This report evaluates and compares four key sourcing approaches: sole, single, dual, and multiple sourcing, within ROSHN, focusing on facilities management as the primary category of spend.
Facilities management is chosen due to its critical role in maintaining ROSHN’s large-scale residential projects and ensuring operational efficiency.
Each sourcing approach is analysed for its advantages and disadvantages, and its applicability to specific procurement needs is explored using strategic tools like the Kraljic matrix and supplier preferencing models.
For instance, sole sourcing is applied to specialised maintenance services, while single sourcing is used for cleaning services due to quality control needs.
Dual sourcing is chosen for security services to mitigate risks, and multiple sourcing is recommended for office supplies within facilities management to foster competition and innovation.
A detailed supplier appraisal checklist for the facilities management category is developed using Carter’s 10 C’s model to ensure a thorough evaluation of supplier capabilities. This checklist ensures that ROSHN selects suppliers who meet stringent quality, reliability, and cost-effectiveness criteria.
The findings highlight the importance of strategic sourcing in maintaining ROSHN’s competitive advantage in the Saudi Arabian real estate market.
The following recommendations aim to optimise ROSHN’s procurement processes, ensuring efficiency, cost-effectiveness, and resilience in its supply chain:
- Conduct thorough market research using tools like Porter’s Five Forces and PESTLE analysis to understand the supplier landscape and market dynamics better.
- Integrate advanced eSourcing tools, including ERP systems and eAuctions, to streamline procurement processes and increase efficiency.
- Adopt dual and multiple sourcing strategies to mitigate risks, enhance competition, and ensure supply continuity for critical categories.
- Develop and maintain strong supplier relationships through continuous performance evaluations, clear communication, and strategic partnerships.
- Provide training and development opportunities focused on strategic sourcing, negotiation skills, and advanced procurement technologies.
