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

In this assessment, an evaluation of the Oman Liquefied Natural Gas (Oman LNG) procurement of IT hardware equipment in Oman as a selected spend category. The author position as a senior buyer informs the rationale of the area of spend in the procurement division as he is actively involved in contracts, purchasing, commercial directory, strategic sourcing, in-country value and group procurement operations.

In the evaluation of the procurement strategies in the identified area of spend, this assessment offers an evaluation of all Oman LNG stakeholders in line with their procurement and supply. This is also inclusive of an active evaluation of their influence on price management and value creation. Further, market analysis has been conducted with the quantitative and qualitative approach being adopted in provision of an appropriate data on Oman LNG approach in sourcing the most appropriate IT hardware. To identify the best practice in securing cost savings for the company, market analysis in quantitative and qualitative approach was used to offer appropriate data on Oman LNG approach in sourcing the most appropriate IT hardware, the PESTLE analysis, Kraljic analysis, SWOT analysis, Porter analysis and Ansoff elements were used. These techniques have been adopted to highlight the relevance study outcome.

In conclusion, it can be established that the IT and hardware procurement in Abu Dhabi, UAE for Oman LNG is in its nascent phase and hence minimal entities are involved in the procurement process. The process is majorly implemented internally hence improving cost savings. For recommendations, it has been recommended that Oman LNG need to create relevant procedures to implement relevant procurement procedures, improving the relationship of management and stakeholders, practical approach in resources management and development and policy for successful resource optimization in procurement.

1.0 Introduction

1.1 Introduction to Oman Liquefied Natural Gas (Oman LNG)

 Oman LNG is a joint venture that was established by a Royal Decree in 1994 operating under the laws of the Sultanate of Oman. The company is engaged in the business of production and sale of Liquefied Natural Gas (LNG) and it’s by-product which is the Natural Gas Liquids (NGLs) (Oman LLG, 2019). It is actively involved both directly and indirectly, project operations and linked activities critical for liquefying, storing, transporting and marketing Oman’s natural gas and delivering LNG to their clients.

1.2 Procurement Division of Oman LNG

Oman LNG procurement department operates through a partnership which involves contracting out provision of goods and services where added-to-business value is in existence with the best commercial terms being attained. In this case, Oman LNG always takes into consideration the long-term business relationships with the contractors and suppliers and in specific in critical and strategic areas.  Additionally, the procurement in the organisation is actively governed by distinct policies and procedures aiming at ensuring a constant existence of transparency and fairness.  Part of the procurement process is ensuring that the In-Country Value (ICV) is achieved by engaging Omani locally based companies which ensure that 56% and 93% of their plant and operations services are sourced from the Omani companies. This is an equal value of 98% of the entire expenditure on the services that are offered to the Omani Companies.

1.3 Scope of the Report

Since the Oman LNG procurement in the modernization of their operations is a broad area, this report focuses directly on the procurement of hardware and IT equipment from Oman. Hence, the IT hardware and equipment represent the category of spending of the organisation. From this point of view, the impact of Oman LNG stakeholders on the procurement in the identified area of spending has been evaluated. This has been linked to the offered course contents, techniques and processes relevant to the procurement and supply in the different categories of spend. The analysis process would also be inclusive of an evaluation of different strategies already embarked by Oman LNG to manage prices and add their value. This is inclusive of the analysis of the supplier’s proximity, modernization levels, customers served and best practice of harnessing the value for money.

2.0. Oman LNG Stakeholder Analysis

Stakeholders are a group of individuals with a direct influence or influencing organisation operations, set objectives and policies development (Jepsen & Eskerod, 2009). In a general view, stakeholders include creditors, directors, employees, government, owners,…………………………………………………………………………………………………………………………………………………….Please contact our team to receive guidance, support and tutorial services on this assessment in its entirety and based on your expectation level

Email address: rankedtutorials@gmail.com