This assignment focuses on exploring different sourcing approaches and their relevance in a specific category of spend in Red Sea Global (RSG) organisation.
The spend category include leasing of construction equipment which are used in the organisation operations.
Also, sourcing approaches used in Information Technology (IT), logistics, staff uniforms, and vehicles have been equally evaluated. The sourcing approaches in line with CIPS guidance notes put into account are single, sole, dual and multiple sourcing.
The finding in this report highlight on the need for using the sourcing approaches to gain value for money outcomes and leveraging on competitive advantage. This is with best sourcing decision being the outcome of the process.
Additionally, by appropriate sourcing approach, the organisation is in a position of leveraging on competitive advantage successfully. For this report, multiple sourcing are appropriate if there is a need for engaging more than a single supplier with single sourcing engaging single supplier.
Conversely, sole sourcing are applied in a situation an organisation is making procurement from monopolistic suppliers in their area of practice.
Dual sourcing conversely is used when needs conflict with different suppliers involved for solving problems which result from engaging single or multiple sourcing strategy.
Considering RSG case organisation, using different sourcing approaches for various spend categories is evidenced from pre-awarding, after-awarding and post-awarding of contractors influenced by their relevance.
For ensuring sourcing approaches increase value for PS&M practice and maximise capacity for leveraging on supplier appraisal checklist, various recommendation could be provided. These are;
- Invest in technology and automation of their supply chain network for selection of best sourcing approach
- Improving overall engagement of stakeholders in different sourcing approaches
- Come up with appropriate specifications which are in alignment of procurement and supply chain policies
- Simplify significantly the information sourced pertaining to tendering and information sharing in the sourcing approaches used
