We aim to achieve optimum efficiency and effectiveness by closely evaluating, planning for, and obtaining resources required by the Group and our subsidiaries for continuous business functionality. The Department follows best practices to improve levels of compliance and transparency, and reach a balance between quality and cost that benefits both the Group as well as the suppliers we partner with.
The Procurement and Facility Management Department continued to evolve in its role of sourcing services from the qualified suppliers in order to get needed services and materials based on high quality standard and competitive values, as well as in optimizing the functionality of Group facilities, to drive sustainable operations across the Saudi Tadawul Group and its subsidiaries.
Consequent to the new Group structure, 2022 saw the Procurement and Facility Management Department ironing out all related changes to its delegation of authority and responsibilities, enabling further efficiencies within the Department as well as across the Group.
A number of enhancements were introduced across the procurement function, with special focus on finalizing the Vendor Performance Management system and its procedures with end-user training. With the new system allowing users to give feedback on suppliers based on received invoices or services, this will improve visibility of vendor performance in a clearly structured, efficiently communicable way.
Contributing to the Kingdom’s Vision 2030 objective of supporting Small and Medium Enterprises (SMEs) and entrepreneurs, as well as enhancing local content, the Department utilized the “FORSA” platform as per our agreement with the Saudi Human Resources Development Fund (HADAF) to reach over 8,000 Saudi SMEs, and direct close to SAR 2 Mn in procurement spend through the platform to support local suppliers and their business growth during 2022.
Other additional measures taken to enhance efficiencies including negotiable contracts in terms of procurement support saw the Department reach a 7% savings, overtaking its 2022 target of 6.5%.
The Department obtained three key international standards, the Procurement Excellence Standard Award from CIPS (Charter Institute of Procurement and Supply) as well as two essential ISO certificates in Quality Management System (ISO 9001:2015) and Facilities Management System (ISO 41001:2018) in which recognized certificates were obtained in line with best standards and international governance.
The obtained Accreditation from the Chartered Institute of Procurement and Supply (CIPS), the world’s largest professional body serving the procurement and supply chain profession, is evidence to the continuous development of our processes and procedures in line with our departmental strategy.
The Department systemized operations of Facility Management and Administration during 2022 through a robust, centralized SharePoint solution to automate the tracking and management of facilities requests across services, maintenance, assets or equipment, the fulfillment of work orders, and the monitoring and completion of assigned tasks.
The Department continued to play a key role in the New Tower Project during 2022, with the formalization of the contract award letter to the selected fit-out contractor following a rigorous and successful assessment. We are in the final stages of procurement of furniture, interior installations and equipment, with targeted KPIs of the overall fit-out project plan for 2022 achieved.
During 2022, we have also streamlined our Service-Level Agreements (SLAs), automating and governing them through the IT Service Management (ITSM) system.
Satisfaction measures contingent to each SLA have been included in the system, as well as annual and semi-annual assessments, ensuring the SLA fulfillment meets expected service and commitment benchmarks. Once feedback is received, we seek to meet or exceed growing expectations with recognizable improvements in the service offering.
We also continue to support other subsidiaries and assist them in short-timing their major projects and initiatives, such as the new data center project in King Abdullah Financial District (KAFD) for the Exchange, and a number of key projects for WAMID.