Solution
(Solution) Developing Value through Procurement & Supply Managing Expenditure
Executive Summary
This assignment focuses on two modules which are; ‘developing value through procurement and supply and man aging expenditures with suppliers. The focus of evaluation is procurement supply and management (PS&M) department/function to attain value for money results. This is by focus on XXX organisation in United Arab Emirates (UAE) oil and gas sector in their Information Technology (IT) spend area. This is in regard to the role of PS&M in ensuring value for money outcomes in IT sourcing. In order to obtain quality findings, data has been sourced by using internal data from XXX, secondary research from external sources and identifying the PS&M functions.
Also, this report capitalises on use of various models guided by the CIPS Modules including Kraljic Matrix Analysis Tool, STEEPLED analysis tool, Mendelow Matrix Tool and SUPPLIERS PREFERENCING MATRIX and others successfully.
This assignment findings highlight that XXX engage a set of stakeholders for successful achievement of value for money outcomes particularly in the IT category. Also, XXX which operate in intense competition (oligopoly market type), value for money outcomes is instrumental. A different finding highlights that through the embrace of strategic focus, value for money is attained. Also, key findings highlight the advantages and disadvantages are balanced informing their success with relevant recommendation generated.
A set of gaps have been identified with key findings suggested for their management and which include;
- Broaden stakeholders’ analysis for accommodating all their interests and expectations
- In IT spend area, involve various suppliers for managing monopolistic needs and supply chain affecting how competitive they are
- Involving PS&M expertise teams and specialists for awareness on value for money outcomes
- A review of budget allocated in IT spend area and integrating technology in procurement and supply of the spend area
Table of Contents
1.1 XXX Organisation Background. 3
2.0 Identified Category and Analysis of Stakeholders. 4
2.1 Information Technology (IT) Spend Category. 4
2.2 Importance and Analysis of Spend Category. 6
2.3 Impact of identified Spend Area. 7
2.4 Analysis of different Stakeholders. 8
3.0 Market Analysis; Role of Procurement in Achieving Value for Money Outcomes. 11
3.1 Market Analysis (Brief) 11
3.1.3 Market Positioning Analysis. 13
4.0 Procurement Function in XXX organisation to Achieve Value for Money Outcomes. 14
5.0 Costs Management and Approaches. 16
6.0 Conclusions and Recommendations. 17
Figure 1:ADNOC Organisation Structure. 4
Figure 2:XXX Organisation and PS&M Strategies. 5
Figure 3:Kraljic Matrix Analysis Components. 7
Figure 4:Different Stakeholders Categories. 10
Figure 5:Mendelow Matrix Analysis Summary. 11
Figure 6:Summary of the preferred suppliers in XXX IT category. 14
Figure 7:Porter’s 5 Forces Analysis Tool 15
Figure 8:Relations of 4Ps and 4C’s analysis for value for money outcomes. 16
Figure 9:Procurement Cycle Embraced in PS&M practice.. 17
Table 1: Summary of IT categories of spend in XXX Organisation.. 6
Table 2:Summary of Suppliers and Categories of IT Spend.. 7
Table 3:IT spend category in XXX Summary. 9
Table 4:Analysis of SWOT Factors. 12
Table 5:STEEPLED factors in XXX. 13
Table 6:Evidence of value for money outcomes. 16
1.0 Introduction
1.1 XXX Organisation Background
In this assignment, XXX organisation operating in United Arabs Emirates (UAE) oil and gas sector has been selected. The organisation is focused for establishing the role of PS&M in ensuring achievement of value for money outcomes and success of their operations. From 1971, XXX organisation has been in active practice with today positioned as the leader in international oil and gas industry. Their scope of operations in the overall energy value chain network to guide ability to meet demand for consistent energy market change. For achieving competition, approximately AED10 Million has been budgeted for improving their sustainability in the future. This is intended to lower carbon emissions with upto 40% and reduced NetZero management as at year 2050. The organisation is networked holistically in different sectors in their overall hydrocarbon value chain management, explore, produce, process, store, refine and offer petrochemical products in UAE and in entire Middle East. The organisation structure is as illustrated in the following;
Figure 1:ADNOC Organisation Structure
Source: Internal documents in ADNOC Organisation
For the different areas of operations in level 1 of the structure (gas process, exploration, refining, production, transportation and oil procession), their success is informed by achieving high-level value for money outcomes. According to Crupi and Schiliro (2023), this is at the same time enhancing UAE economy development and prospering.
