Maintain Business Resources

BSBCMN307A - Information
Information Page Number
Course Outline
Elements of competency and performance criteria
Monitor equipment/resource usage and maintenance
Assessment evidence required
2
2
2
2
Advise on Resource Requirements
Business resources
3
3
Keeping Trac of Resources
Perpetual inventory system
Valuation of inventories
First in First Out !F"FO#
$ast in First Out !$"FO#
%tandard &ost
P'ysical "nventory %ystem
Assets (egister
!
)
)
*
+
,
-
-
"toc Control in t#e Office
%toc. &ards
Estimating Business (esources
Presenting information
$
/
01
01
%onitor &quipment'Resource (sage and %aintenance
Occupational 2ealt' and %afety
Business 3ec'nology
(elevant Policies
))
02
03
0)
Acquire resources
Acquisition and storage of resources
Purc'asing
)*
0*
0+
Ke+ Terms and Concepts
),
-"-C%N3./A
%aintain business resources
1

3'is unit covers t'e s.ills and .no4ledge required to determine administer and maintain resources and
equipment to complete a variety of tas.s5
&lements of competenc+ and performance criteria
Advise on resource requirements
050 Estimates of future and present 6usiness resources are calculated in accordance
4it' organisational requirements
052 Advice is clear concise and relevant to ac'ievement of organisational requirements
053 "nformation is provided on t'e most economical and effective c'oice of equipment
materials and suppliers
05) (esource s'ortages and possi6le impact on operations are identified
%onitor equipment'resource usage and maintenance
250 (esource 'andling is in accordance 4it' esta6lis'ed organisational requirements
including occupational 'ealt' and safety requirements
252 Business tec'nology is used to monitor and identify t'e effective use of equipment
and resources
253 &onsultation 4it' individuals and teams is used to facilitate effective decision
ma.ing on t'e appropriate allocation of resources
25) (elevant policies regarding resource use are identified and ad'ered to in t'e
performance of operational tas.s
25* (esource usage is routinely monitored and compared 4it' estimate requirements in
6udget plans
Acquire resources
350 Acquisition and storage of resources is in accordance 4it' organisation
requirements
352 Acquisition of resources is cost effective and consistent 4it' organisational
timelines
353 (esources are acquired 4it'in availa6le timelines to meet identified requirements
35) (esource acquisition processes are revie4ed to identify improvements in future
resource acquisitions
Assessment evidence required
7 collecting and recording data on resource use
7 o6serving resource use over defined and operational time frames
7 preparing reports to advise on resource needs
7 accessing resources to maintain operations in line 4it' requirement outcomes
7 underta.ing routine maintenance
2
Advise on Resource Requirements
Estimates of future and present business resources are calculated in accordance with organisational
requirements
-usiness resources ma+ include
facilities
eg 6uildings rooms 4it' specific purposes
'ard4are soft4are etc
eg computers 4it' Microsoft programs loaded
ra4 materials
eg materials required for t'e manufacture or production of finis'ed
goods
'uman resources
eg t'e staff 4or.ing to ac'ieve t'e organisation8s goals
stoc. and supplies
eg trading stoc. consuma6les fi9ed assets suc' as mac'inery or
ve'icles
A variety of different met'ods 4ill 6e used to calculate t'e need for 6usiness resources depending on
t'e type of resource5 3'e 6usiness may 6e a6le to estimate t'e amount of stationery required over a
4ee. or mont' and order accordingly 6ut 4ould determine future requirements for assets suc' as motor
ve'icles in a very different 4ay5 (esources can t'erefore 6e acquired on a daily 4ee.ly mont'ly
quarterly 6iannual annual or even less frequent 6asis according to t'e organisation8s needs and
requirements5
3'ese organisational needs and requirements
may 6e referred to or included in documents suc' as
o mission statements goals o6:ectives
o 6usiness and performance plans
o Occupational 2ealt' ; %afety policies procedures and programs
o quality assurance and/or procedures manuals
o manufacturer8s and operational specifications
o legal and organisational policy/guidelines and requirements
or t'ey can 6e em6edded in
o systems and processes
o security and confidentiality requirements
o management and accounta6ility c'annels
o access and equity principles and practice eg Anti <iscrimination legislation
o et'ical standards eg "ndustry &ode of Practice environmental standards
o quality and continuous improvement processes and standards
o defined resource parameters
3
Estimating t'e future and present requirements of particular resources may involve
conducting a regular stoc.ta.e or .eeping trac. of inventory using a perpetual inventory system
liaison 4it' ot'er staff regarding t'eir requirements
using su6missions for equipment or resources
forecasting requirements 6ased on 'istorical data
identifying urgent and non urgent requirements eg stationery required for a once=a=year
advertising mailout mig't 6e purc'ased 4ell in advance on special
consulting tactical plans eg t'e need for staff for t'e proposed e9pansion of t'e manufacturing
department
determining t'e usa6le life of assets and planning for replacement
deciding 4'et'er to purc'ase 'ire lease or outsource t'e resource
referring to current legislation eg O2;% >uidelines to determine t'eir impact on purc'asing eg is
ergonomic furniture mandatory?
