PSPPCM016 — Plan and implement strategic sourcing
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What an assessment for PSPPCM016 must cover
49 assessable components: 4 elements (22 performance criteria), 16 performance evidence and 11 knowledge evidence requirements. An audit-defensible tool maps every question and task back to these — that mapping is the coverage matrix Auditori generates alongside the assessment.
Elements & performance criteria
1 Develop a procurement profile of the buying organisation
- 1.1Gather and analyse long term data about the strategic implications related to the buying organisation’s level of spend on various types of goods and services, including how, where and from whom the goods or services are procured.
- 1.2Profile the organisation’s existing suppliers, with particular emphasis on each supplier’s capability and capacity, vulnerability, and adherence to Corporate Social Responsibility (CSR) principles, WHS, legislative compliance, market position and ownership structure.
- 1.3Identify and engage relevant communication strategies to engage internal, external and market stakeholders.
- 1.4Assess the buying organisation’s market position (how the market views the organisation as a potential customer).
- 1.5Identify and consider opportunities and risks associated with developing a stronger market position as a buyer.
2 Conduct strategic assessment of the supply market
- 2.1Gather and analyse market information to determine capacity, competition, legislative and regulatory compliance, vulnerabilities and risk within the supply market.
- 2.2Monitor and analyse market trends and emerging changes to the current supply market place.
- 2.3Analyse and assess the supply market’s ability to meet the buying organisation’s needs, including supply chain management issues.
- 2.4Identify and assess innovative and/or creative opportunities within the market.
- 2.5Assess local and international supply market factors that may influence the ability to supply goods and services.
3 Develop strategies to source goods or services from the market
- 3.1Assess the suitability of current and emerging commercial trends within the market to the needs of the buying organisation.
- 3.2Identify and consider the application of commercial best practice models to strategic sourcing activities across the procurement life cycle.
- 3.3Identify and test possible benchmarks of better strategic sourcing practice.
- 3.4Assess the suitability of alternative market sources of supply.
- 3.5Develop strategic supply market plans which reflect analysis of both the buying organisation and the supply market.
- 3.6Devise tendering strategies and type of contracting arrangement appropriate to the goods or services being procured and the nature of the supply market which will supply them, taking contract management strategies into consideration.
- 3.7Review the application of existing legislation, regulations, policies, practices and procedures to strategic sourcing activities and recommend changes to these where this would yield better results for the buying organisation or at the whole of government level.
4 Secure, monitor and review strategic market sources
- 4.1Conduct procurement processes which consider strategic sourcing issues and are appropriate to the goods and services being sought.
- 4.2Negotiate with potential suppliers to secure the best supply arrangements.
- 4.3Develop and implement transition plans from current to new market sources as needed to ensure a smooth transition and the continuous provision of strategic goods and services to the buying organisation.
- 4.4Implement contract management strategies to ensure that goods and services are delivered as contracted.
- 4.5Monitor and review new strategic sourcing arrangements for continuous improvement opportunities.
Performance evidence
- networking, consulting and negotiating with the supply market, existing contractors and stakeholders
- writing a business case
- conducting market analysis and buying organisation analysis
- gathering and analysing organisational information to build procurement profile, market information and stakeholder requirements, and information on restricted products appropriate to the industry
- identifying, analysing and predicting trends
- applying complex government policy and inter-governmental agreements
- interrogating corporate systems, including Financial Management Information System (FMIS) or asset management system to obtain data
- analysing complex supply chains to identify risk, vulnerability and opportunity
- anticipating and interpreting market reaction
- planning procurement processes in alignment with business and organisational goals
- documenting procurement planning decisions and expected outcomes
- managing and updating procurement plans and sub-plans in line with strategic plans and budgets
- applying complex strategies to development of strategic plans, including corporate, budget and procurement plans and sub plans
- contributing to strategic and risk planning
- developing and managing electronic commerce
- exploiting market opportunities and initiatives in electronic commerce
Knowledge evidence
- Commonwealth, state and/or territory, or local government legislation, regulation, policies, practices, procedures and guidelines in relation to procurement, financial management, public sector obligations, consumer law, WHS, social policy and other relevant topics
- international treaties relevant to trade and procurement practices
- government and inter-governmental policy and agreements in relation to procurement practices
- principles and practices associated with Corporate Social Responsibility (CSR) principles, sustainability and environmental issues as applicable to procurement and market behaviours
- research and analysis as applied to complex outcomes, trends and predictions of markets and procurement changes
- codes of conduct, codes of practice and standards of individual behaviour relating to procurement decisions
- micro and macro-economic issues applicable to market behaviours and the impact of procurement
- implications for the organisation and market (suppliers) of key procurement strategies and arrangements
- whole of life costing considerations and value for money
- financial, costing and accounting issues relevant to procurement and contracts
- cultural issues relevant to strategic procurement and industry development in specific markets or market sectors
Unit content sourced from training.gov.au — © Commonwealth of Australia, licensed under CC BY 4.0. Auditori is not affiliated with the Department of Employment and Workplace Relations.
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Questions about assessing PSPPCM016
What does an assessment tool for PSPPCM016 need to cover?
To satisfy the Principles of Assessment and Rules of Evidence, an assessment for PSPPCM016 needs to address all 49 unit components: 4 elements with 22 performance criteria, 16 performance evidence requirements, 11 knowledge evidence requirements, and the foundation skills. A coverage matrix mapping each question and task to these components is what an auditor looks for.
How does Auditori generate an assessment tool for PSPPCM016?
Auditori pulls the current release of PSPPCM016 from training.gov.au and generates a complete package: candidate assessment, assessor guide with model answers and observation criteria, and a coverage matrix mapping every component. A suitably qualified person then reviews and approves the draft in a built-in workflow — consistent with ASQA's guidance on AI use in VET — before export as branded PDF and editable Word.
Is the first assessment tool really free?
Yes. Every new account includes one free credit — enough to generate the complete assessment tool for PSPPCM016 — with no card and no subscription required. After that it's pay-as-you-go per unit.
Can I check my existing PSPPCM016 assessment instead of generating a new one?
Yes — upload your existing assessment or learner guide and Auditori maps it against every element, performance criterion, PE and KE of PSPPCM016, showing exactly what's covered and what's missing. Mapping costs a quarter of a credit.
Related units
- PSPPCM002 — Dispose of assets
- PSPPCM004 — Plan procurement
- PSPPCM005 — Develop and distribute requests for offers
- PSPPCM006 — Select providers and develop contracts
- PSPPCM007 — Manage contracts
- PSPPCM008 — Manage contract performance
- PSPPCM009 — Finalise contracts
- PSPPCM010 — Manage procurement risk
- PSPPCM011 — Plan to manage a contract
- PSPPCM012 — Plan for procurement outcomes
- PSPPCM013 — Make procurement decisions
- PSPPCM014 — Participate in budget and procurement review processes
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