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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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  • 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