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Solution
Executive Summary
This report has focused on evaluating specific sourcing approaches which are used in different spend categories in Alaraby Media. This is achieved by focusing on the Information Technology (IT) as spend category for the organisation and particularly hardware sub-category. As part of fully digitising media operations in Alaraby Media, the organisation has been sourcing IT systems meant for enhancing their operations. As part of analysis, other spend areas including logistics, health and safety tools, communication equipment and videography and leasing for vehicles used in movement in Qatar. For the purpose of noting on various sourcing approaches, different tools in CIPS have been used including Mendelow Matrix, Kraljic tool among others.
The key findings in this report is that organisations use different sourcing approaches in their categories of spend. The choice of sourcing approaches is informed by the engaged stakeholders, the spend categories and external/internal factors. Also, the findings evidence that sourcing approaches are informed by the organisations position in their business environment. This report findings has identified these approaches as including single, sole, dual and multiple. Also, key findings in the supplier appraisal of the IT hardware sub-category, suppliers are best evaluated in line with the Cater’s 10Cs being applied. The application of the different sourcing approaches lead to Alaraby Media to dominate the entire Middle East region and leveraging on competitive advantage. Multiple sourcing has been identified in the findings as involving many suppliers with single sourcing involving one supplier while dual sourcing including different suppliers having demands that conflict.
From the identified gaps in this report, the following recommendations can be used to fill these gaps;
- Opting for most appropriate sourcing approach guided by spend category
- Priority on policies for PS&M to guarantee integration of all stakeholders interest
- Simplify overall procurement strategy for ensuring prioritisation of stakeholders point of view
- Using technologies in phases of procurement lifecycle including RFQ, RFP, e-Auction intended to improve how information ,flows in sourcing approaches identified
Table of Contents
1.1 Alaraby Media Organisation Background. 4
2.0 Identified Spend Categories and Position. 4
2.1 Kraljic Analysis Matrix. 5
2.2 Business Hierarchy of Needs. 6
2.3 Stakeholders Management Analysis. 7
3.1 Multiple Sourcing Strategy. 10
4.0 Analysis of Sourcing Appraisal Checklist. 13
5.0 Conclusion and Recommendations. 14
Figure 1:Kraljic Matrix Analysis. 5
Figure 2:Summary of aspects of Maslow Hierarchy of Needs. 6
Figure 3:Stakeholder Analysis Matrix Analysis Summary. 7
Figure 4:Summary of Peter Block Components Analysis. 8
Figure 5:Alaraby Media organisation SWOT Analysis Summary. 9
Figure 6:Summary of Multiple Suppliers by Alaraby Media. 10
Figure 7:Carter’s 10Cs Model: 13
1.0 Introduction
1.1 Alaraby Media Organisation Background
Alaraby Media is involved in providing comprehensive/detailed multimedia based news coverage of the Arab and International events and offering an access to diverse network of political and social programs. Through the existing platforms, it becomes possible to follow the programs on the screen at time of viewers option (Alaraby Media, 2024). As a subsidiary organisation of Faadat Media, the organisation has been in active operation since 2021 being the 6th Anniversary of the Faadat Media operations in Qatar. As part of their operations, the organisation actively offer latest news and reports on different areas of politics, economy, society, sports and technologies in contemporary based formats. These formats offers an integrated information through an integration of written text, images and videos. To achieving its intended organisation vision and mission, the organisation operates an innovative, creative and self-development strategy through a holistic adoption of digital technologies. Also, the organisation operates through a diverse group which is fully inclusive, commitment in progressive development of diverse and equal work teams. This is through encouraging of initiatives achieving inclusion and offering supportive environment for entire employees.
2.0 Identified Spend Categories and Position
For Alaraby Media, more than 100 Technologies hardware are sourced from different suppliers by the organisation. The need for the different technologies sourcing such as computers, phones and videography equipment harness Alaraby Media efficiency, prompt operations in the media sector and cost effective practices (Imagine Communication, 2023. For ensuring success in procurement of the hardware of the IT systems, Alaraby Media make sure they appropriately adopt various sourcing approaches and effective supply chain appraisal.
Further, with Alaraby Media noting on most appropriate sourcing strategy for their spend categories, this imply an effective and appropriate controlling of PS&M strategy (CIPS, 2020). This is informed by their expectations, demands and supply chain insights as part of the suppliers value chain network. To link the need for the different sourcing approaches, various tools can be adopted as guided by the CIPS Module Notes.
2.1 Kraljic Analysis Matrix
The Kraljic Matrix is noted to be an appropriate tool applied for establishing risks of supplying materials from different suppliers and part of supply chain network (CIPS, 2021).
Figure 1:Kraljic Matrix Analysis
Source: (Forbes, 2017)
Considering the different figure 1 quadrants, an analysis of the link of different risk and profit impact of sourcing approaches in Alaraby Media can be put into account.
Leverage- This category is best managed by engaging multiple suppliers as it has low supply risk and immense profits. For the IT hardware spend category in Alaraby Media, it belongs to this category. For Alaraby Media, they can prioritise on high-level negotiations by different suppliers to achieve value for money. This is owing to the large scale of hardware IT equipment required for successful running of Alaraby Media operations (Stirling et al., 2022).
