(Solution) CIPS PDV Saudi Aramco Current Approaches to Managing Prices and Costs
New User Gifts
First Order Deal get Ksh 200 Off.
Original price was: £ 20.00.£ 10.00Current 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
(Solution) CIPS Assessment 3 PSE Sourcing Essentials
- In summary, sourcing approaches has been evaluated in this assessment. This is through the focus of ADNOC organisation spend category.
- The selected spend category is IT for their advancement of remote and flexible working post-COVID-19 pandemic. Also, by comparing this with other different spend categories, the sourcing approaches evaluated included sole, multiple, single and dual sourcing.
- Through the application of different CIPS tools and techniques Kraljic analysis, Stakeholders analysis, SWOT and PESTLE analysis, a successful evaluation has been put into active process. This is with the best practice in ADNOC being identified and prioritised.
- Further, for the successful sourcing of ADNOC IT system, a successful suppliers appraisal process has been pursued.
- This has been done through the application of Cater’s 10C’s Model. As part of this analysis, the best supplier has been noted and involved.
(Solution) CIPS PSE Sourcing Essentials Assessment
- Smiths Detection has a robust procurement and supply guided by various clauses, including control, quality, records, and timely management of the sourcing process.
- For different categories of spend, Smiths Detection applies single, dual, multiple, or sole sourcing process.
- Drawing from the pros and cons of the different sourcing methods, it is apparent that there is no unique and universal approach for Smiths Detection sourcing.
- Rather, the approaches are unique to the categories of spend.
- Drawing from the Carter’s 10 Cs appraisal model, it is essential for Smiths Detection to examine the various aspects of the potential suppliers for informed decision-making process.
(Solution) CIPS PSE Introduction ROSHN Organisation
(Solution) CIPD 7C001 developments in technology currently affecting the management of people within your organisation
- 2 examples of technology and how it affects managing people in my organisation explained effectively
- Second example geared more towards the management of people rather than what the technology does.
- Again, multiple references have been provided in this answer and a wider depth and breadth of research assisted in your evaluation.
- Some context around the organisation (size, sector etc.) have been provided with beneficial to set the scene for your evaluations.