Driveline Engineering 8 th October 2014 Leading global excellence in - - PowerPoint PPT Presentation

Leading global excellence in procurement and supply

CIPS Furness Branch Event Driveline Engineering

8th October 2014

Leading global excellence in procurement and supply

17:30 Registration 18:00 Chairman’s Opening Jeannette Medati Including President’s Theme 18:15 Furness Enterprise Stuart Klosinski 18:30 Driveline Engineering Mike Meehan 19:30 Questions, Networking & Close

Agenda

Leading global excellence in procurement and supply

• Welcome & Introductions
• The Branch

– Committee – Next Committee Meeting 18th November 2014 – Budgets – Events (Mike) – Social Media / Communications (Natalie) – CIPS Branch Conference – 21/22 Nov 2014

• The President’s Theme

Chairman’s Opening

Leading global excellence in procurement and supply

The Committee

Name Position Tenure expires Jeannette Medati Chair April 2015 AGM Mike Farnworth Vice-Chair/Treasurer April 2015 AGM Donna Martin Secretary April 2015 AGM Mike Miles Communications Officer April 2015 AGM Lauren Goulding/Lydia Waites Education Liaison Officers April 2015 AGM Natalie Threadingham Social Media Officer April 2015 AGM Andy Payne/Ian Crawshaw General Committee Members April 2015 AGM Next Committee meeting 18th November 2014

Leading global excellence in procurement and supply

Budget

• Budget submission approved – Sept 2014
• £1200

Leading global excellence in procurement and supply

Events

Date Topic 8 October 2014 Driveline – Branch event November / December 2014 Party Lites – tbc March 2015 Branch Event - tbc June 2015 Branch Event - tbc September 2015 Branch Event - tbc Ideas for future events welcomed

7

Furness Branch

Social Media For discussion, branch updates, event news and meeting like minded professionals, the Furness Branch can now be found on: @cipsfurness CIPS Furness Branch Join us!

Leading global excellence in procurement and supply

CIPS Branch Conference

Day 1 Thursday 20th November 11-00am Registration – Tea/Coffee 11-15am Branch Chairs to join the Congress Meeting 11-15am CIPS Update – David Noble, CIPS Group CEO 12-00pm Update on Chartered Status/Name Change - tbc 12-30pm Knowledge Update – Helen Alder, Head of Knowledge and Product Development 1-00pm Lunch 2-00pm ‘Brand MCIPS’ workshop – facilitated by Cath Hill, Group Membership and Marketing Director and Vicki Oliver, Marketing Membership Manager 3-15pm Break 3-30pm ‘Brand MCIPS’ workshop continued – facilitated by Cath Hill, Group Membership and Marketing Director and Vicki Oliver, Marketing Membership Manager 5-00pm End of the first day 7-00pm Cash Bar 7-30pm Dinner Day 2 Friday 21st November 09.00am Welcome/Introductions – Cath Hill, Group Membership & Marketing Director 09-15am Stuart Quinn, Chair North Lancashire Branch - Personal communications Presentation/Update on the Branch Pages- 09-45am Emma Scott, Representation Manager –‘ Profession of Choice’ Presentations Session - tbc 11.00am Break 11.20am Session - tbc 1-00pm Close and Lunch

Leading global excellence in procurement and supply

2014 Presidents theme

Do one good thing…and do one in return

Craig Lardner FCIPS: President 2014 Sept/Oct 2014

Leading global excellence in procurement and supply

Goals: the words and the numbers

• Visible President
• Impact and ‘The Theme’
• Giving belief that ‘You too can be’…

40 in 52 …will hit 66 50 ….will hit 46 30…will hit 30 [including 2 teleconferences] 5…will hit 10 4,000…will hit 4,200 Like any good procurement person ….. I needed to create some KPI’s How else would I know that I had an effective year?

So…what is ‘one good thing’

Leading global excellence in procurement and supply

Why this theme?

• 1. It directly supports our strategic platform of ‘For public good’
• 2. It focuses on a personal benefit as well as for our profession
• 3. It creates 100,000 good things done (+100,000 more)
• 4. It’s measureable
• 5. It’s local as well as global…it spans countries and cultures
• 6. It brings us together as a global family
• 7. It brings merit and credibility to The CIPS Foundation

Presidents theme for 2014

Do one good thing …and do one in return

Leading global excellence in procurement and supply

Understanding the theme.

