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, 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.
Corporate planning documents may include:
corporate plans
business plans
strategic plans
government white papers or similar
capability plans
strategic procurement plans
Annual Procurement Plan
Suitability may include:
natural product or service placement/fit into a category
fit to structures of the buying organisation
fit to industry, market or other organisational regimes
level of expenditure warrants creation of a category approach
level of strategic importance of products/services warrants creation of category approach
Category management means:
Manage groups of similar contracts e.g. ICT or Leasing
Communication strategies consider:
accessibility
supportability
openness
appropriate technologies
appropriate level
organisational structure
legal restrictions
Internal stakeholders may include:
procurement and contract management staff
senior management
users of the goods and services
financial management staff
legal advisers
maintenance staff
asset or fleet managers
facilities managers
logisticians, including materiel logisticians
Human Resource Management staff
IT Staff
External and market stakeholders may include:
contractors
suppliers
industry peak bodies
government
other buyers
general public
users of the goods and services (if these are not internal)
Category management plan may include:
objectives to be fulfilled over the life of the contract
definition of the benefits to be achieved
approaches to communication with stakeholders
category baseline analysis
category opportunities
risk management plan including clear descriptions of risks identified, mitigation actions and responsibility assigned
outcome based performance metrics
Category management principles means:
recognising that categories have unique characteristics that need to be managed differently
Outcome based means:
focused on what the organisation intends to achieve, rather than on what the contract is producing (output)
Performance metrics may include:
measures of efficiency
measures of effectiveness
specific measures of spend, timeliness, quality
internal measures such as staff turnover
qualitative measures such as ease of dealing with the supplier and nature of the relationship
Senior management may include:
executive management
middle management
Board of Directors
program and Project managers
key operations managers
Staff skills may be:
general work skills (such as communications, use of technology etc)
discipline specific work skills (such as accounting, procurement, IT, commerce, marketing)
category specific work skills (such as knowledge of travel or office machinery)
qualifications whether required for legal reasons or beneficial)
competencies
Enterprise Resource Planning (ERP)and document management systems may include:
an integrated information system that serves all work areas within an enterprise. An ERP system can include software for manufacturing, order entry, accounts receivable and payable, general ledger, purchasing, warehousing, transportation and human resources
document management systems may range from manual paper based filing systems to automated systems
Level of spend includes:
all resources, direct and indirect, consumed in:
acquiring goods and services
managing the procurement process including managing contracts
value, volume and breakdown of spend
Procurement options may include:
outright acquisition and ownership
lease
service delivery
holistic service solutions
Public Private Partnerships (PPP)
strategic alliances
Trends, opportunities and risks relevant to categories includes:
specific trends related to a particular category (such as travel, IT, office machinery or similar) as opposed to general market trends
discretionary and/or essential nature of supply
availability of replacement goods/services for contingency supply if category supply fails (eg due to force majeure or supply chain issues)
Recognised basis may include:
industry or service based categories such as travel, fleet, software, utilities etc
business unit/functional breakdown
geographical
degree of price flexibility for goods/services
nature/sophistication of supplies
Appropriate systems should consider:
responsiveness
capabilities
capacity
accuracy
user friendliness
integration potential
supportability
Market strategies may include:
approaches to best exploit the potential of the supply market for the achievement of outcomes
awareness of changing market conditions
understanding of and possible changing of the buyer organisation’s positioning in the market to best achieve outcomes
Strategies to manage and maintain productive relationships may include:
stakeholder expectations and needs analysis
start up workshops with suppliers
regular performance workshops
issues tracking and resolution
supplier reviews
progress meetings
communications plan and contract management plan
Sources may include:
IT systems including financial, tender publishing systems, HR systems and others
internal stakeholders such as end users, procurement staff etc
external stakeholders such as suppliers
benchmarking with other organisations
Category performance may include:
analysis of:
contract leakage
buyer behaviour
opportunities
risks and issues
spend levels and patterns
category trends
value obtained and benefits tracking
improvement opportunities
supplier performance
constraints and limitations
supplier provided reports which:
identify improvement opportunities
measure supplier performance
measure buyer performance
benefits tracking activities which identify:
progress on continuous improvement opportunities
progress on category objectives
off contract spend analysis, and remedy mechanisms to be progressed
significant open issues and associated corrective action plan
