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Principles of Purchasing and Contract Management

Supplier: apicsAU

This introductory program offers students a clear understanding of the principles essential for building a career in purchasing or procurement.


It provides tools and knowledge for people who will be responsible for committing organisations to purchases and contracts.

The program aligns to two accredited units - Plan Purchasing (BSBPUR401B)  and Apply Contract and Procurement Procedures (BSBPMG408A). 

Key learning outcomes for this program:

  • Understand key provisions from relevant legislation that affect business operations, codes of practice and national standards
  • Contribute to the establishment of organisational practices, policies and procedures for purchasing
  • Adhere to purchasing and procurement principles for: accountability, ethics and transparency, risk and value for money
  • Master procurement and contract management tools and techniques, including issuing invitations to offer, evaluating offers, selecting and assessing suppliers, preparing contractual documentation and managing contracts
  • Understand the legal contractual obligations of contracting parties

Course format

The course has been designed to be delivered by an instructor in a group environment. The program is typically delivered over 4 full days or 10 evening sessions.

Participants are required to be actively involved in discussion and learning activities. Class numbers are limited to ensure the facilitator is able to address the needs of individual participants.

Assessment and recognition

Students who wish to obtain formal recognition for participating in this program will be required to complete a number of in-class and at-home activities to demonstrate competency. Students who do so successfully, will be awarded Statements of Attainment for BSBPUR401B and BSBPMG408A.

Students who attend only for the purposes of knowledge enrichment and do not wish to complete assessment tasks, will receive an apics Certificate of Attendance.

Performance criteria elements

  • Performance criteria elements prescribed for BSBPUR401B
  • Prepare invitations to offer
  • Identify suppliers
  • Issue invitations to offer
  • Prepare recommendations to purchase

Performance criteria elements prescribed for BSBPMG408A

  • Assist with contract and procurement planning
  • Contribute to contractor selection process
  • Conduct contracting and procurement activities
  • Conduct finalisation activities

 Course program

Principles of Purchasing

Plan Purchasing – BSBPUR401B

Introduction to Purchasing

  • Purchasing vs Procurement vs Supply Management
  • Objectives of Purchasing
  • Functional Relationships

Preparation for the Purchase

  • Planning the Purchase
  • The Purchasing Cycle
  • Sourcing and Selecting Suppliers
  • Developing Specifications
  • Types of Specifications
  • Specifications for Services
  • Australian Standards
  • Quotations and Purchase Orders

Managing the Purchase

  • Acknowledgement and Follow up
  • Receival and Inspection – Goods
  • Invoice Approval
  • Receival and Monitoring of Service Delivery
  • Purchasing Records
  • Supplier Performance and Audit
  • Supplier Relationship Management
  • Dispute Resolution
  • Market Research and Analysis

Beyond the purchase

  • e-Commerce
  • Purchasing and Inventory Management
  • Planning and Forecasting
  • Outsourcing – Make or Buy?
  • Socially Responsible Procurement
  • Green Procurement

Principles of Contract Management

Apply Contract and Procurement Procedures - BSBPMG408A

Legal Aspects of Purchasing

  • Trade Practices and Sale of Goods Acts
  • Contract Law
  • Occupational Health and Safety

Evaluating Offers

  • Statement of Requirements Process
  • Tender documentation
  • Evaluation Process

Managing Procurement Projects

  • Risk Management
  • Ethics
  • Project Management

Supplier and Contract Management

  • Customer Supplier Relationship
  • What is included in a contract
  • Contracts and Dangerous Goods
  • Managing Suppler Performance
  • Introduction to Negotiation

Managing and Closing Contracts

  • Financial Contribution
  • Ending a Contract
  • Contract Completion
  • Record Keeping

apics in partnership with Major Training Services (RTO ID 90748) has been authorised to deliver training and conduct assessments for the Principles of Purchasing and Contract Management.

Contact your local apics Chapter for enrolment details.