• 1. Your ‘one good thing’ is for someone NOT in your country
• 2. The ‘do one in return’ is for someone IN your country
• 3. The good thing is for the individual and for the profession
• 4. It does not have to be money /cost/donation
• What are you especially good at?...then offer that
• What clever thing did you learn?...then pass that on.
• 5. 3 hours out of your year
• 6. Log it
• 7. When you do your one good thing remember to tell the recipient

they have to do theirs …ask them to let you know what they did

Leading global excellence in procurement and supply

Before 31st October please

Hand up …stand up OR Sit down…stay down

Leading global excellence in procurement and supply

2014 Presidents theme

Do one good thing…and do one in return

Craig Lardner FCIPS: President 2014 Sept/Oct 2014

SUPPLY CHAIN STRENGTHENING

The 2015 business support priority for Furness and west Cumbria

Stuart Klosinski Industrial Development Manager Furness Enterprise Limited c/o Wax Lyrical Lindal Business Park Lindal in Furness Cumbria LA12 0LD Tel: 01229 820611 Mobile: 07836254721 Fax: 01229 827226 Web: www.furnessenterprise.co.uk

CORE OPPORTUNITIES

Energy

Nuclear (civil and defence) decommissi

• ning

Oil+Gas Offshore Wind Global suppliers of specialist equipment

Defence

Astute Successor UK and global supply chain 1400 companies The submarine enterprise Aerospace electronics

Life Sciences

Biopharm Cephalos porin Life saving drugs Global market Research NHS universitie s

Crucial stimulus for GVA, Jobs, Skills, Exports On verge of biggest growth since 1980s’ Initially a construction focus Followed by

• long term manufacturing or
• operations maintenance

But need to know if firms are up for it Identify gaps in support then help firms:

• Address barriers
• Access potential
• Grow our own skills
• Attract in more talent

COMING INVESTMENT IS HUGE 7,000 CONSTRUCTION JOBS

Unprecedented scale of opportunities quantified by Furness Economic Development Forum* team

Note * Fe, Bae Systems, Furness College, Barrow Council

Some are nationally strategic endeavours take place between 2015 and 2024 aim to keep as much of this investment as possible is embedded here How do we persuade developers to commit to helping grow local supply capability Risks: spend value flows out of the area limited openings for new suppliers local suppliers may add risk

Lead Project Cost When Jobs Dong Energy Walney Extension £2.00 2015-17 102op Centrica Energy Roosecote Decommission N/A 2015 50c BAE Systems Barrow site infrastructure £0.37 2014-21 750c GSK Bio-pharm Ulverston £0.35-0.40 2015-20 450c Centrica Energy Gas Processing Rampside, Barrow £0.10 2014-16 200c Centrica Energy East Irish Sea Gas Exploration £0.10 2014-20 N/A Industrial Expansions Barrow / Ulverston Kimberly-Clark Oil States Barrow Ltd Siemens Gyrodata £0.16 2015-20 500 E-Lift Barrow Barrow health centre £0.02 2015+ N/A National Grid Moorside to Lancashire 400KV electricity lines £3.00 2017-26 500c Electricity NW 132KV power line upgrade £0.50 2017-26 200c United Utilities Rampside Outfall pipeline Ulverston facility enhancement £0.008 £00.05 2014-15 50c Sub Total £6.158+ NDA Drigg Drigg storage facilities N/A 2014+ N/A Nugen Toshiba Moor Side AP1000 Nuclear Generating Station £16.00 2018+ 5,000c + 1,000op Sub Total £16.00 TOTAL Note c construction Op

• perational jobs

£22.158

STRATEGIC MANUFACTURING FOR GLOBAL MARKETS

Lead Programme Value when Jobs

Furness

BAE Systems Successor and Astute submarine programmes £11- 14.00bn 2014-32 1,000- 1,500 Siemens Sub Sea Connector manufacturing*** £0.50bn 2014-20 100-400 GSK Ulverston Cephalosporin and Bio-pharm Manufacturing*** £0.16bn/yr 2014+ 208-708 Kimberly- Clark, Barrow Manufacture of tissue*** £0.10bn/yr 2014+ 25

West Cumbria

NMP Sellafield Sellafield Decommissioning £8.00bn** 2014-20 N/A TOTAL £19- 22.76bn 1,833- 2,733 Continuing realisation of major production programmes Some serving UK strategic interests, UK domestic and global market reach with specialist products Not always reliant on local supply chains….

