This unit of competency describes the skills and knowledge required to maintain stock control and receivals. It includes establishing supply arrangements, monitoring and maintaining stock, processing receivals and storing stock, determining stock wastage and discrepancies and performing stock audits and reporting.

Stock control involves the monitoring and managing of an organisation's stock. It applies to all stock at every stage of the production process from purchasing and delivery to using and reordering stock.

Receivals is the function of checking items delivered as new stock or supplies. It requires the inspection of goods and materials for quality, condition and quantity and the allocating of space in the storage facility or warehouse.

The unit is applicable to those with responsibilities for stock control and/or receivals within a supply chain.

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

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1

Establish supply arrangements

1.1

Approved business data, forecasting methods and measures to calculate stock levels for standard business periods, peak seasons and special events are established

1.2

Optimum supply arrangements are sourced and negotiated using approved purchasing specifications

1.3

Stock quantities and cost effective terms of purchase are established

1.4

Agreements are recorded, in accordance with stock control and receival procedures

2

Monitor and maintain stock

2.1

Stock control systems and equipment to administer and monitor ordering processes and procedures, including real time tacking information from stock handling and data collection technologies, are used

2.2

Stock levels and reorder cycles are monitored and maintained using approved forecasting methods and tools

2.3

Evaluation of stock against specifications, including adjusting sources of supply, is undertaken, as required

2.4

Optimal safety stock placement and service level optimisation is monitored, in accordance with the continuity plan and stock control and receival procedures

2.5

Stock levels are recorded and reported, in accordance with stock control and receival procedures

3

Process receivals and store stock

3.1

Orders for stock are processed and documented, including checking and recording receivals, against purchase and supply agreements

3.2

Stock is distributed, transported and stored in an approved storage area using safe manual handling techniques

3.3

Stock is inspected for quality, use by dates and damage

3.4

Stock is labelled and any excess is reported, in accordance with stock control and receival procedures

4

Determine stock wastage and discrepancies

4.1

Control system and procedures for stock with high wastage or loss is implemented

4.2

Stock is rotated for maximum use and minimum wastage, as required

4.3

Excess or spoilt stock, including hazardous substances, is disposed of safely, in accordance with stock control and receival procedures

4.4

Stock losses and discrepancies are recorded, in accordance with stock control and receival procedures, and security measures are reviewed

5

Perform stock auditsand report

5.1

Stock audits are performed and reports are produced within designated timeframes

5.2

Audit findings and discrepancies in stock and receivals are reported to approved personnel

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all the requirements of the elements and performance criteria on at least one occasion and includes

assessing stock loss, wastage, excesses and discrepancies

completing stock orders and receivals within established timelines

disposing of stock safely including hazardous substances

forecasting stock and receivals using approved methods and tools

identifying supply sources for different types of products

identifying third party inventory control operations

implementing cost effective stock purchasing and control systems

maintaining stock and receival data and records

monitoring optimal safety stock placement and service level optimisation

monitoring stock control systems, stock quality and cost effectiveness of supplies

performing stock audits

producing stock control reports

receiving, storing, monitoring and maintaining stock levels over life cycle periods

undertaking supplier and customer relationship management

utilising stock handling, receivals and data collection technologies

working with continuity plan and stock control and receival policies and procedures.

Evidence required to demonstrate competence in this unit must be relevant to and satisfy all the requirements of the elements and performance criteria and includes knowledge of

continuity plans

contractual and preferred supplier arrangements

disposal methods for stock and waste including hazardous substances

stock control and receivals policies and procedures

principles of stock control including:

approaches to calculating stock levels and replenishment requirements

factors that may influence purchase specifications

forecasting methods for calculating inventory consumption

methods and tools for calculating cost effective stock quantities including

methods of stock control including FIFO (First In, First Out) and LIFO (Last In, First Out)

standard measures and formulas for yield testing

stock control systems including bin card system, imprest system, integrated point of sale system and ledger systems

product life and storage requirements for specific stock

real time information using stock data technologies

report requirements on stock loss, wastage, excesses and discrepancies

safe manual handling techniques

safe stock placement and service level optimisation

security measures for stock including storage and tracking

stock control audits

stock ordering and delivery processes

stock quality control

stock reorder cycles for standard business periods, peak seasons and special events

supplier and customer relationship management

supply sources for different types of products

types of computerised stock control systems, their functions and features.

Assessors must hold credentials specified within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must satisfy the Principles of Assessment and Rules of Evidence and all regulatory requirements included within the Standards for Registered Training Organisations current at the time of assessment.

Assessment must occur in workplace operational situations where it is appropriate to do so. Where this is not appropriate, assessment must occur in simulated workplace operational situations that replicate workplace conditions.

Assessment processes and techniques must be appropriate to the language, literacy and numeracy requirements of the work being performed and the needs of the candidate.

Resources for assessment must include access to a range of

exercises, case studies or other simulations

materials, tools and equipment used in industry including:

access to suppliers with whom the learner can interact, commercial purchase specifications, stock control procedures and reports and costs and contractual documentation used for the purchase of stock

stock control software systems and applications

documentation including organisational policies and procedures, industry standards, regulations, codes of practice, operational manuals and equipment specifications.

Foundation skills essential to performance are explicit in the performance criteria of this unit of competency.

Range is restricted to essential operating conditions and any other variables essential to the work environment.

Non-essential conditions may be found in the Companion Volume Implementation Guide.

Cross sector

X - Logistics