(Solution) 5CO02 (AC2.1) With reference to a people practice issue, interpret analytical data using appropriate analysis tools and methods

Solution Question 2 (AC 2.4) Make two justified recommendations as to how the organisation can improve the effectiveness of its

Executive Summary This report has focused on evaluating specific sourcing approaches which are used in different spend categories in Alaraby TV Network. This is achieved by focusing on the Information Technology (IT) as spend category for the organisation and particularly hardware sub-category. As part of fully digitising media operations in Alaraby TV Network, the organisation has been sourcing IT systems meant for enhancing their operations. As part of analysis, other spend areas including logistics, health and safety tools, communication equipment and videography and  leasing for vehicles used in movement in Qatar. For the purpose of noting on various sourcing approaches, different tools in CIPS have been used including Mendelow Matrix, Kraljic tool among others. The key findings in this report is that organisations use different sourcing approaches in their categories of spend. The choice of sourcing approaches is informed by the engaged stakeholders, the spend categories and external/internal factors. Also, the findings evidence that sourcing approaches are informed by the organisations position in their business environment. This report findings has identified these approaches as including single, sole, dual and multiple. Also, key findings in the supplier appraisal of the IT hardware sub-category, suppliers are best evaluated in line with the Cater’s 10Cs being applied. The application of the different sourcing approaches lead to Alaraby TV Network to dominate the entire Middle East region and leveraging on competitive advantage. Multiple sourcing has been identified in the findings as involving many suppliers with single sourcing involving one supplier while dual sourcing including different suppliers having demands that conflict. From the identified gaps in this report, the following recommendations can be used to fill these gaps;

• Opting for most appropriate sourcing approach guided by spend category
• Priority on policies for PS&M to guarantee integration of all stakeholders interest
• Simplify overall procurement strategy for ensuring prioritisation of stakeholders point of view
• Using technologies in phases of procurement lifecycle including RFQ, RFP, e-Auction intended to improve how information ,flows in sourcing approaches identified

This business report has been prepared to evaluate the global strategic approach to managing organisation supply chain. The organisation of focus is Abu Dhabi National Oil Company (ADNOC) operating in United Arab Emirates (UAE) oil and gas sector. In this highly competitive business environment, management of the supply chain is instrumental. To achieve the intended aim of this report, the area of focus in evaluation included impact of market changes on the supply chain, sustainable global sourcing decisions, strategic logistical implications of globalisations and impact of supply chain management on corporate performance. This has been enabled by referencing on various CIPS module notes models including SWOT, STEEPLED, Mendelow Matrix, Kraljic Matrix and Porter’s 5 Forces among others. Further, apart from the desk research available in ADNOC, secondary research has similarly been pursued. The findings in this report evidence that market changes impact on the supply chain are influenced by the internal and external factors in the business environment. Also, the findings indicate that sustainable global sourcing decisions impact the social, ethical and environment performance in selection of their suppliers. For ADNOC, priority is given to corporate social responsibility, responsible procurement and environment procurement. The strategical logistical implications of globalisation have been linked to inventory holdings, international logistics strategies, extending transport pipeline and multi-modal transportation. From the findings in this business report, various gaps have been identified which can be managed through implementation of the following recommendations;

• Invest in collaboration, networking and technology for sustainable supply chain
• Improving supply chain development by providing capacity development for PS&M teams
• Holistic inclusion of stakeholders in conflicts management
• To include all tiers of supply chain for success in globalisation to manage all risks and performance challenges