recognising organisational preferences eg only purc'asing one 6rand of computer 'ard4are or
4'ite cars for t'e ve'icle fleet5
Keeping Trac of Resources
Perpetual inventor+ s+stem
"nvolves .eeping continuous records or stoc. items purc'ased and sold@ a comparison of actual stoc.
and records is carried out during stoc.ta.e at t'e end of t'e accounting period5 3'e availa6ility of stoc.
is easily found 6y loo.ing at t'e stoc. record !a manually prepared card or a spreads'eet record# for t'e
item5 3'is system is generally used for 6usinesses 4it' fe4er sales transactions !eg mac'inery# or as a
met'od of monitoring consuma6le items5 3'e introduction of 6ar=coding 'as e9tended t'e use of
computerised perpetual inventory systems to organisations 4it' 'ig' turnovers of stoc. eg
supermar.ets5
Example: Perpetual inventory system
Greg runs a bike shop and normally has about $50000 !orth o" sto#k on hand at the end o" the in#ome year$
%t the end o" last year it !as $55000$ Greg has a point o" sale system that automati#ally updates his
#omputerised inventory$ %t the end o" this in#ome year the inventory system indi#ates that he has $53000
!orth o" sto#k$ &to#ktakes done in previous in#ome years indi#ate that his system is reliable in re#ording sales
and pur#hases$ 'o!ever he kno!s "rom previous in#ome years that the total value o" the sto#k on hand as per
the sto#ktake may di""er by on average 2(3) "rom the inventory system "igure due to loss o" small items by
the"t$ Greg uses the $53000 as his reasonable estimate !ithout making any ad*ustments "or the"t as the
redu#tion in value due to the"t is not material$ Greg+s estimate satis"ies the #riteria o" a reasonable estimate$
,
0aluation of inventories
Organisations need to value t'eir inventory at t'e end of t'e accounting period5 3'e same met'od is
used from one period to t'e ne9t allo4ing a clear comparison of results5
1irst In 1irst Out 21I1O3
3'e follo4ing e9ample is of a perpetual stoc. ledger card using t'e First "n First Out !F"FO# met'od of
valuing t'e inventory5 "n t'is met'od t'e first units purc'ased 4ill 6e t'e first units sold5 All goods are
valued at t'eir cost price5

P&RP&T(A4 "TOCK 4&56&R CAR5 "temA Craft Scissors
Valuation Met'od FIFO &ode BoA A63
5ate Particulars Received ' In Issued ' Out -alance
7t+ Price 0alue 7t+ Price 0alue 7t+ Price 0alue
Dec!" #alance "$% &'!! $!!'!!
& "!! &'!! &!!'!! $% &'!! 3!!'!!
$ %! &'!! (!!'!! (% &'!! "!!'!!
"! In) ((&3 $% &'*! 36!'!! (% &'!!
$% &'*! &6!'!!
"( (% &'!!
(% &'*! ((!'!! %! &'*! (&!'!!
