Question:

Practitioner Corporate Award

Assessment Code: PSE

This assessment tests the learning outcomes and module content of:

Module Title: 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.

Solution:

1.0 Introduction

ADNOC is ranked as one of the globally largest energy companies in terms of their reserves and production levels. It is comprised of a total of 16 subsidiary companies in their upstream, midstream and downstream stages of their production developing both the onshore and offshore gas fields.  Their scope of operation which includes exportation of natural gas, production of supplies for local electricity and water utilities and other domestic industries contribute to their engagement of multiple stakeholders. To collaboratively include all their stakeholders, ADNOC has set in place a detailed sourcing and procurement strategy guiding the management of relationships and improving the clarity to attain work requirements and their set objectives.  One of such initiative has been the introduction of the In-Country Value (ICV) program which is intended to improve local supplier selection, development of UAE nationals, and localization of critical functionalities in the oil and gas industry (ADNOC, 2019). Also, the involved companies in the procurement are supposed to holistically embrace high-level standards in health, safety and environmental protection.  This is in line with Puschmann and Alt (2005) report that notes that a successful supply and procurement must be characterized by operations that are friendly to health requirement of their people, safe environment and free from political disruptions.

From this background information, it is possible to evaluate the different sourcing approaches and the best approach that fits in the ADNOC operations in the IT products area of spend. Also, a supplier appraisal checklist for IT area of the spend through a strategic reference of their Portfolio inclusive of the Kraljic analysis, Business Hierarchy of Needs and 10 Model used as reference tools on the best practice.

2.0 Selection of Category of Spend and Positioning

According to CIPS (2019), procurement plays an instrumental role in strategic sourcing approach influencing relationships with all stakeholders hence determining the level of success and growth. From this point of view, sourcing approach relevance in an organisation since different products and services are sourced from different qualifying sources.  This in-turn dictates on the level of satisfaction of the customers and position of an organisation…………………………………………………………………………………………………………………………..Please contact our team to receive this assessment in full based on your organisation of choice, your selected category of spend and any other instructions

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