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TLIR5014 Manage Suppliers

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Assessment Workbook: TLIR5014 Manage suppliers

Introduction

This guide, together with the Assessment Activity forms the assessment tools for:

Unit code

Title

Training Package

TLIR5014

Manage suppliers

Transport and Logistics Training Package

Application

TLIR5014

This unit involves the skills and knowledge required to manage suppliers in various contexts within the transport and logistics industry.

It includes assessing and building productive relationships with suppliers, and evaluating the delivery of goods/services against agreements. It also includes negotiating arrangements, resolving disagreements with suppliers and reviewing supplier performance.

The unit generally applies to those who lead individuals or teams.

Elements and Performance Criteria

1.0 Assess suppliers and build productive relationships

  • Criteria to effectively evaluate supplier services are developed and documented
  • Existing suppliers are assessed against criteria
  • Availability and suitability of alternate suppliers who can meet the service support requirements within legislative requirements are identified
  • Terms and conditions of suppliers to achieve service requirements are established and communicated
  • Cooperative relationships are developed with suppliers in accordance with organisational policies and procedures

2.0 Evaluate delivery of goods and/or services against agreements

  • Quality of goods and services supplied is assessed against criteria
  • Non-compliance is identified, documented and corrective action is implemented within the terms of contractual arrangements
  • Contingency plans are developed should suppliers fail to deliver
  • Relationships with suppliers are managed to support effective delivery

3.0 Negotiate arrangements with suppliers

  • Arrangements with suppliers are negotiated and implemented in accordance with organisational policies and procedures
  • Market factors that may affect the supply of goods and services are identified and communicated to relevant personnel
  • Immediate corrective action is taken in consultation with suppliers where potential or actual problems are indicated

4.0 Resolve disagreements with suppliers

  • Disagreements with suppliers are investigated to identify validity and causes
  • Disagreements are negotiated and resolved
  • Amendments to agreements, as a consequence of the resolution of disagreements, are documented
  • Approval is sought and obtained for amendments
  • Approved amendments are communicated to suppliers and relevant personnel

5.0 Review performance of suppliers

  • Suppliers are continuously reviewed for quality, profitability, service, delivery status and other relevant performance indicators
  • Supplier performance is evaluated against purchasing agreement requirements
  • Suppliers are informed of evaluation outcomes as required
  • Recommendations about future use of suppliers are made to relevant personnel
  • Suppliers are deleted from supplier shortlist according to criteria

Pre-requisites

Not applicable

Appeals and reassessment

If you disagree with the assessment decision and result, you have the right to appeal and be reassessed if necessary. Details of the appeals process is contained in the Complaints and Appeals Policy & Procedure, provided to you prior to enrolment. See Complaints and Appeals Policy & Procedure for more details.

Plagiarism

While co-operative effort and the sharing of information are encouraged, you must ensure your assignments and assessments are representative of your own effort, knowledge and skills. You must not take the work of others and present it as your own. Plagiarism may result in the assignment/assessment being deemed to be “not yet competent” by the assessor.

Students accused more than once of academic misconduct, including plagiarism, may be dismissed or cancelled from their course at the discretion of the National Training Manager.

Plagiarism can take several forms;

  • Quoting from a book or an article without acknowledging the source
  • Handing in someone else’s work as your own
  • Stealing and passing off another person’s words or ideas and claiming them as your own
  • Giving incorrect information about the source of a quotation or idea
  • Downloading information from the internet without acknowledging the source
  • Copying a section of a book or article and submitting it as one’s own work
  • Presenting as a new and original idea or produce something which was derived from an existing source

Referencing Materials

National Training prefers that students utilises Harvard Style referencing. Generally, Harvard Reference List citations follow this format:

Books: Last name, First Initial. (Year published). Title. City: Publisher, Page(s).

Journals/publication: Last name, First initial. (Year published). Article title. Journal, Volume (Issue), Page(s).

Websites: Website name, (Year published). Page title. [Online] Available at: URL [Accessed Day Mo. Year].

