Whitepaper Series. Global Standard. Buyers Bidding. Purchasing and Supply Management: Global Function, Global Standard. Suppliers.

Transcription

1 1 st Edition - MMXII - SourceDogg Purchasing and Supply Management: Global Function, Global Standard Suppliers Market Buyers Bidding Global Standard

2 1 Professionalism in Purchasing and Supply While holding an accredited qualification in professions such as accountancy and law is a sine quo non, the same cannot always be said of purchasing and supply chain management. In smaller organisations with limited human resource capacity as well as across public sector organisations it is not uncommon to find employees whose area of expertise lies elsewhere taking responsibility for supply chain decisions. This was shown to be the case in a large scale survey of procurement practice discussed in last month s article. From office managers to architects, and school principals to laboratory technicians, high value purchasing is oftentimes undertaken by employees lacking the requisite expertise and qualifications. This has given rise to the quip that anyone can buy, which is true to an extent. Anyone can buy, but experienced and qualified professionals are much better positioned to buy effectively and in a way that adds value to the organisation Towards a Global Standard Within this context it is not surprising that purchasing has struggled to establish itself as a distinct profession. Recent years have, however, witnessed a push towards elevating its status and laying down a career path for aspiring procurement professionals to follow. In business faculties purchasing and supply management is gaining in prominence and career opportunities in these fields are becoming more visible to students and others entering the labour market. Internationally recognised institutes such as Chartered Institute of Purchasing and Supply (CIPS) are continuing to develop a presence in the education marketplace and promote purchasing as a challenging and rewarding career option. In March of this year a very significant step forward was taken in advancing the purchasing profession with the launch of a Global Standard for Professional Competence in Purchasing and Supply by the International Federation of Purchasing and Supply Management (IFPSM). The rationale for the Standard and its benefits to industry and to individuals are overviewed in the remainder of this article. For more information on the Global Standard visit

3 2 What is the Global Standard? Reflecting a mix of knowledge, skill and learning appropriate to the profession, the Global Standard aims to recognise as wide a range of learning programmes, awards and designations as possible, including full-time, parttime and distance learning offerings equivalent to Bachelor Degree standard. Its primary objective is to create a internationally acceptable and authoritative standard against which programmes in purchasing and supply can be assessed and accredited, such that: The Global Standard is objective and is free of any commercial influence The quality of the Global Standard is regularly reviewed to ensure that it reflects any changes in the world of procurement and supply management An objective process of assessment is maintained Accredited programmes are regularly reviewed The good governance of the Global Standard is exercised at all times. The Global Standard is based around 5 key principles, which can be summarised as follows. 1. Transparency: information regarding the content of the Global Standard and the approach to programme assessment, including the criteria used, is to be underpinned by transparency 2. Openness: all organisations that have the potential to meet the Global Standard are eligible to put themselves forward for accreditation 3. Impartiality: commissioned by the IFPSM, the Global Standards Commission (GSM) and any assessors appointed by the GSM will exercise impartiality in making awards and no favouritism will be shown to any one party or association 4. Effectiveness and Relevance: the Global Standard is to be relevant to the role of the modern purchasing and supply management professional, will reflect regulatory and market needs, and will be subject to ongoing review. 5. Outcome-based: an outcomes-based approach is central to the Global Standard. As such, no recommendation is made with regard to programme design, delivery or assessment. Programme directors will maintain discretion over the means for the attainment of outcomes expected of purchasing professionals..

4 3 Expected Standard Educational programmes carrying the Global Standard are ones recognised as equipping students with the knowledge, skills and attitudes required of today s purchasing professional. It will signify that they are competent in purchasing knowledge and capable in the application of tools, techniques and models of purchasing and supply management; are knowledgeable in all aspects of strategic supply management; and have demonstrated their application of purchasing knowledge, skills and attitudes to their work role. Eight topic areas are identified as central to the Global Standard and all prospective educational programmes are required to spend at least 70% of course time on these eight topics, which are: Pre-contract Relationships Sourcing Technology Contracting/legal issues Professionalism/ethics/CSR Supplier management and performance Strategy/strategic issues In addition to these eight topics more general business administration subjects are also expected to be taught and examined, including marketing, finance, project management, storage and distribution, sustainable procurement and operations management in the supply chain. However, discretion is allowed in respect of these topics depending on the industry sector specialism of the course provider and/or their geographical location.

5 4 Benefits of a Global Standard The advantages to the purchasing and supply profession from the Global Standard are myriad. First and foremost, it supports the development of the profession and enhances its credibility by establishing a universal quality control standard for education and qualification purposes. Arguably, the Global Standard will act as a spur to education programme providers to make their courses compatible with its requirements or face the prospect of becoming irrelevant in the marketplace. This should have knock-on implications for the quality of purchasing education and training as well as the credibility of purchasing and supply as an academic discipline. For graduates, the Global Standard allows for greater confidence that their educational attainments will be recognised internationally. Against a backdrop of graduate migration both within and outside the European Union, this is a positive development that holds practical benefits for those with qualifications that conform to the Global Standard. For employing organisations, the Global Standard provides a means to identify and select suitable candidates. It can also serve as a benchmark against which the competency of existing staff can be assessed and career development plans put in place. Taken collectively, these likely outcomes will underpin the rigour of purchasing education and lead to a further strengthening and professionalization of the field. Conclusion That a globally recognised standard for professional competence in purchasing and supply has emerged represents a step forward for all concerned. For too long the criteria for judging and assessing academic attainment and professionalism in purchasing lacked clarity and suffered from a dearth of consensus. The IFPSM Global Standard goes some way towards addressing what has been a drag-chain on the development of the profession and its international credibility. Not only does the Global Standard benefit the disciplines of purchasing and supply, it assists professionals in international career mobility and allows hiring organisations to evaluate candidates using a recognised and credible professional and educational standard. Only five months since its inception and NEVI, the Dutch purchasing association, has already attained its Global Standard accreditation. Hopefully this is the first of many programme providers across the world to embrace the Standard.

6 Upcoming releases in the include: Insights into Procurement Practice Global Standards for Procurement Professionals Relationship between Purchasing and Performance Greening the Supply Chain: How and Why SourceDogg is an award winning blend of strategy, easy-to-use tools & live support, serving over 350 clients globally from SMEs to Fortune 500 Companies & Public Sector Organisations. UK: International: