In this report, an evaluation of various sourcing approaches used in sourcing has been pursued. Through a focus on Saudi Downtown Company (SDC), sourcing of Information Technology (IT) systems post COVID due to popularity of remote working in the different departments has been identified as the spend area.
In the evaluation process, different tools including Mendelow Matrix, Kraljic Matrix, SWOT analysis, Hierarchy of need, and Peter Block Grid have been adopted in the analysis.
The different sourcing approaches have been identified and their influence for the organisation best practice noted. At the end, by using Cater’s 10C’s tool, supplier appraisal has been carried out for the identified spend area.
The findings in this assessment evidence that SDC adopts various sourcing approaches for their different spend categories.
There is nevertheless a challenge in embracing strategic sourcing in their operations. Further, the organisation use different sourcing approaches including multiple sourcing, single sourcing, sole sourcing and dual sourcing.
All these sourcing approaches are distinct and involved in engagement of different suppliers, only one supplier involved, monopolistic suppliers engaged and suppliers with demands which conflict respectively.
In line with the findings and conclusions obtained in this assessment, various recommendations have been suggested for SDC. They include;
- To select best sourcing approach informed by the characteristics of their spend categories
- Ensure various legislations and policies are initiated to aid use of technologies and innovation in their sourcing process
- Implement a fully streamlined PS&M strategy with entire stakeholders interests prioritised
- Improve information flow and supporting their sourcing strategy by leverage on different approaches (RFQ, RFP and e-Auction) integrated to product lifecycle
