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Title / Establish, develop, and improve quality-focused aspects of supplier relationships
Level / 4 / Credits / 8
Purpose / People credited with this unit standard are able to: establish quality-focused relationships with suppliers; develop, maintain, and improve quality-focused relationships with new or existing suppliers; and evaluate supplier performance.
This unit standard is for people at all levels in organisations who act as internal and external customers for goods and services, who are in direct contact with suppliers, and have responsibility for the establishment, development, maintenance, and improvement of supplier relationships.
Classification / Business Operations and Development > Quality Management
Available grade / Achieved
Explanatory notes
1Although not a prerequisite, Unit 8085, Demonstrate knowledge of quality and its management containsuseful underpinning knowledge for this unit standard.
2Definitions
Quality is the degree to which a set of inherent characteristics of products and services fulfils the stated and implied requirements of customers and other stakeholders.
Suppliers include both internal and external suppliers of products and services.
Customers are people or organisations who receive products and services. They can be external or internal to the supplier.
3All activities must comply with: any policies, procedures, business protocols, and requirements of the organisation(s) involved; the ethical codes of relevant professional bodies; and any relevant legislative and/or regulatory requirements.
4Legislation relevant to this unit standard can include but is not limited to: Health and Safety in Employment Act 1992, Resource Management Act 1991, Official Information Act 1982, Privacy Act 1993, State Sector Act 1988, Employment Relations Act 2000, Fair Trading Act 1986, Consumer Guarantees Act 1993, and subsequent amendments.
5Assessment evidence for this unit standard must be collected from practical workplace experience related to quality improvement, and must include evidence of candidates’ underpinning knowledge and understanding of their organisation’s business processes and methods. Evidence must demonstrate that candidates have followed through all processes for each outcomeof this unit standard with the same internal or external supplier.
6Supply agreement documentation may include but is not limited to – formal agreements, service level agreements, standard operating procedures, task instructions.
Outcomes and evidence requirements
Outcome 1
Establish quality-focused relationships with suppliers.
Evidence requirements
1.1Analysis of organisation’s internal and/or external supply processes and work flow establishes potential customer-supplier relationships.
1.2Criteria for suppliers matches requirements for supplier performance.
Rangerequirements may include but are not limited to – timeliness and the ability to meet deadlines, references, quality, price, ability to perform to specification, quantity, willingness to form long term relationships.
1.3Potential and existing suppliers are identified in accordance with selection criteria.
1.4Requirements as a customer are specified and agreed at the level of detail required by both parties.
1.5Negotiations are carried out to ensure that both parties will benefit from the customer-supplier relationship.
1.6Supply agreements are documented to meet both parties’ requirements, and contain all the information required to establish and maintain a mutually beneficial relationship.
Rangeinformation – includes requirements for evaluation of supplier performance, and key performance indicators;
may include but is not limited to – after sales service, guarantees, changes to supply agreements, payment terms, quality criteria, quantity criteria, delivery criteria, requirements for review of the relationship.
1.7Key performance indicators are specific, measurable, achievable, and time-based, and match customer organisation's strategic plan and objectives.
Rangeperformance indicators may include but are not limited to – product and/or service characteristics, delivery, price.
Outcome 2
Develop, maintain, and improve quality-focused relationships with new or existing suppliers.
Evidence requirements
2.1Activities involving the mutual exchange of resources are managed and developed to reinforce supply agreements and develop long term commitment.
Rangeactivities 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.
2.2Supply agreements and relationships with suppliers are reviewed in order to meet emerging requirements and develop relationships.
2.3Any changes to the relationship are documented to meet the requirements of both parties.
Outcome 3
Evaluate supplier performance.
Evidence requirements
3.1Evaluation of supplier performance is carried out in accordance with the requirements of the supply agreement.
3.2Any corrective actions required as a result of the evaluation are documented to meet the requirements of both parties.
Rangecorrective actions may include but are not limited to – rework supply, abandon relationship, re-negotiate relationship, communicate need for improvements to supplier processes.
Planned review date / 31 December 2019Status information and last date for assessment for superseded versions
Process / Version / Date / Last Date for AssessmentRegistration / 1 / 31 August 1996 / 31 December 2016
Revision / 2 / 7 September 1999 / 31 December 2016
Revision / 3 / 12 January 2001 / 31 December 2016
Review / 4 / 22 September 2004 / 31 December 2016
Rollover and Revision / 5 / 18 July 2008 / 31 December 2016
Rollover and Revision / 6 / 17 November 2011 / 31 December 2016
Rollover / 7 / 18 April 2013 / 31 December 2018
Rollover / 8 / 16 April 2015 / N/A
Consent and Moderation Requirements (CMR) reference / 0113
This CMR can be accessed at
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.
Comments on this unit standard
Please contact NZQA National Qualifications Services if you wish to suggest changes to the content of this unit standard.
NZQA National Qualifications ServicesSSB Code 130301 / New Zealand Qualifications Authority 2018