(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) CIPD New 5LD03- Facilitate Structured Learning and Development Activities for Groups
(Solution) New CIPS APPR Advanced Level 6 Final Assessment
- In conclusion, the findings in this report indicate that Woolworths is currently using Ariba and SAP systems. This study covers the annual spend of Woolworths, the portfolio of Woolworths, their Category and Risk Management.
- Based on the study, Woolworths have to reduce their annual costs, and this may be supported by automation of as many processes as possible and this will also improve their efficiency and effectiveness levels.
- Woolworths also has made significant efforts in categorising its products and managing supply and other risks by having a wide pool of suppliers.
- Further, the introduction of online shopping has greatly boosted their market reach and their competitiveness.
- Woolworths also has to consider grouping all its purchases into categories. This will greatly ease the amounts spent on buying individual items since bulk purchases allow for great discounts due to the economies of scale.
- Further, category management will ensure that the entire supply chain is managed effectively and efficiently with minimal instances of supply chain disruptions.
- Woolworths also must prioritise its stakeholders and acknowledge the role that each stakeholder plays and how this contributes significantly to the overall growth of the firm.
- Stakeholders have to be informed and involved when major decisions are to be made as this will enrich the strategies, contributions and suggestions brought forward.
- Stakeholder analysis is also key to maintain the stakeholder relations which improves not only the reputation of Woolworths but also the market share of Woolworths. This gives them a niche in their market.
(Solution) CIPS ADNOC Cohort 15 Practitioner PSE Sourcing Essentials
- In summary, in this report, sourcing approaches have been evaluated.
- By focusing on ADNOC fuel main category of spend and other spend categories, the sourcing approaches have been identified to include multiple, single, dual, and sole.
- In ADNOC, the procurement process includes a detailed process that is defined by the transitioning of sourced products and services to the organisation.
- The identified spend categories are strategic, leverage, bottleneck, and non-critical items. Also, the products have been categorised into those with high-profit implications, risks incurred, and reliable.
- In the identified area of spend, multiple sourcing is preferred due to the critical nature of the identified spend category.
(Solution) CIPS Advanced level Leadership & Management in Procurement and Supply
- In summary, this report has focused on evaluating the impact of approaches to leadership and management in an organisation.
- To achieve this, a focus on Eco2Solar organisation has been prioritised where it has been established that the organisation current success in a project intended to achieve 2,000 installation in different apartments can be credited to their astute leadership and management.
- This equally evidence the organisation position dominating UK solar sector.
- These findings have been affirmed by PESTLE analysis of external factors, RACI Matrix among other tools which have been used.