Description
Solution
3.0 Sustainable Global Sourcing Decisions
The importance of achieving a sustainable global sourcing is to grant support for assigned objectives attainment in an entity for optimising environment factors, social-based practice and economy factors of supply chain lifecycle. As evidenced in Omolayo et al. (2021), the sustainable procurement objectives offer an entity with capacity of leveraging on competitive advantage and assisting future-based practice for entity goals achievement. The procurement strategy sustainability is summarised in figure 3;
Figure 3: Sustainable Procurement approaches
Additionally, according to CIPS (2022a), a system model is appropriate for achieving sustainable sourcing informed by the approach that in a global context, organisations have failed in managing social and environment factors holistically. Hence, the global sustainable sourcing strategy is used to integrate social, ethics and environment performance aspects to select most fitting suppliers. For WoodPlc organisation, operating as a contractor, they ensure they pursue sustainable global sourcing process. This is with the organisation gaining an increased competitive advantage and market dominance.
3.1 Sustainable Global Sourcing Decisions Consideration
For appreciating sustainable global sourcing decision Sarkis (2020) argue on the need for integrating social and environment aspects in regard to profitability and long-term strategy. In CIPS Guidelines, they highlight on the importance of Triple bottom-line Model (Hsu et al., 2019);
Figure 4:-Ps Global Sourcing Sustainable
People- WoodPlc is mandated for harnessing overall well-being of society in their practice and different engaged people. For the company, in Gunessee and Subramanian (2020), it is identified that they achieve value for money from the sourced products and hence facilitated to enjoy actual achievements from WoodPlc IT system sourced.
Planet- Being the best practice, organisations need to ensure they prioritise on clean environment for all oil and gas companies, integrate the best practice in managing environment. In WoodPlc, they successfully manage faced challenges of failure to ensure their contracting services are offered to eco-friendly entities. This is for successful management.
Profits– WoodPlc profit are well positioned for redistribution in form of dividends, payments to various lenders, creditors and staff engagement. For the organisation suppliers, approximately 65 days are set. To the organisation suppliers, they make sure they implement all policies.
The importance of the policy is to guarantee appropriate job roles and detailed procurement strategies implemented. These are relevant and supported by WoodPlc level of operating their overall contracting process. This is to guarantee secured relevant future practice by organisations spend leading and excel for the internal stakeholders involvement.
3.2 Sustainable Global Sourcing Decision Making
As evidenced in Bai et al. (2019), decision making in global sourcing is relevant in an event good decisions are put in place. For achieving this, reflecting on bidding approach, suppliers selection and their subsequent induction is pursued. In WoodPlc case, this practice is challenging. The importance of this is identified in Stek and Schiele (2021) as noting the need to prioritise many aspects including qualification level of expertise, recognised and obtaining various alternatives. These entail costs, quality levels, logistical, and techniques feasible. For making decisions, different stakeholders are used. To manage decisions, different stakeholders are involved. To analyse this, the Mendelow Matrix (CIPS, 2022b) is used for analysis of stakeholders interest as shown in figure 5;
Figure 5:Mendelow Matrix Analysis Summary
Low Influence; Low Interest- The management and HSE teams in WoodPlc organisation, they have low influence and interest. The main purpose include making sure they are oversees sustainable supply chain process. Owing to the priorities having conflicts, minimal efforts are demanded. The primary influence exerted is guaranteeing sustainable decision making leading to less operations and monetary performance of the organisation.
High Influence; Low Interest- Community and society lead to an increased influence with low interest of supply chain decisions making. For end-users of IT systems sourced by WoodPlc, they are involved to identify costs, logistic aligned, L&D and specified products.
High Influence; High Interest- The suppliers, PS&M teams and accounts represent key players engaged to influence making of decisions. This is to ensure individuals and planet aspect is prioritised hence an influence on making of decisions. The interest are as such a priority for decision making.
High Interest; Low Influence– The government and Ministry teams and competitors possess a high interest and reduced influence. For IT systems, being appropriate practice, UAE policies for ensuring contracting strategies are put into account. The phases which are put into account by competitors are as such required for maintaining an informed level.
Hence, involvement of various stakeholders is shown in figure 5 as promoting WoodPlc supply chain process. The performance measures include;
Improvement of materials flow for WoodPlc- Considering the findings in WoodPlc brand, in Middle East, their contracting services are offered to an upward of 100 organisations which account for upto 70 organisations being serviced by their different IT systems. Hence, their decisions on supply chain is impacted by operations which are distinct from profits
Improved information management- Today, in post-pandemic, WoodPlc has a large role to ensure they manage the flow of data and information sharing. This has a significant influence on past supply chain disruption which impact sustainable practice.
Responsivity for markets needs– For WoodPlc, they prioritise on improving their practices to guarantee success of contracting strategies and transforming oil and gas sector in Middle East through their contracting services. This evidence making sure they gain sustainable business practice and consistently development.
