Sport and Recreation - Draft 2

SISXFAC011 Manage stock supply and purchase_Draft 2

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Unit application and prerequisites




Manage stock supply and purchase


This unit describes the performance outcomes, skills and knowledge required to establish and implement stock supply and control systems, and cost-effective purchasing.


This unit applies to any type of sport, fitness, aquatic or recreation organisation including commercial, not-for-profit, community and government organisations. It can be applied to any type of environment, and to specific types of stock.


It applies to senior technical and operational staff and managers who work independently or with limited guidance from others, taking responsibility for their own work functions and outputs.


The skills in this unit must be applied in accordance with Commonwealth and State or Territory legislation, Australian standards and industry codes of practice.


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




Facility Management





Elements describe the essential outcomes

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

  1. Determine stock requirements.
    1. Use business data, forecasting methods and standard measures to calculate required stock levels.
    2. Determine stock requirements for standard business periods, peak seasons and special events.
    3. Establish cost-effective purchase quantities based on business information and supplier advice.
  1. Establish optimum supply arrangements.
    1. Source and review potential suppliers of relevant types of products used by the organisation.
    2. Develop detailed and accurate purchase specifications.
    3. Assess suppliers against specifications considering all relevant factors.
    4. Assess terms of purchase and negotiate with suppliers to achieve optimum supply arrangements.
    5. Evaluate cost and quality of supply based on feedback from staff and customers, identify deficiencies and adjust purchasing arrangements.
    6. Keep accurate records of supply agreements.
  1. Develop and implement stock control systems.
    1. Develop stock control systems and communicate to relevant staff.
    2. Develop special control systems for particular goods and stock with high wastage.
    3. Monitor systems and make adjustments according to feedback and stock control reports.
    4. Initiate training of staff to minimise stock wastage.
  1. Manage stock reconciliation.
    1. Organise stock reconciliation and cyclical count at intervals that meet business need.
    2. Allocate responsibilities to staff and supervise operation of stocktakes and cyclical counts.
    3. Complete and maintain stock reconciliation records according to organisational procedures.


Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement.



Reading skills to:

  • interpret complex supplier cost documentation, terms of purchase, and contracts
  • sort and analyse information to make decisions on supply arrangements.

Oral communication skills to:

  • use persuasive language to negotiate complex supply arrangements.

Numeracy skills to:

  • interpret complex numerically based, wastage and stock reconciliation reports
  • interpret supply costs and calculate cost-effective quantities for purchase.

Initiative and enterprise skills to:

  • negotiate cost-effective supply to maximise profitability.

Technology skills to:

  • use business technology for inventory management.


Supersedes and is equivalent to SISXFAC005 Manage stock supply and purchase.


Companion Volume Implementation Guide


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Performance evidence


Assessment Requirements for SISXFAC011 Manage stock supply and purchase


Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

  • determine stock requirements and cost-effective purchasing arrangements for three different types of sport, fitness, aquatic or recreation stock using business data and supplier information
  • develop stock control systems for the three types of stock
  • use stock control and reconciliation reports to evaluate and adjust stock control systems.


Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

  • specific to the sport, fitness, aquatic or recreation environment:
    • types of business data and methods used to calculate required stock levels including use of standard measures and formulas for yield testing
    • different types of products used and:
      • supply sources
      • methods to calculate cost-effective order quantities
      • storage conditions to maintain products in optimum condition
      • stock security systems for products, including those specific to dangerous goods
      • reasons for stock wastage, and methods used to control
    • considerations for quantity of orders, re-order cycles and stock held:
      • standard business periods, peak seasons and special events
      • product life and availability of appropriate storage conditions
      • economies of scale for quantity purchased
      • supplier lead time
  • formats and inclusions of:
    • purchase specifications, including appropriate terminology
    • stock control procedures, including those for dangerous goods and stock with high wastage
    • different types of stock reports and how these are used to manage stock control processes
  • functions and features of computerised stock control systems.


Skills must be demonstrated in a sport, fitness, aquatic or recreation environment. This can be:

  • a workplace, or
  • a simulated industry environment set up for the purposes of skills assessment.


Assessment must ensure use of:

  • interaction with suppliers; these can be:
    • actual suppliers, or
    • individuals who act as suppliers during simulated activities
  • computerised stock control systems
  • business data, including stock control reports
  • supplier cost and contractual documentation.


Assessors must satisfy the Standards for Registered Training Organisations requirements for assessors.


Companion Volume Implementation Guide


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