(Solution) CIPS ROSHN Module: Sourcing Essentials: PSE
Executive Summary
The goal of this evaluation was to compare and contrast various methods of sourcing. Various sourcing strategies have been assessed by centering on the ROSHN organization’s Health and Safety Equipment (HS&E) expenditure category. Among these methods were sole, dual, multiple, and single sourcing. Various expenditure categories, including transportation, information technology, logistics, and employee uniforms, have been used to compare and contrast this. Tools such as the Mendelow Matrix analysis (for stakeholders), the Kraljic Analysis (for hazards), SWOT, and PESTLE (to determine if the market is oligopolistic or monopolistic) have been employed to carry out the analysis. The key findings evidence that ROSHN’s sourcing strategies assist them successfully initiate projects which would lead to an increased house ownership in Saudi Arabia (KSA) as part of achieving their vision 2030. Further, the main findings evidence the multiple sourcing as involving many suppliers in an oligopolistic market, single one supplier with sole only one supplier available with dual involving two suppliers. Another key finding is that through the application of
been found by using the 10Cs model proposed by Carter, which focuses on technical and financial ratios among other things a strategic appraisal has been achieved. Managing the IT consultancy category is possible, according to ROSHN’s study, because they’ve invested in the specified sourcing methods. With their varied and distinct applications in sourcing, each of the examined sourcing approaches has its own set of pros and cons.
From the findings and conclusions generated, various recommendations can be suggested which include;
• Formulate a plan for utilising various sourcing strategies according to their respective expenditure categories
• Make plans and procedures to include technology into their sourcing strategies.
• Simplify sourcing strategies while considering the needs of all parties involved.
• Enhance communication procedures as a means to measure the success of sourcing strategies.

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Description
Solution
Table of Contents
1.1 ROSHN Organisation Background. 4
1.2 ROSHN Procurement and Supply. 4
1.3 Spend Category Identified. 4
3.2 Business Needs in Procurement Cycle. 9
3.3 External Market Analysis. 11
3.4 Kraljic Matrix Analysis 12
4.0 Sourcing Approaches and use in Selected Category. 14
5.0 Supplier Appraisal Checklist 15
6.0 Conclusions and Recommendations. 17
1.0 Introduction
1.1 ROSHN Organisation Background
Owned by the Public Institute Fund (PIF), ROSHN Group is the real estate industry leader in Saudi Arabia. The organisation has reportedly been running for three years and provides new opportunities for residents of the Saudi Arabian (KSA) kingdom government (WebAdmin, 2024). With this, we are also making great strides toward realizing the economic and social development goals set out in Vision 2030. It is now known that the organisation has signed contracts to support their active projects to the tune of about SAR37 billion and sold about 7,000 residential units. Over the whole Kingdom, the group intends to build 395 thousand dwelling units on 100 million square meters of land. In addition, according to Zawya Projects (2023), the ROSHN organisation brings in almost SAR312 billion for the Saudi economy and creates 388,000 jobs, both directly and indirectly. With an expected increase to almost 9% by 2030, this accounts for 5.1% of the Kingdom’s GDP and 12.8% of the non-oil GDP. One of their primary goals is to have 70% of Saudi nationals own their own home by the year 2030.
1.2 ROSHN Procurement and Supply
Recognised as a separate PS&M department, ROSHN is vital to the institution’s development. The division is responsible for overseeing the operations of more than 1,200 suppliers across several expenditure categories. The operations of ROSHN are supported by the Saudi Arabian government, which has invested up to SAR20 billion in the company (ROSHN, 2022a). Prioritising infrastructure sourcing through public-private partnerships has also been allocated SAR3.5 billion. The 25,000 square kilometers managed by ROSHN, which includes the Oasis valleys, the Sandstone Mountains, and traditional cultural heritage sites, are the primary focus of all their procurement procedures.
1.3 Spend Category Identified
The IT consultancy category of spend in ROSHN organisation is employed in this report. This is based on the fact that IT consultancy demand has been increasing since the COVID-19 epidemic and subsequent economic downturn. IT consultancy include IT strategy, IT Architecture, IT implementation, ERP services, Data analytics, IT security and software management. The different sub-categories budget allocation is illustrated in the following;
Figure 1:Spending on IT Consultancy Subcategories as a Whole
Approximately SAR102 Million is allocated by ROSHN for sourcing across the various IT consultancy subcategories per budget cycle, as illustrated in the above. According to Bourgeault et al. (2020), this has the effect of enhancing efficiency of the employees and hence increased productivity. For example, in ROSHN, it helps reduce the risk of accidents and health hazards while also making the campus safer from the COVID-19 pandemic along with additional infections by working away from the organisation by leveraging on provided technologies.
2.0 Sourcing
“Sourcing is the acquiring of goods and services that are needed for the organisation operations,” as evidenced by IBM, (2023)………
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- Within six months, PS&M personnel will be provided with chances for capacity building through partnerships with educational institutions to gain knowledge and skills for implementing category management.