3.3 Global Supply Chain Risks Identified
For appropriate management of supply chain, WoodPlc need to ensure they identify, assess and manage entire risks. In line with Manuj and Mentzer (2008) findings, within a team involving 700 procurement and supply process professionals, below 60% prioritise on risk management strategies. Hence, considering the Resilience Model as provided by CIPS notes, an improved scope of awareness and guiding membership development of end-end supply chain resilience level as illustrated in figure 6;
Figure 6:Risks Resilience Model Analysis Summary
Hence, in the various identified sources of risks, as supported by the analysis outcomes, risk register is relevant for development. As evidenced in Rees et al. (2022) risk register include a strategy adopted for identifying risks, their possibility of occurring and set practices in table 2 summary;
Table 2:Risk Register for WoodPlc
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- Within six months, PS&M personnel will be provided with chances for capacity building through partnerships with educational institutions to gain knowledge and skills for implementing category management.
- The PS&M would become more motivated in the long run by providing recognition and benefits for pursuing category management implementation.
- Within a year, an effective change management strategy would be pursued, focusing on tracking the change and spotting change resistance
1.0 Introduction
1.1 ADNOC Organisation Background
In this report, the organisation of focus is Abu Dhabi National Oil Company (ADNOC). This is for understanding the impact of contract terms and conditions on distribution of risk and power with their suppliers. This is an organisation which began its operation in 1971 and today is ranked as the leader in diversified energy group which is owned by Abu Dhabi Government (ADNOC, 2022). The organisation network of holistically integrated business has based their operations across the entire energy value chain assisting their capacity for meeting overall demands of the consistently changing energy markets. For remaining competitive, the organisation has allocated $15 billion for advancing and accelerating lower-carbon solutions, investment in new energy solutions and decarbonisation technologies for lowering their carbon intensity with 25% by 2030 and successfully facilitating their NetZero by 2050 target. The company has a network of fully operational companies that operate throughout the entire hydrocarbon value chain, handling tasks including exploration, production, processing, storing, refinement, and supply in addition to manufacturing a wide range of petrochemical products. I work as a Contract Engineer for ADNOC Offshore, one of the company's divisions. The offshore division of ADNOC is responsible for the delivery and development of oil and gas resources in the waters surrounding Abu Dhabi. With OPEX and CAPEX, ADNOC Offshore spends over 3,000 million dollars annually. The organisation structure is as illustrated in figure 1; Figure 1: ADNOC Organisation Structure1.2 Identified Category Management
The deployment of the iSourcing system, a technology-focused procurement procedure, was chosen as the category management in this study. The need for oil and gas has significantly expanded in the modern era since the Covid-19 epidemic. As a result, ADNOC is forced to spend money on equipment to help them process and refine more oil and gas products. In light of this, the team leader's responsibility is to see that an iSourcing system is in place and can be utilised to purchase the new machines that the company needs to upgrade its operations. Locally in UAE, regionally in the Middle East, and internationally in Western nations, this would apply. This project aims to produce a report outlining the implementation of the change approach. This is done while ensuring the team members and leader have the necessary abilities to carry out the plan successfully. Implementing the new category management strategy is the kind of change being sought. The learner will be the team leader throughout the full category management process since a team has been chosen to oversee the deployment of iSourcing. The practical approach would be utilising various tools and strategies that demonstrate leadership and best practices in change management, along with a focus on the category management data from the ADNOC firm.2.0 Change Management Approach
2.1 Introduction of the Required Change Process
In its Procurement Supply and Management (PS&M) budget, ADNOC had allocated roughly 10 million UAEis before the COVID-19 epidemic. Up to 5,000 domestic and foreign providers are currently utilised in this. Because of the significant financial allocation in PS&M, the ADNOC sourcing method is crucial to their operations in this scenario. Logistics, equipment, and facility administration are all purchased separately by the organisation, all of which fall under the organisation's primary spending categories of computers and technical systems. As a result, they lack a centralised system that would allow all departments to be involved in aiding the procurement procedure (CIPS, 2020). The Burke-Litwin Model (Coruzzi, 2020) can pinpoint the internal and external factors that contributed to the identified change. This model ranks the many change drivers according to their importance and provides evidence of each one in figure 2; Figure 2:Drivers of Change Model When taking into account the ADNOC organisation and indicated change, these elements have the following effects, as stated in Table 1: Table 1:Summary of the Drivers of Change in ADNOC OrganisationFactors of change | Explanation |
External environment | Supply chain networks have been significantly impacted since COVID-19. ADNOC's ability to replenish stock, equipment, and machinery has been affected. Therefore, ADNOC would participate in strategic alliances by including diverse actors and intermediates in the complete value chain through iSourcing |
Individual and oganisational performance | ADNOC's investment in iSourcing would reduce PS&M turnover, everyone's performance, and supply chain network satisfaction. |
Leadership | To ensure iSourcing success, the PS&M will lead and manage efficiently. This inspires and guides other organisations to iSourcing success. |
Mission and strategy | The achievement of ADNOC's aim to provide high-quality oil and gas products would be ensured by the deployment of iSourcing. The justification for this is to quickly and effectively engage highly qualified vendors. |
Organisation culture | Implementing iSourcing would promote the collaborative and teamwork-oriented organisational culture of ADNOC. This is due to the platforms offered by iSourcing that provide suitable options for teamwork and collaboration. |
Task requirements and individual skills | Employees at ADNOC lack the knowledge and skills necessary to deploy iSourcing. This deficit might be filled by offering possibilities for professional advancement. Implementation of the change would be successful. |
Employee motivation | This report's proposal suggests that providing monetary and non-monetary rewards is necessary to encourage people to adopt iSourcing. This is for employing remarkably contemporary systems of practice. |