Level 2 Certificate in Purchasing in

the Supply Chain (QCF)

Qualification Specification

Created: January 2013

Version: 1.0
Accreditation Number: 600/7808/X
Qualification Start Date: 1st February 2013
Qualification Last Start Date: 30th April 2015
Contents
About SFEDI Awards .............................................................................................. 3
Enterprise ....................................................................................................... 3
Business Support ............................................................................................. 3
Customer Feedback ......................................................................................... 3
The Qualification Credit Framework (QCF) ................................................................ 4
Rules of Combination ....................................................................................... 4
What Does SFEDI Awards Expect? ........................................................................... 5
Centre Policies ................................................................................................ 5
Equal Opportunities and Access to Assessment .................................................... 5
Data Protection ............................................................................................... 5
Learner Registration......................................................................................... 5
Certification .................................................................................................... 5
Assessment Access Arrangements and Special Considerations ............................... 5
Quality Assurance ................................................................................................. 6
External Quality Assurance ............................................................................... 6
Internal Quality Assurance ................................................................................ 6
Delivery/Assessment ........................................................................................ 6
Delivery/Assessment/Quality Assurance Staff Requirements ................................. 6
Assessment Methods ............................................................................................. 7
Mandatory Assessment Methods ........................................................................ 7
Expert Witness/Witness Testimony .................................................................... 7
Observation .................................................................................................... 7
Product Evidence ............................................................................................. 7
Professional Discussion ..................................................................................... 7
Recognition of Prior Achievement ....................................................................... 7
Recognition of Prior Learning............................................................................. 8
Simulation ...................................................................................................... 8
Authentication of Learner Evidence .................................................................... 8
Feedback ........................................................................................................ 8
Unit Structure ....................................................................................................... 9
Qualification Overview ......................................................................................... 10
Qualification Structure ......................................................................................... 10
H/504/0333 Supply Chain ................................................................................. 11
F/504/0338 Purchasing .................................................................................... 12
T/504/6203 Supplier Relationships .................................................................... 14
D/500/4592 Choose Supplies and Suppliers for Your Business ............................... 16
Further Information ............................................................................................. 18
Support ........................................................................................................ 18
Funding ........................................................................................................ 18
Fees and Prices ............................................................................................. 18
Learning Materials ......................................................................................... 18

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About SFEDI Awards
SFEDI Awards is the Awarding Organisation for Enterprise and Entrepreneurs. Our
qualifications are built on extensive research and are designed to enable both those who
wish to start and grow their own business and the business support professionals who
work with them to improve their skills, the opportunity to gain acknowledgement for
their work.

Our approach to enabling learning through qualifications is focused on the needs of new
or aspiring business owners. Built on years of extensive research we understand that
business owners want specific solutions to their business challenges. Our learning for
both business owners and those that support them is based around solving these
challenges and uses practical action-based activity as a means of achieving
qualifications.

Enterprise

Our reason for being is to give everyone the skills and know how to prepare, start and
run their own enterprise. There is no finer career than working for yourself and
controlling your own destiny. We recognise that individuals wanting to go into self
employment do not always have the generic business skills such as sales, marketing,
managing finance and business planning. Research also tells us that those who invest
time learning about business knowledge and skills have a significantly increased chance
of their business succeeding.

We love enterprise and SFEDI Awards aims to recognise some of the most important
people in the UK and Internationally – those with the skills and know how to start and
run their own enterprise.

Business Support

We have been providing business support accreditation through qualifications and

endorsed awards for several years and several thousand business advisers have been
accredited via us under the ‘SFEDI Enterprises’ banner. Now operating as a formal
Awarding Organisation, we have developed a new suite of qualifications that provide
even wider scope and choice of accreditation for the various roles within the business
support arena.

Customer Feedback

We are always keen to understand learners and centres thoughts on the content of all
aspects of our qualifications and welcome your feedback. This can be done by emailing
us at [email protected] and indicate in the header field, ‘Customer
Feedback’.

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The Qualification Credit Framework (QCF)
The Qualification Credit Framework (QCF) is the vehicle for recognising qualifications
within England, Wales and Northern Ireland and, for most vocational qualifications, is a
replacement to the National Qualification Framework (NQF). The QCF allows the learner
to work toward credits from units or qualifications.

QCF qualifications have both a level and a size allocated to them and each unit is
awarded a credit value. The unit credit value is a direct correlation of how many learning
hours should be put into the achievement of that unit, for example 10 hours equates to
1 credit value.

