CIPS RoI Branch Event Feb

Transcription

1 CIPS RoI Branch Event Feb Procurement Talent in Ireland - A Supplier's Market? Agenda Event Registration and Refreshments Welcome and Opening (CIPS Branch Chair & Hays) Mike McDonagh, Director Hays Recruitment Ireland Anne Stewart, Director of Group Procurement eir Eoin Lonergan Director EY (Procurement Lead) Panel Discussion with Q&A Networking Event Close

2 Introducing the RoI Branch Committee Eoin Lonergan FCIPS Chairman Matt Lowe MCIPS Vice Chairman Helen Lambert MCIPS Events Co-ordinator Vincent Lattimore MCIPS Education Liaison Marie O Donoghue Secretary Andrew Breen Treasurer Bassey Duke Social Media

3 PROCUREMENT IN IRELAND SALARIES AND RECRUITMENT TRENDS Mike McDonagh, Hays Ireland

4 THE CURRENT MARKET

5 of organisations plan to hire % in

6 78% last of organisations faced challenges finding the right staff in the 12 months

7 51% of employees expect to move jobs in 2018

8 EMPLOYEE CONFIDENCE IS GROWING

9 TOP 5 REASONS FOR WANTING TO LEAVE

10 WHICH BENEFITS ARE IMPORTANT v OFFERED

11 WHAT WORKERS WANT

12 WE KNOW WHAT WORKERS WANT JOB ADVERTS CULTURE PACKAGE & BENEFITS CAREER PROGRESSION TRAINING & DEVELOPMENT

13 WHAT ABOUT PROCUREMENT & SUPPLY CHAIN?

14 HAYS IRELAND SALARY GUIDE Procurement Executive 27% increase Procurement Manager 2.5% increase Head of Procurement 11% increase

15 IGNORE THE BELOW AND SALARY IS IMMATERIAL JOB ADVERTS CULTURE PACKAGE & BENEFITS CAREER PROGRESSION TRAINING & DEVELOPMENT

16 MCIPS CAN EARN MORE 22% Average salary disparity between MCIPS and non-mcips

17 BREXIT BREXIT OPPORTUNITY

18 RECOMMENDATIONS

19 RECOMMENDATIONS FOR EMPLOYERS Create a strong value proposition for candidates Ensure career progression pathways are clear Evaluate and communicate your benefits packages

20 QUESTIONS?

21 How long will my job last? How Technology is impacting Procurement roles Anne Stewart 21/02/2018

22 Agenda The Robots Are Coming Robots & Automation Human v s Cognitive V s Machine How does this relate to Procurement Some things can t be automated How to stay relevant? What is eir doing? Summary 22

23 The Robots Are Coming If current marketing is to be believed we will all be replaced by Robots in the not too distance future. However, this marketing is mainly aimed at large corporations Often references FTE savings of 5 to 10 per robot Dominated by references to Finance and Insurance verticals Procurement falling under the Finance Category Misleading statements relative to ML, AI, NLP Executives get caught up in the hype 23

24 But are Robots and automation just new words for Change? Will Robots and automation cause a huge number of jobs to be lost? or Will it lead to a change in the nature of Jobs? All work can be divided into four types: Routine Same tasks day in day out Non-Routine Varies day to day Cognitive Using the brain Manual Using the body Automation is focused on exact codifiable tasks which often means routine tasks e.g. Workflows that can be programmed into various platforms A Robot is focused on structured repeatable tasks e.g. Swivel Chair tasks moving data from one system to another (where an API is not available or too expensive to develop) 24

25 Human vs Cognitive vs Machine Source IBM 25

26 How does this relate to Procurement? Procurement is not Purchasing P2P tasks can, should and will be automated Order management Manual Order Processing: Purchase Requisition creation Requisition to PO processing PR approvals PO Closure PO Communication PO Change Blocked invoice resolution PO blocked invoice (variance on GR and Price / Qty) Blocked invoice validation Contract and catalogue management Catalogue Administration: Catalogue upload Validation Catalogue maintenance activities Contract Admin Contract creation and amendment Contract signature & Approval Line item modification Cross validation Renewal Reporting Find and input meta data Reporting Format specific Dashboards: Metrics & Reporting Supplier performance Savings analysis and real time reporting of realised savings and run rate savings. 26

