(Solution) 5CO03 working inclusively and building positive working relationships with others

Examine the requirements for initiating and preparing the introduction of a category management process Solution Category management is an approach

In this first project in Corporate Award Program, the focus has been on role of procurement supply and management (PS&M) responsibility in achieving value for money outcomes. This is through the focus on Saudi Aramco third party logistics spend category. Also, a review on the current approaches to management of prices and costs for the third party logistics spend category has been identified. This is by using different data and information from contracts management,  procurement, commercial-driven development, strategic sourcing and PS&M practices. Also, different models have been used including Mendelow, Kraljic matrix, Porter’s 5 forces, STEEPLED and Suppliers Preferencing model. The key findings obtained in this project include the view that Saudi Aramco engage multiple stakeholders for successful practice. Also, the key findings evidence their market environment as competitive hence success in achieving value for money outcomes. The organisation strategy of achieving value for money outcomes has similarly been identified. This is with its pros and cons enhancing or limiting a successful implementation established. From the findings and conclusions, various recommendations have been generated which include;

• An in-depth evaluation of positioning of all stakeholders for accommodating their interests in their operations
• In third party logistics, they can involve multiple sourcing to be competitive hence value for money
• To involve different specialists for gaining awareness on improving value for money
• Review of budget in sourcing third party logistics with technology involved in sourcing process.

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