Ousource ADPC Precument to Tejari Research Paper

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Introduction

Procurement outsourcing involves the outsourcing of a company’s major procurement operations to another organisation. This research study focuses on investigating how effective it would be to outsource ADCP’s procurement activities to Teraji. In order to accomplish this, the study must first investigate the need to outsource, and subsequently analyse the efficiency of outsourcing to Teraji.

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It is important to consider outsourcing the procurement activities of ADPC due to the important role procurement plays in supporting the core competencies of the company. While procurement does not stand as one of the organisation’s core competency, it remains an important function in the company as it is one of the only activities that takes place in all three-core competencies.

The Problem

With the increasing complexity in Abu Dhabi’s fleet management, it is important for companies in the maritime industry to focus on accomplishing their core competency activities. Procurement (an element of company logistics) is the major non-core activity, which results in time and resource consumption.

Considering that ADPC’s major functions include the maintenance, refurbishing, and development of the seaports, it is possible to outsource procurement. Should ADPC effectively implement these outsourcing activities, it will be able to maximise the potential of available time and resources.

Due to the increase in fleet flow in Abu Dhabi, it is important for the management of ADPC to consider the possible applicable measures for improving its performance.

The major way to do this is to ensure that the company limits its key performance indicators to the available resources. Thus, it is necessary for ADPC to outsource other time and resource consuming organisational activities, which may include procurement.

The proposed solution

In order to solve the problem of complex procurement, and to allow the ADPC focus on its primary goals, this project seeks to investigate the feasibility of outsourcing ADPC’s procurement operations to Tejari service. In procurement outsourcing, a company transfers all, or a major part, of its logistics functions to third party companies.

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Procurement outsourcing may be done to cut down costs or to create room for the company to concentrate on other significantly important organisational operations.

Considering that the core company of ADPC’s operations is measurable based on its ability to ensure effective fleet management in all commercial seaports, it may be necessary to outsource some of the activities that are less related to the organisation’s key performance indicator.

The major functions of the ADPC are to ensure swift response to maintenance, refurbishment, and improvement of each port it oversees. These activities are not only tedious, but also require high levels of procurement and inventory management.

In order to ensure that it can effectively focus on its core operations, ADPC needs to outsource its procurement activities to a company that is formidable and permits procurement via up-to-date methods. Tejari is an electronic marketplace that facilitates real time trading between different companies over the internet.

Tejari has an experience of more than ten years in internet procurement and offers excellent services to many companies located in the Arab Gulf. Tejari offers extensive internet based procurement and logistic services. With over 100000 clients using Tejari’s internet based purchase systems, the company is now known for its honest, cost-efficient and excellent procurement procedures.

It is anticipated that if ADPC outsources its procurement activities to Tejari, it would have more time and resources to focus on performing its core operational activities.

While procurement is a major element required for ADPC to accomplish its core operations, it is important to note that procurement is more of a secondary operational function driving the company’s success. Therefore, there are no considerable risks associated with outsourcing the procurement operations of the company to Tejari.

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Assessing Tejari’s Efficiency

It will be necessary to investigate how effective Tejari will handle ADPC’s procurement activities. Tejari’s efficiency will be measured by performing a satisfaction survey targeting some of its current and past clients. The survey will measure different satisfaction variables ranging from the user friendliness of Teraji’s online procurement interphase, to the physical promptness of the company’s service delivery.

The outcomes of the survey will be analysed to identify the customer satisfaction levels of the participants as the types of services the customers appreciate. This way, it will be possible for the researcher to recommend the best approach ADPC should follow in outsourcing its products to Teraji.

Conclusion

This outline presented an overview of the activities that would be contained in the report. While a solution has already been proposed for ADPC to follow in order to increase its focus on its core operations, it is important to investigate the efficacy of applying the proposed approach.

This outline summarized the proposed solution. It also explains the process the report will apply in examining the effectiveness of the proposed approach. A survey analysis will be used to investigate the satisfaction levels of previous Teraji clients; their responses will be used to draw conclusions, hence a final recommendation.

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IvyPanda. (2019, December 23). Ousource ADPC Precument to Tejari. https://ivypanda.com/essays/ousource-adpc-precument-to-tejari/

Work Cited

"Ousource ADPC Precument to Tejari." IvyPanda, 23 Dec. 2019, ivypanda.com/essays/ousource-adpc-precument-to-tejari/.

References

IvyPanda. (2019) 'Ousource ADPC Precument to Tejari'. 23 December.

References

IvyPanda. 2019. "Ousource ADPC Precument to Tejari." December 23, 2019. https://ivypanda.com/essays/ousource-adpc-precument-to-tejari/.

1. IvyPanda. "Ousource ADPC Precument to Tejari." December 23, 2019. https://ivypanda.com/essays/ousource-adpc-precument-to-tejari/.


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IvyPanda. "Ousource ADPC Precument to Tejari." December 23, 2019. https://ivypanda.com/essays/ousource-adpc-precument-to-tejari/.

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