27 Some things can t be automated or done by Robots Many Human skills are incredibly hard to replace: Social skills such as persuasion, influencing Rapport and relationship building Commercially Savvy Empathy Emotional intelligence Cultural awareness These are all the skills required to develop into a highly functional Procurement Professional Best to focus on How do I develop those skills then focus on How to stop my boss from automating my job Change is a constant Resistance is futile 27

28 How to stay relevant / Get the recognition you want Know your Direct Manager s objectives and what is required of them by their boss Be aligned Be aligned to Company Strategic objectives What is important to the Board What is important to the CEO What is important to the CFO Focus on refining skills that mean you can work on company growth enhancing activities: Cash Savings Risk reduction Improved Cash-flow Revenue Generating Initiatives Report success in a clear and concise way. Numbers matter. Remember: A Manager is only as good as the people around them. A rising tide raises 28

29 What has eir been doing? Our Journey. We crawled before we could walk Focused on small wins esignatures Contract approval and signing went from weeks to days 1 FTE reduction Walking before we start to run: End to end Source to Pay, SRM, CLM, P2P, Analytics AI for auto classification of items NLP for Reporting and Analytics Contract Authoring templates, clause library, auto approvals Procurement Ops moving from admin to Tactical Buyer roles 29

30 What is eir doing? Ready to Run Operational flexibility Digital enablement Transforma -tional lever Blue Prism Procurement helping the business and ourselves Sales order entry, Fault reporting in the network, AP Invoice processing, Purchase Requisition Approvals 6 FTE reductions in order processing, Fault Reporting team focused on exception handling, AP team FTE reductions and refocus on tactical functions, Procurement time freed for tactical purposes 30

31 In Summary Don t sweat the small stuff! Robots and automation is just another change and evolution of our role and profession Embrace the change enjoy becoming a Co-Bot Use this opportunity to finally get away from the mundane tasks that pull you away from delivering true value to the business The more you use those growth enhancing skills, the more relevant, indispensable an asset you become 31

32 Anne Stewart Thank You eir.ie

33 Hiring Manager Perspective & Advisory View Eoin Lonergan FCIPS - EY Advisory (Procurement Lead) Eoin will share his personal reflections on the biggest procurement recruitment drive in Ireland when in 2014 the newly established Office of Government Procurement was tasked with hiring 100 sourcing and category managers in just six months. Eoin will also share his thoughts on what he is seeing in terms of client demand for procurement services from advisors

34 Personal reflections on the biggest procurement recruitment drive in Ireland The Challenge in 2014: Recruit 100+ sourcing and procurement 40k - 80k 6 weeks of back to back Interviews in panels of 3/4 board members (interviewers) Reviewed 250+ cvs & Interviewed over 80 candidates Procurement qualifications not (initially) a requirement 10 Observations Those who performed the best at interview: Could distinguish between working in procurement and procurement as a profession Had some Procurement Qualifications and could articulate the benefits Had strong customer focus but provided examples of the need for robust business challenge when required Drew on experience beyond running tender processes Had procurement experience across categories / sectors Demonstrated judgement and discretion when providing examples and Viewed procurement as much more than purchasing Demonstrated experience of working in project teams Showed a passion for procurement

35 Some observations on client demand for Advisory support in procurement space Typically not bought by procurement Many clients still don t fully understand the benefits of strategic procurement Skills & Knowledge transfer emphasised in RFTs but rarely executed during engagements Readiness of client to accept need for transformational change not always there Savings work has gone very quiet Some hot areas - Contract Management & SRM skills, especially multi vendor projects - Strategic Outsourcing support (operational not financial) - Complex procurement - major infrastructure /regulated sectors/ strategic ICT projects - Digital Procurement -all areas but client procurement maturity and capability challenges - Lots of tenders for small scale support and advice better off growing internal capability?

36 Should focus move away from finding the right candidate? CEB research (2014) shows that there are six competencies that drive strategic performance in procurement.. But only 10 per cent of procurement professionals excel at all six competencies, (Less than half of one per cent of all non-procurement employees excel at all six so we are still 20 times better! - Focus should be on creating a team with right mix of competencies

37 Thank you Q&A