Unit of competency Outline

Date retreived
22/07/2026 2:36 PM AWST

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Develop, implement and review purchasing strategies

Develop, implement and review purchasing strategies

Unit of competency
National Code
TLIR5006A
State Code
D5330
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
07/03/2011
State Implementation and Classification
Approved Date
21/03/2014
Field of Education
089901 - Purchasing, Warehousing And Distribution
Original Release Date
21/03/2014
Nominal Hours
50
Description
This unit involves the skills and knowledge required to develop, implement and review an organisation's purchasing strategies. It includes determining, developing and implementing purchasing strategies, evaluating these and implementing improvements. Licensing, legislative, regulatory or certification requirements are applicable to this unit.
Notes
Elements and Performance Criteria
1Determine purchasing objectives
  • 1.1 Industry benchmarks for purchasing are researched and analysed for suitability to organisation
  • 1.2 Organisation's purchasing data and information are analysed
  • 1.3 Consultations are undertaken with relevant stakeholders and personnel to inform development of purchasing objectives
  • 1.4 Purchasing objectives in line with organisation's goals are drafted
  • 1.5 Approval is gained from relevant personnel for purchasing objectives
2Develop purchasing strategies
  • 2.1 Purchasing strategies are developed, taking into account legal requirements and purchasing objectives
  • 2.2 Purchasing criteria include the five rights
  • 2.3 Human resource, financial and other plans are developed to implement purchasing strategies
  • 2.4 Approval is gained for plans to implement purchasing strategies
  • 2.5 Changes resulting from approval process are made to plans and strategies, as required
3Implement purchasing strategies
  • 3.1 Purchasing strategies are communicated to relevant personnel and stakeholders
  • 3.2 Resources needed to implement purchasing strategies are accessed
  • 3.3 Support is provided to implement purchasing strategies
  • 3.4 Implementation of purchasing strategies by the organisation is monitored
  • 3.5 Problems and issues arising during implementation are identified and addressed
  • 3.6 Reports are provided to relevant personnel and stakeholders on implementation of purchasing strategies
4Evaluate purchasing strategies and implement improvements
  • 4.1 Implementation of purchasing strategies is reviewed
  • 4.2 Improvements to purchasing strategies are identified from review process
  • 4.3 Approval is gained to implement improvements to purchasing strategies
  • 4.4 Improvements are communicated to relevant stakeholders and support is provided to implement improvements
  • 4.5 Implementation of improvements is monitored and reviewed to determine effectiveness of improvements
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance.
Relevant stakeholders may include:
clients and customers
tenderers, suppliers and contractors
Relevant personnel may include:
internal users of purchased goods and services
owner and Board
CEO, managers, leaders, coordinators, supervisors and other persons authorised to commit the organisation to purchases
specialist personnel involved in purchasing, asset maintenance and finance
Purchasing strategies include:
policies, procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers
criteria for evaluating purchasing performance
methodology for evaluating purchasing performance
key performance indicators for purchasing
different policies, procedures and strategies for different dollar values of purchases
limits of authority to approve purchases
requirements for fairness and transparency in purchasing
organisational and industry codes of conduct and ethics
Legal requirements may include issues in relation to:
access and equity
codes of practice
data collection, storage and retrieval
ethical conduct and governance
industrial relations
insurance
accreditation, licence, patent and copyright
operation, maintenance and service of tools, equipment, plant and machinery
occupational health and safety
planning
privacy and confidentiality
professional development
standards (Australian and international)
warranties
The five rights are:
right supplier
due diligence requirements
demonstrable expertise and experience
evidence of past legal compliance
ethical conduct requirements
requirements to use organisations linked by ownership, partnership, alliance or other arrangements
right price
value-for-money
cost/price analysis
right quantity:
supply guarantees
right quality
confidentiality and probity requirements
measures to manage risk
key performance indicators
quality accreditation
right time
supply guarantees
Resources include:
human, physical and other resources such as:
software systems
staff to undertake or assist with purchasing
documentation required for purchasing, such as proformas, order forms, standard tender documentation and basic standard contracts
Further information may include:
training programs
written information including procedures and internet or intranet-based information
information sessions and briefings
Consultative processes may involve:
other employees and supervisors
relevant authorities and institutions
management and union representatives
industrial relations and OH&S specialists
Communication in the work area may include:
phone
electronic data interchange (EDI)
fax
email
internet
RF systems
oral, aural or signed communications
Depending on the organisation concerned, workplace procedures may be called:
standard operating procedures (SOPs)
company procedures
enterprise procedures
organisational procedures
established procedures
Documentation and records may include:
relevant workplace policies, procedures and codes of conduct relating to purchasing and business management
relevant OH&S and environmental protection regulations
quality assurance procedures
operations manuals, job specifications and induction documentation
relevant Australian Standards
Applicable legislation and regulations may include:
relevant legislation from all levels of government that affects business operation
relevant industry codes of practice
Australian and international regulations and codes of practice for the transport of dangerous goods and hazardous substances
relevant state/territory OH&S and environmental protection legislation
workplace relations regulations
award and enterprise agreements and relevant industrial instruments
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required knowledge and skills, the range statement and the assessment guidelines for this Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
The evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of applying:
the underpinning knowledge and skills
relevant legislation and workplace procedures
other relevant aspects of the range statement
Context of and specific resources for assessment
Performance is demonstrated consistently over a period of time and in a suitable range of contexts
Resources for assessment include:
a range of relevant exercises, case studies and/or other simulated practical and knowledge assessment, and/or
access to an appropriate range of relevant operational situations in the workplace
In both real and simulated environments, access is required to:
relevant and appropriate materials and equipment, and
applicable documentation including workplace procedures, regulations, codes of practice and operation manuals
Method of assessment
Assessment of this unit must be undertaken by a registered training organisation
As a minimum, assessment of knowledge must be conducted through appropriate written/oral tests
Practical assessment must occur:
through activities in an appropriately simulated environment at the registered training organisation, and/or
in an appropriate range of situations in the workplace
Replaced By
State Code National Code Title Type
AVH89 TLIR5006 Develop, implement and review purchasing strategies Unit of competency
State Code National Code Title Type
J808 TLI50713 Diploma of Bus and Coach Operations Qualification
W942 TLI50410 Diploma of Logistics Qualification