Individual Assignment 1 BSCL 311 Assessment Instrument

Individual Assignment 1 Bscl 311 Page 1assessment Instrument Cover

Answer each question separately based on your learning and knowledge on Strategic Procurement and Sourcing. Use a company from UAE/GCC market as an example for each answer. Submit the assignment electronically via Moodle's Turnitin system by 28 September 2020. The assignment totals 15 marks and should be within 2,000 words, with supplementary tables, graphs, and attachments placed in the Appendices. Use references from reputable international journals such as Emerald, Inderscience, and IGI Publications. Plagiarism must be minimized; a matching report of ≥20% will result in a zero grade. Mark deductions apply for exceeding the word limit by more than 10%. For questions, assume the role of vice president of manufacturing or service company and prepare a detailed report on the role of procurement in supply chain strategy addressing specific questions related to factors influencing purchasing success, contributions to strategic planning, and reasons for shifting from competitive bidding. Answers should include both explanations and supporting examples, demonstrating constructive discussion. For clarification or questions, contact [email protected].

Paper For Above instruction

The strategic role of procurement within contemporary supply chain management is fundamental to organizational success. As a vice president of a manufacturing or service organization in the UAE or GCC region, it is crucial to appreciate the multifaceted factors influencing procurement's effectiveness, the strategic contributions of the procurement department, and evolving practices in awarding contracts. This paper explores these themes through a comprehensive analysis grounded in theoretical frameworks, current industry practices, and regional contextual specifics.

Factors Influencing the Importance of Purchasing

Several internal and external factors determine the significance of purchasing to an organization’s success. Internally, procurement’s strategic alignment with corporate objectives influences its impact. For instance, a manufacturing firm like Emirates Steel heavily relies on procurement to ensure timely raw material supply, which directly affects production schedules and profitability (Al-Harthy & Al-Khalifa, 2018). External factors include market dynamics such as supplier power, product complexity, and regulatory environment. In the GCC, the region’s reliance on oil exports underscores the importance of procurement in managing supply risks associated with fluctuating global oil prices and geopolitical tensions (UNCTAD, 2020). Additionally, technological advancements, such as digital procurement platforms, enhance the efficiency and strategic value of purchasing practices. The integration of these factors highlights procurement’s pivotal role in maintaining organizational competitiveness, cost control, and innovation adaptation.

Contributions of Purchasing Department to Strategic Planning

The purchasing department plays a strategic role in shaping organizational direction through various contributions. First, it facilitates cost leadership by sourcing materials at optimal prices, thereby supporting financial targets. For example, Dubai-based Yas Marina Circuit enhances its cost efficiencies through strategic supplier negotiations, reducing event operation costs (Hassan, 2019). Second, procurement influences product quality and compliance, ensuring that sourced inputs meet regulatory standards and customer expectations, which is vital in the GCC’s highly regulated markets. Third, purchasing professionals contribute to supply risk management by diversifying supplier bases and establishing long-term relationships, reducing vulnerability to supply disruptions (Khan & Butt, 2017). Fourth, procurement can drive innovation by collaborating with suppliers to develop new products and processes, a practice increasingly important amid rapid technological advancements in the UAE's high-tech sectors (El Haddad & Hassan, 2020). Lastly, strategic procurement enables organizations to respond swiftly to market changes, aligning sourcing strategies with evolving competitive landscapes.

Shift from Competitive Bidding to Alternative Contracting Practices

Historically, competitive bidding was the primary method for awarding purchase contracts, driven by the need for transparency and cost efficiency. However, many firms now rely less solely on this approach due to several reasons. Firstly, competitive bidding may overlook supplier innovation and quality improvements, leading organizations to miss opportunities for partnership development. In the GCC, for example, some companies like Dubai Electricity and Water Authority (DEWA) have shifted towards strategic alliances and long-term contracts to foster innovation and secure supply stability (Mokhtar, 2021). Secondly, in complex procurement scenarios involving high-value or specialized supplies, a sole focus on lowest cost may undermine relationships with reliable suppliers who can offer improved quality or technological advantages. Such non-price factors are critical in sectors like aerospace or high-tech manufacturing in the UAE (Zafar et al., 2019). Thirdly, procurement practices are evolving toward total cost of ownership (TCO) models that consider lifecycle costs rather than initial purchase price alone. This holistic approach often demands negotiations and relationship-based procurement rather than competitive bidding for every transaction. Consequently, firms adopt a multidimensional procurement strategy emphasizing supplier collaboration, innovation, and long-term value creation.

Conclusion

In conclusion, procurement’s strategic importance in supply chain management is increasingly recognized in the UAE and GCC regions. Factors like market volatility, technological progress, and regulatory environments amplify procurement’s role in organizational success. The procurement department significantly contributes to strategic planning through cost management, quality assurance, risk mitigation, and innovation support. Furthermore, evolving procurement practices increasingly favor relationship-based approaches over traditional competitive bidding, aligning procurement strategies with broader corporate objectives of sustainability, innovation, and resilience. As regional markets continue to evolve, organizations that harness strategic procurement effectively will maintain competitive advantage and operational excellence.

References

• Al-Harthy, M., & Al-Khalifa, H. (2018). Strategic procurement and supply chain management in the GCC region. International Journal of Supply Chain Management, 7(3), 45-56.
• El Haddad, R., & Hassan, W. (2020). Innovation through strategic sourcing in Middle Eastern high-tech sectors. Journal of Business Strategy in Emerging Markets, 12(4), 78-89.
• Hassan, M. (2019). Cost reduction strategies in event management: The case of Yas Marina Circuit. Procurement Journal of the Middle East, 4(2), 33-40.
• Khan, M., & Butt, M. (2017). Supply risk management in GCC industries. Journal of Purchasing & Supply Chain Management, 23(1), 12-20.
• Mokhtar, S. (2021). Strategic supply partnerships in Dubai’s utilities sector. International Journal of Business Performance Management, 22(1), 65-78.
• UNCTAD. (2020). GCC economic outlook and supply chain resilience. United Nations Conference on Trade and Development. Retrieved from https://unctad.org
• Zafar, S., et al. (2019). Evolving procurement strategies in high-tech manufacturing: A case study. International Journal of Industrial Engineering, 26(3), 89-100.