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(Solution) CIPS PSE Introduction ROSHN Organisation

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Description

Solution

1.0 Introduction

1.1 ROSHN Organisation

In this assignment , ROSHN organisation has been selected for evaluation. The organisation under the Public Investment Fund (PIF) is mandated with a responsibility of development of immense quality residences in Saudi Arabia (KSA) real estate sector (ROSHN, 2024). Today, with over 60% dominance in residential construction in KSA, ROSHN ranks as a leader in KSA real estate industry today. In KSA, there is a government policy which intend to ensure that the country achieves 70% of entire home ownership in the entire country. For all the population groups in KSA, they have houses based on their budgetary allocation and needs. This is attained by priority being on supporting various sectors and partnerships for increasing job opportunities available and economic growth. The vision and mission of ROSHN is summarised in the following;

Figure 1:ROSHN Vision, Mission and Objectives

Source: Summarised from PIF (2024)

From the summarised figure 1, ROSHN success in their operations is successfully based on progressive vision, mission and core objectives. To achieve this, they have a substantial budget in their Procurement and Supply Management (PS&M) amounting to SAR200 Million (PIF, 2024). The budget is used in managing the relations of various consultants, contract management, manufacturing teams and PS&M players. In all the identified spend/expenditure areas, ROSHN operates different sourcing approaches…….

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The purpose of this report was to develop a commercial negotiation plan. This plan is applicable by the organisation in the identified spend category. In this context of the assessment, ROSHN, one of the leading Saudi Arabian real estate development companies in line with the Kingdom’s Vision 2030 has been used successfully. The key findings in this report evidence that the mission of ROSHN is to meet housing needs and have made it their goal to build 70% homes for Saudi families within the year 2030. Another key finding is that procurement division the Vendor Management Team (VMT) and Commercial Procurement Team provides timely delivery of resources for housing projects at HDB. The major findings in this assessment also evidence that Mendelow’s Matrix, PESTLED analysis, and Kraljic Matrix are all components of Roshn’s main strategic procurement cycle, which also places a focus on Principled negotiations when it comes to procuring for necessary resources. Another main finding is that, as it can be seen from the above discussion, most of the choices made by ROSHN in procurement positively influence its procuring activities regarding its strategy and Vision 2030 objectives. Nonetheless, there are opportunities for improvement about supplier analysis, risk management, stakeholder management, and the tracking of concessions, which would provide greater negotiating power and procurement performance. Based on these key findings and generated conclusions, a set of recommendations have been generated which are relevant in this report which entail;
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