(Solution) CIPS ROSHN Negotiation Process
In this integrated assessment, a focus on a formal negotiation plan has been pursued. This is through the focus of Roshn organisation which is a Saudi Arabia’s largest real estate development company owned by the Public Investment Fund for KSA, has Vision 2030 supplier sourcing management strategies. The firm’s procurement department relies on a model outlined by Bailey et al that provides a rigorous approach to preparation and analysis in order to get better bargains. Hence, the Roshn internal supplier data collection and external market research to create accurate supplier risk and sourcing plans.
A variety of tools is applied, such as the Kraljic Matrix that is used to sort suppliers. The key findings note that different training activities include negotiation simulations and skills to prepare and help procurement officers for the journey. Another key finding ius that detailed planning and analytical structures accompany objectives and concession tracking. Another key finding note that supply relations are strategically classified on issues of risk and consequences as far as supply management is concerned. On a continuous basis, repetition and necessarily sequenced post negotiation reviews improve processes gradually for a successful negotiation plan.
From the findings and conclusions obtained, to maximise efficiency and optimise outcomes, it is recommended:
- Roshn standardise the Bailey et al procurement framework.
- Regular training will develop negotiation mastery, and the Kraljic Matrix will tailor strategies per supplier importance.
- Sourcing strategies should evolve through market reviews. Building long-term, trusting partnerships will foster competitiveness beyond transactions.
- Clear metrics measuring initiatives’ success will empower data-driven process adjustments.
- Adopting these practices will enhance Roshn’s sustainable sourcing in support of Vision 2030 goals.

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Description
Solution
Negotiation
Negotiation is a mutual business interaction between or among people and organizations in an attempt to reach desired goals, resolve conflicts or avoid controversy. It encompasses collaboration, negotiation, and part of agreeing to reach agreeable terms that will benefit all persons of interest. In procurement and supply context, negotiation aims at acquiring resources at the best rate, at the same time maintaining and developing supplier relations.
The negotiation model developed by Bailey et al is a strategic model particularly in procurement and supply. The model outlines three key stages: Pre-negotiation Preparation, Negotiation/Interaction, and Post-negotiation Follow-up.
- Pre-negotiation Preparation: This stage is very important since it creates a platform that facilitates negotiations. It covers the collection and evaluation of inside and outside context data including things like suppliers’ capacities, estimate of future demand, historical price information, regulative requirements and the likes (OPR, 2021). There are also the analyses of stakeholders as well as the bargaining power which is done by applying some tools like Mendelow Matrix, Porter’s five forces model and Kraljic Matrix as far as the supplier market power is concerned. Key issues and/ or risks are as follows while strategies are planned as follows. Moreover, the roles in the team are assigned and the schedule for the meeting and its organization is developed.
- Negotiation/Interaction: This is phase involves bargaining such that different parties talk in order to come to the agreement. It entails getting the most out of a situation by controlling confrontation, finding solutions, and cobbling rapport (OPR,2021). The most important requirements are the possibility of continuous, open, and trustful communication in the inter-organizational relationship, market knowledge, and the systematic assessment of the counterparty.
- Post-negotiation Follow-up: This stage keeps the customers on the right track and look at how to resolve any issue that may be remaining after the contract has been signed. The follow-up phase is critical since it preserves the supplier relations, and at the same time deal with contractual issues.
The implementation of the Bailey et al. model in ROSHN itself highlights strong prospects for achieving advanced procurement sourcing strategies by mapping a significant investment in technology and infrastructure into Vision 2030 in Saudi Arabia. This structured approach is helpful to ROSHN of accomplishing its mission of delivering sustainable communities through the strategic positioning of suppliers and management of contracts.
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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. |