Question:
Practitioner Corporate Award
Assessment 3
This assessment tests the learning outcomes and module content of:
Module 4: Sourcing Essentials
Task
Identify four sourcing approaches, and for each one, identify and explain how you apply them to a category of
spend within your organisation.
Choose one of these categories and develop a supplier appraisal check list.
Practitioner Corporate Award
Integrative Assessment 4
Question 1: 100% of the total marks
You are required to select an area of expenditure on a product, service or works. This task requires you to
develop a document that creates a sourcing plan for future requirements. In the sourcing plan, you should
explain:
(1) The roles of procurement and supply in managing this area of expenditure underlining the inputs that
may be made by its stakeholders
(2) Techniques that can be applied to the area of expenditure to improve added value
(3) Inclusions that should be made in contracts formed in the future
(4) Measures that can be taken to select effective suppliers
(5) Any aspects of the purchase/supply that may require negotiation
Guidance
Your answer should consist of approximately 5,000 words and should be supported by a title, your candidate
number, contents page, executive summary, references and a bibliography. Any source materials such as web
sites, reports, articles, market data, journals or texts should be referred to in your work.
Solution/Answer
Executive Summary
This assessment focuses on attaining an increased IT procurement and negotiation strategies through a focus on the Etihad Airways in Dubai, UAE and hence attaining the following set objectives;
- Attaining appropriate working relationships with all stakeholders of the Etihad Airways company in the Middle East and their subsidiaries globally
- Improving the delivery of increased value chain to Etihad Airways
- Developing a fresh direction in the approach towards procurement partnerships an negotiations in Etihad Airways
- Having a relevant and improved reputation of the procurement process in the Etihad Airways
Taking into account the selected area of spend, IT is a broad spend area which is the third in terms of expenditure used in procurement after fuel and ground handling. From Etihad Airways point of view, it is essential to note that technology is currently adopted in each and every part of their active operations. It is also used in the areas of SAP implementation and Etihad training college. Other areas where the technology is primarily used is the technology centers for fostering innovation and creativity. In the analysis process, the tools that have been adopted include Kraljik, Batna techniques, and Porters 5 forces.
On the basis of the analysis conducted, it is evident that IT procurement of Etihad Airways in Dubai is a conclusively established market that is complex and challenging for the airlines in sourcing for opportunities for leveraging on competitive advantage. Also, from the analysis, an increased appreciation of the IT procurement in the different forms identified in this study and the risks linked with the various suppliers and negotiation strategy.
For the recommendations,
to enhance the effectiveness of sourcing approach, it is relevant to select the
most applicable and relevant suppliers. This can be
achieved by a holistic embrace of all negotiation styles. Nevertheless,
collaborative (win/win) approach can be preferred
since it takes into consideration all the involved stakeholder’s interests of their suppliers in the context of professional and legal dimensions.
Table of Contents
2.1 The roles of Procurement and Supply. 7
2.2 Roles of Procurement Service Management in IT Area of Spend Procurement. 9
2.4 Possible Improvements in IT Area of Spend Procurement Process. 13
3.0 Techniques Adopted in the IT Area of Expenditure to Improve the Added Value. 14
4.0 Possible inclusions to be made in Contracts formed Future. 18
5.0 Measures for Selecting Effective Suppliers. 19
5.1 Effective and Strategic Procurement and Supply Practice. 19
6.0 Sourcing Essentials of Procurement and Supply. 20
6.1 Effective Tendering Appraisal and Collaborative Negotiations. 20
1.0 Introduction
In contemporary organizations, the procurement and negotiation processes involve the setting of the contractual rights, duties, and obligations of different involved stakeholders. The stakeholders are involved in identifying the processes involved and ultimately guiding the IP rights. As part of the sourcing approach, self-handling by airlines, airports or airport-based carrier ground handling agents and third party independent technology integration can be adopted in the context of Etihad Airways. Additionally, in Etihad Airways, there has been a critical need of self-handling their airlines, airports and airport-based carrier information technology with third parties using technology users. In this regard, adopting of modern information technology provides guidance to the basis of relationships management between the diverse multi-cultural stakeholders and as such surviving as a strategy for resolving diverse conflicts and disputes as evidenced in figure 1 below. Currently, the value of the company IT spend is estimated to amount to approximately 10 billion annually.
Figure 1: Areas of Digitization in Etihad Airways This assessment intends to select a relevant area of expenditure for Etihad Airways. Notably, the role of information technology in improving the customer’s experiences in the Dubai subsidiary of the Airline. The developed sourcing plan would inform on the future requirements with a detailed evaluation of the procurement and supply roles in the management of expenditure and diverse underlying inputs essential for their stakeholders. In this case, other than the provision of details on the selected spend area which is IT, ………………………………………………………………………………………………………………………………..Please contact our team to receive guidance, support and tutorial services on this assessment in full
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