- The PS&M would become more motivated in the long run by providing recognition and benefits for pursuing category management implementation.
- Within a year, an effective change management strategy would be pursued, focusing on tracking the change and spotting change resistance
1.0 Introduction
1.1 ADNOC Organisation Background
In this report, the organisation of focus is Abu Dhabi National Oil Company (ADNOC). This is for understanding the impact of contract terms and conditions on distribution of risk and power with their suppliers. This is an organisation which began its operation in 1971 and today is ranked as the leader in diversified energy group which is owned by Abu Dhabi Government (ADNOC, 2022). The organisation network of holistically integrated business has based their operations across the entire energy value chain assisting their capacity for meeting overall demands of the consistently changing energy markets. For remaining competitive, the organisation has allocated $15 billion for advancing and accelerating lower-carbon solutions, investment in new energy solutions and decarbonisation technologies for lowering their carbon intensity with 25% by 2030 and successfully facilitating their NetZero by 2050 target. The company has a network of fully operational companies that operate throughout the entire hydrocarbon value chain, handling tasks including exploration, production, processing, storing, refinement, and supply in addition to manufacturing a wide range of petrochemical products. I work as a Contract Engineer for ADNOC Offshore, one of the company's divisions. The offshore division of ADNOC is responsible for the delivery and development of oil and gas resources in the waters surrounding Abu Dhabi. With OPEX and CAPEX, ADNOC Offshore spends over 3,000 million dollars annually. The organisation structure is as illustrated in figure 1; Figure 1: ADNOC Organisation Structure1.2 Identified Category Management
The deployment of the iSourcing system, a technology-focused procurement procedure, was chosen as the category management in this study. The need for oil and gas has significantly expanded in the modern era since the Covid-19 epidemic. As a result, ADNOC is forced to spend money on equipment to help them process and refine more oil and gas products. In light of this, the team leader's responsibility is to see that an iSourcing system is in place and can be utilised to purchase the new machines that the company needs to upgrade its operations. Locally in UAE, regionally in the Middle East, and internationally in Western nations, this would apply. This project aims to produce a report outlining the implementation of the change approach. This is done while ensuring the team members and leader have the necessary abilities to carry out the plan successfully. Implementing the new category management strategy is the kind of change being sought. The learner will be the team leader throughout the full category management process since a team has been chosen to oversee the deployment of iSourcing. The practical approach would be utilising various tools and strategies that demonstrate leadership and best practices in change management, along with a focus on the category management data from the ADNOC firm.2.0 Change Management Approach
2.1 Introduction of the Required Change Process
In its Procurement Supply and Management (PS&M) budget, ADNOC had allocated roughly 10 million UAEis before the COVID-19 epidemic. Up to 5,000 domestic and foreign providers are currently utilised in this. Because of the significant financial allocation in PS&M, the ADNOC sourcing method is crucial to their operations in this scenario. Logistics, equipment, and facility administration are all purchased separately by the organisation, all of which fall under the organisation's primary spending categories of computers and technical systems. As a result, they lack a centralised system that would allow all departments to be involved in aiding the procurement procedure (CIPS, 2020). The Burke-Litwin Model (Coruzzi, 2020) can pinpoint the internal and external factors that contributed to the identified change. This model ranks the many change drivers according to their importance and provides evidence of each one in figure 2; Figure 2:Drivers of Change Model When taking into account the ADNOC organisation and indicated change, these elements have the following effects, as stated in Table 1: Table 1:Summary of the Drivers of Change in ADNOC OrganisationFactors of change | Explanation |
External environment | Supply chain networks have been significantly impacted since COVID-19. ADNOC's ability to replenish stock, equipment, and machinery has been affected. Therefore, ADNOC would participate in strategic alliances by including diverse actors and intermediates in the complete value chain through iSourcing |
Individual and oganisational performance | ADNOC's investment in iSourcing would reduce PS&M turnover, everyone's performance, and supply chain network satisfaction. |
Leadership | To ensure iSourcing success, the PS&M will lead and manage efficiently. This inspires and guides other organisations to iSourcing success. |
Mission and strategy | The achievement of ADNOC's aim to provide high-quality oil and gas products would be ensured by the deployment of iSourcing. The justification for this is to quickly and effectively engage highly qualified vendors. |
Organisation culture | Implementing iSourcing would promote the collaborative and teamwork-oriented organisational culture of ADNOC. This is due to the platforms offered by iSourcing that provide suitable options for teamwork and collaboration. |
Task requirements and individual skills | Employees at ADNOC lack the knowledge and skills necessary to deploy iSourcing. This deficit might be filled by offering possibilities for professional advancement. Implementation of the change would be successful. |
Employee motivation | This report's proposal suggests that providing monetary and non-monetary rewards is necessary to encourage people to adopt iSourcing. This is for employing remarkably contemporary systems of practice. |