NZQA Expiring unit standard
7456 version 7
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Title
Develop and strengthen supplier relationships
Level
6
Purpose
Credits
10
This unit standard is for people who have or seek responsibility
for managing supplier relationships.
People credited with this unit standard are able to develop
strategic sourcing agreements with selected suppliers, and
enhance supplier relationships for mutual benefit.
Classification
Business Operations and Development > Business
Relationships Management
Available grade
Achieved
Entry information
Recommended skills
and knowledge
Unit 8073, Establish, develop, and improve quality-focused
aspects of supplier relationships, or demonstrate equivalent
knowledge and skills.
Explanatory notes
1
Organisation refers to the business entity and can cover a variety of types and forms of
organisation, whether profit or non-profit, in private, public, or voluntary sectors,
including business units, iwi, and other special purpose bodies.
2
Supplier is used as the generic description for a person or organisation who supplies
products, materials, or services required by the organisation. Suppliers can be
external or internal to the organisation.
3
Customer is used as the generic description for a person or organisation who receives
products or services supplied by the organisation. Customers may be external or
internal to the organisation. The term ‘customer’ may be translated according to the
user’s context as ‘client’, ‘consumer’, ‘member’, ‘patient’, or other title.
4
Quality is the totality of the characteristics of products and services that bear on their
ability to satisfy stated and implied needs of customers and other stakeholders.
5
Stakeholders are individuals and groups, which have some direct interest in the
organisation and its products or services. Stakeholders typically include customers,
providers, owners, shareholders, managers, employees, employee organisations, and
regulatory bodies.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
7456 version 7
Page 2 of 4
6
Improvements are actions taken to increase the effectiveness and efficiency of
activities and processes in order to provide added benefits to the organisation and its
customers. Activities and processes for improvement can include personnel policies
and practices; work methods and patterns; work environment; cost factors; nature and
availability of services and products; quality of services and products; methods to
reduce waste and variation; new equipment, technology, and systems.
7
Strategic sourcing is the process of making a long term supply agreement with a
selected supplier with intent to secure the optimal cost on a continuing basis,
measured by total acquisition costs over the whole supply cycle from inward flow from
supply source, receipt, storage, and conversion to finished goods for outward
distribution.
8
This unit standard will be assessed against on the basis of evidence of demonstrated
performance in the workplace. In practice this will call for a variety of modes of
assessment and forms of evidence. Evidence is required to show consistency of
performance across a range of situations and to demonstrate knowledge,
understanding, and skill in the principles and practices directly relating to the
competent performance of outcomes and evidence requirements.
Outcomes and evidence requirements
Outcome 1
Develop strategic sourcing agreements with selected suppliers.
Evidence requirements
1.1
The impact of strategic sourcing on competitiveness, security of supply, and other
constraints is evaluated and justified against existing and alternative
arrangements and in consultation with direct stakeholders.
1.2
The implications of alignment of systems with a selected supplier are evaluated
and net benefits to both parties are demonstrated.
1.3
The nature and form of strategic sourcing arrangements are concluded and
agreed with all interested parties.
Range
1.4
arrangements may include but are not limited to – formal contract,
informal agreement, joint venture, risk sharing venture, partnering,
strategic alliance;
evidence is required of at least three arrangements.
Agreement is reached on the scope and content of the strategic sourcing
arrangements.
Range
scope and content may include but are not limited to – joint
resourcing, management arrangements, technical assistance,
financial assistance, alignment and implementation of systems,
conformance with quality standards and specifications.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
1.5
Evidence exists that both parties draw mutual benefit from the strategic sourcing
agreement.
Range
1.6
7456 version 7
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mutual benefit may include but is not limited to – technical
assistance, quality assurance, long term strategic and capital
planning, savings in inventory costs, utilisation of facilities.
Strategic sourcing agreement is reviewed at agreed intervals in consultation with
interested parties to effect improvements.
Outcome 2
Enhance supplier relationships for mutual benefit.
Evidence requirements
2.1
Organisational product or service improvement activities are used to involve
selected suppliers and assist in supplier development.
2.2
Activities involving the mutual exchange of resources are managed and
developed in a manner that reinforces contractual agreements and develops long
term commitment.
Range
2.3
activities may include but are not limited to – complaint handling,
audits, site visits, meetings, improvement projects;
resources may include but are not limited to – information,
personnel, technology.
Supplier development activities are used to strengthen the capacity of the
organisation and the supplier to achieve continuing improvements to performance
and to respond to changing circumstances.
Range
improvements to performance may include but are not limited to –
access to technology, cost reduction, improved logistics,
simplification.
Replacement information
This unit standard, unit standards 6406 and 7455, have
been replaced by 29464.
This unit standard is expiring. Assessment against the standard must take place by
the last date for assessment set out below.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
7456 version 7
Page 4 of 4
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
31 August 1996
31 December 2016
Revision
2
7 September 1999
31 December 2016
Rollover and
Revision
3
14 December 2007
31 December 2016
Rollover and
Revision
4
17 September 2010
31 December 2016
Rollover and
Revision
5
18 April 2013
31 December 2018
Rollover and
Revision
6
16 April 2015
31 December 2018
Review
7
19 May 2016
31 December 2018
Consent and Moderation Requirements (CMR) reference
0113
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016