(Solution) CIPS APSS Module: Strategic Supply Chain Management
- The supply chain map for leasing cars at Emirates Transport provides the flow of information across the tiers.
- The map increases visibility and reduces the shocks and disruptions in procurement and supply chain management. However, the company has not developed effective mitigation strategies for the shocks and issues that emanate from the external environment.
- For instance, COVID-19 and the sustainability issues have affected the procurement and supply chain management process, particularly the strategic and leverage products.
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Description
Solution
Executive Summary
This report entails the supply chain mapping for leasing cars at Emirates Transport. The analysis also involves the resilience and visibility of the map. From the supply chain map, it is apparent that Emirates Transport has an effective map that allows for smooth information flow across the tiers. The map also describes the different players in the supply chain management process. The effectiveness of Emirates Transport supply chain management is founded on four key elements. These include a competent workforce, information and communication technology, risk management, and relationship with suppliers. The analysis applies various models and theories, including the resource-based view, SWOT, PESTEL, Porter’s five forces, and Kraljic. In the supply chain context, the strengths include a profound relationship with the suppliers, information and communication technology (ICT), and a competitive procurement department workforce. However, there is a need to develop an effective mitigation strategy for the shocks and disruptions, which have been reflected in the COVID-19 example. A profound risk management approach is also essential to promote sustainability and competitive advantage. Three recommendations to address the weaknesses include a macro-environmental scan, revising the risk management plan, and a focus on sustainability through approaches such as electric cars.
Table of Contents
1.3 Company Procurement Department 5
2.1 Supply Chain Mapping for Leasing Cars. 7
2.2 Visibility and Resilience. 9
2.4 Strengths and Weaknesses of Leasing Cars Supply Chain. 12
1.0 Introduction
An effective supply chain mapping sets the difference between organisations’ supply chain management in regards to addressing the disruptions and risks in the procurement process. According to Mubarik et al. (2021), the mapping of supply chain presents a strategic approach to promoting the company’s performance in the supply chain process. Burgess et al. (2017) define the supply chain mapping as the documentation process of key data throughout the stakeholders involved in the procurement and supply chain process. These include suppliers, companies, and individuals. The effectiveness of a supply chain process is the ability to address the risks and voids in the supply network. During the COVID-19 pandemic, for instance, the supply chain process was significantly disrupted due to travelling restrictions to curb the spread of the virus. Supply chain process helps in addressing such issues and assisting companies to continue their operations, particularly when there are unprecedented occurrences. The mapping also provides insights into the macro-environmental factors, giving the company an advantage over the competitors.
1.1 Purpose of the Report
This report entails the supply chain mapping for leasing vehicles at Emirates Transport. The discussion follows analysis and contrast of the supply chain’s strengths and weaknesses. Among the key areas assessed are the visibility of the supply chain beyond the first tier, identifying and managing the risks, resilience, and impacts of sudden shocks on the supply chain. The analysis is laid on various models and theories, including SWOT, PESTEL, Porter’s, and Kraljic.
1.2 About Company
The Emirates Transport is a state organisation founded under the Federal Law, number 17. The company aims at organising, managing, and supervising the transport services and associated businesses. This is for the benefit of the local and federal government bodies and the private sector. In the 38 years, Emirates Transport has developed its brand through investment and diversification in services. Presently, the firm offers the customers, including the individuals and companies with, an array of services, including vehicle leasing, automotive maintenance, and transport.
1.2.1 Category of Spend
The selected category of spend is leasing cars. Emirates Transport offers rental services to various customers, including the government, individuals, and private companies. The leased cars are suited to various individuals’ preferences. Drawing from Maslow hierarchy of needs, which Fallatah and Syed (2018) describe as the set of human requirements essential for the person to achieve the self-actualisation, the leased cars are diverse and priced according to the individual’s preferences. The government, for instance, enjoy high safety and comfort standards, which are factored in the leased vehicles. There are also Limousine car leasing services. This entails the exquisite vehicles provide to individuals, companies, and institutions. The rental services extend to motorcycle, buses, and the mass transportation services. In all levels and categories of rental services, the customers have access to a fleet of vehicles to select from. The broad range of cars provide the customer with diverse satisfaction, including self-esteem and safety.
