-75%
Solution
From a broad context, quality is defined as “degree to which various identified inherent characteristics (attributes) of an item are satisfying specific identified requirements” (Jabarzare & Rasti-Barzoki, 2020). In procurement and supply contracts, quality is identified by “ensuring goods and services sourced are meeting entire expectations” (Procurement tactics, 2024). For ROSHN, in order to measure quality, they employ Suppliers Defect Rate (SDR) which is a Key Performance Indicator (KPI) identifying the final quality product. For example, in sourcing for staff uniforms, they measure percentage of all uniforms supplied which fail in meeting compliance demands and other requirements. This is also noted in the organisation terms and conditions which note;
As stipulated in ROSHN terms and conditions, failure to meet the KPIs of SDR, the outcome of this is rejection of their supply with entire risk being taken by the vendor/supplier. Hence, the terms and conditions can be identified as a condition since failure to adhere to the SDR lead to termination of their contract. In a warranty, the CIPS Module Notes identify it as opportunity for claiming damages but the contract is not terminated (Upcounsel, 2023). Further, as part of the T&Cs being a condition, the terms and conditions defect as being as a result of failure of adhering to terms and conditions of the contract. The rejected items must be compliance with the contract at vendor cost;
For ensuring that ROSHN appropriately monitor the evident risks, a register is used in monitoring and analysing the risks. For example, in IT consultancy spend category, ROSHN use the risk register as summarised in table 1;
Table 1:Risk Register for IT Consultancy Spend
Source: Summarised from ROSHN Internal documents
| # | Date Released | Risk Description | Likelihood of the Risk Occurring | Impact of risk occurs | Severity | Owner | Mitigation Actions |
| 1 | 4th November 2023 | IT consultancy not appropriately costed | Medium | High | Low | Accounts | Come up with clear budget |
| 2 | 10th Dec 2023 | Lack of understanding on scope of contract implementation | Medium | High | High | PS&M | Create awareness |
| 3 | 3rd Feb 2024 | Delays due to unforeseen events | High | Low | Medium | Suppliers | Manage the unforeseen events from start |
| 4 | 27th March 2024 | The IT systems broke down after several months of usage | Low | Medium | Low | IT teams | Make sure this is avoided |
The different areas identified in the risk register are similarly captured in the terms and conditions. The risks are supposed to be identified in priority with the affected parties and their source similarly noted. The terms and conditions note;
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