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(Solution) New PSE Sourcing Essentials ROSHN Syndicate Cohort
This report makes use of the case study of ROSHN — Saudi Arabia’s leading real estate developer having the responsibilities of delivering quality homes.
ROSNH plays an important role in the organization of construction activity in KSA and currently owns more than sixty percent in the market of residence construction.
The key findings evidence that procurement practices of the organization are orderly with keen emphasis on the relationship it has with the suppliers so as to deliver construction materials in the shortest times and most efficient costs possible.
The key findings evidence that an effective sourcing approaches will work to strengthen ROSHN’s procurement systems, minimize supply-chain vulnerabilities, and centralize costs for the organisation while offering the organization compliance with burgeoning sustainability shifts in the constructions industry.
The following paper assesses the current sourcing initiatives and provides several critical suggestions that can strengthen procurement and supply chain.
The key recommendations arising from this analysis include:
- ROSHN should incorporate Porter’s Five Forces and PESTLE analysis into the organization’s Vendor Management Team (VMT)
- The expansion of the approved list of suppliers by not less than fifteen percent in the course of the next year is vital in eliminating reliance on a few suppliers.
- Improving eSourcing tools especially eAuctions to apply competitive pressures and lower costs of procurement. This will solve the problem of inefficiency in the tendering process and increase transparency while RHOSN already has efficient technology solutions for engaging suppliers.
- Obligatory implementation of a supplier sustainability program that identifies suppliers with high levels of CS
(Solution) CIPD Oakwood International 5CO03 Professional behaviours and valuing people
(Solution) 7C002 Question 8 (AC2.4) High performance work practices
(Solution) HWO – D31VR Value and Risk Management
(Solution) (AC4.1) Assess suitable types of contractual arrangements dependent on specific workforce need
Solution Permanent, full-time contracts Permanent, full-time contracts for delivery drivers offer both benefits and drawbacks, making their suitability dependent on ParcelCare’s operational needs and goals. Pros Permanent, full-time contracts provide job security and consistent income for delivery drivers, enhancing employee satisfaction and loyalty. This stability can lead to higher motivation and productivity, reducing turnover rates and the associated costs of recruitment and training as evidenced by Personio (2023). Full-time contracts also facilitate better workforce planning, ensuring ParcelCare has reliable staffing to meet delivery demands. Cons However, these contracts can be less flexible and more costly for the company. Full-time employees typically require benefits such as health insurance, paid leave, and retirement plans, increasing operational expenses. Additionally, the rigidity of permanent contracts may not align with fluctuating delivery volumes, leading to inefficiencies during low-demand periods. Suitability For ParcelCare, full-time contracts can be suitable if delivery volumes are consistently high, ensuring a stable workforce. However, a mixed model that includes part-time or flexible contracts might offer the necessary flexibility to adapt to changing demands while controlling costs. Part-Time Contracts Part-time contracts offer flexibility for delivery drivers, allowing them to balance work with other commitments. Drivers benefit from a stable income, albeit at reduced hours, while ParcelCare can adjust staffing levels according to demand. A significant advantage of part-time contracts is reduced costs associated with employee benefits, as part-time workers may not qualify for full benefits packages (Abogados, 2019). However, part-time drivers may lack the same commitment or availability as full-time employees, potentially impacting reliability and consistency. Zero-Hours Contracts Zero-hours contracts provide maximum flexibility, allowing ParcelCare to scale staffing up or down based on delivery demand without a fixed commitment to provide hours (CIPD, 2023c). For drivers, these contracts offer freedom to accept or decline work, appealing to those seeking flexibility. However, they also result in income uncertainty and lack of guaranteed hours, which can be challenging for drivers seeking stability. For ParcelCare, zero-hours contracts minimise costs during low-demand periods but may lead to difficulties in maintaining a loyal and consistent workforce due to potential driver dissatisfaction. Part-time contracts are most suitable for ParcelCare’s delivery drivers. They offer a stable income and consistent work schedule, which can enhance job satisfaction and reliability while allowing ParcelCare to adjust staffing levels as needed. This balance supports both operational needs and employee stability. Please click the following icon to access this assessment in full