Executive Summary

This assignment talks about the effective negotiation of procurement and supply. It includes at the beginning a brief about ROSHN company and its commercial department and what each function’s role. It also talked about the importance of procurement planning that assists in securing the best deals for the company. In addition to a specific category of spend that is commonly procured within the procurement function. Then it referred to the definition of the negotiation and what are the skills that any negotiator must have. It talked in details about the stages of negotiation and the importance of having a preparation stage, negotiation stage, and a post-contracting stage and what each of these stages include from activities need to be fulfilled in order to have a successful project. Moreover, there has been some information regarding the negotiation process within the approval cycle of procurement and how the negotiation is crucial prior approaching the market with a request for a quotation/proposal and what might impact any negotiation process such as PESTLE and Porter’s Five Forces elements. At the end, there has been some recommendations to enhance the knowledge of the current procurement officer at ROSHN along with nominating CIPS courses for any employee works in the procurement department. This report findings identify negotiation plan in procurement and supply management as essential for achieving value for money outcomes and leveraging in property sector where the organisation has based their operations. Also, this report has found that the Post-COVID global economic recession has elicited a reduction in overall performance of the property sector specifically in the real estate. Therefore, for ROSHN, limited resources have been identified as an issue impacting on the organisation success. This inform on the need for a detailed negotiation amongst the organisation different stakeholders to guarantee their continuity in business. The negotiation plan identified in this report is in alignment with various sourcing strategies, terms and conditions and stakeholder relationship. As part of this integrated report, the obtained findings and conclusions inform on the best practice of developing the negotiation plan. This is by following the phases of preparation, test, propose, bargain, agree and close. In all these identified stages, different tools and techniques can be used with all stakeholders relationships enhanced. Further, for achieving an optimum success in negotiation for design services, ROSHN would manage to achieve BATNA and MLA for best resources to be attained. From the findings and conclusions presented, there are different gaps noted affecting success of the negotiation plan. In order to fill the identified gaps, ROSHN can pursue various recommendations. These recommendations include implementing detailed plans with all stakeholders involved. Also, innovation and technology need to be introduced to be part of their negotiation process and successfully merged. An elaborate documentation is also important to be part of the negotiation plan with any conflict of interest mitigated. Also, depending on ROSHN target in terms of stakeholders, it is important to customise their negotiation plan.

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.

Solution Section One – Questions   Review emerging developments to inform approaches to employee voice and engagement. (AC 1.1) Word