The Supply Century Andrew Coulcher, Group Knowledge and Membership - - PowerPoint PPT Presentation

Leading global excellence in procurement and supply

The Supply Century

Andrew Coulcher, Group Knowledge and Membership Director CIPS

Leading global excellence in procurement and supply

“The Voice, the Standard”

The largest global professional body in Procurement and Supply

• Offices on 4 continents in 6 countries
• Community of over 120,000 in more than 100 countries

The global standard for the profession

• Mandated by sovereign countries, multi-lateral agencies and multi-national

companies

The profession’s advocate for ‘Licensing the Profession’ The only professional P&S body to degree level, independently regulated The leading voice of the profession

• www.cips.org - c1.3 million annual users

Leading global excellence in procurement and supply

• 20% growth since November 2011

CIPS Membership

Leading global excellence in procurement and supply

Key Trends (CEO concerns)

• Cyber security
• Increasing supply risk

The Global Environment

Changing Business Models

• Digital economy
• The rise of Block chains,

Internet of things and AI

Human Knowledge

• Will double every 12 hrs by 2020

Ethics and Compliance

• Increased regulatory

pressures

• Clean supply chains

Economic Shifts

• Global trade deals – a

new paradigm?

• Rise of the east and

mega cities

Rise of protectionism

• NTBs (Non-tariff barriers)

Leading global excellence in procurement and supply

Public Procurement

• Increasing % of Global

GDP (20%+)

• Increasingly used for

protectionist policies

Changing Expectations

• 48% of CEOs believe CSO will be a boardroom role by

2020

The Procurement and Supply Environment

Outsourcing

• Offshoring/reshoring

trends

• Divestment of assets

Technology

• 3D printing
• Big data & Digital Supply

Chains

Mergers and Acquisitions

• 60-80% M&A fail often due to

Procurement non involvement

Supply Risk

• Lowering tolerance of risk

(Modern slavery / Supply Chain Cyber security

Leading global excellence in procurement and supply

• Global supply chain risk index reaches 24 year high at 82.6/100
• Uncertainty from significant U.S trade and policy changes
• Europe contributing to rise

– Depressed £ adding to high cost of UK imports – Uncertainty with outcome of Brexit negotiations – High rates immigration

CIPS Dun & Bradstreet Risk Index

Leading global excellence in procurement and supply

83% of CEOs believe their supply chains are not

• ptimal to meet todays demands

81% of businesses experiences at least one supply chain disruption last year 15% believe their supply chain is resilient enough to address external disruptions 60% pay only marginal attention to risk reduction processes

How Resilient Are You?

Leading global excellence in procurement and supply

• Those implementing this technology are not seeking our permission to implement
• Algorithms with intelligence can replace large parts of our roles
• Their arrival is raising the intellectual entry point

Artificial Intelligence

64% - Stock clerks and Buyers 98% - Bookkeeping, accounting and purchasing clerks 94% - Accountants and auditors 48% - Computer programmers 43% - Economists

Source: The Future of Employment: How susceptible are jobs to automation, Michael Osborne and Carl Frey, Oxford University

“To benefit from AI, managers will need to sharpen EI”

3% - Purchasing managers

Leading global excellence in procurement and supply

45.8m people are forced to live in slavery Third world 20% leakage in government budgets due to fraud More than US $1 trillion are paid in bribes annually Corruption adds 10% to the cost of business and 25% to public procurement in developing countries Every day 6,300 people around the world die from work-related accidents or diseases

How many tiers of your supply chain would you ascertain your organisation have visibility of?

First Tier only First and Second Tier

• nly

Tier Three and Beyond Complete Visibility all the way down

15% 57% 17% 11%

CIPS YouGov Survey 2014 Base: B2B senior decision makers whose business has a supply chain

Responsible Procurement

Leading global excellence in procurement and supply

The Supply Century

We must shape

• ur future, not

wait for others to decide it for us “The best way to predict your future is to create it”

Abraham Lincoln

Leading global excellence in procurement and supply

Technology and the disruption that it has caused to traditional procurement roles…

eProcurement tools have enabled the business to self serve “everyone’s a buyer” With increased automation comes a contraction

• f roles

Procurement’s Role is elevated where AI meets EI

Leading global excellence in procurement and supply

CIPS must cross- skill other professions who carry out procurement Elevated role of “Trusted Adviser” and “Guardian of the Standard”

From gatekeeper to trusted advisor…

Leading global excellence in procurement and supply

The boundaries of the profession stretch, change shape and become blurred…

Today’s problems are

• ften too

difficult to solve by one department A shift to more trans-disciplinary and cross-functional working

Leading global excellence in procurement and supply

Architects of innovation…

A new era of “interpreneurs” are leading on innovation Procurement and supply professionals are at the juncture where innovation and cash coincide.

