TRA – brochure 2020

The importance of supplier engagement

The importance of supplier engagement We spoke to Sulaiman Abdulla, Manager of the Procurement and Contracts Section at the UAE’s TRA, to monitor the company’s procurement transformation WRI T T EN BY

Andr ew Woods

PRODUCED BY

Hey kel Ouni

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A

ided by new technology,

occurring thanks in part to the work of

and supported at boardroom

bodies such as CIPS (Chartered Institute

level for its deep insights into

of Purchasing and Supply), which has

every strata of a company’s operations,

spent ten years highlighting the strategic

procurement is now seen as a vital stra-

value of procurement in the region. Now,

tegic aid. Across the globe, traversing

certain companies and CPOs are leading

every industry, the CPO is fast becoming

the way in bringing procurement into a

a visionary with a 360-degree holistic

new dawn.

insight that can truly help businesses to strategize and accelerate growth.

Traditionally, the Middle East has taken

Technology has increasingly become a major focus for the Middle East, with many nations vying to make the area

a little longer than most to adapt to the

a global center of technological excel-

evolution of procurement, but change is

lence and digital transformation as seen

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in the sector and reflecting the level of development of ICT in the UAE. The UAE has also remained first, globally, in the mobile broadband subscriptions index and advanced from second to first, globally, in the Mobile Broadband Internet Subscription Index. In terms of Internet users, the UAE moved up to 5th from 13th globally, while rising to 29th from 68th in the world, in the Fixed Broadband Subscription Index. TRA is working hard to achieve a number one ranking in this index in order to achieve the goals of the National Agenda: to be the first in the world in TII by 2021. In short, the role of TRA is to “encourage, promote and develop the ICT industry in the UAE”. And to facilitate an endeavor of this scale, you need a smart and agile in projects such as the upcoming Expo 2021, Dubai. The Telecommunications

procurement function.

The procurement function at TRA

Regulatory Authority (TRA) of the United

is headed up by Sulaiman Abdulla,

Arab Emirates (UAE) was established in

Manager Procurement & Contracts, who

2003 to regulate the burgeoning tele-

joined in 2016 with a wealth of experi-

communications sector in the UAE and

ence having worked for different govern-

enable government entities in the field of

ment and private sectors. TRA is dedi-

smart transformation. The UAE is ranked

cated to developing and modernizing the

first in the Arab region and seventh

telecommunications system in the UAE

globally in the Telecommunication

through training, enabling and establish-

Infrastructure Index (TII), according to

ing related educational institutions, and

the UN E-Government Survey 2020 –

obtaining the latest ICT devices, equip-

surpassing many developed countries

ment, and facilities.

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UAE EMBARKS ON A DIGITAL JOURNEY

Infosys has been working closely with UAE’s public sector, which has reposed trust in us to implement missioncritical projects.

Infosys partnership has gone from strength to strength, and we have rolled out several countrywide e-governance initiatives

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UAE Smart Government has been focusing on smart governance since 2015 to increase the efficiency of the government services by eliminating the physical visits for the citizens and residents.

Infosys, a global IT consulting company, has been a key partner for National Plan initiatives launched by the Key Public Organizations Government Service Bus (GSB) Infosys has implemented several smart initiatives starting with Government Service Bus (GSB) backbone built in 2015.

GSB delivers more than 200 services across 60 government entities, providing direct access to UAE residents.

New Baby Born Registration This initiative simplifies the process of registering newborns. a process that took six to eight weeks. parents can apply for the service once, and access several services in two weeks: • Issuance of birth certificate • Adding the baby in the family book • Registration of baby in the population register • Issuance of passport • Issuance of Emirates Identity Card

Ease of Doing Business digitize government services related to registering a business in the UAE. It is an integrated e-service that enables an investor to access several services within 15 minutes, including: • a trade license • a membership number in the Chamber of Commerce • a quota for three work permits • Establishment Numbers The initiatives reduced the number of visits by investors to government entities from 10 to 0 and reduced processing time from 2-3 weeks to 15 minutes. Also, the number of duplicate documents required by Government entities was reduced from 30 to 0.

