Nawah Energy Company Driving Value through Procurement and Supply PDV


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.





Table of Contents

Executive Summary. 3

1.0 Introduction. 4

1.1 Company Background. 4

1.2 Overview of Procurement at Nawah Energy Company. 4

1.3 Scope of the Report 5

1.4 Identification of a Product, Service, or Category of Spend. 5

3.0 Relevance of Cleaning Services to Nawah Stakeholders. 7

4.0 Research and Market Analysis. 8

4.1 Data Analysis-History of Spend. 8

4.2 Market Analysis. 10

4.3       Market Position. 10

4.4 Marketing Mix. 11

5.0 Techniques in Analysis of Nawah Energy Company. 13

5.1 Kraljic Matrix. 13

5.2 SWOT Analysis. 14

6.0 Current price and cost management approaches for cleaning services. 15

6.1 Model of Engagement 15

6.2 Pricing Strategies. 16

6.3 Procurement Best Practices. 16

6.4 Market Impacts in Securing Cost Saving for Nawah Energy Company. 17

7.0 Conclusions and Recommendations. 18

7.1 Conclusions. 18

7.2 Recommendations. 18

References. 20

Appendices. 22

Appendix 1: Nawah Energy Company Procurement Division Organisation Chart 22









Executive Summary


This report focuses on the evaluation of the Nawah Energy Company procurement of cleaning services in UAE as a category of spend. From my positionality, I appreciate; the function of procurement has been the most fundamental among all business operations and has a significant influence on the success or failure of a firm. As such, it is crucial to understand the key concepts and underlying principles of this process. The report aims to identify, analyze, and follow these concepts and principles. Nawah Energy Company operates and maintains the first four units at the Barakah Nuclear Power Plant, the very first nuclear energy factory within the UAE and around the Al Dharfa region in Abu Dhabi. The firm charged with producing safe, reliable, clean, and efficient nuclear energy, as well as supporting economic development, and providing opportunities for developing a sustainable nuclear sector within the UAE. The support services within Nawah consist of office supplies, cleaning, catering, and corporate travels to mention a few. There has to be an understanding of Nawah’s business operations, to grasp its market position and know the strategies to implement for improved performance. As such, the report has various forms of analysis for this information, including a PESTLE Analysis, the five rights, the Kraljic Model, Porter’s Five Forces Analysis, day one analysis, and the Mendelow’s Matrix. Nawah Energy Company employs premium pricing for its products, and the company’s product suppliers use skimmed pricing to hasten the process of breaking even and attaining profitability. There is also a discussion on how the process of procurement affects stakeholders (internal and external), as well as how the market influences saving costs in operations and manufacturing, with the aid of the firm’s adequate techniques.

The current study concludes that the cleaning services procurement in UAE for Nawah Energy Company procurement is still in its nascent stages evident from the fewer competitors engaged in the procurement process. In terms of recommendations, this study has suggested that Nawah Energy Company adopt essential procedures for implementing the procurement procedures, improving the relationship between the administration and other stakeholders, practical approach in use of organisation resources management and establishing an effective policy-making process.



1.0 Introduction

1.1 Company Background

Nawah Energy Company has been in active operation since 2016 with its operations being based on operating and maintaining Barakah Nuclear Power Plant’s Units 1 to 4. This is the first nuclear energy plant within the UAE, and the entire Al Dhafra region in Abu Dhabi. Nawah harnesses nuclear energy power for the provision of a safe, clean, sustainable, and reliable supply of electricity that is low in carbon. The plant’s energy generating capacity is 5,600 megawatts from these four units; this equates to a supply of about 25% of the electricity requirements in the UAE (Gulfnews, 2019). The company vision is to continue enhancing the social and economic development of the UAE and using it as an avenue for improving the quality of life for future generations. Safety is prioritized in the company with strict adherence to the highest international standards of nuclear energy and Health Safety Environment (HSE) measures.

1.2 Overview of Procurement at Nawah Energy Company

The company procurement functions are tailored towards the management of the company supply chain. The procurement department is effective and identified by existence of an online, real-time supplier registration system for all potential suppliers, tracking of prequalification status online, and tender invitation of all suppliers. To achieve this, the organisation has carried out needs analysis on the internal environment, suppliers and on the raw materials and product availability on the market (Lewis & Jens, 2009). The evaluation has been inclusive of the strengths and weaknesses of the existing suppliers followed by assigning of specific strategies in the procurement for ensuring sustainability in competitive advantage. Additionally, the company reviews all potential suppliers’ capacity to minimize the costs in the procurement process (Seifert et al. 2004). This is done through the use of five rights as priorities in the business. In context of the cleaning services, the five rights priorities in business are as shown in figure 1;

Figure 1: Five Rights Priorities in Nawah Cleaning Services

1.3 Scope of the Report

The scope of this report has been narrowed from a broad perspective of support services within Nawah to procurement of cleaning services in UAE.  This evaluation has been done through an evaluation of the impact of the stakeholders of Nawah in line with the procurement and supply area. The course content, models and techniques applicable in the procurement and supply has been adopted. The strategies evaluated also include strategies for price management and value addition.

1.4 Identification of a Product, Service, or Category of Spend

The identified area of spend is cleaning services procured in Nawah Energy Company. These services are procured for harnessing smooth running of their operations in their environment ensuring active cooperation with all people, processes, technologies and places. The other areas of procurement include catering, waste management and property maintenance. Focusing on the identified area of spend, a market investigation has been conducted to analyse on the different conditions used and exploration of the procurement process and its impacts on the organisation, different stakeholders and cost minimization functions.
2.0 Importance and Impact of Cleaning Services to Organisation Stakeholders…………………………………………………………………..Please click the paypal icon below to receive this assessment in full for only $20