FBPPPL4005 — Manage supplier agreements and contracts

Elements & performance criteria

Performance evidence

• An individual demonstrating competency must satisfy all of the elements and performance criteria in this unit.
• There must be evidence that the individual has managed internal and external agreements for the supply of goods and/or services on at least two separate occasions, including:
• determining resource requirements for work area
• establishing contractual conditions and determining most suitable supplier
• monitoring supply against agreements and contracts, and promptly identifying and acting on variances
• establishing supply contingencies
• maintaining relationships with suppliers to support service.

Knowledge evidence

• An individual must be able to demonstrate the knowledge required to perform the tasks outlined in the elements and performance criteria of this unit. This includes knowledge of:
• approaches to supply chain management, including:
• customer-led models and efficient consumer response (ECR)
• contrast between independent company operations versus chain partnership arrangements
• the implications of a supply chain approach for the nature of the relationships between the company and its suppliers, including level of information sharing and cooperation
• the company’s approach to supply chain management, and related systems and documentation in place to support internal management and supplier relationship management, including levels of authority
• appropriate technical knowledge to determine capacity of a supplier to deliver and to assess quality of goods/service supplied
• legal rights and responsibilities of both the company and the supplier
• the role of benchmarking in determining appropriate criteria for supplier selection and contract management
• appropriate measures of contract delivery and relative importance/weighting given by the company
• induction and duty of care responsibilities for contractors working on-site where relevant.

Foundation skills

• Reading: Analyses and consolidates information and data from a range of sources, against defined criteria and requirements, and checks for accuracy and completeness
• Writing: Accurately records information, prepares contracts and correspondence using clear language and organisational formats and protocols
• Numeracy: Applies modelling skills to identify, analyse and evaluate costings, production scheduling, time durations and human resource allocations for contract development and monitoring
• Oral communication: Uses collaborative and inclusive techniques including active listening, questioning and verbal and non-verbal signals to convey and clarify information and to confirm understanding during negotiations
• Navigate the world of work: Takes responsibility for following explicit and implicit policies, procedures and legislative requirements for contract development
• Interact with others: Implements strategies for a diverse range of colleagues and clients in order to build rapport and foster strong relationships
• Get the work done: Monitors progress of production plans and schedules, and reviews and manages them to meet new demands and priorities Applies systematic and analytical decision-making processes for complex and non-routine situations Investigates new and innovative ideas as a means to develop contacts through negotiation and analytical thinking

Unit content sourced from training.gov.au — © Commonwealth of Australia, licensed under CC BY 4.0. Auditori is not affiliated with the Department of Employment and Workplace Relations.

Questions about assessing FBPPPL4005