The purpose of this report was to develop a commercial negotiation plan. This plan is applicable by the organisation in the identified spend category.
In this context of the assessment, ROSHN, one of the leading Saudi Arabian real estate development companies in line with the Kingdom’s Vision 2030 has been used successfully.
The key findings in this report evidence that the mission of ROSHN is to meet housing needs and have made it their goal to build 70% homes for Saudi families within the year 2030.
Another key finding is that procurement division the Vendor Management Team (VMT) and Commercial Procurement Team provides timely delivery of resources for housing projects at HDB.
The major findings in this assessment also evidence that Mendelow’s Matrix, PESTLED analysis, and Kraljic Matrix are all components of Roshn’s main strategic procurement cycle, which also places a focus on Principled negotiations when it comes to procuring for necessary resources.
Another main finding is that, as it can be seen from the above discussion, most of the choices made by ROSHN in procurement positively influence its procuring activities regarding its strategy and Vision 2030 objectives.
Nonetheless, there are opportunities for improvement about supplier analysis, risk management, stakeholder management, and the tracking of concessions, which would provide greater negotiating power and procurement performance.
Based on these key findings and generated conclusions, a set of recommendations have been generated which are relevant in this report which entail;
- Ensure that supplier evaluations reflect Vision 2030 by using innovation, sustainability, and sound supplier financials.
- Prepare a detailed risk management plan on sourcing with special reference to using alternate sources as well as pre-screened backups to replace regular suppliers.
- Improve contact with negative factors that affect company regulations.
- Evaluate the factors prevailing in the market to get better negotiation power from the supplier.
- Increase specific characteristics, for example, supplier reliability which contain qualitative elements.