Each QCF qualification title contains the following:

 The level of the qualification (from entry level to Level 8)

 The size of the qualification (Award/Certificate/Diploma)
 Details indicating the content of the qualification

Rules of Combination

The Rules of Combination set out the number of credits that must be achieved by the
learner in order to complete their qualification and also stipulates where the credits must
be achieved from. They apply across QCF qualifications and so enable a learner to
transfer credits easily between qualifications and Awarding Organisations.

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What Does SFEDI Awards Expect?
To offer this qualification you will be required to hold SFEDI Awards centre status and
also apply for qualification approval. Approval is completed by submission of the centre
or qualification application form to [email protected] available on the
SFEDI Awards website within the Centre Documents section.

Centre Policies

Centres should read the SFEDI Awards Centre Manual available on the SFEDI Awards
website within the Centre Documents section. This details the requirements that centres
must meet in terms of policies and documentation that must be in place.

Equal Opportunities and Access to Assessment

SFEDI Awards centres are expected to operate Equal Opportunities policies that
demonstrate a clear commitment to equality and fair access to programmes and
assessment. It is expected that these policies are also shared with learners and staff
members and information as to the effectiveness of the implementation of the policies
should be recorded and used for centre improvement plans.

Data Protection

SFEDI Awards centres are expected to operate Data Protection policies, in line with the
Data Protection Act, in connection with the provision of programmes and qualifications
and in communication with SFEDI Awards. It is expected that these policies are also
shared with learners and staff members and information as to the effectiveness of the
implementation of the policies should be recorded and used for centre improvement
plans.

Learner Registration

Learners should be registered with SFEDI Awards, in accordance with the SFEDI Awards
Centre Manual, within 4 weeks of commencing the programme or qualification. Centres
should obtain a Unique Learner Number (ULN), from the Learner Records Service, in
order that their achievements can be recorded on their Learner Achievement Record.

Certification

SFEDI Awards centres must use the Registr8 system to indicate where a learner has
successfully completed the qualification and/or units within it. Where a centre holds
Direct Claims Status (DCS) certificates will be issued, where this is not the case an
External Quality Assurer will contact the centre to arrange sampling.

The learner will receive two certificates on achieving the qualification. One will detail the
qualification itself and the other will list the units completed.

Assessment Access Arrangements and Special Considerations

Reasonable adjustments can be made to assessments to ensure fair access for learners
of qualifications, irrespective of their abilities or disabilities. Further guidance on
reasonable adjustments and what circumstances they can be used can be accessed on
the SFEDI Awards website within the Centre Documents section.

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Quality Assurance
External Quality Assurance

A SFEDI Awards External Quality Assurer will complete checks on centres involving a
sample of learner’s documents, assessment decisions and Internal Quality Assurance
activity. This ensures that all activity around assessments is consistent across the centre
and the UK and that the centre continues to meet their approval requirements. This will
be conducted by a suitably experienced External Quality Assurer using SFEDI Awards’
procedures and documentation.

Internal Quality Assurance

Internal Quality Assurance will be completed by the SFEDI Awards centre and involves
sampling of learners’ documents and assessment decisions to ensure standardisation
across Delivery/Assessment staff and consistency and fairness of assessment following
Awarding Organisation requirements.

SFEDI Awards provides quality assurance documentation that can be used by the centre
for recording quality assurance decisions. This can be accessed on the SFEDI Awards
website within the Centre Documents section. These documents are provided for the
centre to use but, if the centre wishes to develop their own recording material, the
minimum requirements must be met to ensure quality assurance practices are not
disadvantaged. Minimum requirements can be accessed on the SFEDI Awards website
within the Centre Documents section.

Delivery/Assessment

SFEDI Awards centre staff should work with learners to ensure they understand the
nature of the qualification and assessment approach. Both centre staff and the learner
should agree at the beginning of the assessment journey how the assessment will be
undertaken and what each can expect from the other, including arranging times and
dates for learning and assessment activity and support. The Delivery/Assessment staff
will follow the principles of plan, judge and feedback as described within professional
standards.

SFEDI Awards provides assessment documentation that can be used by the centre for
recording the planning, judging and feeding back of assessments. This can be accessed
on the SFEDI Awards website within the Centre Documents section. These documents
are provided for the centre to use but, if the centre wishes to develop their own
recording material, the minimum requirements must be met to ensure assessment
practices are not disadvantaged. Minimum requirements can be accessed on the SFEDI
Awards website within the Centre Documents section.