(" In) (6$" 3% &'6! "6"'!! %! &'*!
3% &'6! &!"'!!
(+ %! &'*!
% &'6! (63'!! 3! &'6! "3*'!!
5
4ast In 1irst Out 24I1O3
A 6usiness mig't c'oose to value its stoc. using t'e $ast in First Out met'od !$"FO#5 All goods are
valued at t'eir cost price5 3'e follo4ing e9ample presumes t'e same quantities !as a6ove# of &raft
%cissors are 6oug't and sold 6ut valued using t'e $"FO met'od5 Cor. out t'e difference 6et4een t'e
t4o met'ods5

P&RP&T(A4 "TOCK 4&56&R CAR5 "temA Craft Scissors
Valuation Met'od ,IFO &ode BoA A63
5ate Particulars Received ' In Issued ' Out Balance
7t+ Price 0alue 7t+ Price 0alue 7t+ Price 0alue
Dec!" #alance "$% &'!! $!!'!!
& "!! &'!! &!!'!! $% &'!! 3!!'!!
$ %! &'!! (!!'!! (% &'!! "!!'!!
"! In) ((&3 $% &'*! 36!'!! (% &'!!
$% &'*! &6!'!!
"( %! &'*! (&!'!! (% &'!!
(% &'*! ((!'!!
(" In) (6$" 3% &'6! "6"'!! (% &'!!
(% &'*!
3% &'6! 3*"'!!
(+ 3% &'6! (% &'!!
(! &'*! (%$'!! % &'*! "(&'!!
-
Average cost 28eig#ted3
Anot'er met'od of valuing stoc. is 6ased on t'e assumption t'at a random mi9 of t'e goods are sold5
3'e total cost of t'e inventory is divided 6y t'e total goods availa6le5

P&RP&T(A4 "TOCK 4&56&R CAR5 "temA Craft Scissors
Valuation Met'od A)erage Cost &ode BoA A63
5ate Particulars Received ' In Issued ' Out -alance
7t+ Price 0alue 7t+ Price 0alue 7t+ Price 0alue
Dec!" #alance "$% &'!! $!!'!!
& "!! &'!! &!!'!! $% &'!! 3!!'!!
$ %! &'!! (!!'!! (% &'!! "!!'!!
"! In) ((&3 $% &'*! 36!'!! "!! &'6! &6!'!!
"( %! &'6! (3!'!! %! &'6! (3!'!!
(" In) (6$" 3% &'6! "6"'!! *% &'6! 3+"'!!
(+ %% &'6! (3!'!! 3! &'6! "3*'!!
"tandard cost
Dsing t'is met'od a standard cost is given to all inventory movements5 "f t'e actual costs vary from t'is
predetermined amount a difference is accounted for separately5
P#+sical inventor+ s+stem
3'e p'ysical or periodic inventory system requires a stoc.ta.e to 6e done at t'e end of t'e accounting
period 6ecause a record of t'e quantities of stoc. 6oug't and sold is not recorded5 C'en goods are
purc'ased t'e value is recorded as is t'e amount received 4'en goods are sold 6ut t'e details of stoc.
are not trac.ed 6et4een stoc.ta.es5
Assets register
A manual record or computer data6ase identifying and listing t'e asset t'e date of acquisition t'e cost
of t'e asset and allocating a unique identifying num6er5 C'en assets are sold or deemed E6eyond
usa6le lifeF t'ey are removed from t'e assets register5 Dsually used for fi9ed assets valued at over G311
e5g5 computers motor ve'icles mac'inery or equipment5
.
