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This report is concerned with exploring diverse sourcing approaches in procurement and supply management (PS&M) for implementation in the IT category in today’s business environment.
The basis for this analysis is the IT procurement strategy at ROSHN, one of Saudi Arabia’s key contributors to its Vision 2030. Data, which have been gathered from ROSHN’s internal documents have been used to achieve the aim of the report and some strategic frameworks were applied such Mendelow’s Matrix, STEEPLE and Kraljic Matrix.
The findings here indicate that ROSHN’s preferred approach is to multiple source the services to ensure a degree of flexibility and to balance the risks involved in what is fundamentally a competitive and fast changing market. Multiple sourcing is used to increase vendor options and pricing competitiveness, while sole or single sourcing is used in very limited case.
Further it indicates that where dual sourcing is employed, the diverse solutions or vendor capabilities will be required to meet the extensive project requirements that ROSHN has for smart community development. ROSHN’s application of supplier appraisal tools in the IT category will achieve value for money, quality, and meet its strategic goals.
Based on these findings, several gaps were identified that can be managed through the following recommendations:
- Internal and external analyses should be carried out in order to pinpoint the best or most effective sourcing strategies for IT.
- A broader sourcing appraisal strategy should be introduced within the procurement policies and practices.
- Improve in focus in managing effective sourcing strategies based on organisational objectives.
- Broader inclusion of stakeholders in the procurement process, in order to enhance sourcing strategy effectiveness.
- Capacity development initiatives should be implemented in the PS&M practices, especially within IT category.
(Solution) CIPS ROSHN Negotiation Process
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In this integrated assessment, a focus on a formal negotiation plan has been pursued. This is through the focus of Roshn organisation which is a Saudi Arabia’s largest real estate development company owned by the Public Investment Fund for KSA, has Vision 2030 supplier sourcing management strategies. The firm’s procurement department relies on a model outlined by Bailey et al that provides a rigorous approach to preparation and analysis in order to get better bargains. Hence, the Roshn internal supplier data collection and external market research to create accurate supplier risk and sourcing plans.
A variety of tools is applied, such as the Kraljic Matrix that is used to sort suppliers. The key findings note that different training activities include negotiation simulations and skills to prepare and help procurement officers for the journey. Another key finding ius that detailed planning and analytical structures accompany objectives and concession tracking. Another key finding note that supply relations are strategically classified on issues of risk and consequences as far as supply management is concerned. On a continuous basis, repetition and necessarily sequenced post negotiation reviews improve processes gradually for a successful negotiation plan.
From the findings and conclusions obtained, to maximise efficiency and optimise outcomes, it is recommended:
- 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.