(Solution) New CIPS PDV Managing Prices and Costs Approaches
In this report, the focus is on evaluating role of procurement supply and management (PS&M) function to achieve value for money outcomes. Part of this report also entail evaluating approaches of management of costs for the catering services.
The organisation of focus is Qatar Railways Company (QRC) in sourcing for catering services. The data used to generate the findings in this report has been sourced by use of internal documents in QRC, available research from reputable sources and suppliers analysis.
Further, various theories and models have been used from CIPS Module notes and guidance (STEEPLED, Mendelow, Kraljic and Suppliers Preferencing and more ) to generate appropriate findings.
It is evident that QRC works with many stakeholders for success in their PS&M and specifically sourcing for catering services. Further, with QRC operating in a competitive oligopolistic market environment, achieving value for money outcomes in their PS&M operations is essential.
The major findings is that the organisation uses a strategic approach in achieving value for money outcomes.
New User Gifts
First Order Deal get Ksh 200 Off.
Original price was: £ 30.00.£ 10.00Current price is: £ 10.00.
Payment Methods:
Description
Solution
For QRC prices and costs management, their strategy entail budgeting to get catering services from various suppliers in Qatar and international. Through a critical evaluation of budgetary allocation and costs of various suppliers depending on their quality offered, managing prices and costs is successful.
Further, QRC pursue in-depth negotiation by PS&M to get value for money outcomes. There is however a need to engage experts at this level to ensure they fully align categories of spend with value for money outcomes. For all QRC spend categories, their contracts run for one year which lead to success in value for money. In current economic downturn, there has been a significant change on lead time in supply chain.
The advantages of the approach are;
Definition of value for money results– Findings from QRC operations note that they attains optimum costs balance (30%), increase in quality and performance (70%). Due to catering services demand and technical nature, albeit of cost aspect is core, reliability, innovation and lifecycle costs. These are prioritised by QRC PS&M department.
Collaboration in Suppliers Relations– Considering QRC approach, it is based on active collaboration with various stakeholders. This is attained through achievement of value for money outcomes successfully. This need improvement however to be sustainable and long-term. This is with technologies being used for meeting entire requirements.
The disadvantages include;
Lacking strategic practices– It is clear from findings QRC is ineffective in regard to success of their PS&M strategies to achieve best value for money in their contract management (McNamara & Sepasgozar, 2020). This is guided by necessity for adopting performance oriented contracts models in pay in alignment with results measured and clear performance goals.
Ineffectiveness in total cost of ownership– The overall cost of ownership is noted to be ineffective in terms of evaluating lifecycle costs. This is while aligning them with assets/services in entire lifespan (Rocks et al., 2020). It is important improving the QRC operations for the sake of developing appropriate quality decisions to optimise on value for money outcomes.
Please click the following icon to access this assessment in full
Related Papers
(Solution) CIPS Category Plan Implementation, Challenges Faced and Solutions
- In this report, a category plan for Oracle in office materials category of spend has been developed.
- Category planning has been noted to be a practice where category plans are established aligned with clients business objectives strategically to maximise value, risk reduction, and supply of goods and/or services effective management.
- Therefore, the Oracle category plan is in tandem with retail and business portfolio objectives to advance clients' needs. The process is applicable in enhancing value maximisation, reducing risks, and goods and services supply management.
- The applied data inform this assessment findings obtained using techniques such as Kraljic Matrix, Market Structure, PORTER’s 5, and SWOT analysis.
- Further, existing data focusing on insights of market competition and TCO is successfully analysed.
- Eventually, a successful category plan implementation has been developed, identifying challenges and approaches for mitigating the difficulties identified.
(Solution) CIPS ADNOC Leadership and Management in Procurement and Supply
- This assessment has delved on evaluation of impact of leadership and management approaches in an organisation.
- By evaluation XXX organisation operating in UAE oil and gas sector, the organisation successful project implementation is to increase their offshore oil and gas exploration to increase with upwards of 10,000 new exploration wells which demand a high-level leadership and management.
- This similarly highlight the positioning of XXX in UAE and international oil and gas industry.
- A set of tools including RACI, Leadership Matrix, Mendelow and RACI were adopted in sourcing this assessment findings.