"toc Control in t#e Office
%ome organisations 4ill maintain a perpetual inventory system of consuma6les to .eep trac. of t'e
quantities availa6le !not necessarily t'eir value# and to ma.e ordering easier5 For e9ample in a small
office a %toc. &ard could 6e used5 Eac' time goods are received t'ey are entered on t'e card5 C'en a
requisition is received and goods issued to ot'er personnel accurate entries made on t'e card allo4 you
to see 4'en goods need to 6e reordered5 An e9ample of t'is type of record .eeping follo4s5

Can you identify where this
requisition is entered on the Stock
Card e!ow"
3'e 6usiness 4ill determine
t'e optimum stoc. level !'o4 muc' s'ould 6e 'eld to avoid running out and to avoid 'aving too
muc' stoc. on 'and#
t'e frequency of ordering required !to avoid 'aving too muc' or too little on 'and at any time#
t'e usual delivery time !or lead time# of t'e item
4'et'er it is 6etter to purc'ase small quantities or ta.e advantage of 6ul. discounts
t'e storage room availa6le
associated costs eg delivery
t'e safety margin required in case of additional demand or goods 6eing temporarily unavaila6le
3'en 4or. out t'e Eeconomic reorder pointF 4'ic' 4ill 6est avoid disruptions5
/
&stimating -usiness Resources
Estimating future and present 6usiness resources in accordance 4it' organisational requirements 4ill
also necessitate 6eing a4are of 6udget allocations and restrictions ordering procedures 4'ic'
personnel 'ave aut'ority to purc'ase or to delegate resource purc'ase policy and procedures regarding
preferred suppliers or contracted suppliers or t'e tendering process5
3'e type of information required 6efore deciding to purc'ase 4ill include
precise description of resource required
6rand ma.e and model style colour etc if specified
quantity required
cost including after sales costs eg delivery insurance on=road costs etc
time frame for delivery
terms and conditions eg 6ul. discounts prompt payment discounts 31 days net payment
Ad)ice is clear- concise and rele)ant to achie)ement of organisational requirements
Once information 'as 6een sourced from suppliers catalogues 6roc'ures advertising materials trade
:ournals etc a summary of t'e information may 6e presented to t'e appropriate person5 3'is may involve
a memo a fa9 or email a ver6al presentation or t'e 4riting of a report according to t'e level of
information required5
9#en presenting information remember
Accuracy
Ensure all data is accurate and complete@ give specific
description of t'e resource eg item num6er colour 6rand
siHe cost per item total cost
-revity
"nclude relevant and sufficient information so t'at a decision
can 6e made .eep to t'e su6:ect
Clarity
%tate t'e purpose of your report or memo present t'e data
clearly and sequentially use IPlain Englis'I not 6usiness
:argon
Information is pro)ided on the most economical and effecti)e choice of equipment- materials and
suppliers
&'oice of equipment materials and supplies mig't 6e determined 6y
6udgets eg mont'ly consuma6les 6udget five=year leasing 6udget for fleet ve'icles
storage facilities eg garaging facilities for only five ve'icles storage space for a ma9imum of one
pallet of paper for p'otocopier
rate of use eg contracting for supply of ra4 materials on a 6i=mont'ly 6asis
suppliers eg 6etter terms of trade relia6ility of delivery consistent quality of product
availa6ility eg s'ort lead time
4arranty eg e9tended 4arranty on computer equipment
running costs eg p'otocopier 4it' lo4er per copy maintenance c'arge
0
.esource shortages and possible impact on operations are identified
3'e smoot' running of an organisation 4ill require .eeping trac. of resources on a continuous 6asis5
%'ortages of stoc. or ra4 materials consuma6les or 'uman resources 4ill impact on t'e ac'ievement
of organisational goals5 From time to time a particular resource may 6e temporarily unavaila6le and
su6stitution may 6e necessary5
Organisational policy and procedures may require staff to notify anticipated requirements to avoid
s'ortages eg stationery required for a large mailout additional computer for a ne4 staff mem6er printing
of additional copies of a price list for a trade promotion5
Ot'er met'ods of reducing t'e possi6le impact of resource s'ortages include
accurate recording of stoc. used eg using stoc. cards
regular c'ec.ing of inventory
identifying alternate resources or suppliers especially 4'en s'ortages are 6eyond t'e control of
t'e organisation eg petrol stri.e
perusal of equipment maintenance records@ ensuring maintenance is carried out and service
contracts continued
discussion of resource requirements at staff meetings
%onitor equipment'resource usage and maintenance
.esource handling is in accordance with established organisational requirements including O/0S
requirements
(esources are valua6le 6usiness assets and control systems are necessary to monitor t'e acquisition
movement and utilisation of t'ese resources5 "t is important to regularly monitor t'e provision and use of
resources and maintenance of equipment and to do so according to organisational policy and
procedures5 %ystematic 'andling of resources may involve
valuing t'e total of stoc. during a stoc.ta.e
ensuring maintenance is regularly carried out according to an equipment maintenance program
.eeping accurate and up=to=date records
arranging for replacement of o6solete or outdated resources
issuing of consuma6le resources according to organisational procedures
using organisational procedures for t'e ordering of goods .no4ing tendering processes and t'e
organisation8s preferred suppliers
follo4ing organisational policy in recruiting personnel
(esource requirements are 6ased on
demand or level of use
dura6ility or peris'a6ility of a particular item
life of t'e resource = is it a fi9ed asset or due to 6ecome o6solete?
