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

Executive Summary This assessment focuses on evaluating the various sourcing approaches applicable in Procurement and Supply Management (PS&M) for modern organisations. The organisation of focus is Saudi Aramco in their Third Party Logistics (3PL) spend area. Evaluation of the various sourcing approaches has been informed by a review of the internal data/documentation available, models of CIPS and module contents. The key findings in this report is that the preference in Saudi Aramco in sourcing of the 3PL spend area is the multiple sourcing. The choice is identified in the key findings as being informed by immense competition in their market. Also, the sole and single sourcing approaches are also a preference in an event the supplier exist in solitary with their involvement informed by varying organisation demands. Additionally, the key findings evidence single sourcing as being preferred when despite of multiple suppliers in place, the preference is only for one. This is while the dual sourcing being adopted in an event the various methods/choices in sourcing are used and prioritised. Eventually, by embrace of supplier appraisal tool, the 3PL sourcing in Saudi Aramco has been generated. The overall outcome of the appraisal process by embrace of Carter’s 10C’s note successful organisation is guided by successful value for money outcomes and improving market growth in oil and gas sector. Considering the key findings and conclusions made in this assessment, a set of limitations and gaps have been generated which could be managed through a set of recommendations including;

• Pursue detailed internal and external analysis process for identifying best sourcing approach
• Introduction of a more detailed sourcing appraisal process by PS&M
• Focusing on management of success in sourcing approach defining the policy and operations of Saudi Aramco in 3PL sourcing
• Inclusion of all stakeholders in their practice for successful sourcing process
• Implement capacity development strategy for PS&M detailed appreciation of importance of various sourcing approaches