(Solution) CIPS PDC Royal Commission for Alula Managing Risk of Poor Quality

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