storage facilities availa6le
cas' flo4 and 6udget requirements
10
Occupational :ealt# and "afet+
An important aspect of resource 'andling and monitoring is ensuring t'at all assets and equipment are
used correctly and safely in accordance 4it' Occupational 2ealt' and %afety requirements5
Employers and employees 6ot' 'ave rig'ts and responsi6ilities regarding Occupational 2ealt' and
%afety5 Employers 'ave a <uty of &are requiring t'em to plan for t'e prevention of 4or.place in:uries
and illnesses5 Facilities and equipment must 6e maintained to a 'ig' standard and personal protective
equipment !PPE# made availa6le 4'ere necessary5
3'e organisation must train employees in safe procedures in t'e use of ne4 tec'nologies safety
regulations and t'e correct use of equipment and PPE5 %afety signs pu6lications and information on
rig'ts responsi6ilities procedures and codes of practice must 6e availa6le5 %ystems for t'e reporting of
accidents or incidents must 6e in place5
Employers and employees also 'ave t'e responsi6ility to prevent ris.s t'roug' correct manual 'andling
and appropriate c'emical safety procedures5 Manual 'andling is any tas. t'at involves p'ysical effort or
t'e movement of an o6:ect or a load5
3'e Bational Occupational 2ealt' and %afety &ommission !4445no'sc5gov5au # pu6lis'es &odes of
Practice and Bational %tandards for
occupational 'ealt' and safety issues !eg managing 4or.place 'aHards safe 4or.ing in a
confined space#
manual 'andling issues !eg Bational %tandard for Manual 2andling#
c'emical safety guidelines !preparation of material safety data s'eets#5
Cor.cover B%C !44454or.cover5ns45gov5au # also pu6lis'es guidelines for a range of O2;% issues5
3'is site also encourages learning a6out safety in an interactive game and quiH section calledSafet1
2one5
Organisations may 'ave particular requirements to do 4it'
'o4 accidents incidents maintenance requests 6rea.do4ns etc are reported
4'o 'as access to t'e site or specific areas of t'e premises eg areas signed /A2C/E3 4'ere
c'emicals are stored
allo4ing only trained or supervised staff to use specific equipment
location of t'e First=aid .it and first aid officer and 'o4 to see. medical attention
4'o 'as t'e aut'ority to purc'ase resources or recruit staff delegate t'e sc'eduling of
maintenance or asset acquisition
11
-usiness tec#nolog+
#usiness technolog1 is used to monitor and identif1 the effecti)e use of equipment and resources
"n most organisations a range of tec'nological tools are used to monitor and more effectively control t'e
use of equipment and resources5
E9amples include
computers and computer applications eg data6ases spreads'eets accounting pac.ages
computer aided design !&A<# and computer aided manufacturing !&AM# multi=media pac.ages
6ar=coding products and scanning information directly to computer data6ase
personal sc'edules eg diary or soft4are pac.age
modems Email "nternet/e9tranet/intranet
p'otocopiers for record .eeping
%uc' tec'nology 4ill assist in monitoring
equipment usage 6rea.do4ns maintenance and repairs
conducting time management surveys and trac.ing t'e use of assets !eg car fleet#
use of consuma6les !stoc. records# or ra4 materials and t'e need to restoc.