Leading global excellence in procurement and supply

Procurement and supply is an agent of change…

Senior procurement professionals should place more focus on becoming effective ‘change leaders’ Procurement can take a leading role in shaping policy designed to alter behaviour globally

Leading global excellence in procurement and supply

The Supply Century

We must shape our future, not wait for others to decide it for us

• CIPS position paper which manifests

latest thinking and implications - October 2016

• CIPS President, Sam Walsh will

continue the debate at CEO roundtables next year

• Academic research with Aston

University early 2018

• Feed in emerging themes in to CIPS

Global Standard

Leading global excellence in procurement and supply

Thank You Any Questions?

Leading global excellence in procurement and supply

Leading global excellence in procurement and supply

Talent Management Case Studies

Gerry Walsh, Group CEO

Leading global excellence in procurement and supply

Talent Management Case Study:

Rank Hovis McDougall – now part of Premier Foods

• Skills audit to establish gaps
• Technical and soft skills
• Weakest performers exited from the

business

• New talent brought in

Using the Right Ingredients…

• Accept that not everyone is the right fit
• Take the bold and the brave on your change journey
• Beware of the terrorists

A Winning Recipe…

• Invested in training and development of team e.g. CIPS

study, transfers, courses such as presentation skills etc

• Succession planning was crucial
• Built team spirit e.g. go-karting,

bowling

Aah now you’re talking…

• £20m cost savings in 2 years and successful IPO
• Rationalised 13,000 suppliers down to 8,000
• Supply Management Award winner - 2005
• First food manufacturer to be awarded CIPS Certification

Exceedingly Good Results

Leading global excellence in procurement and supply

Talent Management Case Study:

Olympics 2012

A Reminder!

Just in case you’ve forgotten what happened the summer of 2012....

Olympic Delivery Authority (ODA)

• £9.3bn for infrastructure and regeneration
• Government funded

London Organising Committee of the Olympic Games and Paralympic Games Ltd (LOCOG)

• £2bn+ for staging the Games
• Privately funded

Delivering the Games

Katie Taylor – Gold Medal

Ireland at London 2012 Olympics/Paralympics

Olympics

GOLD SILVER BRONZE TOTAL 1 1 4 6

Paralympics

8 3 5 16 (41st) (19th)

LOCOG defined eight categories of supply

Artists, Performance & Events Sports Security Technology Services Transport & Logistics Facilities Management & Catering Venues & Infrastructure

1. Unprecedented set of requirements 2. The immovable deadline 3. Resource-constrained 4. Temporary organisation 5. Supporting the wider aims of London 2012

LOCOG Procurement faced a unique mix of challenges

All under a significant level of media and public scrutiny

• Recruitment is key – attract
• nly the best
• Selling in the vision/strategy
• Prioritisation of sustainability,

diversity and inclusion – attractive to many potential recruits

Finding a Winning Team

• Attracting people into roles that will

be made redundant

• Salary and bonus were not the best

in the market

• Pressure and stress of the roles
• Under world media spotlight

The Challenge

• Contributing to the biggest event

in the world in 2012

• Learning experience and growth
• pportunities
• Meeting glamourous people
• Being a member of a great team

The Opportunities

• Performance review

system

• Training and development

programme

• New projects e.g. sports
• Helped prepare team

members for life after LOCOG

Development

• Cost savings of £118 million
• Revenue generation of £40 million
• Major contributor to sustainability,

diversity and inclusive agenda

• On time, right specifications

and favourable to budget

Results

• It’s important to reward hard work and have fun!
• Team days out at

– Boating lake at Hyde Park – White water rafting at Lee Valley – Tour of Wembley Stadium

Motivators