Question:
Identify a product, service or category of spend and outline its importance and impact to your organisation’s stakeholders.
Prepare a brief market analysis and demonstrate how your procurement function will produce value for money outcomes.
Your final submission should also review the current approaches to managing prices and costs for the product, service or category you have identified, as well as highlighting the impact of markets to secure cost savings for your organisation.
Solution:
Executive Summary
This report evaluates the issues accrued by Orion Systems Company in the process of management of its supply chain of access control and CCTV cameras purchasing process. Currently, Orion Systems Company focuses on the upgrading of the existing analog CCTV system to an expanded IP-oriented system and design globally. They are also involved in the installation and commissioning of new access control systems at different organization facilities of one of the UAE largest airs. Their products are sourced from various suppliers. This report offers a market analysis and demonstration of how the procurement function of the company will produce value for money outcomes. From practitioners in this business point of view, the approach adopted in prices negotiation and sourcing of quotation from concrete suppliers can elicit a decreased productivity while accruing high costs of operations. Since there are multiple competing security equipment’s manufacturing companies in UAE, this report has recommended the company to source the materials from a single local supplier. This would contribute to a successful cost reduction and increases in efficiencies in their workplaces. The provided research and analysis on the current approaches to the management of prices and costs for the CCTV and access control products and services provided validates the recommendation. The critical role played by all stakeholders has also been highlighted in the findings and analysis sections. This report is beneficial to the company while focusing on securing cost savings for the organization operations.
1.0 Introduction
Orion Systems Company is headquartered in Dubai UAE. It has a global market venture providing CCTV and access control among other services to their different clients globally. According to Oracle Systems (2017), the company has managed to design more performant and scalable future-proof technical architecture at very low costs to their clients. In addition, through their stringent supply chain, they have managed to offer additional operational benefits hence facilitating its current reputation focused on professional development and delivery of operational and security solutions of the highest level of standards of quality and performances. According to Kleindorfer and Saad (2005), the process of supply chain management in the company is oriented on the coordination and integration of different raw materials, costs and the electrical products specifications from their suppliers to the final consumers. In this case, apart from dealing with client’s inquiries globally, the company procurement department equally obtains multiple quotations from the local and international electronics and security systems suppliers. Some of their domestic and international suppliers include IBM, Altron, Dell, Vanguard international company, Oracle, and CNL group. Other local suppliers include Falcon, Transguard, and G4S.
Based on the Orion systems ISO 9001:2008 certification, any company that intends to partner with them in supplying of the CCTV and other raw materials must fulfill all the prerequisite qualifications. They must abide by the UAE security equipment’s standards. After the approval process, the procurement department will be mandated to compare and negotiate all the offers, their quality and later communicate either through RFPs and RFQs. The rationale for this is based on Christopher (2016) evaluation that the procurement and supply chain have to enhance increased relationships with their suppliers and clients for the purpose of running their operations in a smooth manner. In this report, I will argue that the Orion Systems company procurement and supply chain management has set amicable strategies to enhance price regulations. This is evidenced by the improved quality, productivity and cost reductions by the company.
2.0 External Factors Implications- Industry Statuses
In UAE, the compliance to the regulatory norms and safety concerns among the expats, hospitality industry with an improved awareness of the benefits of adopting the electronic security devices have increased the critical factors that drive demand for the electronic security devices in UAE. Hence, the electronic security demand in UAE has been in upsurge currently (Fernandes, 2013). Nevertheless, Orion…………………………………………………………………………………………………………………………………………Please contact us to receive guidance, support and tutorial services on this assessment in full and on the basis of your organisation background
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