Understanding your results

The great thing with competency based training is that you either deemed 'competent' (you can demonstrate the required skills and knowledge) or 'not yet competent' (at this time you haven't been able to demonstrate required skills or knowledge). The key word is "YET”.

Your trainer will provide you with feedback on your assessments so that you know what you have done well in your assessment and what you need to improve upon or fix. An "NYC" result does not mean that you have failed and that is it - you have the opportunity to try again. It could be that one question in your assessment was deemed not yet satisfactory and this is the only question that will require review.

Results Legend

C

Competent

Has successfully completed unit and has met the minimum competency criteria and demonstrated the required skills and knowledge

NYC

Not Yet Competent

Has not met minimum competency criteria for the unit - certain section/s require review due to not meeting the requirements and being deemed not yet satisfactory

CT

Credit Transfer

Application required

RPL

Recognition of Prior Learning

Application required

Assessment activity

The assessment activities contained below have been designed for the following unit(s) of competency:

TLIR5014 Manage suppliers

This is a summative assessment process. For the student to be assessed as competent in each Unit of Competency, all questions and activities need to be satisfactorily completed.

Each assessment activity contained within:

Assessment 1:

Case Study 1

All parts need to be completed.

This is a summative assessment activity, which means it is an assessment of what you have learnt and used towards the assessment of your overall competency.

This Case Study is split into 2 parts, all questions and reports must be answered, uploaded to a Word Document and uploaded as your assessment.

Documents required to filled out in full.

Assessment 2:

Case Study 2

All parts need to be completed.

This is a summative assessment activity, which means it is an assessment of what you have learnt and used towards the assessment of your overall competency.

Assessment 3: Short Answer Question

This requires the completion of all comprehensive questions.

This is a summative assessment activity, which means it is an assessment of what you have learnt and used towards the assessment of your overall competency.

Each question must be submitted and of 100 – 300 words minimum.

Assessment 1, 2 & 3 Instructions

Student Instructions

Type of Assessment

This is a summative assessment activity, which means it is an assessment of what you have learnt and used towards the assessment of your overall competency.

General

There are a number of short answer questions and case studies. You must attempt each one. If you have difficulty with understanding the question or completing the answers then talk to your trainer.

Your trainer is there to help you understand and help you demonstrate your understanding, not to complete the answers for you.

You are required to answer all questions and provide as much detail as you can. These questions are not required to be completed under exam conditions.

Context and purpose of assessment

The short answer questions and the case studies have been drawn from the information contained in your workbook/ learning materials. Therefore you should have a good understanding of the answers

Assessment instructions

Read information provided and fully complete all questions as asked.

Resources, equipment & material required

Learner Guide

Computer

Internet

How you will be assessed

Upon completion of your responses will be assessed against a standard answer sheet to ensure that you have covered the question and are consistent with others. You are required to get every question correct,

For more information on the specific criteria contained in the unit descriptor, speak with your trainer. They will provide you with a copy of the criteria or see your learner guide which includes the performance criteria.

Assessment 1: Case Study 1

The objective of this section is to demonstrate TLIR5014 Manage suppliers

Case Study 1A

You are a purchasing manager at National Camper Trailers Pty Ltd. One of your suppliers of a component of the Stargazer Series of trailer, Acme Widgets and Wodgets Pty Ltd, supply the 2 different types of bearings for the Axel shafts. They have been your supplier for 5 years. The contract is now up and you have been asked to do an evaluation of this supplier. Here are some historical facts from the last year.

  • This supplier only supplies 2 components.
  • The price has increased 5% each year. This year they have targeted a 10% increase.
  • There have been 4 instances of nondelivery / delayed delivery due to: -
    • Industrial action that lasted 4 weeks
    • Raw materials unavailable causing 6-week delay
    • Plant break-down twice first time 2 weeks’ delay second was 3 weeks’ delay.
    • In every instance AWW kept in constant contact and bent over backwards to correct the problems
  • 5 times the components didn’t meet the standards required.
  • Management has flagged that they are not interested in sourcing replacements from overseas, they believe in Buy Australian if possible.
  • Previous Criteria established in supplier evaluation:
    1. Price increments to 5%.
    2. Monthly Delivery performance:
      1. 90% delivery on time
      2. 95% standards achieved
    3. Notification within 2 days of possible delay in delivery.