6ar coded resources or stoc.s !eg client records or li6rary resources 6eing 6orro4ed and
returned#
Ot#er tools include
(egister of use
A 6oo. or computer data6ase indicating t'e use of a particular asset eg
company car log6oo.
Assets register
(efer to Assets register in t'e Jeeping trac. of resources notes
Allocation of resources
3'e organisation may require requisition forms 6e su6mitted 6efore any
items can 6e issued from t'e stoc.room or purc'ased 6y t'e aut'orised
personnel5 Alternatively eac' department may 6e given a 6udget
allocation 4it' 4'ic' to purc'ase consuma6le items5 (eference can 6e
made to data6ase information or manual records to determine 'o4 and
4'en particular resources !including 'uman resources# mig't 6e availa6le
for use5
Consultation with indi)iduals and teams is used to facilitate effecti)e decision ma4ing on the appropriate allocation of
resources
3'e smoot' running of an organisation and t'e 6est use of all resources 4ill 6e en'anced 4'en ot'er
staff are consulted for information and advice regarding t'eir o4n and t'eir teams8 resource
requirements5
Most organisations 'ave policies and procedures 4'ic' can 6e follo4ed to ensure appropriate decisions
are made regarding t'e allocation of resources5 3'is mig't include team meetings application to a
committee completing requisition forms or t'e use of 'istorical information5 "f possi6le t'e .no4ledge
and e9perience of staff s'ould 6e utilised in purc'asing and allocation decisions5 From time to time it
may 6e necessary to negotiate 4it' ot'er individuals or groups to resolve a pro6lem5 Begotiation
involves conferring 4it' ot'ers to reac' mutual agreement5 &onflict resolution involves finding a solution
for opposition 6et4een individuals or groups and mig't involve t'e participation of a mediator to assist
12
t'e parties to find agreement5 At all times equity principles s'ould 6e follo4ed to ensure all staff are
treated fairly and consistently eg all ne4 staff s'ould 6e entitled to t'e same equipment@ t'e entire team
s'ould 6e consulted a6out t'e location of equipment used 6y t'at team5
Relevant policies regarding resource use are identified and adhered to in the performance of
operational tas4s
Alt'oug' most organisations 'ave esta6lis'ed !4ritten# policy and procedures t'e 6usiness may also
'ave un4ritten 4or.place conventions or 6e'aviours relating to t'e acquisition of resources5
Policies ma+ include &;amples
ordering procedures = 'o4 is t'e ordering or
purc'asing done? A purc'ase requisition form is completed and given
to t'e appropriate supervisor
time management = 4'en is t'e ordering or
purc'asing done? All requests for purc'ase of consuma6les must 6e
notified 6efore 0*
t'
of mont'
transport/travel policies = 4'ere can t'e
purc'asing 6e done? All motor ve'icles are purc'ased at local dealers'ip
for ease of servicing
purc'asing aut'orities = 4'o is aut'orised to
order or purc'ase? 3eam leaders must sign purc'ase requisition forms
6efore t'ey are given to t'e appropriate aut'ority
6udgeting limits = 'o4 muc' can 6e spent?
3'e administration department 'as a 6udget of
G0*11 for stationery purc'ases Kanuary to Kune5
recruitment and personnel = 4'o is aut'orised
to recruit personnel@ 'o4 is t'e recruitment
process 'andled in t'is organisation?
