(Solution) Procurement’s Role in the Generation of Value in Supply Chains Practitioner Corporate Award Assessment


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

1.0        Introduction. 5

1.1 Background of Sidra Medical and Research Center 5

1.2 Procurement Function in Sidra Medical and Research Center 5

1.3 Scope of the Assessment 5

1.4 Stakeholder Analysis for SMRC and X-ray Procurement 7

2.0 Research and Market Analysis. 10

2.1 Data Analysis-Area of Spend. 10

2.2 Market Analysis. 11

2.2.1 Demand and Supply Factors Impacting X-Ray Procurement 11

2.2.2 Level of Competition. 13

3.0 Improving Added Value in X-Ray Procurement Process. 15

4.0 Measures in ensuring Suppliers Effectiveness. 17

5.0 Future Inclusion of Procurement and Supply Department 18

5.1 Cost 18

5.2 Quality. 18

5.3 Extension of Time (Lead Time) 18

6.0 Conclusion and Recommendations. 19

6.1 Conclusion. 19

6.2 Recommendations. 19

References. 20

Bibliography. 20

Appendices. 22

Appendix 1. 22

Appendix 2. 24

Appendix 3. 26

Executive Summary

This assessment develops an evaluation of the category of spend which is X-ray machines at the Heart Centre-the cardiac treatment services of Sidra Medical and Research Centre. The Heart Centre of Sidra Medical and Research Centre are tasked with the role of treating children, adolescent and adult with cardiac conditions. As a strategy of continuing with their current position as one of the best hospital in Qatar, the management of the research centre intends to develop the cardiac department to be a one-stop facility with a capability of treating different diverse forms of cardiac ailments. Hence, through a strategic focus in this area of spend, distinct stakeholders interests have been evaluated in-depth with the procurement and supply strategy employed by the centre identified. The author placement in the center procurement division and particularly for the medical services and equipment in the cardiac center makes him best positioned to source for quantitative data on the value of spend and the procured items. Also, the secondary information is sourced from different platforms has been sourced from Sindra Medical and Research Center website and other available publications. This has been supported by CIPS materials and linked directly to the procurement process of the X-Ray machines and the stakeholder’s involvement in boosted procurement results.

For the sake of attaining the intended assessment aim, different tools have been adopted including the statistical tools, Marketing mix tool, positioning, level of industry involvement and their fitness to the operations of the organization. In particular, the tools include PESTEL analysis, Kraljic analysis, SWOT analysis, Porter Analysis and Ansoff matrix.

Additionally, different recommendations for the procurement of the X-Ray Machines spend area have been provided which include;

  • Integrating technology in automation with an aim of increasing the overall efficiency levels, to mitigate the recurrence of errors, costs reduction and lead time of the tendering process
  • Appropriate costs and prices specification in the bill of quantity in the procurement phase to avoid any form of misunderstanding with the involved stakeholders at a later procurement phase
  • Increasing the overall engagement levels with involved stakeholders before the initiation of the procurement process by conducting regular meetings and campaigns to promote awareness levels
  • Establishing a well-coordinated taskforce that is inclusive of all procurement and supply team and legal unit with a target of creating new clauses embedded in their terms and condition of the contract and being in tandem with the requirements of ethical and high-quality products and services

1.0   Introduction

1.1 Background of Sidra Medical and Research Center

Sidra Medicine is a government-owned multi speciality hospital located in Qatar. This is a hospital founded in 2018 and affiliated to the Weill Cornell Medical College which is equally domiciled in Qatar. Initially, the hospital offered services to 400 patients in January 2018 with the number expected to rise to 550 beds. At present, the hospital has a total of 3000 employees. Additionally, the research center has more than 50 outpatient facilities currently operated by the members of the organization. In the Year 2017, a total of 25,000 patients had been treated at the hospital’s outpatient clinic with 10 patients being treated in the first day of their launching of the 400 beds inpatient hospital in January 2018. In future, the organization intends to expand their operations from the 400 beds inpatient to 550 beds.

1.2 Procurement Function in Sidra Medical and Research Center

In Sidra Medical and Research Centre (SMRC), the contract department is characterized into the procurement and supply main division playing an instrumental role in handling distinct forms of tenders and contracts linked with different services and works. Currently, there are multiple contracts being carried out in the company which are guided by existing policies and highlighted in the bills of quantity. For the entire tendering cycle, this is a reservation of the department which has an intense level of interaction with potential bidders. Hence, there are multiple stakeholders in SMRC procurement and supply chain process.  Nevertheless, the tendering process has not been actively coordinated by the multiple stakeholders as they are all characterized with different roles. The commitment of SMRC towards advancing the interests of their employees and also community development expands the scope of the stakeholder’s involvement in their operations. Nevertheless, for the sake of achieving their objectives, it is critical for SMRC to manage their resources effectively for harnessing an improved expenditure and to accrue immense gains. This is particularly in the cardiac center that is expected to advance treatment to the patient in demand for cardiac illnesses which are in a sharp rise in Qatar. This informs the need for increasing the X-ray materials in the facility to aid their active operations.

1.3 Scope of the Assessment

This report has focused on the evaluation of procurement of X-ray machines at the Heart Centre-the cardiac treatment services of SMRC. An X-ray can be identified as a standardized imaging test machine that has been in use in the medical field for decades. Its effectiveness is attributed to its capacity of assisting a physician to view the patient body without making an incision. The rationale of this is assisting in the diagnosis, monitoring and treatment of different medical conditions. Figure 1 shows the X-Ray equipment image;

Figure 1: X-Ray Equipment

Source (https://theaerospacenews.com/global-medical-x-ray-generators-market-2018)

The increased size of the SMRC and the number of customers served by the hospital, the demand for the X-Ray equipment has substantively increased. There is also an increase in the breakage of the equipment at high rates which impede the success of provision of quality health care services by SMRC. In an event the breakage of the X-ray materials and other equipment used in provision of healthcare services is captured in the terms and conditions of the hospital. The procurement function involves itself actively in a competitive pricing strategy with an optimum benefit to the SMRC services delivery. This is a process that is inclusive of the selection of the most qualified supplier, detailed inventory optimization and improvement of the entire capital efficiency. These strategies are similarly directed by the currently existing Qatar In country Value policy which ensures that SMRC is in line with the set regulations and policies in Qatar. The In country Value Policy is also integrated in the terms and conditions by the SMRC procurement function for their optimum success. In this case, the current assessment evaluates the importance of the organization stakeholders, market analysis to understand the procurement function to produce value for money outcomes.

1.4 Stakeholder Analysis for SMRC and X-ray Procurement

Stakeholders in an organization dictate the extent to which such organization leverage from a competitive advantage in their modern business environment. This is through their integration to common short and long-term goals. Jepsen and Eskerod (2009) in this case identified the stakeholders as being integral to an entity as they play an instrumental role in improving their organization operations, development of policy and to harness aligned goals and objectives. In SMRC, the stakeholders are categorized into connected stakeholders, external stakeholders and internal stakeholders (CIPS Model 1, 2008). Figure 2 illustrates the different categories of SMRC stakeholders;

Figure 2: SMRC Stakeholders

Source: Compiled by the Author In order to harness the relationships of the identified stakeholders, the Mendelow’s Matrix as………………………………………………………………………………………………………………………………………………………………………………………………………….Please contact us to receive guidance, support and tutorial services on this assessment in full customised to your organisation and any other expectation level

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