-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

-67%
Placeholder

(Solution) CIPS PDV Driving Value through Procurement and Supply Managing Expenditure with Suppliers

Original price was: £ 30.00.Current price is: £ 10.00.
Add to cart
Executive Summary In this first assessment covering modules “driving value through procurement and supply and managing expenditures with suppliers”, the focus is outlining the importance of a category of spend to organisation stakeholders. The selected category is logistic services as sourced by Saudi Arabia Maaden Petrochemical Company (SAMAPCO). In specific, the logistics services are handled by JAS Company in Saudi Arabia. Further, in this assessment,  brief market analysis has been pursued with a detailed evaluation procisded on th scope of procurement and supply management (PS&M) department lead to development of value for money outcomes. At the end of this assessment, the current approaches in placxe for managing costs and prices for the logistics service spend area influencing markets in SAMAPCO has also been an area of focxus. The findings in this report are informed by various models and tools including Mendelow Matrix, STEEPLED analysis, SWOT and Porter’s 5 Forces all which evaluate PS&M functions in managing costs and operations in the highly competititve business environment. The main findings in this assessment evidence that for the logistics service sourced by SAMAPCO, value for money outcomes is successful. In particular, by engaging JAS Company, the organisation has managed to be appropriately positioned to leverage on competitive advantage in the petrochemical industry in Saudi Arabia (KSA). Another key finding is that by setting a priority in considering their different stakeholders interest and pursuing the set Key Performnce Indicators (KPIs) and Service Level Agereements (SLAs), SAMAPCO business objecives would be sustained and successful (future oriented). The findings and conclusions in this assessment inform on a set of gaps which could be managed by pursuing the following recommendations;
  • Expansion of the best strategy in embracing on modernised technology as part of stakeholders management
  • Come up with customised strategies for improving value for money outcomes unique to logistics spend area
  • To involve local and regional supploers to cut costs through gaining in terms of discounted costs
  • Consider re-evaluating their financial capability for an effective logistics sourcing with all uncertainities eliminated
Invest in building their excellence, fairness in engaging all stakeholders, innovativeness and honest-based operations
-33%
Placeholder

(Solution) Level 7 7C001 The Trend Towards Greater Globalisation of International Business Activity

Original price was: £ 15.00.Current price is: £ 10.00.
Add to cart
Solution Question 1 The Trend Towards Greater Globalisation of International Business Activity Globalisation arise from developments in technology, trade liberalisations
-67%
Placeholder

(Solution) MCIPS Global Strategic Supply Chain Final Project

Original price was: £ 30.00.Current price is: £ 10.00.
Add to cart
Executive Summary The purpose of this project is to evaluate supply chain automation by leveraging Industry 4.0 technologies. The identified technologies include Artificial Intelligence (AI) and Machine Learning (ML) noted as critical for streamlining operations and obtaining value-for-money outcomes. This has been pursued by focusing on Wood Plc.  To conclude, the generated findings of this report evidence WPC is today adopting the application of iSourcing in their procurement and supply management (PS&M). In the current project, through an evaluation of options for automation of the organization PS&M, the findings evidence the existence of different limitations hindering the success of their system. The issues of cost overruns, lack of collaboration, and inefficient supply chain as the organization is expanding its current operations have been noted to include limitations of their current sourcing. Success in the automation of their supply chain has been identified to lead to the following outcomes;
  • Organisation achievement owing to automation of their supply chain, increased confidence and capability, talent management, and employee competency
  • Improved stakeholders relations (a later section of stakeholders analysis) easing the change process. Through the iSourcing improvement, WPC would be in a position of harnessing technical and commercial evaluation processes.
  • Increased and robust systems and policies which mitigate overall gaps in sourcing system transformation
  • Today, only lower than 10% of the entire WPC resources are used to prioritize automation and IT integration successfully. Automation would improve the use of resources in their operations
Also, in this project, different tools and techniques have been referenced relevant for generating appropriate findings of the need for automation in WPC. Success in this project, would be tracked using a Gantt Chart with a detailed implementation plan established and recommended for PS&M in the WPC organisation. From the identified gaps in this project, various recommendations can be suggested for WPC to improve the automation process of their supply chain. These recommendations include;
  • Involve their IT and finance departments to ensure within a period of 6 months they
  • WPC needs to consider embracing sustainable practices as part of investing in their Industry 4.0 technologies
  • Through the adoption of automation, better communication systems backed by AI and ML would be introduced to achieve 70% increased communication effectiveness.
  • It is important to increase this through increasing collaboration and alignment of all their interests holistically
  • Partnering with institutions for the provision of capacity development opportunities for the PS&M teams and other organizations for the success of the automation process
  • Expanding their sourcing of Industry 4.0 technologies. This is to involve highly reputable global companies hence efficient operations and integration of AI
  • Source of support from the government to ensure that they are facilitated in terms of policies and appropriate regulations to guide the automation process.
-67%
Placeholder

(Solution) CIPS PDC Performance Measures Monitoring and Management

Original price was: £ 30.00.Current price is: £ 10.00.
Add to cart
Solution For a successful contract implementation, stakeholders involved ought to ensure they perform in optimum by satisfying the monitoring and
-67%
Placeholder

(Solution) CIPD Level 5 5C001- Organisational Performance and Culture in Practice

Original price was: £ 30.00.Current price is: £ 10.00.
Add to cart
Solution Practice     Answers to the Questions 1.1 Organisation Structures Evaluation Organisation structure 1 (My organisation)-Hierarchical Organisation Structure In
-67%
Placeholder

(Solution) AbbVie PART 1: Case Study Analysis

Original price was: £ 30.00.Current price is: £ 10.00.
Add to cart
Solution 1.0 PART 1: Case Study Analysis 1.1 Introduction   AbbVie is a global biopharmaceutical company operating one of the