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Find out more about how Infosys have been helping clients in transformation journeys. Reach out to us at askus@infosys.com

w w w. cp o stra te g y. co m

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“ Sometimes, people don’t really understand the CPO, procurement and negotiation. It’s not a transactional role anymore. It’s more about quality, new ideas and flexibility” —

S U L A I M A N A B D U L L A , M AN AGER, P ROCUR EM EN T & C O N T R AC T S , T R A

Upon his appointment, Abdulla initiated a massive procurement transformation at TRA by establishing a roadmap that would see procurement becoming much more than a merely transactional aid at the regulatory authority. “I wanted us to start developing people, governance and partnerships,” he explains.

Abdulla initiated an extensive round of market research to gain feedback and insights from TRA’s internal and external stakeholders. “I really wanted to understand their requirements with an

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increased focus on supplier engage-

perspective of operations outside the

ment,” he says, adding, “After all, they

standard quarterly timeframes that many

understand the market better than

departments adhere to. “I am interested

anyone else.” There has been a real shift

in looking at partnerships over 20, 30,

in the sharing of information and insights

40 years,” he explains. “Sometimes,

within the regulator, and externally

people don’t really understand the CPO,

with partners, since Abdulla took over.

procurement and negotiation. It’s not

Focused on collaboration with bodies

a transactional role anymore. It’s more

such as CIPS, TRA wants to increase

about quality, new ideas and flexibility.”

awareness and knowledge of the strate-

Transformation of procurement func-

gic value of procurement and now places

tion is a process, not merely a project

a massive value on supplier engagement

you start and finish. “We started this

and collaboration to create a longer-term

journey four years back by focusing on 78

LEADING GLOBAL EXCELLENCE IN PROCUREMENT AND SUPPLY CIPS, THE CHARTERED INSTITUTE OF PROCUREMENT & SUPPLY, IS…

CIPS CLIENTS IN MENA INCLUDE:

THE PROFESSIONAL BODY A not-for-profit organisation that exists for the public good, promoting and developing high standards of skill, ability and integrity among procurement and supply chain professionals.

QUALITY GUARANTEED CIPS qualifications are recognised by regulators across the world, including the Knowledge and Human Development Authority (KHDA) in Dubai, demonstrating that they meet specific quality standards.

THE GLOBAL STANDARD CIPS Global Standard in Procurement and Supply sets the benchmark for what good looks like in the profession.

A COMMERCIAL ORGANISATION CIPS helps businesses and governments around the world to excel in procurement and supply, supporting them to improve and deliver results and raise standards.

A GLOBAL COMMUNITY We are the world’s largest professional body dedicated to procurement and supply with a community of over 200,000 professionals in over 150 countries, and offices in Africa, Asia, Australia, the Middle East, Europe and the USA.

WWW.CIPS.ORG | MENA.ENQUIRIES@CIPS.ORG w w w. cp o stra te g y. co m 80

technology enhancement, process re-en-

(internal and external) and includes a

gineering and people development in

commitment to add value to supply

skill set capabilities. You always start

chain management. “Most procurement

small till you reach big. Procurement

professionals are focusing more on

professionals and leaders have to under-

the internal stakeholders by having an

stand that success is a journey. You can’t

internal engagement plan with stake-

simply just jump from a manual work-

holders and an effective communica-

ing environment to artificial intelligence.

tion plan to understand their needs and

Transformation starts with automating

requirements. On the other hand, we

your manual processes, then shifting to

often see that the level of collaboration

digitalization and the analysis of the infor-

and engagement with the suppliers is

mation and data to reach to AI.”

low. Chief procurement Officers need to

The mindset of CPO, according to Abdula, should change from “competition to completion” in order to achieve greater value and sustain the growth of the organization. “This means, we as procurement professionals, should work more collaboratively with our internal stakeholders and suppliers,” he explains.

“We complete each other in the process of supply chain in order to achieve a win-win strategy.”

Abdulla has placed an increased importance on supplier engagement and collaboration at TRA, but why is supplier collaboration so important to TRA’s activities with regards to strategic procurement? According to Abdulla, it has become essential for companies to extract the best possible performance of the supply chain involving all parties 81

realize the value and the importance of supplier collaboration.”