THE SUBMARINE ENTERPRISE SUPPLY CHAIN

Hub at Barrow 1400 companies Across UK Some in Europe and USA Potential possibly for embedding extra capability in NW England, Cumbria Are we looking at Successor

• r follow on to Astute as the

real opportunities for growth

SUPPLIERS ARE OFTEN UK WIDE

Having a hub manufacturing asset based locally may generate the best economic return can we use government support to assist suppliers to a hub to improve overall capability Good transport links (road, rail) essential But Are local firms missing an opportunity to offer more Can local capability be enhanced Do local firms wish to increase their roles Can we grow attract the skills

SUPPLY CHAIN BARRIERS



Information market failures,



Lack of access to, and information about

• pportunities – SMEs may be unaware of how to

access tenders and other opportunities to supply;



Lack of confidence OR inability to respond to tenders combined with issues over whether SMEs are “fit to supply,



Are the necessary management environmental, quality and equality policies and systems in place to meet the requirements of large firms’ buyers;



lack of confidence in the procurement process,



Unwillingness of some SMEs to commit valuable time or resources to respond to tenders they believe they have no chance of winning.



Some SMEs may believe that there is a lack of equality in the procurement process or other

• rganisations are far better placed to win

contracts than they are;



Risk aversion from tier1/2 procurers-rely on established suppliers;



Onerous Pre-Qualification Questionnaires (PQQs);

Some quoted examples coming from companies in supply chains and best practice research

BARRIERS TO SECURING NEW CONTRACTS - PERCEPTIONS OF FURNESS FIRMS

SOURCE: RESEARCH TEAM FOR FURNESS ENTERPRISE LTD, 2014

Information about pipeline of emerging contracts Knowledge of who to contact in Prime or Tier 1 contractors Lack of skilled labour Pre-qualification for tenders Shared vision in local area is lacking (reluctance to… Information does not flow between companies Access to finance is difficult for new capital equipment and… High risk / cost of R&D Systems integration needs improvement Other 55.56% 77.78% 11.11% 50.00% 33.33% 27.78% 33.33% 27.78% 11.11% 22.22%

SERVICES AND CONSTRUCTION SECTOR VIEWS

 Lack of clear information about local

suppliers

 A lack of knowledge about where to

find appropriate and relevant information about the specific and relevant contracts.

 Respondents that are looking to gain

directly from contracts all require support in meeting and networking with the correct contacts.

 An approved local supplier list is seen

as a positive move and a must have by the local service organisations

 Attracting construction / permanent

workforce

 Pay structures locally are lower than

• ther parts of the country

 local hotels see large organisations

like Premier Inn and Travel Lodge gaining the lion’s share of incoming business tourists to the area.

SOURCE RESEARCH TEAM FOR FURNESS ENTERPRISE LTD 2014

Contact with industry buyers is important to help firms access the opportunities. 13% 16% 34% 11% 18% 8%

What should be done to help firms access supply chain

• pportunities?

Advice about the industry Money for training Contact with industry buyers Marketing assistance Innovation support for product development Other

WHAT NEEDS TO HAPPEN TO IMPROVE ACCESS TO THE CIVIL/DEFENCE NUCLEAR SECTOR

Information on: how to approach this sector; Identify opportunities available; Know what is needed 16 40.00% Visibility of Tenders: Opportunity to Tender: Remove restrictive buying practices 7 17.50% Information/Support for training required skills 3 7.50% Sort out issues with NDA 2 5.00% Nothing further required 1 2.50% More Industrial space/premises 1 2.50% Reduce paperwork/Red Tape 1 2.50% Use UK Companies 1 2.50% Promote local Supply Chains 1 2.50% Invest in Local Companies 1 2.50% Don't Know 11 27.50%

Research looked at civil and defence nuclear sectors needs “The prize share of £1.6b year spend it has potential to achieve considerable sustainable economic benefits for the region and UK..its important that this spending supports local regional innovation and provides work for local companies”

Source: House of Commons Public Accounts Committee Managing risk at Sellafield 2012- 13

SUPPLIERS VIEWS ON IMPROVING ACCESS INTO THE CIVIL/DEFENCE NUCLEAR SECTOR

What two things are most needed to help Cumbrian businesses exploit opportunities in the nuclear sector?

