in accordance with legislative requirements and organisational policies and procedures.
- 1.3 Quantities of required goods and services are determined.
- 1.4 Frequency of ordering or requesting goods and services is analysed.
- 1.5 The criteria to evaluate potential or existing contractor performance are established.
- 1.6 Policies and procedures are developed for management of purchasing systems.
2. Evaluate potential suppliers
- 2.1 The process and criteria for evaluation of suppliers of goods and services are developed.
- 2.2 Suppliers of requested goods and services are identified.
- 2.3 Comparative costings for goods and services are obtained.
- 2.4 Supplier's ability to provide a consistent level of performance on repeat contracts is assessed.
- 2.5 Suppliers are evaluated against criteria.
- 2.6 A prioritised supplier shortlist is established based on the capacity of the supplier to provide cost competitive, quality goods and services.
- 2.7 The outcomes of the supplier selection process are documented including recommendations for agreements/contracts with selected suppliers.
3. Administer supplier contract
- 3.1 Procedures for the receival of supplied goods and services are implemented.
- 3.2 Supplied goods and services are assessed for conformity to contracted requirements.
- 3.3 Non-conformance of supplier with contracted requirements is accurately detailed.
- 3.4 Actions to rectify non-conformance are undertaken in accordance with organisational procedures and within scope of authority.
- 3.5 Issues of non-conformance beyond scope of authority are referred to designated personnel in accordance with organisational procedures.
- 3.6 Systems records are maintained and updated in accordance with organisational procedures.
4. Maintain supplier relations
- 4.1 Cooperative relationships are developed with supplier representative according to organisational policies and procedures.
- 4.2 Arrangements with suppliers are negotiated and implemented according to organisational policies and procedures.
- 4.3 Market factors that may affect the supply of goods and services are identified and communicated to relevant personnel.
- 4.4 Immediate corrective action is taken in consultation with the supplier where potential or actual problems are indicated.
- 4.5 Suppliers are continuously reviewed in regard to quality, profitability, service, delivery status and other relevant performance indicators.
- 4.6 Suppliers are deleted from supplier shortlist according to 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 in the Performance Criteria is detailed below.
A market assessment may include:
structure of the market and key stakeholders
market capability
market maturity
market strength
factors and conditions that may affect supply
potential impact of intended contracting activity
Options may include:
stakeholder consultation
confirmation that a procurement process is necessary
development of a business case
comparison of internal and outsourced provision
whether to buy or lease
Suppliers of requested goods and services are identified by:
open or restricted tendering and contracting
expression of interest
request for proposal
request for quotation
request for tender
request for offer
direct purchases using existing supply arrangements such as standing offers
common use arrangements
oral and written quotations
direct purchases from retail or wholesale outlets
electronic arrangements
Conformity to contracted requirements may include:
price
quantity
quality
delivery schedules
Arrangements may include:
verbal and written orders
purchase orders
credit card
petty cash
memoranda of understanding or memoranda of agreement
in-house service level agreement
contracts
common use arrangements and standing offers
Negotiation process may include:
face to face
correspondence
meetings
telephone
electronic media
Performance indicators which assist in reviewing suppliers may include:
price
quality
supply reliability
stock range
delivery schedules
warranties and post-purchase support
variation from supply specifications
appropriateness
supplier relationships
A market assessment may include:
structure of the market and key stakeholders
market capability
market maturity
market strength
factors and conditions that may affect supply
potential impact of intended contracting activity
Options may include:
stakeholder consultation
confirmation that a procurement process is necessary
development of a business case
comparison of internal and outsourced provision
whether to buy or lease
Suppliers of requested goods and services are identified by:
open or restricted tendering and contracting
expression of interest
request for proposal
request for quotation
request for tender
request for offer
direct purchases using existing supply arrangements such as standing offers
common use arrangements
oral and written quotations
direct purchases from retail or wholesale outlets
electronic arrangements
Conformity to contracted requirements may include:
price
quantity
quality
delivery schedules
Arrangements may include:
verbal and written orders
purchase orders
credit card
petty cash
memoranda of understanding or memoranda of agreement
in-house service level agreement
contracts
common use arrangements and standing offers
Negotiation process may include:
face to face
correspondence
meetings
telephone
electronic media
Performance indicators which assist in reviewing suppliers may include:
price
quality
supply reliability
stock range
delivery schedules
warranties and post-purchase support
variation from supply specifications
appropriateness
supplier relationships
Overview of assessment requirements
A person who demonstrates competency in this unit will be able to perform the outcomes described in the Elements to the required performance level detailed in the Performance Criteria. The knowledge and skill requirements described in the Range Statement must also be demonstrated. For example, knowledge of the legislative framework and safe work practices that underpin the performance of the unit are also required to be demonstrated.