Delivery/Assessment/Quality Assurance Staff Requirements

There is no requirement for Delivery/Assessment or Internal Quality Assurance staff to

hold the Assessment or Verification qualification. It is recommended that, as best
practice, staff should be working towards these. If the centre decides to use
tutors/trainers/line managers for the delivery or quality assurance of the qualification,
prior approval must be sought from SFEDI. Guidance on how this must be recorded
within the centre can be accessed on the SFEDI Awards website within the Centre
Documents section. If you wish to access public funding for the delivery of qualifications,
please refer to your funding agency for delivery staff qualification requirements.

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Assessment Methods
The following provides examples and explanations of the most common forms of
assessment methods. Other methods can be used by centres to enable learners to
demonstrate they meet the standards as detailed within the units.

Mandatory Assessment Methods

Some units may require mandatory forms of assessment to be completed. SFEDI Awards
will make note in each unit whether mandatory assessment methods apply. If it states
that there are no mandatory assessment methods, a suggestion of the types of
assessments that could be used will be made.

Expert Witness/Witness Testimony

These are provided by external people as the Delivery/Assessment staff cannot possibly
be present at all times when a learner completes a task that could be used as evidence.
The testimony will be expected to detail who and what the activity entailed and where
the activity took place.

Observation

This is a recorded report of an observed activity to show who and what the activity
entailed and where the activity took place. It is normally recorded by the
Delivery/Assessment staff and should be planned for. On occasions the opportunity may
arise for a naturally occurring observation but this must not be seen as common
practice.

Product Evidence

This is a work product, for example a letter or research, that has been produced which
can support the evidencing of performance. When using this form of evidence it is
important to ensure that confidentiality is adhered to and no information is provided that
may compromise this. It may be appropriate to reference the location of product
evidence within a professional discussion so that, if the quality assurer wishes to view it,
then they can request a copy.

Professional Discussion

This is a recorded report of a discussion between the learner and the

Delivery/Assessment staff and should give real examples, where possible, of activity
completed. It is normally recorded by the Delivery/Assessment staff and should be
planned for. A Professional Discussion is not a question and answers session and should
be led by the learner.

Recognition of Prior Achievement

Prior Achievement may be recognised where a learner has already achieved an

appropriate QCF unit towards a qualification. In this instance the QCF unit can be
transferred over so the learner does not have to repeat the particular unit again. In this
instance a copy of the unit certificate should be provided within the portfolio as evidence
of prior achievement.

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Recognition of Prior Learning

Prior Learning can form part of the assessment process where the learner is able to
demonstrate that they meet the assessment requirements for a unit through knowledge,
understanding or skills that they already possess. In this instance the learner must
provide evidence to show that the assessment criteria have been met. The Assessor will
make a professional judgement about the evidence presented, which could be in a
variety of forms, including, a statement or professional discussion to explain what prior
activity has taken place and how this links to the standards to be achieved. The
assessment process for Recognition of Prior Learning should be rigorous, reliable and
fair.

Simulation

In exceptional circumstances evidence from simulation can be used to complement the

primary evidence drawn from business enterprise activities. Simulation should only occur
where:

 The candidate would otherwise be precluded from providing the necessary

evidence for demonstrating they met the requirements of the standards because
of the nature of their business or business idea

Simulated activities should match as closely as possible those that occur in a real
business environment. This is particularly important where these activities and their
outcomes are being assessed to provide evidence to demonstrate the candidate is
meeting the requirements of the standards. If simulation is to be used, prior agreement
as to the arrangements must be sought from SFEDI Awards prior to the assessment
taking place.

Activities should take place in a realistic working environment that:

 Is based on business enterprise activities, events, challenges and markets

 Includes a comprehensive range of demands, activities, constraints and
challenges typical of those that would be met in real a business enterprise
 Gives candidates access to facilities, advice and support that would be normal for
the business enterprise activity, event or type of challenge represented
 Places candidates under pressures of time, resources and access to support that
would be normal in a business enterprise
 Is organised and managed as would a real business enterprise situation
 Is subject to normal workplace controls regarding health and safety, equal
opportunities, and codes of conduct

Authentication of Learner Evidence

Centres must have knowledge or certainty that all assessments undertaken are entirely
the work of the learner being assessed.

