This unit of competency describes the skills and knowledge required to work with the fundamental aspects of supply chains. It includes determining fundamental aspects, monitoring fundamental aspects, implementing continuous improvement strategies and reporting on fundamental aspects.

Fundamental aspects of a supply chain includes all activities that relate to the integration, operation, purchasing and distribution of products and goods that are critical to the success of a business. Failure to manage the fundamental aspects of a supply chain can have a significant impact on the ability of a business to survive in the market place.

The unit is applicable to individuals working in supply chain management roles. Typically, they will work independently and perform complex tasks in a range of familiar and unfamiliar contexts.

No licensing, legislative or certification requirements apply to this unit of competency 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

Determine fundamental aspects

1.1

Status of fundamental aspects of the supply chain are verified

1.2

Key Performance Indicators (KPIs) for fundamental aspects are identified from strategic supply chain documentation

1.3

Supply chain planning and forecasting requirements are determined

1.4

Vulnerabilities and opportunities in the supply chain are identified

1.5

Digital systems and applications used to support fundamental aspects of the supply chain are confirmed

1.6

Supply chain stakeholders are identified

1.7

Level of authority for performance in the supply chain is verified

2

Monitor fundamental aspects

2.1

Communication channels and strategies to engage supply chain stakeholders are reviewed

2.2

Supply chain operations and outcomes are evaluated and actions to reduce vulnerabilities and achieve better value for money are developed

2.3

Supplier capacity and capability is examined, in accordance with supply chain procedures, to ensure customer requirements are being met

2.4

Stakeholder relationships are monitored, in accordance with supply chain procedures

2.5

Supply chain purchasing channels and distribution outcomes are monitored, in accordance with supply chain procedures

2.6

Legal, ethical, environmental, corporate social responsibility principles and sustainability issues are addressed, in accordance with supply chain policies and procedures

2.7

Supply chain risks are managed and alternative strategies are developed, as required

3

Implement continuous improvement strategies

3.1

Supply chain performance is baselined and measured against recognised industry benchmarks using approved methods and tools

3.2

Supply chain flows and KPIs are examined to ensure fundamental aspects of the supply chain are working cohesively

3.3

Stakeholder feedback is analysed to measure satisfaction

3.4

Data on supply chain discrepancies and inconsistencies is analysed and remediation actions are implemented

3.5

Digital systems and applications in the supply chain are reviewed for effectiveness

4

Report on fundamental aspects

4.1

Trends and challenges in fundamental aspects of the supply chain are identified and reviewed, in accordance with supply chain procedures

4.2

Strategies that support continuous improvement of fundamental aspects are evaluated and recommendations for improvement are developed

4.3

Report on continuous improvement actions is prepared and disseminated to approved stakeholders

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

addressing legal, ethical, envrionemental, corporate social responsibility principles and sustainability issues in supply chains

analysing discrepencies, inconsistencies in data and stakeholder feedback

applying supply chain policies and procedures

implementing remediation actions

determining:

baseline measurements and industry benchmarks

strategic supply chain documentation

supply chain planning and forecasting requirements

supply chain vulnerabilities and opportunities

evaluating strategies that support continuous improvement

examining supplier capacity and capability

developing strategies and recommendations that support continuous improvement activities

making recommendations for improvement

managing risks and developing alternative strategies

monitoring supply chain:

commercial and customer relationships

distribution and purchasing channels

flows

Key Performance Indicators (KPIs)

operations and outcomes

preparing reports that address trends and challenges in supply chain fundemental aspects

reviewing digital systems, applications, communication strategies and channels

verifying level of authority for performance.

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

baseline measurements and industry benchmarks

communication strategies and channels used in supply chains

digital systems and applications used in fundemental aspects of a supply chain

discrepancies, inconsistencies and remediation actions

Key Performance Indicators (KPIs)

legal, ethical, envrionementl and corporate social responsibility principles and sustainability issues

supply chain policies and procedures

report preparation

requirements for planning and forecasting

risk management and the development of alternative strategies

supplier capabilities and capacities

supply chain flows

supply chain operations including:

commercial agreements and contractual requirements

customer service levels

delivery time frames

inventory flow and management

investment returns and cost controls

methods of pricing and payment terms

product sourcing

purchasing and distribution channels

quality control standards

value adds

stakeholder relationships

strategic supply chain documentation

strategies that support continuous improvement activities

trends and changes in fundemental aspects

vulnerabilities and opportunities in fundemental aspects.

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

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