More knowledge/information of what is required 12 30.00% Visibility/Availability of tenders 7 17.50% Increased skills/manpower 6 15.00% Networking/Forums/Working together 4 10.00% Promote/help local firms to win / give contracts locally 4 10.00% Space/Ability to expand capacity and capability 3 7.50% Convince people we have the capability 2 5.00%

1 IN 2 NEED MORE INFORMATION ON WHAT IS REQUIRED AND VISIBILITY OF TENDERS

WIND ENERGY SECTOR

Which of the following things should be done locally to help firms win business in the wind energy sector

Information on access to tenders

80.56 %

Advice about the industry

80.56 %

Money for training

66.67 %

Contact with industry buyers

83.33 %

Marketing assistance

75.00 %

Innovation support for product development

63.89 %

Others

5.56%

SIMILAR POSITION TO NUCLEAR ON WHAT IS NEEDED TO HELP FIRMS POSITION TO WIN BUSINESS BARROW NOW HAS:

• 4 BASES 180-220 JOBS

GOVERNMENT PRESSURE ON DEVELOPERSTO INCREASE UK CONTENT HOW SHOULD DONG/VATTENFALL RESPOND FOCUS ON CONSTRUCTION OR OPERATIONS AND MAINTENANCE CONTENT MERSEY, HUMBER LEPS , FE WORKING WITH DONGSUPPLY CHAIN TEAM TO IDENTIFY

• MORE LOCAL CONTENT OPPORTUNITY

GROW GRANT SCHEME

DONG ENERGY OPERATIONS AND MAINTENANCE

494 companies 137 Local Firms involved £234,571,517 spend £22,918,215 Local spend To date 9.7 % share

Is it possible to increase this share of the contracts value a1% increase will generate £2.3m

HELPING SMES BECOME MORE ‘FIT TO SUPPLY’& WIN NEW CONTRACTS

Some Proposals - A Potential Response Raise awareness of emerging contract package

• pportunities

Assess whether firms are able to commit to enhance their capacity or capability/ distribute information to all businesses +help manage expectations of what’s achievable in short/medium term Build database of companies and researched capability Raise awareness of individuals to required skills, available job opportunities and career paths Build company capacity and capability e.g. workshops on:

• How to research, identify, reach potential new contracts,

customers;

• Developing and communicating compelling competitive

advantage;

• Writing winning tenders and presenting winning pitches;
• Delivering successful sales presentations to clients and

tender interview panels;

• Excellence in customer service – how to win and retain

clients; Coaching, mentoring, access to finance, training, innovation support to facilitate required growth Supplier to supplier networking to explore collaboration Apprenticeship bursaries to grow our own skills

Increase their awareness of contract

• pportunities, procurement policies

and process understanding to help them win new contracts “the types of perceived barriers that we have consistently found are centred on difficulties in communication and information, rather than implying a fundamental inability of suppliers to provide goods and services in competitive tendering. support measures most likely to be effective: facilitate contacts between suppliers and procurement personnel; provide greater knowledge of, or some guarantee of quality;

• ffer training to help firms better

understand the tendering process ALSO NEED TO MANAGE LOCAL EXPECTATIONS OF WHAT CAN BE SUPPLIED”

BUILDING ON SUCCESS

 Astec Precision - fasteners and

screw machine products (Oxley)

 Tritech - acoustic sensors for

global markets (Systems Technologies)

 Accurite Industries – stone cutting

machinery (Burlington Slate)

 Joss Engineering-precision

engineering Agusta Westland Approved

 Athena PTS - electrical design

consultancy, project support,specialist installation in energy, marine electrical, nuclear, (Agrilek)

 Siemens subsea connectors

(Tronic)

Furness has history of manufacturing supply chain growth emerging from new start-up businesses or spin

• uts from existing firms which

go on to Offer unique smart integrated solutions to doing things better The objective should be to encourage more of this pedigree