SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate an understanding of the supply chain environment 
SAQA US ID UNIT STANDARD TITLE
336713  Demonstrate an understanding of the supply chain environment 
ORIGINATOR
SGB Procurement, Logistics and Supply Chain Mngt 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Procurement 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
Purpose:

This unit standard will enable learners to demonstrate an understanding of the supply chain environment. People credited with this unit standard will be able to know how to analyse spending and supply markets and identify appropriate supply chain strategies to apply in various circumstances.

A learner credited with this unit standard will be able to:
  • Specify the difference between centralised and decentralised procurement.
  • Analyse the components and application of total cost of ownership (TCO) principles.
  • Conduct a supply market analysis.
  • Identify and analyse the process of selecting and evaluating suppliers. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Communication NQF Level 4.
  • Mathematics NQF Level 4. 

  • UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Specify the difference between centralised and decentralised procurement. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The differences between centralised and decentralised procurement are reflected through a flow diagram of both approaches. 

    ASSESSMENT CRITERION 2 
    The advantages/disadvantages of both centralised and decentralised procurement are listed to reflect their impact on supply chain. 

    ASSESSMENT CRITERION 3 
    The different circumstances under which to purchase centrally and decentralily are indicated. 

    ASSESSMENT CRITERION 4 
    Centralised and decentralised procurement are analysed in relation to their impact on supply chain management. 

    SPECIFIC OUTCOME 2 
    Analyse the components and application of total cost of ownership (TCO) principles. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The TCO philosophy and principles are analysed to understand the true cost of doing business with a supplier, going well beyond price. 

    ASSESSMENT CRITERION 2 
    Purchasing prices are analysed to reflect its influence on TCO. 

    ASSESSMENT CRITERION 3 
    The process of purchasing cost analysis is analysed in order to reflect the cost elements. 

    ASSESSMENT CRITERION 4 
    Potential areas of cost inefficiencies are evaluated to determine the effect on the bottom line and where spend can be optimised. 

    ASSESSMENT CRITERION 5 
    Cost drivers are analysed to determine their impact on the TCO. 

    ASSESSMENT CRITERION 6 
    Process recommendations are made that relates to sourcing in terms of TCO. 

    SPECIFIC OUTCOME 3 
    Conduct a supply market analysis. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Supply market conditions are assessed to determine market segmentation that informs the sourcing strategy. 

    ASSESSMENT CRITERION 2 
    Company spending is categorised in different supply market conditions. 

    ASSESSMENT CRITERION 3 
    A model to do an industry/supply market analysis is used resulting in a sourcing strategy. 

    ASSESSMENT CRITERION 4 
    The types of buyer-supplier relationships are evaluated to inform strategies for growing customer value and profitability. 

    SPECIFIC OUTCOME 4 
    Identify and analyse the process of selecting and evaluating suppliers. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The characteristics of a good supplier are assessed to determine their suitability against business needs and buyer specification. 

    ASSESSMENT CRITERION 2 
    Sources of information for finding suppliers are determined using a variety of resources including supplier/buyer matching systems. 

    ASSESSMENT CRITERION 3 
    A systematic process to select the right supplier is analysed for its capability to deliver against business and market needs. 

    ASSESSMENT CRITERION 4 
    Various sourcing policies are evaluated to reflect their influence on the selection of suppliers. 

    ASSESSMENT CRITERION 5 
    Various methods are used to evaluate the performance of suppliers. 

    ASSESSMENT CRITERION 6 
    Key performance areas are identified for the evaluation of suppliers' performance. 

    ASSESSMENT CRITERION 7 
    Areas of ongoing development of suppliers are identified in order to create value for money and an awareness of the interdependency of the relationship. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Any institution offering learning that will enable achievement of this unit standard must be accredited by the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA at its discretion.
  • Moderation should encompass achievement of competence described in both individual unit standards as well as the integrated competence described in the qualification. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • How to translate corporate objectives into purchasing/sourcing goals.
  • The concepts associated with strategy development.
  • How to translate purchasing objectives into purchasing goals.
  • The operation of the acquisition quadrant.
  • How to conduct supply market research.
  • The details of the various supply/purchasing strategies.
  • The concept of global sourcing.
  • The supplier relationship life cycle.
  • The evolving sourcing strategies.
  • What is meant by fully integrated supply chains.
  • The benefits of using commodity teams.
  • The criteria for successful commodity teams.
  • The potential pitfalls for using commodity teams.
  • How to select a supplier.
  • How to evaluate supplier performance.
  • The basic legal requirements associated with supplier contracts and the termination of contracts.
  • How to build long term supplier relationships.
  • The link of supplier management with the South African development strategies.
  • Implications of holding stock.
  • Methods used to value stock.
  • Inventory control methods.
  • Terms including safety stock and service levels, and their effect on order quantities.
  • Scheduling of the flow of supplies.
  • Principles of stores and warehouse layout, including design and layout.
  • Advantages and disadvantages of different types of materials handling equipment. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identifying and solving problems in which responses display that responsible decisions using critical and creative thinking have been made when:
  • The strategic supply chain management plan was planned, analysed and approved. 

  • UNIT STANDARD CCFO WORKING 
    Working effectively with others as a member of a team, group, organisation, and community during:
  • The process of determination, evaluation and assessment of the corporate strategy. 

  • UNIT STANDARD CCFO ORGANISING 
    Organising and managing oneself and one's activities responsibly and effectively through:
  • Establishing an effective strategy for supply chain management. 

  • UNIT STANDARD CCFO COLLECTING 
    Collecting, analysing, organising and critically evaluating information when:
  • Identifying, and evaluating suitable suppliers. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicating effectively using visual, mathematical and/or language skills in the modes of oral and/or written persuasion when:
  • Conveying or obtaining critical information with regard to supply chain management. 

  • UNIT STANDARD CCFO SCIENCE 
    Using science, technology and indigenous knowledge effectively and critically, showing responsibility towards the environment and health of others through:
  • Complying with all relevant legislation and prescripts. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrating an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation when:
  • Tested against nationally approved supply chain management processes as well as international benchmarks. 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  74149   National Certificate: Supply Chain Management  Level 5  NQF Level 05  Reregistered  2023-06-30  TETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
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    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.