Abdulla details a number of benefits from this form of engagement. Project

“We have started engaging our strategic partners to develop the staff by closing the skills gap and providing a self-learning environment” —

S U L A I M A N A B D U L L A , M A N AG E R , P RO C UR E M E N T & C O N T R AC T S , T R A

timelines can be accelerated and project outcomes improved; for example, boosting business expectation and requirements while minimizing risk. There can be a massive development of staff by closing existing skill gaps which also boosts operations with regards to staff retention which, according to Abdulla, will relieve dependency on contractors and suppliers. Plus, value addition and cost optimization by reducing inventory levels will significantly improve the customer journey, allowing better visibility into customer demand, supplier performance and faster decision-making. “Effective collaboration with partners is all about sharing valuable information and transparency to achieve a common goal or target,” he says. “It also means that both parties are extending their efforts to achieve the value that both parties wish to reach. A ‘win to win’ strategy.”

Recent studies highlight that organizations engaged with suppliers are 38% more likely to achieve their expectations and goals towards cost optimization and value driven procurement. According to Abdulla, levels of engagement or collaboration can often start 82

with the transactional level where both

is power,” Abdulla explains. “And it is very

parties share transactional data includ-

important for the organization to map its

ing purchase orders, invoices payments,

strategic planning towards a strategic

work orders, sales orders, inventory

level of engagement and collaboration

and contract terms to help the partners

with suppliers to achieve greater value

automate business processes and trans-

and outcome from the supply chain.”

actions and help in making best decisions. The level of engagement can also increase to a ‘strategic level’ where both parties are taking part in joint planning, redesigning of business and products by sharing high levels of value information.

In this level, both parties share levels of risks and reward that can lead to better forecasting and planning that can reduce risk and enhance quality and better pricing plans, while boosting sales and operational planning and resolving critical issues and events.

Collaboration is dominating many conversations in every conceivable industry and procurement is starting to truly benefit from the sharing of information. Abdulla is a true devotee to the collaborative way of working and believes that a network of shared information can unlock true potential from procurement and the supply chain while driving innovation through the discussion of ideas and suggestions. Staff capabilities can also be improved greatly through sharing thoughts and ideas. “Knowledge 83

TRA

Supplier relationship management or as Abdulla terms it, supplier value

Sulaiman Abdulla Manager, Procurement & Contracts, TRA A strong believer in Completion rather than Competition Methodology, Sulaiman has led different teams with different initiatives in value adding to organizations in the field of Cost Optimization and Supplier Management Particularly.

Procurement is not Purchasing. Procurement is the main function (asset) for any organization to drive cost optimization and innovation by adopting best practices such as ‘Supplier Collaboration and Early Engagement’.

Change is the only constant in any organization to sustain so it is very important for procurement professions to adopt best practices in all industries from technology, to people, to processes. Sulaiman and his team have worked accurately towards predicting business demand to anticipate the market changes and develop the right approach to source products and services in a competitive way. They have achieved excellence in this domain through encouraging the use of practices and behaviors that enhance trust with partners and championing suppliers’ innovation capabilities and getting them involved early and actively.

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management, requires an organization to shift from the traditional method of cost saving and negotiation to focus more on a ‘win–win’ approach which will empower the procurement team to be a business partner rather than a mere facilitator. In order to increase the collaboration level, organizations are required to get a holistic view across all suppliers before segmenting them in different approaches to identify the key suppliers who are adding value to the supply chain. “Segmentation of suppliers should not be focused on spend only,” he states “If you are going to increase the level of engagement and collaboration, then you need to consider different aspects while segmenting your suppliers.

Some examples to consider are nature of projects, industry, spend, risk, innovation, performance and value.

You also need to identify the supplier touch points in the supply chain processes. There are different areas where you can expand the supplier collaboration and engagement efforts to drive continuous improvement to the process. Apply an 80/20 methodology; focus on the 20% of your suppliers who generate 80% value to the organization.”