Trends, opportunities and risks may include:
legislative change
policy
technology
geographical
demographic
Efficiency and effectiveness may include:
best use of resources to produce results with little wasted effort (efficiency)
achievement of results that contribute to the organisation’s goals (effectiveness)
linkages between outputs of the category and achievement of organisational outcomes
Consult appropriately may include:
method of consultation
frequency of consultation
probity
sensitivity
accessibility
style, tone and level of content
audience awareness
Organisational strategies may include:
business arrangements
contracting arrangements
delivery methods
products and/or services
holistic solutions and outsourcing
PPPs
strategic alliances

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
Competency must be demonstrated through an ability to predict future organisational needs from the market, based on the analysis of past and current organisational and market data. A clear understanding of commercial and business trends and behaviours is required. Current planning, emerging legislative, regulatory, social, business and market trends must also be assessed in order to predict future market activities. Strategies must be developed to facilitate appropriate arrangements for category management planning and implementation to complement and enhance the achievement of organisational outcomes in a more efficient and effective manner.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Assessment must confirm an ability to:
access and use Enterprise Resource Planning systems such as financial, tender planning, HR, asset management
access and use relevant accounting information
develop and use effective performance metrics related to category management
develop and use effective category management strategies to achieve objectives
identify and apply the people skills relevant to category management
gather and analyse complex financial, business and market information and develop procurement, market and supplier profiles
identify and interpret complex legislation, regulation, policy, including international treaties, principles of CSR, sustainability, environmental and social trends
contribute to complex planning documents which support core business and organisational and government outcomes
assess local and international markets, indentify trends and develop strategies to ensure organisational market placement necessary to meet future needs
contribute to and implement category management strategies and processes within an organisation based on analysis of the characteristics of the category
consider both qualitative and quantitative factors in reaching decisions or recommendations
Consistency in performance
Competency can be demonstrated by providing evidence of undertaking a range of relevant work tasks in an actual or simulated procurement environment on a least two separate occasions.
Context of and specific resources for assessment
This unit of competency is to be assessed in the workplace or a simulated workplace environment.
Participants may need to access:
sample data on finance, procurement and markets to analyse and then to build recommendations
corporate planning documents including strategic procurement, finance, technology, logistics and human capital planning
relevant legislation
current information relevant to CSR, sustainability, environment and social legislation, trends and expectations;
relevant market information
workplace scenarios and case studies relating to organisational expectations for future and strategic development of core business
emerging market trends, such as PPPs, strategic alliances, electronic commerce, holistic service solutions, engaging the corporate sector to deliver on behalf of or instead of government
Case studies that incorporate challenges on which to develop strategies to deal with future sources of goods and/or services and the methods that may need to be employed to secure future requirements.
Method of assessment
Suggested assessment methods include:
questioning to assess understanding of key subject matter areas, such as research, analysis, markets, legislation, planning, decision making, communication and mechanisms to plan and implement category management
preparing written reports evidencing the candidate’s review of strategies and approaches adopted by other government and non-government organisations to planning and implementing category management
preparing business cases or other similar documents for approval of category management approaches
developing category management plans
preparing category performance reports
contributing to and implementing sound category management strategies and planning outcomes based on analysis and reviews
demonstrating research, communication, consultation and negotiation skills
In all cases, practical assessment should be supported by questioning to assess underpinning knowledge and those aspects of competency which are difficult to assess directly. Questioning techniques should suit the language and literacy levels of the candidate, but not compromise the integrity of the assessment.
Guidance information for assessment
Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments. Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
PSPETHC501B Promote the values and ethos of public service
PSPGOV507A Undertake negotiations
PSPLEGN501B Promote compliance with legislation in the public sector
PSPOHS501A Monitor and maintain workplace safety
PSPPROC503B Manage contract performance
PSPPROC504B Finalise contracts
PSPPROC505A Manage procurement risk
PSPPROC506A Plan to manage a contract
PSPPROC507A Plan for procurement outcomes
PSPPROC508A Make procurement decisions
PSPPROC509A Participate in budget and procurement review processes