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Description
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(Solution) ROSHN CIPS PIN Procurement Cycle and Sourcing Activity
Roshn is a national real estate developer owned by the Public Investment Fund of Saudi Arabia. Established in 2020, ROSHN’s mission is to deliver high-quality, affordable housing and develop thriving community destinations across the Kingdom.
As one of the largest real estate groups in the Middle East, ROSHN manages a portfolio of ambitious residential and mixed-use projects. With operations in major cities, ROSHN’s developments will contribute to Vision 2030 goals of increasing home ownership rates and improving quality of life for citizens.
To effectively manage its large-scale, nationwide portfolio, ROSHN relies extensively on advanced information technologies and robust cybersecurity protections to support all aspects of its business.
The scope of the organisation operations is as summarised in figure 1;
Figure 1:Summary of ROSHN Projects
Source: ROSHN (2023)
To evidence ROSHN’s success, several key investments have been made supporting their projects. The Public Investment Fund provided an initial $2 billion seed funding for Roshn's development, a historical area transforming ancient sites into vibrant destinations.
Additionally, over $3.2 billion has been committed through public-private partnerships for critical infrastructure development by 2023.
This success is informed by ROSHN’s strategic plans, which oversee approximately 25,000 square kilometers encompassing residential communities, natural assets like oasis valleys and mountains, and cultural heritage sites across Saudi Arabia (Argaam 2022).
The significant investments reflect confidence that ROSHN can successfully deliver on their mission of developing thriving regions nationwide.
(Solution) CIPS ROSHN Sourcing Essentials- PSE
- In this report, the area of focus is on different sourcing approaches which can be used in procurement and supply management (PS&M) in contemporary business environment. This is through the focus of ROSHN organisation in Design Building category of spend.
- To achieve the intended aim of this report, data has been sourced from the organisation internal documents, different CIPS modules and models (Mendelow, STEEPLE and Kraljic). The key findings include ROSHN prefeed approach being multiple sourcing owing to the high-level of market competitiveness. This is with sole and single approaches preferred when only one supplier is being engaged owing to differences in organisation needs.
- Also, the findings evidence that single sourcing prevail in an event many suppliers are available, but an organisation decides to go for one. Another finding in this report is that dual sourcing is used when different methods/options for sourcing are embraced and put in place.
- Finally, through the application of supplier appraisal tool, focusing on the Design Building spend area, an evaluation has been put into account. The result from the appraisal using Carter’s 10C’s evidence organisation success to achieve value for money outcomes and improved market development.
- Internal and external analysis to identify most appropriate sourcing strategy
- Broad sourcing appraisal strategy need to be introduced
- Focus on managing successful sourcing strategy as part of organisation policy and practices
- Involve more stakeholders as part of their operations for success in sourcing strategy
- Pursuing capacity development initiatives for PS&M understanding of relevance of different PS&M