Critical aspects of evidence to be considered
The demonstrated ability to:
plan for the procurement of goods and services
enhance policies and procedures for management of purchasing systems
develop a process and criteria to evaluate potential suppliers and establish a prioritised supplier shortlist against the criteria
monitor the performance of supply contractors
apply high level communication and interpersonal skills to maintain effective relationships with suppliers to ensure efficient supply chain processes and to mediate and resolve issues surrounding supply, maximising positive outcomes for the organisation and individuals within it.
Context of assessment
Competency is demonstrated by performance of all stated criteria, with particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope of the Range Statement.
Assessment must take account of the endorsed Assessment Guidelines in the Local Government Training Package.
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment.
Assessment should reinforce the integration of the key competencies for the particular AQF level. Refer to the key competency levels at the end of this unit.
Relationship to other units(prerequisite or co-requisite units)
To enable holistic assessment this unit may be assessed with other units that form part of the job role.
Method of assessment
The following assessment methods are suggested:
observation of the learner performing a range of workplace tasks over sufficient time to demonstrate handling of a range of contingencies
written and/or oral questioning to assess knowledge and understanding
completion of workplace documentation
third-party reports from experienced practitioners
completion of self-paced learning materials including personal reflection and feedback from trainer, coach or supervisor.
Evidence required for demonstration of consistent performance
Evidence should be collected over a set period of time that is sufficient to include dealings with an appropriate range and variety of formal and informal situations, involving different types of problems and clients.
Resource implications
The learner and trainer should have access to appropriate documentation and resources normally used in the workplace.
A person who demonstrates competency in this unit will be able to perform the outcomes described in the Elements to the required performance level detailed in the Performance Criteria. The knowledge and skill requirements described in the Range Statement must also be demonstrated. For example, knowledge of the legislative framework and safe work practices that underpin the performance of the unit are also required to be demonstrated.
Critical aspects of evidence to be considered
The demonstrated ability to:
plan for the procurement of goods and services
enhance policies and procedures for management of purchasing systems
develop a process and criteria to evaluate potential suppliers and establish a prioritised supplier shortlist against the criteria
monitor the performance of supply contractors
apply high level communication and interpersonal skills to maintain effective relationships with suppliers to ensure efficient supply chain processes and to mediate and resolve issues surrounding supply, maximising positive outcomes for the organisation and individuals within it.
Context of assessment
Competency is demonstrated by performance of all stated criteria, with particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope of the Range Statement.
Assessment must take account of the endorsed Assessment Guidelines in the Local Government Training Package.
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment.
Assessment should reinforce the integration of the key competencies for the particular AQF level. Refer to the key competency levels at the end of this unit.
Relationship to other units(prerequisite or co-requisite units)
To enable holistic assessment this unit may be assessed with other units that form part of the job role.
Method of assessment
The following assessment methods are suggested:
observation of the learner performing a range of workplace tasks over sufficient time to demonstrate handling of a range of contingencies
written and/or oral questioning to assess knowledge and understanding
completion of workplace documentation
third-party reports from experienced practitioners
completion of self-paced learning materials including personal reflection and feedback from trainer, coach or supervisor.
Evidence required for demonstration of consistent performance
Evidence should be collected over a set period of time that is sufficient to include dealings with an appropriate range and variety of formal and informal situations, involving different types of problems and clients.
Resource implications
The learner and trainer should have access to appropriate documentation and resources normally used in the workplace.
No information
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