Assignment Question
Considering the following type of Service in the Oil & Gas market: Engineering Studies
Develop a document that creates a sourcing plan for future requirements. In the sourcing plan, you should explain:
1. The roles of procurement and supply in managing this area of expenditure underlining the inputs that may be made by its stakeholders.
• Research the market of your chosen Service and review its size, scope, extent of competition and show list of world-leading engineering service consultants/service providers.
• PESTLE + SWOT + Porter’s five forces + Kraljic MatrixanalysesMUSTbe done on the chosen service.
• Analyze the competitive forces and trends that influence markets that the organization, its suppliers and customers operate in and appreciate the balance of power in commercial relationships.
• Assess the impact of changing demand and supply factors on the organization, its suppliers and customers.
• Evaluate the impact of market change on the pricing and availability of service to make decisions to improve performance.
• Assess the impact of interest rates, inflation, exchange rates and the level of economic activity (GDP/ GNP) on pricing and availability of the service.
• Apply portfolio analysis techniques to assess relationships in supply chains and develop plans for their improvement.
• Use relevant sources of information to estimate the breakdown of costs between direct and indirect costs for the purchased service to ensure the effective management of costs and prices.
• Research market data and use to estimate current and future prices and costs for the purchased service.
• Use published sources of information to agree variations in pricing for the purchased service to ensure the effective management of costs and prices.
• Compare historical prices with newly quoted prices and evaluate the reasons for any significant discrepancies to negotiate competitive prices.
• Analyze the whole life costs of the purchased service and take actions to reduce or avoid on- going costs.
2. Techniques that can be applied to the area of expenditure to improve added value
• Identify the different internal and external customers and recognize their different priorities for procurement and supply.
• Consult with stakeholders that input into procurement and supply decisions to ensure the achievement of value for money outcomes in the work of procurement and supply.
• How to deal effectively with conflict that may arise with stakeholders to ensure the objectives of procurement and supply are prioritized.
• How to promote commitment amongst colleagues and stakeholders to achieving the objectives sought by a procurement and supply function.
• How to assess the different organisations that are involved in the organization’s supply chain and carry out supply chain analysis/ mapping (the tiers).
• Develop a risk assessment and risk mitigation strategy for the outsourcing of work or services taking into account feedback from stakeholders.
• Mendelow’s Matrix & Stakeholder ManagementMUSTbe done.
• The different terms that relate to procurement and supply, supply chain management and logistics
• The roles and benefits of procurement and supply in organizations.
• How effective procurement impacts on profitability or creating savings and efficiencies for the organization.
• The typical proportion of costs accounted for by the procurements of goods and services
• The inputs that internal and external stakeholders can make in procurement and supply
• The conflicts of interest that can exist in the work of procurement and supply and how to deal with them
• The different objectives of a procurement and supply function
• Achieving the triple bottom line benefits of sustainability (economy, environment, social development) through purchased goods and services and promoting responsible procurement through effective procurement and supply.
• The documentation typically used in procurement and supply.
• The use of documented policies and procedures for the work of procurement and supply.
• The need for approvals in the administration of requisitions, orders and invoices.
• The use and roles of ethical codes in procurement and supply
• The principles of corporate governance that applies to procurement and supply.
• The use and purposes of financial budgets that impact on procurement and supply.
• The relationship between achieving compliance with processes and the achievement of outcomes that bring added value.
3. Any aspects of the purchase/supply that may require negotiation
• Negotiate with stakeholders/ suppliers topromote effective procurement in the stages ofa sourcing process taking steps to overcomeconflict and challenges with stakeholders andwith suppliers.
• The types of approaches that can be pursued in commercial negotiations are Collaborative (win/win), Distributive (win/lose), Pragmatic and Principled styles of negotiation. Evaluate the range of approaches that can beused in commercial negotiations and identifywhen it is appropriate to use them.
• The stages of a commercial negotiation includingthe planning and preparation, opening, testing,proposing, bargaining and agreeing. Create plans for the conduct of clearly definedstages of commercial negotiations takingaccount of the need to be flexible in practice.
• Collate appropriate data on markets andsuppliers and use this information to negotiatecompetitive agreements.
• Analyze the sources of power in commercialnegotiations and promote the organizationsobjectives to achieve effective procurement andsupply.
• Creating the right environment for a commercialnegotiation including the choice of location, itssurroundings and timings. Elaborate more with examples.
• Behavioral aspects of negotiation includingeffective listening, the use of persuasion methods,the use of tactics and influence. Demonstrate effective behaviors in conductingcommercial negotiations that will help generatepositive outcomes for the organization.
Definition of a Sourcing Plan
The sourcing plan is referring to the whole tendering process including identification of the need, outlining the specifications, searching for suppliers (sourcing), evaluation, negotiation, signing the contract and post-award activities.
The Sourcing plan covers the process management of sourcing, supplier prequalification/appraisal, tendering and other approaches to the selection of suppliers. This also includes the financial analysis of organisations as well as the development of systems to enable improved sourcing processes to help the organization achieve effective contracts for the supplies of goods, services or works.
The sourcing plan highlights developments in process technologies such as in E‐Sourcing/Tendering to enable improved processes for the selection of suppliers. The plan also assess the financial risks and commercial capabilities of suppliers to enable improved decision making in the sourcing process.
This coursework is related to the Consultants available in the market that have the techniques to provide Engineering Studies for Oil and Gas Clients. Therefore, the sourcing plan should be about analyzing the current market with regards to those consultants that can satisfy this particular work.
TAKE ADVANTAGE OF OUR PROMOTIONAL DISCOUNT DISPLAYED ON THE WEBSITE AND GET A DISCOUNT FOR YOUR PAPER NOW!