3'e 2uman (esources Officer 4or.s 4it'
department supervisors to esta6lis' staffing
requirements for t'e coming period5
.esource usage is routinel1 monitored and compared with estimate requirements in budget plans
&ontrol of stoc. 4ill not only insure against t'eft misuse or misappropriation 6ut 4ill also ena6le
intelligent and timely ordering avoid t'e dangers of overstoc.ing reduce t'e amount of 4or.ing capital
tied up in resources and reduce spoilage or outdated materials 6eing 'eld5 Accurate evaluation of
inventories s'ould 6e conducted to ensure t'at proposed 6udgets !6ot' e9penditure and income# are
6eing ac'ieved5
13
Acquire resources
Acquisition and storage of resources is in accordance with organisational requirements
After t'e decision to purc'ase resources 'as 6een made organisational policy and procedures s'ould
6e follo4ed to acquire t'e goods or services 4it'in t'e appropriate timeframe5
Acquisition of resources mig't involve
tendered processes = a tender is an offer to provide goods or services 4'ic' includes detailed
estimates and t'e total cost of supply5 "t is common for government departments to advertise !or
IcallI# for tenders for specific pro:ects eg provision of mail services to a rural community or supply
of a fleet of ve'icles5

non tendered processes are ot'er met'ods of acquiring resources and mig't include using a
purc'ase requisition or purc'ase order see.ing quotes from a num6er of suppliers according to
organisational policy and procedures ta.ing advantage of sales or clearances 'iring staff on a
casual 6asis leasing equipment for a period of time5

contracted supplier ordering = involves purc'asing from a supplier 4'o is contracted to t'at
organisation for a given period of time to provide certain goods5 3'e supplier usually offers
e9ceptional value in return for t'is contract5 An e9ample 4ould 6e in a large organisation
contracting to purc'ase all computers from t'e one supplier5

internal approvals = it is usual for all purc'ases to require some form of internal approval or
aut'orisation 6efore purc'ase can 6e made5 3'is aut'ority could vary from 6eing a6le to approve
petty cas' purc'ases less t'an G011 t'roug' to 'aving aut'ority to replace t'e company8s fleet of
cars5

periodic forecasts = t'e smoot' running of an organisation 4ill require .eeping trac. of resources
on a continuous 6asis5 %'ortages of stoc. or ra4 materials consuma6les or 'uman resources 4ill
impact on t'e ac'ievement of organisational goals5 3o avoid t'is some form of periodic forecast =
a regular estimate of future needs or outcomes = needs to 6e conducted5 3'is 4ill allo4 t'e
organisation to 6etter plan for and 6udget for upcoming purc'ases5
Even 6efore goods 'ave 6een received decisions s'ould 6e made regarding storage of t'e resources5
>oods need to 6e monitored to ma.e sure t'ey@
are easily accounted for
are not damaged in any 4ay
are of no danger to 4or.ers
'ave not 6ecome out=of=date or o6solete
are secure from t'eft or pilfering
Acquisition of resources is costeffecti)e and consistent with organisational timelines
1,
Purc#asing
Organisations require purc'asing to 6e underta.en in a cost=effective and timely manner and to do so
t'e needs of t'e organisation need to 6e t'oroug'ly researc'ed5 (egardless of t'e savings made it is
no use purc'asing at a sale if t'e goods are delivered after t'e need for t'e goods 'as passed5
Met'ods of acquiring resources in a cost=effective manner include
6ul. purc'ases = purc'asing a large quantity 4ill often attract a discount5 3'is 4ill only 6e
6eneficial if t'e organisation can turn over t'e goods 4it'in t'e life of t'e good5
discounts = often availa6le for 6ul. purc'ases 4it' contracted suppliers 4it' certain suppliers for
given periods of time as a special introductory offer or deal
prompt payment policies = a discount given 6y t'e supplier to encourage t'e purc'aser to pay t'e
account quic.ly eg %5 $ da1s 4ould indicate t'at if t'e account is paid 4it'in seven days t'e
purc'aser can ta.e *L off t'e 6ill5
timing !eg sales# = from time to time t'e needs of t'e organisation 4ill coincide 4it' a sale5
For4ard planning 4ill often identify upcoming needs and staff s'ould 6e a4are of periodic
opportunities to ma.e e9tra savings5
.esources are acquired within a)ailable timelines to meet identified requirements
3'e lengt' of time 6et4een ordering and delivery 4ill vary according to t'e quantity and type of goods or
