This unit of competency describes the skills and knowledge required to manage outsourced supply chain operations. It includes planning and confirming contracted services, determining the capacity of contracted services, managing contracted services and reporting on contracted services.

Outsourced supply chain operations, Third/Fourth Party Logistics (3PL/4PL) contracted services, typically use a variety of resources, capabilities and technology to manage parts or complete supply chain operations. Contracted services can include transportation, warehousing, inventory management, container receipt and de-stuffing, order management and processing, cross docking, sourcing, procure to pay, customs brokerage and freight forwarding.

The unit is applicable to those with team leadership responsibilities 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

Plan and confirm contracted services

1.1

Outsourced supply chain operations, conducted through contracted services, are identified

1.2

Contracted services management plan for outsourced supply chain operations, including Key Performance Indicators (KPIs), is confirmed

1.3

Contracted services prequalification list and procurement processes, to ensure value for money, are determined

1.4

Industry standards, codes of practice and legislative responsibilities for supply chain contracted services are identified

1.5

Level of responsibility and authority for managing supply chain contracted services is confirmed

2

Determinecapacity ofcontracted services

2.1

Pricing models for contracted services are reviewed, in accordance with supply chain procedures

2.2

Capacity and integrity of practice of contracted services is validated

2.3

Technology systems and processes of contracted services are verified for integration into the existing supply chain

2.4

Disruption mitigation plans, critical real time data and inventory control systems of contracted services are substantiated

2.5

Recommendations for contracted services are provided, in accordance with supply chain procedures, to authorised personnel for approval

3

Manage contracted services

3.1

Performance of contracted services are monitored, using an approved management system, to ensure KPIs are being met

3.2

Integrity of operations and practices of contracted services are monitored and non-compliances are actioned, in accordance with supply chain procedures

3.3

Dispute resolution and termination processes for contracted services are managed, in accordance with contractual obligations and supply chain procedures

4

Review and report on contracted services

4.1

Performance of outsourced supply chain operations and compliance of contracted services is reviewed, in accordance with supply chain procedures

4.2

Report on outsourced supply chain operations and contracted services is prepared and distributed to approved stakeholders

4.3

Continuous improvement actions, including recommendations on potential contracted services, are documented

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

accessing critical real time data of supply chain contracted services

confirming contracted services prequalification list and procurement processes to ensure value for money

confirming management plan for contracted services including Key Performance Indicators (KPIs)

determining compliance and actioning non-compliance remediation

identifying legislation, regulations, codes of practice and industry standards

identifying outsourced supply chain operations conducted through Third/Fourth Party Logistics (3PL/4PL) contracted services

managing dispute resolution and termination processes for contracted services

monitoring contracted services operations and practices

monitoring contracted services using an approved management system

monitoring contracts and contractual obligations

preparing reports on outsourced supply chain operations and compliance of contracted services

recommending potential contract services

reviewing contracted services performance

reviewing contracted services pricing models

undertaking continuous improvement actions including making recommendations on potential contracted services

validating supply chain contracted services integrity of practice

verifying contracted services credentials, capacity and technology systems.

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

circular economy principles in relation to addressing sustainability practices in outsourced supply chain operations

continuous improvement principles

contracted services compliance system and non-compliance remediation

contracted services management plans including Key Performance Indicators (KPIs)

contracts and contractual obligations

critical real time data systems

dispute resolution and termination processes

integrity principles

legislation, regulations, codes of practice and industry standards relevant to contracted services

management systems used for tracking performance of contracted services

prequalification lists and procurement processes for contracted services

price modelling for contracted services

review and report requirements

supply chain stakeholders

types of Third/Fourth Party Logistics (3PL/4PL) contracted services used in supply chains.

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 and tools including digital supply chain 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