Practitioner Corporate Award Assessment 1 Category of spend importance and impact to organisation stakeholders




Executive Summary. 3

1.0 Introduction. 4

2.0 External Factors Implications- Industry Statuses. 4

3.0 PEST Model Analysis. 5

3.1 Political: 5

3.2 Economic: 5

3.3 Social: 6

3.3 Technological: 6

4.0 Five Porters Analysis. 6

4.1 Industry Rivalry. 6

4.2 Buying Power. 7

4.3 Supplier Power. 7

4.4 Substitution. 7

4.5 Barriers to Entry. 7

5.0 Internal Factors Implications- Current Industry Status. 8

5.1 Assessment of the Stakeholders Factors. 8

6.0 Stakeholder Management Matrix. 8

7.0 Identifiable Gaps in the Existing Procurement Process. 9

8.0 Potential Process Improvements. 10

8.1 Rationale of the Selected Approach. 11

9.0 Conclusions and Recommendations. 12

References. 13




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 systems face an intense competition since electronic security clients compare the features of the choices available in their stores. The companies have to select between the day/night CCTV camera, Infrared/ Night vision CCTV camera and Wireless CCTV cameras. Hence a decision to prioritize on a single source of the supplier will increase the company chances of costs reduction, increasing quality of services delivery hence capitalizing on other practices with a potential of increasing their competitive advantage. As the technology rises, the costs for electronic security equally increase.  For instance, there are no fixed prices of CCTV cameras or access control. Hence, it would be beneficial if the price tag of the company for the products and services offered to be pegged at a particular price.  The majority of the organizations in UAE providing security services finds it complicated to be able to control low prices and at the same time increase their quality standards. According to Elms and Phillips (2009), this phenomena contributes to an increased failure of entities which have ventured their operations in the security industry.

The increased uncertainties in the global security offer a strategic opportunity for the company to venture its operations. As noted by Aloul (2010), the majority of the modern organizations are opting for their individualized security arrangements as opposed to permanently relying on the government security services. Notably, due to the capacity of the electronic security machines such as CCTVs leaving a digital print, they are highly prioritized. Nevertheless, the quality of the products is always under a stringent scrutiny by the clients due to the security challenges posed by such investments.  This is equally replicated in the access control as they seek to deliver developed software’s, delivery of operational and security solutions to the highest standards of quality performances.

The security services industry globally has a perfect competition level in both the local and international arena (Fernandes, 2013). This would strategically benefit the Orion Systems Company as they leverage from this market phenomenon. According to Aloul (2010), due to the high competitiveness and increased in quality consideration in the electronic security industry, organization players have majorly reduced their prices as a strategy for mitigating the international competition. In addition, the local suppliers will have an opportunity for competing aggressively targeting to win contracts, and this would prompt the company benefiting from the lower costs and higher profitability.

The UAE government intervention into the private security industry provides a strong opportunity for the enterprise to gain maximal. The reduced subsidies for the companies investing in the private security industry as an approach of intensifying the harsh security affecting the Middle East and globally. Hence, it is critical for the Orion Systems company to facilitate lowering of their different costs as much as possible and enhance a stabilized profit gains for the benefit of all stakeholders. To establish the importance of this recommendation, the PEST, and five forces Porter analysis can be used.

3.0 PEST Model Analysis

According to Doherty et al. (2012), in order to make plausible marketing decisions, it is essential to carry our PEST analysis which is inclusive of the Political Economic, Social and Technological factors.

3.1 Political:

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