services requested5 %tationery consuma6les may 6e delivered 4it'in 2) 'ours a call for tender for t'e
construction of a 6uilding may ta.e several mont's5 3'e needs of t'e organisation must 6e considered
on an individual 6asis as t'ere are times 4'en t'e timing of provision is t'e most important factor5
Orders s'ould 6e recorded and delivery follo4ed up as necessary5 "f goods do not arrive as requested
t'ey s'ould 6e follo4ed up and a record .ept of t'e inquiry5 "t may 6e necessary to arrange for alternate
supply if goods are unavaila6le from t'e usual stoc.ist5
.esource acquisition processes are re)iewed to identif1 impro)ements in future resource acquisitions
Organisations may 6enefit from conducting a regular revie4 of t'eir resource acquisition processes in
order to identify areas 4'ere future improvements could 6e made5 3'ere may 6e issues suc' as
a 6rea.do4n in t'e supply process
an overrun of a 6udget allocation
t'e purc'ase of unsatisfactory goods
t'e discovery of an alternate supplier
a revie4 of practices5
(evie4 strategies s'ould include feed6ac. and discussion 4it' relevant staff recording pro6lems 4it'
particular suppliers and maintaining records of any difficulties in t'e procurement process5
%trategies for future improvement mig't involve revie4ing t'e process used for t'e purc'ase of a
particular item and identifying any pro6lems or issues in t'at process5
3'is could include investigating
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t'e process of cost analysis !comparing t'e costs of purc'ase operation consuma6les
maintenance contracts insurance leasing etc#
supply contracts !t'e availa6ility of a range of suppliers t'e discounts and terms offered delivery
mec'anisms and timeframes met'ods of ordering etc# Cas t'e 6est supplier c'osen for t'e
purc'ase or 4as t'e organisation loc.ed into a unfavoura6le contract5
tec'nological c'anges !4'at met'ods 4ere used to identify any tec'nological improvements
4'ic' 4ould impact on t'e purc'ase decision@ 'as t'e purc'ase 6een made on t'e 6asis of
matc'ing e9isting requirements eg to lin. into an e9isting computer net4or. or made to ta.e
advantage of ne4 tec'nology to en'ance our met'ods eg adding a la6el printer and mailing
soft4are to ta.e advantage of 6ul. mail discounts#5
"dentified areas for improvement prefera6ly 4it' suggested solutions s'ould 6e referred to an
appropriate aut'ority so t'at future resource acquisitions can more effectively managed5
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Ke+ Terms and Concepts
Term 5efinition
(a4 materials Materials required for t'e manufacture or production of finis'ed goods
2uman resources 3'e people necessary to ac'ieve t'e organisationFs goals
%toc. and supplies 3'e resources necessary for t'e organisation to carry out its 6usiness eg
stoc.s of ra4 materials or finis'ed product assets consuma6les
Muality Assurance Processes used to ensure continuous improvement or maintenance of
quality standards
Management and
accounta6ility c'annels
3'e 4ays in 4'ic' management decisions and t'e means of assessing
results are transmitted t'roug' t'e organisation
Et'ical standards %tandards t'at are considered to 6e socially accepta6le morally rig't
'onoura6le and fair
<efined resource parameters 3'e designated varia6les for t'e resource acquisition eg siHe quantity
cost
<ecision=ma.ing delegation 3'e aut'ority to ma.e a decision 4'ic' is entrusted to ot'er personnel
Ordering procedures Organisational policy and procedures 4'ic' need to 6e follo4ed to
acquire goods or services 4it'in an appropriate timeframe
3ime management %c'eduling time effectively in order to complete tas.s 4it'in a time frame
Purc'asing aut'orities 3'e personnel 4'o 'ave aut'ority to purc'ase on 6e'alf of t'e
organisation
Budgeting limits 3'e amount of money allocated for a particular purpose
(ecruitment 3'e process of locating identifying and attracting applicants for a :o6
3endered processes 3'e processes 6y 4'ic' offers !tenders# to provide goods or services
!including detailed estimates and t'e total cost of supply# are made to t'e
organisation see.ing t'e tender
&ontracted supplier A supplier 4'ic' 'as 6een contracted to supply goods or services for an
agreed cost over a given period of time
Periodic forecasts A regular estimate of future needs or outcomes
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