Feedback

Feedback will be provided to the learner for each assessment carried out and recorded
on the assessment documentation and should feed into both assessment planning and
the completion of progress reviews. The feedback should provide the learner with
information relating to:

 Whether the planned assessment has been completed

 The quality of the assessment completed
 What has been covered within the standards
 What is required to be completed to move the qualification forward

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Unit Structure
The following demonstrates the structure of units within SFEDI Awards qualifications

Unit Number Unit Title

Unit Status This will show whether the unit is mandatory or optional

QCF Unit Level Level allocated to the unit on the QCF unit databank

QCF Credit Value Credit value assigned to the unit

Unit Learning hours Learning hours required to complete the unit

Unit Overview and Main Outcomes

This will provide you with the rationale for this unit and the main outcomes the learner
must achieve for completion of the unit.

Learning Outcome Assessment Criteria

The learner will: The learner can:

This sets out the criteria the learner must

This shows what the learner needs to meet and to what standard they must
know, understand or do meet them

Assessment Methods

This will show whether there are mandatory assessment methods for the unit or what
suggested evidence methods may be appropriate.

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Qualification Overview
The Level 2 Certificate in Purchasing in the Supply Chain (QCF) is designed to give
learners who are new to or have little experience of the purchasing role within a supply
chain an understanding of what would be involved within the function and its importance
to the successful operation of a supply chain.

Those likely to undertake this qualification include:

 Those looking to develop their knowledge of purchasing within the supply chain

There are no formal entry requirements for this qualification however, in order to benefit
from the qualification; learners should possess communication skills sufficient to allow
them to address the assessment requirements.

Qualification Structure
To achieve the qualification the learner will be required to successfully complete the 4
mandatory units listed within this specification.

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H/504/0333 Supply Chain

Unit Status Mandatory

QCF Unit Level 2

QCF Credit Value 5

Unit Learning Hours 50

Unit Overview and Main Outcomes

This unit allows the student to obtain an understanding of the supply chain. It also
introduces the roles of organisations that operate within a supply chain and addresses
the importance of communication within the supply chain discipline.

Learning Outcome Assessment Criteria

The learner will: The learner can:

1. Understand supply chains across a 1.1 Describe the characteristics of a
range of sectors supply chain
1.2 Identify the relationship between
the links of a supply chain

2. Understand the roles of other 2.1 Explain the roles organisations play
organisations in supply chains within a supply chain
2.2 Describe the organisation of a
supply chain
2.3 Describe risks with the operation of
a supply chain
3. Understand the communication and 3.1 Explain the importance of effective
information sources within a supply communication within the supply
chain chain
3.2 Explain the methods of
communication used within a supply
chain
3.3 Identify the barriers to effective
communication within a supply
chain.

Assessment Methods

There are no mandatory assessment methods for this unit.

The following provides examples of assessment methods that could be used to generate
evidence for this unit. This list is not an exhaustive list and other methods can be used
by the centre.

 Recognition of Prior Learning/Achievement

 Observation
 Professional Discussion
 Product Evidence
 Expert Witness Testimony
 Witness Testimony
 Simulation

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F/504/0338 Purchasing

Unit Status Mandatory

QCF Unit Level 2

QCF Credit Value 5

Unit Learning Hours 50

Unit Overview and Main Outcomes

This unit allows the student to obtain an understanding of the purchasing role. It
identifies the stages of purchasing and introduces tools to assess the markets. In
addition it looks at how to assess potential suppliers and how to monitor their
performance. In addition it allows students to understand their own country’s legislation
in relation to supply contracts.

Learning Outcome Assessment Criteria

The learner will: The learner can:

1. Understand the features of the 1.1 Describe the procurement function
procurement and purchasing function 1.2 Describe the role and functions of a
purchasing system
1.3 Describe the features of the life
cycle/total acquisition cost model
1.4 Explain the costs associated at
different stages of the life cycle
2. Understand the stages of the 2.1 Describe the stages of the
purchasing process purchasing process
2.2 Describe the order processing cycle
and lead time
2.3 Explain the importance of effective
relationships between buyer and
supplier
3. Understand the concept of supply 3.1 Describe the supply market and its
market information types
3.2 Explain the methods used to gain
information about the supply market
3.3 Describe how a SWOT analysis could
aid in gaining information.
3.4 Explain the features of the supplier
development process.
4. Understand the requirements and 4.1 Explain how organisations select
processes of monitoring supplier suitable suppliers
performance 4.2 Explain the importance of
monitoring supplier performance
4.3 Explain the information required to
monitor supplier performance
4.4 Explain the importance of effective
communication with suppliers
4.5 Describe methods that can be used
to promote good communication
with suppliers

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 5. Understand the importance of a 5.1 Describe what is meant by a
contract in purchasing relevant to contract
own country 5.2 Describe the standard terms of
contracts within own country
5.3 Describe the consequences of not
fulfilling the terms and conditions of
a contract.

