Elements and Performance Criteria

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. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Relevant stakeholders may include:
clients
contractors
customers
suppliers
tenderers
Personnel may include:
Board members
CEOs
coordinators
internal users of purchased goods and services
leaders
managers
owners
relevant staff in other work sections
staff in own work section, team members and colleagues
supervisors
Purchasing strategies may include:
criteria for evaluating purchasing performance
different policies, procedures and strategies for different dollar values of purchases
key performance indicators for purchasing
limits of authority to approve purchases
methodology for evaluating purchasing performance
organisational and industry codes of conduct and ethics
policies, procedures, guidelines and documentation formats for purchasing from suppliers including entities owned by the organisation, partners, alliance members and local and distant suppliers
requirements for fairness and transparency in purchasing
Legal requirements may include issues in relation to:
access and equity
accreditation, licence, patent and copyright
codes of practice
data collection, storage and retrieval
ethical conduct and governance
industrial relations
insurance
occupational health and safety
operation, maintenance and service of tools, equipment, plant and machinery
planning
privacy and confidentiality
professional development
standards (Australian and international)
warranties
The five rights are:
right supplier:
demonstrable expertise and experience
due diligence requirements
ethical conduct requirements
evidence of past legal compliance
requirements to use organisations linked by ownership, partnership, alliance or other arrangements
right price:
cost/price analysis
value-for-money
right quantity:
supply guarantees
right quality:
confidentiality and probity requirements
key performance indicators
measures to manage risk
quality accreditation
right time:
supply guarantees
Resources may include human, physical and other resources such as:
documentation required for purchasing, such as proformas, order forms, standard tender documentation and basic standard contracts
software systems for inventory management or online purchasing
staff to undertake or assist with purchasing
Support may include:
information sessions and briefings
training programs
written information including procedures and internet or intranet-based information

EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
development of purchasing objectives and strategies for an organisation
implementation of those purchasing strategies in an organisation
evaluation and implementation of improvements to purchasing strategies in an organisation.
Context of and specific resources for assessment
Assessment must ensure:
access to an actual workplace or simulated environment
access to office equipment and resources
organisation's purchasing strategies and relevant purchasing records.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
analysis of responses to case studies and scenarios
assessment of documented purchasing objectives and strategies
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
oral or written questioning to assess knowledge
review testimony from team members, colleagues, supervisors or managers
review of authenticated documents from the workplace or training environment.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
other purchasing units.