(Solution) CIPS PSE RCU Cohort (Practitioner) Module 4 – Sourcing Essentials in Procurement & Supply

Solution

Table of Contents

1.0 Introduction. 5

1.1 Royal Commission for Al-Ula (RCU) Background. 5

1.2 Selected spend categories; scope of assignment 6

1.3 Stakeholders Analysis. 6

3.0 Sourcing Approaches. 9

3.1 Multiple Sourcing. 9

3.2 Single Sourcing. 9

3.3 Dual Sourcing. 9

3.4 Sole Sourcing. 9

4.0 Application of the Sourcing Approaches in RCU Organisation. 10

4.1 Multiple Sourcing. 11

4.2 Single Sourcing. 12

4.3 Dual Sourcing. 13

4.4 Sole Sourcing. 13

5.0 Sourcing Appraisal Checklist 15

4.1  Supplier Evaluation of IT Category of Spend. 15

5.0 Conclusion and Recommendations. 17

5.1 Conclusion. 17

5.2 Recommendations. 17

References. 19

Bibliography. 20

Figure 1:RCU Areas of Operations. 5

Figure 2:Mendelow Matrix Stakeholders Analysis Summary. 7

Figure 3:Summary of Peter Block’s Stakeholders Analysis. 8

Figure 4:Summary of RCU Kraljic Matrix 10

Figure 5:Maslow Hierarchy of Needs 14

Figure 6:Summary of 10C’s Summary. 15

1.0 Introduction

1.1 Royal Commission for Al-Ula (RCU) Background

The Royal Commission for Al-‘Ula (RCU) is a non-profit organization dedicated to the preservation and sustainable development of the Al-‘Ula region. Established in 2017 by Royal Decree, the RCU is focused on preserving the archaeological, cultural, and environmental heritage of Al-‘Ula and surrounding areas (IUCN, 2022). The RCU ensures the preservation of Al-‘Ula’s historical and archaeological sites while promoting modern, sustainable infrastructure development. The RCU is responsible for preserving Al-‘Ula’s historical and archaeological sites (see figure 1);

Figure 1:RCU Areas of Operations

Source: Summarised from (IUCN, 2022)

Further, The organization is committed to preserving Al-‘Ula as an integral part of Saudi Arabia’s cultural heritage while promoting sustainable tourism and economic development. The RCU works to ensure that Al-‘Ula’s heritage is respected and protected and, at the same time, promotes the development of sustainable infrastructure. The RCU is also responsible for developing and implementing various conservation initiatives, including developing environmental policies, promoting sustainable tourism, and monitoring environmental conditions (RCU, n.d.). The entity works to raise awareness of the importance of preserving Al-‘Ula’s cultural and natural heritage while promoting sustainable economic development.

1.2 Selected spend categories; scope of assignment

RCU is involved in procurement of an upward of 80 technology systems intended to enhance their operations in the cultural and archaeological exploration in Saudi Arabia (KSA). For success in this operation, they leverage on an appropriate sourcing strategy and pursue a detailed supplier appraisal for meeting demands. In RCU, this is important for achieving value for money outcomes controlling their entire supply and procurement approaches. In line with this, the purpose of this report is to evaluate the different sourcing approaches and recommend the best practice for RCU. This is through the application of various CIPS Module notes models (Kraljic, Business hierarchy of needs, Mendelow stakeholders matrix) for providing a rationale of use of the sourcing approaches.

1.3 Stakeholders Analysis

Further, for identifying the relevance of the different sourcing approaches in RCU sourcing categories, it is essential to pursue stakeholders analysis. This can be done by application of Mendelow Stakeholders Matrix (CIPS, 2022). A summary of the analysis is shown in the following;

Figure 2:Mendelow Matrix Stakeholders Analysis Summary

Source: Summarised from CIPS (2022)

For the stakeholders categories, their analysis entail;

High Interest; High Power– In this category, the stakeholders are actively involved in selecting the best sourcing strategy. This is for avoiding any form of lack of understanding in sourcing process. This is particularly the case for RCU customers and satisfaction of all stakeholders.

Low-Interest; High-Power– Stakeholders engaged in suppliers selection including accounts, legal departments and KSA government need a high-level satisfaction with selected sourcing strategy.

High Interest; Low Power– The most appropriate sourcing strategy is selected by ensuring that this category of stakeholders are provided with all essential data and information. Considering PS&M teams and board of management, it enhance success in selecting best sourcing approach.

Low Interest; Low Power– For this category of stakeholders, the information technology (IT) teams, admin and competitors have less power and interest in identifying the most appropriate sourcing strategy. Their interest is guided by need for most appropriate sourcing strategy being used.

From the CIPS Module Notes, Peter Block Grid Leadership Center is relevant for organizing the different stakeholders informed by risks and power held. The rationale of this is achieving an improved understanding of overall needs and interests of all stakeholders as illustrated in the following;

Figure 3:Summary of Peter Block’s Stakeholders Analysis

Source: CIPS Module Notes

Bedfellows- For this category of stakeholders, a high-level of agreement and low trust is in place hence a challenge in selecting the most appropriate sourcing strategy. The priority is on sustained commitment and detailed communication to select best practice. As part of making decisions, entire needs consideration is essential.

Allies–  This is made up of stakeholders offering sufficient support and trust-based relations hence need for continuous support and collaborate for common progress. This relationship is appropriate in multiple sourcing.

Opponents– For these stakeholders, for engaging them appropriately, prompt feedback must be provided, honesty maintained and select the best sourcing.

Adversaries- With low agreement and trust, when opposition to change is evident, RCU involve the stakeholders in coming up with most challenging decision on sourcing strategy serving their interest in optimum.

3.0 Sourcing Approaches

3.1 Multiple Sourcing

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