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(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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Table of Contents

1.0 Introduction. 4

1.1 ROSHN Organisation Background. 4

1.2 ROSHN Procurement and Supply. 4

1.3 Spend Category Identified. 4

2.0 Sourcing. 5

2.1 Sourcing Approaches. 6

2.1.1 Sole. 6

2.1.2 Single. 6

2.1.3 Dual 7

2.1.4 Multiple. 7

3.0 Category Analysis. 7

3.1 Stakeholders Analysis. 7

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

Sole. 14

Dual 14

Multiple. 14

4.1 SWOT Analysis. 15

5.0 Supplier Appraisal Checklist 15

6.0 Conclusions and Recommendations. 17

References. 19

Bibliography. 21

 

 

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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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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