1.3 Company Procurement Department
Emirates Transport procurement department is a robust and applies an advanced system. According to the Chartered Institute of Procurement and Supply (CIPS), an effective supply chain management should hand the flow of the goods and services in a profound manner across various tiers up to consumption by the consumer (CIPS, 2021). At Emirates Transport, the procurement department is hierarchical structured, which is also related to the company’s centralised organisational structure. The department as demonstrated in figure 1 below is head by the director in charge of the procurement, supply and chain management. The centralised structure is centred on the company being government owned. This reflects on one of the core challenges facing state-owned companies. As described by Pretrius et al. (2018), government organisations mostly have a hierarchical structure. The decisions originate from the top leadership and passed through the various levels.
Figure 1: Procurement Department Structure (Source: Author).
As demonstrated in figure 1 above, the procurement department for Emirates Transport factors in a number of factors, including the application of ICT in the vendor process. According to Selvam et al. (2021), the impacts of the ICT include enhancing the efficiency of procurement and supply chain management. However, it is imperative for the company to have the required skills and competencies aligned with the technological advancements. For instance, the procurement process of the different aspects, including the vehicles requires the careful selection of automobiles that meet the customers’ diverse needs. A profound relationship with the vendors is also crucial. This ensures long-term engagement with the external stakeholders, which is essential in ensuring a flawless procurement and supply chain management process. Competence among the procurement management team is therefore crucial to ensure sustainable relationships and the application of ICT in the procurement process.
2.0 Analysis
Effective procurement and supply chain management follows various steps and components as demonstrated in figure 2 below. The significance of the map is entwined in the components. According to Mubarik et al. (2021), the supply chain mapping should occur in every tier. This reduces the increasing risks and burden. The six components shown in figure 2 below provide the blueprint of the supply chain mapping. For instance, the risk assessment and mitigation strategies in the planning phase are also essential in the mapping process. The organisation should understand the suppliers across the tiers and their significance in the supply chain process (Martindale, 2016). In the procurement process of the car leasing department, Emirates transport plans for all risks, including delays and logistical issues. This provides answers, such as the company’s intervention strategies in case there are fails in the lower-tiers supply.
Figure 2: Components of Supply Chain Management (Adopted from CIPS, 2021).
2.1 Supply Chain Mapping for Leasing Cars
The supply chain map for leasing cars considers a range of aspects. These include the flow of information across the three tiers and the relationship between various levels (Supply Management, 2013). Emirates Transport has built a profound relationship with the suppliers, critical in ensuring the procurement and supply of the vehicles are flawless. Emirates Transport has also focused on collaborating with various companies to ensure that the production process of the desirable units is conducted within the required timeframes. Emirates Transport has two options in obtaining the vehicles for leasing. The primary option is to purchase the vehicles from the warehouses and distributors. The merits of this approach are based on time. The company receives assembled vehicles from the distributors and the respective companies’ warehouses. The main limitation of this procurement process is that Emirates Transport is constrained in the specifications for the units. Another limitation is the cost, which emanates from the incurred value by the warehouses and distributors in bringing the vehicles to the company. The second option involves procuring the vehicles from the manufacturing companies. This involves an order to the manufacturing companies. The merits of this approach include cost reduction and vehicle customisation. However, there are time issues and the possibility of the external environment affecting the production and logistics. Figure 3 below demonstrates the supply chain map for the car leasing.
Figure 3: Supply Chain Map for Leasing Cars
The company’s performance is dependent on the resources at its disposal. Applying the resource-based view (RBV) theory, how a company applies and configures these resources, including informational, physical, and human capital, allows the company to offer a competitive advantage (McGahan, 2021). Emirates Transport competes with Autorola and Hill Aircraft and Leasing. The impacts of the supply chain mapping provided in figure 3 include ensuring that the customers rent vehicles that meet their needs and preferences. The map outlines how Emirates Transport sources the essential products and the importance of competent procurement professionals that ensure that the firm has the right products and services. Although Emirates Transport faces a significant challenge in addressing the macro-environmental factors impacting the car leasing services, the firm has made tremendous efforts to ensure that it is current with the present trends and dynamics. For instance, the world is shifting towards sustainability, which is attributed to mitigating climate change and global warming (Olabi et al., 2021). This is the foundation of developing electric vehicles. Among the customers’ preferences is to use electric vehicles. Emirates Transport has ensured the availability of electric vehicles to ensure that the firm’s mission and vision are aligned with the sustainability trends.
2.2 Visibility and Resilience
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(Solution) CIPS PIN Negotiation Plan ROSHN Cohort 1 Practitioner
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) CIPS Advanced Practitioner Corporate Award (APDP)
- 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 Organisation| Factors 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. |