Strategic Items- A good example of this quadrant is the equipment sourced by Alaraby Media to enhance their medial operations. These have high supply risk hence single suppliers involved as opposed to sole or dual sourcing. Confidentiality is supposed to be harnessed in relations with the suppliers for guaranteeing minimum supply risks.
Bottleneck Items– As part of media operators particularly those in risky assignments, health and safety kit is used which has medium profits and high risk to their supply chain network. According to Kahraman et al. (2020), the best strategy for this category include lowering negative impact owing to inappropriately positioning. To mitigate the issues incurred in this spend area, procurement teams involve multiple suppliers actively.
Non-critical items– This is made up of the different products and services which are readily available as there are many suppliers and substitutes in the market. For Alaraby Media case organisation, single sourcing strategy is best applied. Hence, single sourcing is the most appropriate strategy to be adopted. For managing potential standards issues. Modern technologies can be part of the recommendation in order to ensure that elaborate engagement with all stakeholders is achieved (Zemmy & Setiyowati, 2021).
2.2 Business Hierarchy of Needs
In line with the analysis of spend categories and positioning, the business hierarchy of needs can be used (Afif & Amelia, 2021). In sourcing for the IT Hardware systems, they are defined with high competition and immense costs incurred in their sourcing. This is a development from the Maslow’s Hierarchy of Needs (Bowen, 2021).
Figure 2:Summary of aspects of Maslow Hierarchy of Needs
Source: Summarised from Bowen (2021)
For Alaraby Media sourcing approach, it is important ensuring they meet entire needs as illustrated in figure 2 in that priority. For sourcing IT hardware system, their quality would need to be considered. Hence, considering the different needs which are achieved by successfully sourcing the IT hardware, multiple suppliers are most appropriate. The application of the multiple sourcing approach is noted in Kumar et al. (2022) to contribute to securing of costs and to gain in terms of sustainability of the contract and engaging the suppliers for a long time. In order to successfully manage these risks, the engagement level can be improved with different suppliers engaged. As part of recommendation, Alaraby Media need to be ensuring that they use different sourcing approaches for each of their spend category.
2.3 Stakeholders Management Analysis
For appreciating the impact of using different sourcing approaches, analysis of stakeholders is important by using Mendelow Matrix (CIPS, 2022). A summary of analysis is illustrated in the following;
Figure 3:Stakeholder Analysis Matrix Analysis Summary
Source: Summarised from (CIPS, 2022)
A summary of the analysis include;
High-Interest; High-Power- For IT hardware system users in Alaraby Media and their area of operations, they have high interest and power to select the most appropriate sourcing approach to be used. With the need for their close management, misunderstanding on sourcing strategy used.
Low-Interest; High-Power- Legal teams, accounts and Qatar administration and government, they are involved in guiding the suppliers selection. They hence need to maintain high satisfaction with sourcing strategy used.
High-Interest; Low-Power- The various interests of stakeholders as part of the sourcing approaches include selection of most appropriate sourcing strategy. The roles of PS&M, boards of management are supposed to be facilitated with limited input core to influence sourcing approach used.
Low-Interest; Low-Power– IT users, admin and Alaraby Media security departments must be informed on the sourcing approach selected and put in use. Their expectation is that the most relevant sourcing approach would be selected which ensure they achieve their needs successfully.
From the different identified stakeholders, it is essential to further use Peter Block Grid Leadership model (Leadership center, 2023). The analysis of this is as illustrated in the following;
Figure 4:Summary of Peter Block Components Analysis
Source: Summarised from (Leadership center, 2023)
Bedfellows (High Agreement & Low Trust)- This category of stakeholders are hard for engaging in selecting the most appropriate sourcing approach to be used. Their single interest is to work through an improved sustainable commitment. Communication is a priority to select best sourcing strategy.
Allies (High Agreement & High Trust)- For this category, stakeholders are given optimum facilitation and share vision for achieving the set vision. For example, multiple sourcing strategy as a best fit would be opted for.
Opponents (Low Agreement & High Trust)- The different stakeholders in this category are supposed to be offered with prompt feedback issued, honest-based engagement and opting for best sourcing strategy.
Adversaries (Low Agreement & Low Trust)– Since this category is made up of stakeholders who would be opposing change, Alaraby Media must ensure they come up with the most appropriate decision for sourcing strategy. This is with sourcing relevant for their interests.
2.4 SWOT Analysis
For establishing most appropriate sourcing strategy, strengths and weaknesses are internal with opportunities and threats externally (CIPS, 2023). Taking into account of Alaraby Media operations, a summary of their SWOT analysis include;
Figure 5:Alaraby Media organisation SWOT Analysis Summary
Source: Summarised from (CIPS, 2023)
In figure 5 summary, the strengths including best relations and multiple suppliers available means multiple sourcing would be appropriate for IT hardware sourcing. This is in regard to suppliers relations and multiple suppliers in place. Risks and costs increase management could be enhanced as part of selecting the best sourcing strategy. Identified opportunities and threats also evidence relevance of business environment for engaging different suppliers. As part of recommendations, using innovation and technologies, aligning operations to current economic environment and organisation-centered strategy.
3.0 Sourcing Approaches
3.1 Multiple Sourcing Strategy
Multiple sourcing is defined as a process where many suppliers are in place and
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