Assessment Methods

There are no mandatory assessment methods for this unit.

The following provides examples of assessment methods that could be used to generate
evidence for this unit. This list is not an exhaustive list and other methods can be used
by the centre.

 Recognition of Prior Learning/Achievement

 Observation
 Professional Discussion
 Product Evidence
 Expert Witness Testimony
 Witness Testimony
 Simulation

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T/504/6203 Supplier Relationships

Unit Status Mandatory

QCF Unit Level 2

QCF Credit Value 2

Unit Learning Hours 20

Unit Overview and Main Outcomes

This unit allows the student to gain an understanding of the importance of the supplier
relationship and how it can be developed and monitored to ensure that it is at its most
effective to benefit the business.

Learning Outcome Assessment Criteria

The learner will: The learner can:

1. Understand the function of supplier 1.1 Describe what is meant by supplier
relationships relationships
1.2 Identify key elements of the supplier
relationship
1.3 Explain the importance of supplier
relationships
2. Understand the role of supplier 2.1 Explain how supplier relationships
relationships work within an organisational
context
2.2 Identify the advantages and
disadvantages of supplier
relationships
3. Understand the policies and 3.1 Identify policies and procedures that
procedures that affect supplier affect supplier relationships within
relationships an organisational context
3.2 Describe how the policies and
procedures identified affect supplier
relationships within an
organisational context
4. Understand how to monitor supplier 4.1 Identify ways to monitor supplier
relationships relationships
4.2 Describe the importance of
monitoring supplier relationships

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Assessment Methods

There are no mandatory assessment methods for this unit.

The following provides examples of assessment methods that could be used to generate
evidence for this unit. This list is not an exhaustive list and other methods can be used
by the centre.

 Recognition of Prior Learning/Achievement

 Observation
 Professional Discussion
 Product Evidence
 Expert Witness Testimony
 Witness Testimony
 Simulation

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D/500/4592 Choose Supplies and Suppliers for
Your Business

Unit Status Mandatory

QCF Unit Level 2

QCF Credit Value 1

Unit Learning Hours 10

Unit Overview and Main Outcomes

To support the development of skills needed to plan, obtain and keep control of business
supplies when starting a business.

Learning Outcome Assessment Criteria

The learner will: The learner can:

1. Understand how to prepare a 1.1 Identify utilities, equipment
schedule of the supplies needed for (including IT), tools and materials
your business. that may be needed for your
business.
1.2 Prepare a schedule of what and
when supplies may be needed for
your business.
1.3 Use the schedule to decide the
resources that may be required,
such as staff, time, storage space
and costs.
2. Know how to purchase supplies for 2.1 Identify different suppliers and
your business. purchase options for utilities,
equipment, tools and materials.
2.2 Compare costs and benefits of
possible suppliers and choose the
most favourable for your business.
2.3 Identify ho to keep accurate records
of agreements with suppliers and
who in your business should know
about them.
3. Know how to set up stock control of 3.1 Identify how and where different
your business supplies. supplies are likely to be stored.
3.2 Identify how the supplies should be
managed and/or maintained, for
example conditions of storage, shelf
life, waste products.
3.3 Identify how and who might be best
placed to keep records of stock in,
stock out and restock levels.

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Assessment Methods

There are no mandatory assessment methods for this unit.

The following provides examples of assessment methods that could be used to generate
evidence for this unit. This list is not an exhaustive list and other methods can be used
by the centre.

 Recognition of Prior Learning/Achievement

 Observation
 Professional Discussion
 Product Evidence
 Expert Witness Testimony
 Witness Testimony
 Simulation

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Further Information

Support

If you require support for this or other qualifications within the SFEDI Awards offer,
please contact your External Quality Assurer or the SFEDI Awards Customer Service
Team on [email protected].

Funding

Information regarding possible funding that can be gained by SFEDI Awards

qualifications can be accessed on the SFEDI Awards website within the Centre
Documents section. This information is correct at the time of publication, please refer to
your Funding Manager for up to date information.

Fees and Prices

The fees and prices for SFEDI Awards qualifications and additional visits can be accessed
on the SFEDI Awards website within the Centre Documents section or by contacting our
Customer Service Team on [email protected].

Learning Materials

Information regarding available learning materials can be accessed on the SFEDI Awards
website.

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