1.2 Scope of Assessment
In both their onshore and offshore operations, XXX organisation works with various suppliers of IT spend area. In this assignment, an analysis of impact to different stakeholders is analysed. Through analysing of the market, best strategy to gain in value-for-money outcomes achieved. The IT sourcing in XXX and different procurement categories are pursued by PS&M teams. In 2023, the organisation has introduced i-Sourcing which is used in registration of the different suppliers as core stakeholders involved in procurement and supply. This is also relevant in Request for Quotation (RFQ) and Request for Proposal (RFP) (CIPS, 2025). The PS&M department is actively engaged in managing their practices in various operations as shown herein;
Figure 2:XXX Organisation and PS&M Strategies
XXX has set upto AED10 million quarterly for various sourcing category. They work as a team with different departments for products and services to assure them a successful practice in their sector. An effective collaboration positively improves costs management and a successful value for money.
2.0 Identified Category and Analysis of Stakeholders
2.1 Information Technology (IT) Spend Category
In XXX, operating in onshore and offshore in UAE oil and gas industry, the embrace of IT by employees and all stakeholders is important. In line with Alhammadi et al. (2024) recommendations, IT systems are procured in different departments informed by their needs and available contractors. The IT sourcing is broad with different categories in place. In UAE, the IT industry is set to be approximately $53 billion as at 2025 with expectations of increase to upto $86 billion in year 2030 with their CAGR being approximately 11% in forecasting timeline of 2025 to year 2030 (Matyushok et al., 2021). Hence, this is classified as one of the most significant growing sector/industries with the latest AI emergence leading to increased growth. In XXX organisation, a summary of IT spend categories is illustrated in the following;
Table 1: Summary of IT categories of spend in XXX Organisation
Source: Summarised from XXX Internal documents
| Category of IT spend area | Explanation | Budgetary allocation |
| Hardware | This includes input, output, storage, processing and the communication devices | AED1.6 million |
| Software | Used in active running of hardware (firmware, devices, operating systems and multimedia) | AED1.5 million |
| Services | ADNOC is actively involved in sourcing networks management, cloud computing, backing-up data and security services (safety of IT systems) | AED2.1 million |
| Infrastructure | With AI emerging, ADNOC prioritise on data centres, cloud infrastructure and security | AED1.8 million |
| Systems | Detail on digital transformation and AI emergence and embrace | AED1.2 million |
2.2 Importance and Analysis of Spend Category
In order to evidence the relevance of IT systems in XXX, the embrace of Kraljic Matrix is relevant. The relevance of the technique is managing PS&M for identifying and minimising overall risks in their supply chain network (CIPS, 2019). The embrace of the tool focuses on profits and supply risks.
Figure 3:Kraljic Matrix Analysis Components
Source: Sourced from CIPS Module Notes
Leverage- Being non-critical and immense complexity, multiple buyers and suppliers interact. The high-level interaction impact on risks management. IT spend is categorised here owing to emergence of multiple providers in UAE. A summary of the suppliers involved are as shown herein;
Table 2:Summary of Suppliers and Categories of IT Spend
Source: Summarised from Internal Document
| Spend Categories in ADNOC | Sub-Categories | Suppliers Identified |
| Hardware | Input devices, processing devices, output and storage devices | AFH tools, AGR Stars trading LLC, Al Ajer Building and Bright Deal International |
| Software | Software used in performing different tasks for users | Paniel Technology LLC, Facts Computr Software House LLC, Swift IT Company and Tranetech Software Solution LLC |
| Services | Networking systems, communication and communication services | AFH tools, AGR Stars trading LLC, Al Ajer Building and Bright Deal International |
| Infrastructure | Computing platforms, networking systems, managing data | Al Ajer Building and Bright Deal International, Bluechip computer systems LLC and IT infrastructure solutions in Dubai |
| Systems | Security systems, managing data and cloud computing | Facts Computr Software House LLC, Swift IT Company and Tranetech Software Solution LLC |
Hence, as illustrated in the table, XXX leverage on immense power in identifying best suppliers in their IT sub-categories identified.
