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

Solution Explain factors that need to be considered when managing performance. (AC4.2) If you use secondary sources you should include

• This was established after the post-negotiation review which brought out fundamental lessons about the supplier and our company’s negotiation pattern.
• As for certain important aspects, we indeed secured favourable financing conditions; yet, problems arose in attempting to synchronize delivery schedules since such conditions are affected by external supply chain factors.
• The supplier had the better BATNA and acted in a cooperative but very assertive way, and elaborated why the correct approach to negotiations is more equal.
• Further, the experience showed how flexible one has to be, how innovative, and how it pays to be more interested in long-term partnership rather than quick profit. Therefore, it will be useful in the future to improve the techniques of negotiation, improve the knowledge about the actions of suppliers, and improve intercompany and supplier cooperation.
• This will ensure that in future procurement negotiations; better outcomes are achieved.

Recommendations

• ROSHN should ensure that all negotiations within the next 6 months include specific metrics for delivery timelines, quality standards, and service levels, aiming for a 90% satisfaction rate in supplier compliance with these criteria. This approach will help secure more balanced and sustainable agreements.
• Over the next 12 months, ROSHN should develop a supplier relationship management program with bi-annual assessments to track and improve partnership quality. Target at least a 15% increase in supplier engagement scores by the end of the year to gain favorable bargaining positions during market downturns.
• Within 1 month of each major negotiation, conduct debriefing sessions to analyze performance, identify strengths, and address weaknesses. The goal is to improve negotiation effectiveness by at least 10% in the subsequent quarter through targeted adjustments based on these evaluations.
• Within the next 4 months, involve at least 80% of key stakeholders in sourcing strategy meetings to ensure alignment and gather input on critical decisions. This engagement aims to reduce misalignment issues by 20% within the year, resulting in smoother implementation of sourcing strategies.

Executive Summary For this assessment, focusing on sourcing essentials in procurement and supply, different approaches have been evaluated. Part of their evaluation include application in context of ADNOC Onshore operations. For ADNOC onshore organisation, they are involved in different categories of sourcing. To facilitate their operations onshore, ADNOC procures different products and services in multiple categories. The category of spend used in this assessment is the logging services. The sourcing approaches which have been identified for evaluation include sole, single, dual and multiple. From the key findings of this evaluation evidence that sole sourcing exist when only one supplier is available and have zero choices to select from. This is with single sourcing being by choice and many being available. This is therefore a monopolistic market. The key findings on dual sourcing evidence that there are two available or more available but organisation make a choice for working with two. The final multiple selection findings evidenced that there are many suppliers in the market with choice of selection depending on the organisation. This is with the sourcing approach appropriate in an oligopolistic, imperfection and perfection.  The findings are informed by different models including Mendelow Matrix (Peter Block), supplier preferencing matrix, and Kraljic Matrix being used in this report. Also, part of this assessment include sourcing appraisal of the logging services category of spend. The key findings evidence that sourcing appraisal assists in coming up with a highly qualified suppliers group, reduction of risks and achieve the best value for money outcomes for the logging services sourced by ADNOC. There are a set of limitations which have been evidenced in this report evaluation. These can be managed by implementing the following recommendations;

• For logging services, a unique sourcing approach would be used different from other sourcing approaches
• The sourcing appraisal can be expanded to include more factors
• Policies and practices need to be put in place for improving sourcing process
• An improved stakeholders relations and inclusion in sourcing approach selection need to be enhanced
• PS&M team increased awareness for various sourcing approaches and using RFP, RFQ and Product Lifecycle