Unit of competency Outline

Date retreived
24/07/2026 1:19 AM AWST

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Establish stock purchasing and control systems

Establish stock purchasing and control systems

Unit of competency
National Code
SITXINV601
State Code
WF795
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
18/01/2013
State Implementation and Classification
Approved Date
11/06/2013
Field of Education
089901 - Purchasing, Warehousing And Distribution
Original Release Date
11/06/2013
Nominal Hours
70
Description
This unit describes the performance outcomes, skills and knowledge required to establish and implement stock control and cost effective stock purchasing and supply systems for a business.
Notes
Elements and Performance Criteria
1. Determine stock requirements.
  • 1.1 Use business data, forecasting methods and standard measures to calculate required stock levels.
  • 1.2 Determine stock requirements for standard business periods, peak seasons and special events.
  • 1.3 Establish cost-effective purchase quantities based on business information and supplier advice.
2. Establish optimum supply arrangements.
  • 2.1 Evaluate quality of supply, based on feedback from colleagues and customers.
  • 2.2 Source and review potential suppliers.
  • 2.3 Develop appropriate and accurate purchase specifications.
  • 2.4 Assess suppliers against specifications considering all relevant factors.
  • 2.5 Assess terms of purchase and negotiate with suppliers to achieve optimum supply arrangements.
  • 2.6 Adjust sources of supply and make accurate records of agreements.
3. Develop and implement stock control systems.
  • 3.1 Develop stock control systems and communicate to all relevant staff.
  • 3.2 Develop special control systems for stock with high wastage or loss.
  • 3.3 Monitor workplace systems and make adjustments according to feedback and operational experience.
  • 3.4 Initiate training of staff to minimise stock wastage.
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.
Data may include:
historical sales figures
stocktake figures
supplier lead time
wastage reports.
Forecasting methods may include:
moving averages
popularity index
use of sales reports for future customer bookings
yield tests:
butcher’s test
standard measures
standard yield test.
Standard measures may include:
food portion size:
count
cup
scoop
slice
measure
volume
weight
fuel consumption for:
particular road, sea or air travel conditions
types of aircraft, sea vessels and land transport vehicles
expected customer numbers for:
events
peak season
standard business periods
standard recipes
standard yields.
Stock may include:
alcohol
cleaning agents and chemicals
customer travel products:
luggage labels
travel bags
travel wallets
tickets
vouchers
event supplies
food:
dairy products
canned products
dry goods
fresh goods
frozen goods
fruit
meat
oils
poultry
seafood
vacuumed sealed items
vegetables
fuel:
aircraft
coaches
hire cars
vessels
general stores
housekeeping supplies
linen
merchandise
non-alcoholic beverages:
juice
mixers
soft drink
tea and coffee
uniforms.
Purchase specifications may include:
budget
colour
deadlines for supply
delivery or pick up requirements
detailed description
expected supply cost
fresh or frozen food
general description
grade
numbers to be purchased
product name
quality
required labelling
size
special instructions or requirements
storage procedures
upper purchase price barrier
use for product
weight.
Relevant factors may include:
ability to meet all aspects of the specification
after sales service
competitive pricing
credit terms available
delivery service, including emergency delivery
lead time
minimum and maximum order quantities
product availability
references from other customers
trading hours.
Terms of purchase may include:
centralised or decentralised purchasing
competitive or open market buying
contract buying
cooperative buying
cost plus buying
credit terms
negotiated buying
one stop buying
sealed bid buying
volume buying and warehousing.
Stock control systems may involve:
bin cards
imprest
integrated pointofsale systems
ledgers
stock control procedures and template documents and reports for:
ordering
levels
loss
performance
monitoring of quality
receipt
reorder cycles
rotation
security
stocktakes
valuation
wastage
storage requirements for different kinds of stock
use of:
electronic stock control equipment
stock control software systems.
Special control systems may involve:
controlling ordering quantities
maintaining correct environmental conditions for the storage of perishable foodstuffs, including controls for:
temperature
light
humidity
procedures for:
correct handling of perishables to avoid spoilage of stock
issue quantities
issuing only to authorised persons
stock transfer to other departments
requisitioning
segregated storage of nonfood items from food items that have potential to cross-contaminate.
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 ability to:
establish and implement cost effective stock purchasing and control systems for a diverse range of stock items
monitor stock control systems, stock quality and cost-effectiveness of supply over a period of time
integrate knowledge of various stock control reports and data required to calculate cost-effective purchasing.
Context of and specific resources for assessment
Assessment must ensure use of:
a real or simulated tourism, hospitality or event industry business operation for which stock is purchased and stock control systems are developed
computers, printers and stock control software systems currently used by the tourism, hospitality or event industry
current commercial purchase specifications, stock control procedures and reports, supplier cost and contractual documentation used for the purchase of stock
suppliers with whom the individual can interact and negotiate.
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:
projects and activities that allow assessment of the individual’s ability to:
determine stock levels for normal and peak operating seasons
use reports and supplier information to calculate cost-effective order quantities
develop a variety of tailored stock control systems
evaluate the performance of systems and make adjustments
review of documents prepared by the individual:
stock control procedures
purchase specifications
reports evaluating the quality and cost of supply
use of problem-solving activities so the individual can develop systems to control stock with high wastage or loss
written or oral questioning to assess knowledge of:
types of storage and their suitability for different kinds of stock
stock control systems used by the industry
a range of supply sources for different types of product
review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.
Guidance information for assessment
The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:
BSBWRT401A Write complex documents
SITXFIN501 Prepare and monitor budgets.
Replaces
State Code National Code Title Type
S6544 SITXINV003A Manage and purchase stock Unit of competency
Replaced By
State Code National Code Title Type
AWQ37 SITXINV005 Establish stock and purchasing and control systems Unit of competency
State Code National Code Title Type
J628 SIT60313 Advanced Diploma of Hospitality Qualification
J456 SIT60312 Advanced Diploma of Hospitality Qualification