Strategic- This has high risk owing to depending on less suppliers incurring a lot of profits for the organisation. For IT system category, it is critical for success of XXX in their business environment hence cannot belong here. Since XXX already has their i-Sourcing in place, their PS&M appropriately balance PS&M relationships.
Bottleneck- This category includes products and services of lower value but significant risks contributing to risks increase from less alternatives available. In XXX, a smaller number of supplies including office place material and equipment pursue staff roles in their onshore and offshore operations.
Routine– This does not include critical supplies by XXX. However, they embrace iSourcing and technology in implementing their contracts (CIPS, 2020). This is popularly embraced in procuring uniforms for employees and also logistics. The IT is not categorised here.
2.3 Impact of identified Spend Area
In IT category of spend by XXX, with a budget of upto AED10 Million in first quarter of 2025, it largely influences success in oil and gas industry. For identifying category implication, risk register (Handayani & Rabihah, 2022) can be used in prioritising and allocating resources appropriately. The risk analysis is shown in table 3;
Table 3:IT spend category in XXX Summary
Source: Internal documents of XXX
| Risk ID# | Identified Date | Describing risk | Likelihood to occur | Risk impact | Severity | Owner of risk | Mitigation Strategy |
| 1 | 2nd January | Technology non-fit to the organisation | High | Low | Medium | PS&M department | Guaranteeing IT systems quality |
| 2 | 13th February | Reduced quality of the IT systems and hardware | Low | High | High | Quality management teams | Quality levels continuously evaluated in entire stages |
| 3 | 17th March | Timelines of supply not elaborately identified | Medium | Low | High | i-Sourcing teams and administration | Sub-contractors’ allocation with sufficient time for supply |
| 4 | 30th April | IT systems service quality and rate of becoming obsolete | High | Medium | Low | Quality management | Adhere strictly to entire demand of quality and technology modernisation |
In summary of the risk register findings, risk impact in the IT systems procurement in onshore and offshore operations in UAE is clear. Hence, CIPS (2021) recommendations inform need for allocating resources appropriately to manage risks. XXX need to put this into account and make it their priority.
2.4 Analysis of different Stakeholders
Stakeholders are defined by CIPS (2022) as the individuals, teams and organisations engaged in facilitating and influencing how an organisation operate. They are grouped to internal, external and connected (see here);
Figure 4:Different Stakeholders Categories
Figure 5: Different Stakeholders Categories
Source: Developed in a recent CIPS Webinar
The various stakeholders’ categories guide the necessity for embracing Mendelow Matrix Analysis for identifying the power and interest of stakeholders in XXX. This is as illustrated here;
Figure 5:Mendelow Matrix Analysis Summary
Source: CIPS Module Notes
A further analysis of stakeholders include;
Keep satisfied- This entails the regulatory board of IT systems sourced and UAE government. They ought to get satisfaction on the IT sourced quality. They initiate regulations and policy work for guiding the process. The recommendations in this report need to evaluate how best stakeholders can be involved.
Key players- The IT supply teams, and PS&M are the key players as they have very strong influence and interest. This is since they ought to work collaboratively for success in sourcing of IT.
Keep informed- The Admin, directors and population have limited influence and power on the process implementation. Hence, they only need knowledge on the process with continuously reviewing budget for stakeholders’ relations.
Minimal effort– The IT is sourced, appreciate competition scope and interest of different stakeholders. The outcome is capitalising on competitive advantage and dominating oil and gas for XX. Recommendations need to include how technology can be embraced for successful harmonisation of heir interactions.
3.0 Market Analysis; Role of Procurement in Achieving Value for Money Outcomes
3.1 Market Analysis (Brief)
The IT In UAE, the IT industry is set to
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