Delivery Performance of AWWM Pty Ltd July 2015 – June 2016

Month

Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with EYE TO EYE SPRINGS 45X8MM

1000KG Mechanical Drum Brake Single Axle Trailer Kit with Slipper springs 1T

Ordered

Delivered

Returned

Ordered

Delivered

Returned

July

25

25

Nil

10

10

2

August

30

nil

Nil

15

Nil

Nil

September

30

50

5

15

25

Nil

November

20

35

2

10

19

Nil

December

35

37

Nil

25

25

Nil

January

Nil

Nil

Nil

Nil

Nil

Nil

February

20

10

Nil

15

5

Nil

March

25

35

3

10

22

4

April

25

15

Nil

10

14

Nil

May

20

25

Nil

15

10

Nil

June

30

20

To assist you with your decision you can access the AWWM Pty Ltd Purchasing Contract, the NCT Terms and Conditions applying to Procurement Purchase Orders from the TLIR5014 Attachments.

You must prepare a report to the CEO on your recommendations on this year’s contract:

  1. Established criteria to effectively evaluate supplier services.
  2. Evaluate this current supplier against the criteria you establish. (Including: Quality of goods and services supplied)
  3. Make recommendations of Terms and Conditions of future suppliers to achieve service requirements and details of how this would be communicated.
  4. Make recommendations of how you could develop cooperative relationships with suppliers in accordance with National Camper Trailers policy and procedures.
  5. Describe how you would apply relevant legislation and workplace procedures in this process.

Your report must be between 1000 – 3000 words in length.

Case Study 1B

Your report to the CEO regarding the Contract extension for Australian Widgets and Wodgets Manufacturing Pty Ltd has been discussed at board level and the following memo was returned to you.

NCT ~ MEMO

To: Purchasing Manager

From: Mick Dundee Chief Executive Officer

Date: 22nd June 2016

Subject: Contract Extension Report AWWM Pty Ltd

To (Your Name) Purchasing Manager NCT

Regarding the report that you prepared and lodged with the Board for discussion. We had a strong robust discussion around your report trying to decide to maintain this supplier or to no longer continue with this relationship. A big issue was the criteria and the performance against these KPI’s and the fact that this is a long term supplier with a good relationship.

At this point we wish you to enter into discussion with AWWM and put to them the following issues with some recommendations from you as to ways that they could improve their performance.

  • Quality of goods assessed against our criteria.
  • The non-compliance against the Purchasing Contract.
  • Contingency plans should they have similar issues in a new contract 12-month period.
  • Moving forward with our relationship upon support for effective delivery.

Michael Dundee

CEO

National Camper Trailers.

Prepare a report to be sent to AWWM as a prelude to Contract discussions.

You are to address the issues raised from the Board meeting, and your report to the Board.

  1. Identify AWWM’s non-compliances and provide recommendations to AWWM on how they could meet the Contractual requirements and address their non-compliance to the current contract.
  2. Prepare a Corrective Action Plan as part of your report and also include possible Contingency Plans to account for the Non-delivery situations from past year’s performance.
  3. Address how you would like disagreements to be investigated to identify validity and causes under the new contract.
  4. Address how disagreement will be negotiated and resolved under the new contract.
  5. Provide details of how you would like approval and acceptance of above recommendations in the new contract.
  6. Provide details of how approved amendments will be communicated to the supplier and relevant personnel

Your Report should be at least 1000 – 3000 words.

Assessment 2: Case Study 2

The objective of this section is to demonstrate TLIR5014 Manage suppliers

Case Study 2

You are a purchasing manager at National Camper Trailers Pty Ltd. After your report to the board the CEO has asked you to research possible new suppliers before the current contract is up.

Your research must take into account location and transport costs, product costs, availability of supply.