Supply chain or procurement processes are always centered around long-term business, and not short-term relationships, according to Abdulla. “This how the CPO differs from the CFO. There are always challenges faced in any collaboration, especially for procurement professionals who are responsible for managing internal stakeholder, and supplier, collaboration while maintaining the different mindset of spending and saving the budget. As a public organization, I believe there are great stories of success we have achieved through early engagement 85

of our strategic suppliers on a national

just one supplier, but many suppliers or

level.�

consultants.�

TRA practices different types of early

Early engagement with suppliers offers

engagement, based on the way it cate-

benefits to both TRA and its suppliers

gorizes and segments its vendors. “Early

and enables the government to better

engagement with vendors for new tech-

plan for, and mitigate, risk. Complex,

nologies, allows them to communicate

innovative or high-risk programs can

the desired responses and narrow down

be adapted to better utilize ICT indus-

on a specification to advise us as to

try capacities, providing government the

the nature of the subsequent procure-

opportunity to realistically measure and

ment. Another type of early engage-

analyze the capacity of the ICT indus-

ment is when we need advice on a new

try to contribute to strategic programs

market, product, or service from not

and engage early problem recognition.

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Suppliers might also know more about what is possible or not when facing technological uncertainty. Early involvement provides maximum opportunity for enhanced outcomes in terms of cost, quality, delivery and design. Early engagement with suppliers also allows the procurement team to leverage on supplier capabilities and achieve advantageous positions in the innovation and development processes.

“Early supplier involvement not only enhances outcomes, but also enables suppliers to bring new innovations to the table. If technology is complex, we bring suppliers in and discuss design ideas issues and challenges. Early supplier involvement assists in both the quality and cost of the initial finished good, but also in the ability to keep the product in service after the sale,” he says.

According to Abdulla, it is important to engage early and widely with the supply side, to give a supplier an opportunity to shape the requirement. Suppliers who are involved earlier can have a better understanding of the requirement, reduce time to market, create better business forecasting and better resources planning that can lead to a long-term business relationship.”

Operating under TRA’s ‘newborn’ 88

strategy, one of TRA’s strategic level

in the workplace culture is seen by many

projects was achieved within 100 days by

as disruptive, but necessary. Among the

getting the strategic suppliers engaged

challenges Abdulla has faced, he cites a

earlier in the prototype phases. “There

lack of vendor’s cooperation, intellectual

was a daily collaboration with the differ-

property conflicts with vendors and the

ent strategic suppliers who were on our

overestimation of the development skills

premises to achieve the target,” Abdulla

of the supplier. Political issues arise too,

explains. “Clarity is very important while

such as, the reward structure for suppli-

engaging the supplier. In this project,

ers and a degree of fairness to those

the goal was clearly transferred to all

not involved as early as other vendors.

suppliers and changing the deadline was

“Understanding is so important,” he says.

non-negotiable.”

“There needs to be understanding on all

Abdulla believes that developing internal capabilities is a key factor to success.

sides.”

With a procurement transformation

“We have started engaging our stra-

fully under way at TRA, Abdulla and his

tegic partners to develop the staff by

team have 36 KPIs to monitor its success.

closing the skills gap and providing a self-learning environment that leads to bringing different values to the organization; from knowledge adoption to applying best practices and utilizing the tools and toolkits. Regarding new tools and techniques, Abdulla can see a time in the not-too-distant future when artificial ‘emotional’ intelligence could be fully harnessed by the procurement function.

As with any new business practices, there will be challenges during implementation. Change management is often number one in the most common challenges facing new processes and operations. A new way of working and a shift 89

“Early supplier involvement not only enhances outcomes, but also enables suppliers to bring new innovations to the table” —

S U L A I M A N A B D U L L A , M A N AG E R , P RO C UR E M E N T & C O N T R AC T S , T R A

However, how does Abdulla encapsulate procurement excellence? “Data is important. After all, without data you can’t improve anything. I place a high value on people, too. After all, you can have the best technology in the world, but if you don’t have the people and the brains, it’s useless. Procurement excellence is a continuous evolution and it’s all about driving value to the organization,” Abdulla explains. “Right now, people need to truly understand the procurement process to allow it to work at its full potential.”

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www.tra.gov.ae