(Solution) New PSE Sourcing Essentials ROSHN Syndicate Cohort
This report makes use of the case study of ROSHN — Saudi Arabia’s leading real estate developer having the responsibilities of delivering quality homes.
ROSNH plays an important role in the organization of construction activity in KSA and currently owns more than sixty percent in the market of residence construction.
The key findings evidence that procurement practices of the organization are orderly with keen emphasis on the relationship it has with the suppliers so as to deliver construction materials in the shortest times and most efficient costs possible.
The key findings evidence that an effective sourcing approaches will work to strengthen ROSHN’s procurement systems, minimize supply-chain vulnerabilities, and centralize costs for the organisation while offering the organization compliance with burgeoning sustainability shifts in the constructions industry.
The following paper assesses the current sourcing initiatives and provides several critical suggestions that can strengthen procurement and supply chain.
The key recommendations arising from this analysis include:
- ROSHN should incorporate Porter’s Five Forces and PESTLE analysis into the organization’s Vendor Management Team (VMT)
- The expansion of the approved list of suppliers by not less than fifteen percent in the course of the next year is vital in eliminating reliance on a few suppliers.
- Improving eSourcing tools especially eAuctions to apply competitive pressures and lower costs of procurement. This will solve the problem of inefficiency in the tendering process and increase transparency while RHOSN already has efficient technology solutions for engaging suppliers.
- Obligatory implementation of a supplier sustainability program that identifies suppliers with high levels of CS
New User Gifts
First Order Deal get Ksh 200 Off.
Original price was: £ 20.00.£ 10.00Current price is: £ 10.00.
Payment Methods:
Description
Solution
Table of Contents
1.2 Procurement/ Commercial Function. 5
1.2.1 Vendor Management Team (VMT) 6
1.2.2 Procurement and Commercial Teams. 6
2.1.1 Sole Sourcing (Monopoly) 8
2.2 Category Analysis Applied to Sourcing Approach. 9
2.2.2 Supplier Preferencing. 13
2.3 Supplier appraisal checklist 13
2.3.2. Weighted Decision-Making Criteria. 14
2.3.3. Carters’ 10C’s Framework. 14
2.3.4. Financial Appraisal: Management Accounts and Ratio Analysis. 15
List of Figures
Figure 1:ROSHN Vision, Mission and Objectives 4
Figure 2: Approval Supplier List Framework Agreements. 5
Figure 3:Procurement Cycle Diagram.. 7
Figure 5: Carters’ 10C’s Framework. 15
1.0 Introduction
1.1 ROSHN Organisation
For the purpose of this assignment the selected organization will be ROSHN. It is one of the pillars of the Public Investment Fund (PIF) and is responsible for creating quality homes within the KSA real estate market (ROSHN, 2024). Currently, ROSHN holds over 60% of the residential construction market in KSA, positioning itself as a leading player in the real estate sector. The government of KSA has implemented a policy aimed at achieving 70% home ownership nationwide. This initiative caters to the diverse housing needs of the population according to their budgetary constraints. It focuses on supporting various sectors and fostering partnerships to enhance job opportunities and drive economic growth. The vision and mission of ROSHN can be summarized as follows;
Figure 1:ROSHN Vision, Mission and Objectives
Source: Summarised from PIF (2024)
According to the summarized figure 1, ROSHN’s operational success is founded on its forward-looking vision, mission, and core objectives. To support this, the organization allocates a significant budget of SAR 200 million to its Procurement and Supply Management (PS&M) activities (PIF, 2024).
1.2 Procurement/ Commercial Function
ROSHN’s Procurement and Supply Management (PS&M) department operates a structured framework for managing supplier relationships, starting with the creation of an Approved Supplier List Framework Agreement. The components of the agreement are as illustrated in the following;
Figure 2: Approval Supplier List Framework Agreements
Source: CIPS Module Notes
PS&M work in conjunction with the Vendor Management Team (VMT) and the Commercial Department both of which have specific roles assigned to the selection of a vendor and the procurement cycle.
1.2.1 Vendor Management Team (VMT)
The VMT on the other hand is expected to carry out market research and, in the process, analyze potential suppliers via Porter’s Five Forces and PESTLE analysis. They include the assessment of market forces; the analysis of the supplier capabilities is valuable when sourcing for materials. VMT have at the present time mainly been set up to concentrate with compliance functions which include managing the Pre-Qualification Questionnaire. (PQQ) and supplier registration, it is recommended that they expand their scope to incorporate these analytical frameworks to enhance supplier selection.
1.2.2 Procurement and Commercial Teams
The operational responsibility for the procurement cycle is vested with the PS&M team and with the assistance from the Commercial team, certain key phases like specification, tendering and asset management form part of this cycle. Within this cycle, responsibilities are divided as follows:
- Commercial team is supposed to have detailed cost control, and control of expenses relating to tenders and supplier, vendor compliance to system requirements.
- Procurement function is responsible for the selection, management and assessment of supplier responses to pre-qualify for certain contracts.
Coordinated procurement approach helps to establish sound and effective system for identifying and evaluating the suppliers and for managing their relationships all over the procurement cycle as illustrated in figure 3 below. These stages are illustrated as follows:
Figure 3: Procurement Cycle Diagram
Source: (CIPS, 2024)
1.3 Category of Spend
For this plan, the category of spend selected is construction materials. This category plays a pivotal role in ROSHN’s operations, as it directly impacts project timelines, operational costs, and overall project quality
2.0 Main Body
2.1 Sourcing Approaches
Please click the following icon to access this assessment in full
Related Papers
(Solution) CIPS ROSHN Negotiation Process
- Roshn standardise the Bailey et al procurement framework.
- Regular training will develop negotiation mastery, and the Kraljic Matrix will tailor strategies per supplier importance.
- Sourcing strategies should evolve through market reviews. Building long-term, trusting partnerships will foster competitiveness beyond transactions.
- Clear metrics measuring initiatives' success will empower data-driven process adjustments.
- Adopting these practices will enhance Roshn's sustainable sourcing in support of Vision 2030 goals.
(Solution) CIPS ROSHN Contract Terms and Conditions
- In this assessment, an evaluation of ROSHN company contract terms and conditions have been evaluated.
- By selecting Facilities Management Contract, its effectiveness in ensuring quality issues, time extension risk, costs overruns and unethical practices has been evaluated.
- Further, the importance of performance measures and management in ROSHN company practices has been prioritised for evaluation.
- The contract terms and conditions have been quoted for evidencing the success of the contract implementation.
- In this assessment, the findings evidence that ROSHN facilities management spend category is characterised by various issues which are stipulated by the terms and conditions.
- The relevance of this is ensuring success in managing the overall faced challenges. By reviewing the different terms and conditions, the issues related to performance management, force majeure, costs, indemnity, risk management and insurance have been put into account.
- Also, the battle of forms have been evaluated with the best practice in their management identified.