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 in the performance criteria is detailed below.
Policy and procedures may relate to:
purchase and supply relationships
processing purchases
interaction with customers and suppliers
resource management
quality control.
Procurement or purchasing activities may include:
requisitions
tenders
competitive bids
production schedules
electronic data interchange (EDI)
just in time
ordering
bills of materials
stock and supply agreements.
Methods for requesting and receiving supply may include:
quotations
public offers
contracts
expressions of interest
requested proposals
open or restricted tendering and contracting
request for proposal
request for quotation
request for tender
request for offer
direct purchases using existing supply agreements such as standing offers
common-use arrangements
direct purchase from retail or wholesale outlets
e-commerce.
Purchase systems may be:
manual
electronic
automated.
Communication and data exchange systems may include:
electronic data exchange
telephone
fax
email
letter
face-to-face.
Input processes may include:
checking and receiving incoming stock
processes to report problems with deliveries
recording incoming inventory
pricing, labelling and storage of inventory
quality control policy and procedures.
Resource management may relate to:
people
materials
equipment and technology
budget
time.
Value adding determinants may include:
appropriateness
warranties and post-purchase support
price
timeliness of supply
variation from supply specification
supplier relationships.
Legal agreements may relate to:
licence, patent or copyright arrangements
pricing agreements.
Purchasing and supply arrangements may include:
price
quality
supply reliability
merchandise.
Relevant legislation may include:
industry codes of practice
transport, storage and handling of goods
sale of second-hand goods
Trade Practices and Fair Trading Acts
pricing procedures, including GST requirements.

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:
development of purchasing strategies to deliver business outcomes in consultation with suppliers
effective evaluation and ongoing development of a purchasing strategy
development and implementation of formal policy and procedures to apply and support legally compliant purchasing strategies within a business.
Context of and specific resources for assessment
Assessment must ensure access to:
a wholesale or retail work environment
relevant information and documentation, including:
formal policy and procedures
relevant legislation and statutory requirements
industry codes of practice
merchandise and supplier data.
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
a case study
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.