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Solution
Table of Contents
1.1 RCU Organisation Background. 3
1.2 RCU Organisation Structure, Procurement Teams. 3
1.2 Selected Spend Category. 4
2.0 RCU Stakeholders Summary and Importance. 7
3.1 Market Analysis using Techniques/Tools. 9
3.1.3 Porter’s 5 Forces Analysis. 10
3.2 Market and Trend Analysis. 11
3.3 Competition Level in the Market Place. 12
4.0 Procurement Function for Developing Value for Money Outcomes. 12
4.1 Supplier Preferencing Matrix. 14
5.0 Prices/Costs Management for IT category of Spend in RCU. 16
6.0 Conclusions and Recommendations. 19
Figure 1:RCU PS&M Organisation Structure. 5
Figure 2:Category Management Approach. 6
Figure 3:IT Category of Spend Subcategories. 7
Figure 4:Types of Stakeholders 8
Figure 5:RCU Mendelow Matrix Analysis. 9
Figure 6:Porter’s 5 Forces Analysis 12
Figure 7:RCU Company Competitors. 13
Figure 8:IT Categories of Spend Illustration. 14
Figure 9:RCU 3P’s Bottomline Model 15
Figure 10:Suppliers Preferencing Matrix. 16
Figure 11:4P’s and 4C’s analysis 17
Figure 12:Improving and reducing the value for money outcomes achieved in RCU.. 18
Figure 13:RCU Kraljic Matrix Analysis Summary. 19
Figure 14:RCU Success in terms of value for money outcomes. 20
Table 1:SWOT Analysis Summary. 10
Table 3:Value for Money Outcomes in IT RCU category of spend. 14
1.0 Introduction
1.1 Royal Commission of AlUla Organisation Background
In 2007, the Royal Commission for AIUla (RCU) was set up through a kingly order. The main objective of this commission was to conserve and grow AIUla, a territory with unique natural and cultural importance in north-western Saudi Arabia. According to Alatawi (2022), RCU’s long-term strategy focuses on an accountable, tenable, and thoughtful approach to urban and economic growth, which conserves the region’s natural and famous culture, as well as making AIUla the most preferred place to work, live and tour. The master plan entailed several enterprises cutting across archeology, tourism, heritage, education, and the arts, which reflects the desire to meet the economic diversification, empowerment of the local community, and the conservation of culture in Saudi Arabia. The Royal Commission for AIUla’s vision is to conserve natural resources, such as wildlife, by establishing and stimulating nature reserves to preserve ecosystems, weak habitats, and biodiversity, reinstating diminishing ecosystems and reintroducing native species. This paper will provide an in-depth analysis of how RCU for AIUla can achieve effective procurement & supply as well as manage supplier expenditures.
1.2 RCU Organisation Structure, Procurement Teams
In RCU, Procurement and Supply Management (PS&M) work as a stand-alone department with a hierarchical organisation structure (see figure 1). Hence, all the departments operates as functions where they are assigned with different roles.
Figure 1:RCU PS&M Organisation Structure
By the PS&M working in sync with other organisation functions, improved value for money outcomes are attained. The rationale of this is the existence of capacity to engage suppliers locally and internationally. Their operations are guided by what CIPS 2022 guidelines identify as terms and conditions essential to reduce contractual risks and mitigating challenges encountered in contracts implementation.
1.2 Selected Spend Category
According to Handfield et al. (2019), a spend category identify the logical categorisation of spend areas. Further, in CIPS, by use of category management, the potential risks and improvement of supply of a spend category is achieved (see figure 2);
Figure 2:Category Management Approach
Considering RCU procurement process, their spend categories are grouped into operations (onshore and offshore), systems and services. This assessment has selected Information Technology (IT) as the spend category. A summary of the sub-categories of spend in IT is as illustrated in figure 3;
Figure 3:IT Category of Spend Subcategories
The rationale of IT in RCU is multi-faceted. For instance, RCU (2022a) report indicate that RCU has been using AI-enabled technologies for their value chain optimisation, predictive maintenance and blockchain-based hydrocarbon accounting. Further, RCU employees working through the remote work arrangement require application of technology for virtue meetings and also other operations.
1.3 Scope of the Assessment
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