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Elements and Performance Criteria

Required Skills

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

literacy skills to develop and document international purchasing strategies draft contracts and produce international purchasing documentation

negotiation and verbal communication skills to successfully conduct international purchasing activities in a cross cultural context and within organisation

organisational and time management skills to ensure international purchasing activities are conducted in a timely manner

problemsolving skills to overcome obstacles arising in international purchasing activities

research skills to analyse international markets and regulatory requirements affecting international purchasing

risk management skills

Required knowledge

international markets and cultural considerations relevant to purchasing in supplier countries

international issues in environmentally sustainable supply chain management

knowledge of INCOTERMS

methods of payment applicable to international purchasing including barter and countertrade

organisational policies and procedures for international purchasing

range of available agencies involved in arranging importation arrangements such as

customs brokers

freight forwarders

range of available insurance brokers and types of policies to cover identified risks

sources of information and assistance external to organisation for example

chambers of commerce

customs brokers

regulatory authorities such as ACS and AQIS

stateterritory government departments or agencies

range of available logistics and transport companies

Evidence Required

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

completion of documented international purchasing strategies for an organisation

implementation of international purchasing strategies in an organisation

completion of a complex international purchase

completion of a barter or countertrade

implementation an evaluation of transport and logistics strategies to obtain goods purchased internationally

Context of and specific resources for assessment

Assessment must ensure

access to an actual workplace or simulated environment

access to office equipment and resources

organisations 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 international purchasing strategies

direct questioning combined with review of portfolios of evidence and third party workplace reports of onthejob performance by the candidate

direct questioning combined with review of portfolios of evidence and third party workplace reports of onthejob performance by the candidate

observation of actions undertaken to achieve an international purchase

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

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.

Strategic implicationsmay include:	business risks compliance requirements economic and financial implications establishment of overseas branches and agencies or representatives knowledge and information requirements environmental sustainability supply chain requirements.
Export requirementsmay include:	business processes and practices of supplier country compliance with legislation international treaties quotas tariffs trading agreements.
Cultural considerationsmay include:	attitudes beliefs business processes and practices within supplier country culturally appropriate communication styles perception of Australia values.
International legal requirementsmay include:	international law international trade agreements and treaties legislation applicable to supplier country.
Australian regulatory controlsmay include:	Australian Customs Service (ACS) requirements Australian Quarantine Inspection Service (AQIS) requirements Australian Taxation Office requirements requirements of other government departments and agencies Trade Practices Act.
INCOTERMSrefer to:	the set of international rules for the interpretation of trade terms published by ICC (International Chamber of Commerce) and applied to imports and exports to specify transportation and payment conditions.
Controlsmay include:	guarantees insurance other strategies to minimise or transfer risk selection or rejection of particular payment methods specifying a particular currency for payment.
Currency payment methods may include:	hedging letters of credit payment by cheque upon/after shipment.
Barterrefers to:	the simultaneous exchange of goods between the importer and exporter.
Countertraderefers to:	a trading transaction where export sales to a particular market are made on the condition that imports from that particular market are accepted in return.
Requirements for pre-shipment inspectionmay include:	checks made of things such as: checks of condition of goods prior to shipment labelling of goods and containers packaging (including condition of containers) quality quantities separation of goods to comply with Australian regulations such as Dangerous Goods Act.
Regulatory compliance requirementsmay include:	fumigation and quarantine regulations labelling requirements legislation and regulations related to prohibited imports separation of goods to comply with Australian regulations such as Dangerous Goods Act.