-50%
Awaiting product image
Click to enlarge

(Solution) CIPS PDV Saudi Aramco Current Approaches to Managing Prices and Costs

New User Gifts

First Order Deal get Ksh 200 Off.

KaribuCustomer

Original price was: £ 20.00.Current price is: £ 10.00.

Payment Methods:

Description

Solution

In Saudi Aramco current approach in management of prices and costs include use of their budget for getting the 3PL from their different suppliers in Saudi Arabia (KSA) and internationally. By ensuring they critically evaluate the budget allocation and costs of different suppliers in line with quality, it becomes possible to manage the prices and costs.

Also, the strategy adopted by Saudi Aramco include pursuing detailed negotiations by the PS&M. The negotiations targets the best suppliers in KSA of 3PL and other spend categories important for the organisation. In all their contracts, they pursue annual-based contracts to achieve value for money outcomes successfully. After COVID-19 pandemic, Saudi Aramco has been in a position of managing their costs successfully and reduced lead time (Sjödin et al., 2020). The strengths of adoption of the strategy in Saudi Aramco include;

Defining best value for money outcomes–  As evidenced in the analysis, Saudi Aramco achieves a maximum balance between costs (40%), increased quality of 3PL and increased performance (60%). Owing to the complexity of 3PL, despite of the cost factor being critical, other factors including how reliable it is, innovativeness and lifecycle costs are equally instrumental. All these are captured in the Saudi Aramco strategy.

Collaborative supplier relationships– As identified in the explanation of Saudi Aramco strategy, it is anchored on collaboration with different identified stakeholders. The scope of their collaboration is intended to achieve best value for money outcomes. There is nevertheless a need for an improved stakeholders collaboration for fostering collaboration, innovativeness and continuous-based improvement. This is while embracing technologies in improved performance and address of performance demands.

For the cons, they include;

Lack of strategic operations– It is evident that the organisation is not effective in terms of effectiveness of procurement strategies for achievement best value for money in contracts management. According to Venkataraman and Pinto (2023), the strategic operations is informed by need to adopt performance-based contract models with payments aligned with measurable outcomes and performance metrics.

Ineffective total cost of ownership analysis– The total cost of ownership is identified as ineffective in regard to evaluation of entire lifecycle costs linked to procurement and ownership of assets or services in their overall lifespan (Burnham et al., 2021). There is a need to improve the TCO in order to make sure that they come up with quality decisions optimising value for money outcomes.

please click the following icon to access this assessment in full

Related Papers

-75%
Placeholder

(Solution) CIPS Sourcing Essentials PSE Saudi Downtown Company

Original price was: £ 40.00.Current price is: £ 10.00.
Add to cart
  • In this report, an evaluation of various sourcing approaches used in sourcing has been pursued.
  • Through a focus on Saudi Downtown Company (SDC), sourcing of Information Technology (IT) systems post COVID due to popularity of remote working in the different departments has been identified as the spend area.
  • In the evaluation process, ifferent tools including Mendelow Matrix, Kraljic Matrix, SWOT analysis, Hierarchy of need, and Peter Block Grid have been adopted in the analysis.
  • The different sourcing approaches have been identified and their influence for the organisation best practice noted. At the end, by using Cater’s 10C’s tool, supplier appraisal has been carried out for the identified spend area.
The findings in this assessment evidence that SDC adopts various sourcing approaches for their different spend categories.  There is nevertheless a challenge in embracing strategic sourcing in their operations. Further, the organisation use different sourcing approaches including multiple sourcing, single sourcing, sole sourcing and dual sourcing. All these sourcing approaches are distinct and involved in engagement of different suppliers, only one supplier involved, monopolistic suppliers engaged and suppliers with demands which conflict respectively. In line with the findings and conclusions obtained in this assessment, various recommendations have been suggested for SDC. They include;
  • To select best sourcing approach informed by the characteristics of their spend categories
  • Ensure various legislations and policies are initiated to aid use of technologies and innovation in their sourcing process
  • Implement a fully streamlined PS&M strategy with entire stakeholders interests prioritised
  • Improve information flow and supporting their sourcing strategy by leverage on different approaches (RFQ, RFP and e-Auction) integrated to product lifecycle
 
-67%
Placeholder

(Solution) Muscat University Sustainable Logistics and Supply Chain Management Assignment

Original price was: £ 30.00.Current price is: £ 10.00.
Add to cart
Solution Table of Contents 1.0 Introduction. 3 1.1 Introduction to DSV.. 3 1.2 Corporate Structure of DSV.. 3 2.0 DSV’s
-80%
Placeholder

(Solution) CIPD Avado NEW 5CO01 Organisational performance and culture in practice

Original price was: £ 50.00.Current price is: £ 10.00.
Add to cart
Solution   Divisional and matrix structure Divisional Organisation Structure As opposed to using a structure based on job descriptions of
-75%
Placeholder

(Solution) CIPD Level 5 Avado New 5CO02 Evidence-based practice

Original price was: £ 40.00.Current price is: £ 10.00.
Add to cart
Solution Table of Contents Section 1- Report 3 Introduction. 3 1.1 Evaluation of Evidence Based Practice (EBP) 3 1.2 Analysis.
-67%
Placeholder

(Solution) CIPD Explain factors to consider when deciding on content of copy used in recruitment methods. (AC1.4)

Original price was: £ 30.00.Current price is: £ 10.00.
Add to cart
Solution Job Fair Considering the job fairs, a critical copy of document which can be sourced include maintaining the budget.
-67%
Placeholder

(Solution) CIPS ROSHN Syndicate Cohort 1 Effective Negotiation (PIN)

Original price was: £ 30.00.Current price is: £ 10.00.
Add to cart
Executive Summary This report provides a background of a formal commercial negotiation which has been developed for ROSHN organisation operating in Saudi Arabia (KSA) real estate industry. To achieve the intended aim of this report, the data used has been sourced from information, figures, desk research, external data which guide the negotiation process. The selected category of spend is vehicles. To develop the negotiation plan, different approaches, techniques, theories and concepts have been referenced to analyse and present  successful bargaining approach. Further, with different projects being pursued by ROSHN in urban and rural areas, negotiating for good quality vehicles is essential. Hence, over the years, ROSHN demand for different categories of vehicles has been increasing in the past years. As part of negotiation, ROSHN involves experts, basing it to terms and conditions, adequate plan and optmised supply chain and procurement management. The findings in this report evidence that ROSHN pursues a series of negotiations which are guided by CIPS module models. The phases pursued include preparation, evaluation, proposal, negotiation, settlement and closing. For all these phases, they are resources intensive hence a necessity for pursing a detailed negotiation. Also, the findings in this report evidence the need for involving multiple stakeholders for a successful implementation of the negotiation process. This is essential for managing their competitiveness in their business sector.  Part of this report findings also highlight on the need for customising the negotiation plan based on the different stakeholders expectations. This is with optimum success in the negotiation being dependent on how the organisation manage BATNA, MLA and any battle of the forms with good results obtained. In line with the summary of the findings and conclusions offered, the recommendations include;
  • To carry out a detailed planning in their negotiation process to ensure entire stakeholders are engaged with their interests given a priority
  • A successful inclusion of technology and innovation to harness process of negotiation plan
  • To improve documenting of their operations for optimum involvement of all stakeholders and to manage conflicts of interests in negotiation
  • To ensure that customised negotiations are pursued in their different spend categories as opposed to using a single negotiation strategy