Question:

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.
Guidance for candidates
Your work should consist of 3,000 words.

Solution/Answer:

1.0 Introduction

The establishment of Etihad Airways can be traced back in July 2003 when there was Royal (Emirati) Decree. As evidenced by Etihad Airways (2017), the company is fully fledged and owned by the Government of Abu Dhabi with a core mission of operating a safe, commercially viable and profitable entity. In this context, the company procurement approach is founded on the provision of excellent procurement services through a focus on the capitalization of value creation and company growth support. Also, the company tends to adopt an industry best-in-class practices acting as local content (In-country value content) advocate and operating ethically. The rationale to integrate the procurement division in the verge of the provision of sourcing strategies is associated with the fact that modern organization operates in an environment that has different economic and political disruptions impacting both their suppliers of different areas of spend. This can be supported by Awudu and Zhang (2012) study that observed that supply market is characterized by multiple uncertainties with a negative implication of hindering organizations sustainability in innovation and best practices.

Taking into account the above background, this assessment identifies sourcing strategies and the level in which they can successfully be integrated at Etihad Airways in a specific area of spend. Also, a supplier appraisal checklist for the identified area of spending has been provided. For the purpose of developing an ideal sourcing plan for the identified category spend, a strategic position through a reference to a Portfolio commonly identified as Kralij analysis and business hierarchy of needs CIPS 5 rights) have been used as a reference.

2.0 Categories of Spend and Positioning

In a general perspective, purchasing department of any entity is characterized by a strategic sourcing approach which is often fundamental for company survival and overall growth. This is in line with Walker and Preuss (2008) who noted that the importance of a sourcing approach in an organisation is attributed to the fact that the products and services outsourced from diverse sources determine client satisfaction as opposed to in-house facilities in terms of profitability and overall dominance in the market. In this case, the ………………………………………………………………………………………………………………………………..Please contact our team to receive guidance, support and tutorial services on this assessment in full

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