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.

 

In this report, an evaluation of various sourcing approaches used in sourcing has been pursued. Through a focus on Saudi Downtown Company (SDC), sourcing of Information Technology (IT) systems post COVID due to popularity of remote working in the different departments has been identified as the spend area. In the evaluation process, different tools including Mendelow Matrix, Kraljic Matrix, SWOT analysis, Hierarchy of need, and Peter Block Grid have been adopted in the analysis. The different sourcing approaches have been identified and their influence for the organisation best practice noted. At the end, by using Cater’s 10C’s tool, supplier appraisal has been carried out for the identified spend area. The findings in this assessment evidence that SDC adopts various sourcing approaches for their different spend categories. There is nevertheless a challenge in embracing strategic sourcing in their operations. Further, the organisation use different sourcing approaches including multiple sourcing, single sourcing, sole sourcing and dual sourcing. All these sourcing approaches are distinct and involved in engagement of different suppliers, only one supplier involved, monopolistic suppliers engaged and suppliers with demands which conflict respectively. In line with the findings and conclusions obtained in this assessment, various recommendations have been suggested for SDC. They include;

• To select best sourcing approach informed by the characteristics of their spend categories
• Ensure various legislations and policies are initiated to aid use of technologies and innovation in their sourcing process
• Implement a fully streamlined PS&M strategy with entire stakeholders interests prioritised
• Improve information flow and supporting their sourcing strategy by leverage on different approaches (RFQ, RFP and e-Auction) integrated to product lifecycle