FBPPPL4005
Manage supplier agreements and contracts


Application

This unit of competency describes the skills and knowledge required to manage internal and external agreements for the supply of goods and/or services.

The unit applies to individuals with an understanding of supply chain relationships and arrangements who are responsible for the evaluation and management of new and existing contractual arrangements.

No licensing, legislative or certification requirements apply to this unit at the time of publication.


Elements and Performance Criteria

Elements

Performance Criteria

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish contractual arrangements

1.1 Document and agree specifications for the delivery of goods and/or services according to workplace procedures

1.2 Develop and document criteria for selection of suppliers according to workplace procedures

1.3 Identify and assess potential suppliers against selection criteria

1.4 Select preferred supplier according to the selection criteria and workplace procedures

1.5 Negotiate, agree and document supply contracts with parties

1.6 Develop contingency plans in the event of supplier failure to deliver

2. Administer and evaluate delivery of goods and/or services against agreements

2.1 Assess the quality of goods and services supplied against specifications

2.2 Determine and document non-compliance and implement corrective action within the terms of contractual arrangements

2.3 Manage relationships with suppliers to support effective delivery according to workplace procedures

2.4 Review and renegotiate vendor agreements as required to ensure timely delivery and cost-effective supply of quality goods and services

Foundation Skills

This section describes those language, literacy, numeracy and employment skills that are essential for performance in this unit of competency but are not explicit in the performance criteria.

Skill

Description

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


Sectors

People, Planning and Logistics (PPL)