Products are: -

  • Single Axle UN-BRAKED Trailer Kit 1400kg Rating, with EYE TO EYE SPRINGS 45X8MM
  • 1000KG Mechanical Drum Brake Single Axle Trailer Kit with Slipper springs 1T

Complete the following:

  1. Prepare a Purchase request for the products to the supplier/s you have researched with the criteria you outlined in Case Study 1A
  2. List the companies you are going to research / List why you selected the one you did and explain why you deleted the unsuccessful ones.
  3. Supply arrangements negotiation questions that again match both NCT’s Terms and Conditions and the Purchasing Contract.
  4. What market factors could affect the arrangement with these new suppliers?
  5. What problems could you anticipate and what corrective actions could be prepared in advance?
  6. Detail the supply requirements and base these on the previous supplier non-compliance.
  7. Explain to suppliers how they will be continuously reviewed for quality, profitability, service, delivery status and other relevant performance indicators.
  8. Explain to the supplier the criteria for evaluation and process to inform suppliers of evaluation outcomes.
  9. Provide recommendation about future use of suppliers will be made to relevant personal
  10. Explain how suppliers will be deleted from supplier shortlist according to criteria.

Note: Use the Contract Template in the Unit Attachments to fill out a Purchasing Contract.

Assessment 3: Short Answer Questions

The objective of this section is to demonstrate TLIR5014 Manage suppliers

Question 1

Codes of Practice set out industry standards of conduct. Explain how codes of practice can assist you to deal collaboratively with Suppliers in your dealings with them.

Question 2

What is meant by “Common use Arrangements”?

Question 3

In the situation of Supply Contract Performance disputes, how would your company’s workplace procedures assist you to deal with this situation?

Question 4

When working with Suppliers, to maintain control and performance of these partnerships we must be able to do statistical analysis report and record findings. In Case Study 2 you were asked to research some possible replacement suppliers for AWWM Pty Ltd. and report your recommendations to the board. Based on this report and Using the Numeric Ranking System pick 2 of the prospective suppliers and give their Ranking points and your findings here as a short report to the board.

Question 5:

Why must financial viability be taken into consideration when evaluating a Supplier and going back to Case Study 1A what effect did this have on NCT?

Question 6

When conducting an evaluation of a Procurement and Supply Contract, why should we take our organisation’s policies, procedures, plans, guidelines and code of conduct into consideration before proceeding with this contract?

Question 7

What procedures should be in place for monitoring the performance of our suppliers and what information should we be monitoring?

Question 8

At NCT we have a Diversity Policy (This can be found on the Nat Train Dashboard > National Camper Trailers > HR Policies), taking this into consideration, why would this be important to take into account when forming partnerships and contracts with new or ongoing suppliers?

Question 9

What are the benefits of formulating organisational procedures and protocols for electronic communication equipment?

Question 10

It is essential for accounting systems that we maintain control of all receipt and payments of goods and services, why should we have procedures to cover these systems?

Question 11

In case Study 2 you were asked to research a new supplier of goods and to prepare a Procurement Contract. Explain here why a company would have a procedure to cover this situation and list some of the items that would be contained within this document?

Question 12

When looking at procurement contracts what relevant Federal and State or territory legislative and regulatory requirements and codes of practice should be taken into account?

Question 13

What relevant documentation would you be required to prepare for a Supply / Procurement contracts would you need to prepare for both your own company and the supplier?

Question 14

What steps must you take when planning your work activities? Outline these steps with regards to Case Study 2?

Question 15

What benchmarks are used to evaluate suppliers in your workplace to ensure they are meeting their contractual obligations?

Question 16

When building a productive relationship with suppliers, list three (3) behaviours that are important in the relationship.

Question 17

Provide the name of the Federal legislation covering consumers and fair trading.

Question 18

Which Government Agency is responsible for enforcing the legislation at either Federal or State levels?

Question 19

Define the role of a Supply Manager or Contract Manager responsible for managing suppliers.

Question 20

Should a supplier go into receivership or close down that supplies product that is essential for your workplace, what contingency plans could you apply and what would be the process that you will follow?