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.

Solution In the process adopted to manage the contracts, battle of the forms is evident in varying terms and conditions

This report evaluates and compares four key sourcing approaches: sole, single, dual, and multiple sourcing, within ROSHN, focusing on facilities management as the primary category of spend. Facilities management is chosen due to its critical role in maintaining ROSHN’s large-scale residential projects and ensuring operational efficiency. Each sourcing approach is analysed for its advantages and disadvantages, and its applicability to specific procurement needs is explored using strategic tools like the Kraljic matrix and supplier preferencing models. For instance, sole sourcing is applied to specialised maintenance services, while single sourcing is used for cleaning services due to quality control needs. Dual sourcing is chosen for security services to mitigate risks, and multiple sourcing is recommended for office supplies within facilities management to foster competition and innovation. A detailed supplier appraisal checklist for the facilities management category is developed using Carter’s 10 C’s model to ensure a thorough evaluation of supplier capabilities. This checklist ensures that ROSHN selects suppliers who meet stringent quality, reliability, and cost-effectiveness criteria. The findings highlight the importance of strategic sourcing in maintaining ROSHN’s competitive advantage in the Saudi Arabian real estate market. The following recommendations aim to optimise ROSHN’s procurement processes, ensuring efficiency, cost-effectiveness, and resilience in its supply chain:

• Conduct thorough market research using tools like Porter’s Five Forces and PESTLE analysis to understand the supplier landscape and market dynamics better.
• Integrate advanced eSourcing tools, including ERP systems and eAuctions, to streamline procurement processes and increase efficiency.
• Adopt dual and multiple sourcing strategies to mitigate risks, enhance competition, and ensure supply continuity for critical categories.
• Develop and maintain strong supplier relationships through continuous performance evaluations, clear communication, and strategic partnerships.
• Provide training and development opportunities focused on strategic sourcing, negotiation skills, and advanced procurement technologies.