The Supply Century. Andrew Coulcher, Group Knowledge and Membership Director CIPS. Leading global excellence in procurement and supply

Transcription

1 The Supply Century Andrew Coulcher, Group Knowledge and Membership Director CIPS

2 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 - c1.3 million annual users

3 CIPS Membership

4 The Global Environment Economic Shifts Global trade deals a new paradigm? Rise of the east and mega cities Key Trends (CEO concerns) Cyber security Increasing supply risk Human Knowledge Will double every 12 hrs by 2020 Changing Business Models Digital economy The rise of Block chains, Internet of things and AI Ethics and Compliance Increased regulatory pressures Clean supply chains Rise of protectionism NTBs (Non-tariff barriers)

5 The Procurement and Supply Environment Outsourcing Offshoring/reshoring trends Divestment of assets Technology 3D printing Big data & Digital Supply Chains 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 Supply Risk Lowering tolerance of risk (Modern slavery / Supply Chain Cyber security Mergers and Acquisitions 60-80% M&A fail often due to Procurement non involvement

6 CIPS Dun & Bradstreet Risk Index 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

7 How Resilient Are You? 83% of CEOs believe their supply chains are not optimal 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

8 Artificial Intelligence 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 98% - Bookkeeping, accounting and purchasing clerks 94% - Accountants and auditors 64% - Stock clerks and Buyers 48% - Computer programmers 43% - Economists To benefit from AI, managers will need to sharpen EI 3% - Purchasing managers Source: The Future of Employment: How susceptible are jobs to automation, Michael Osborne and Carl Frey, Oxford University

9 Responsible Procurement 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 How many tiers of your supply chain would you ascertain your organisation have visibility of? 15% 57% 17% 11% Every day 6,300 people around the world die from work-related accidents or diseases First Tier only First and Second Tier only Tier Three and Beyond Complete Visibility all the way down CIPS YouGov Survey 2014 Base: B2B senior decision makers whose business has a supply chain

10 The Supply Century We must shape our future, not wait for others to decide it for us The best way to predict your future is to create it Abraham Lincoln

11 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 Procurement s Role is elevated where AI meets EI With increased automation comes a contraction of roles

12 From gatekeeper to trusted advisor CIPS must crossskill other professions who carry out procurement Elevated role of Trusted Adviser and Guardian of the Standard

13 The boundaries of the profession stretch, change shape and become blurred Today s problems are often too difficult to solve by one department A shift to more trans-disciplinary and cross-functional working

14 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.

15 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

16 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

17 Thank You Any Questions?

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19 Talent Management Case Studies Gerry Walsh, Group CEO

20 Talent Management Case Study: Rank Hovis McDougall now part of Premier Foods

21 Using the Right Ingredients Skills audit to establish gaps Technical and soft skills Weakest performers exited from the business New talent brought in

22 A Winning Recipe Accept that not everyone is the right fit Take the bold and the brave on your change journey Beware of the terrorists

23 Aah now you re talking 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

24 Exceedingly Good Results 20m cost savings in 2 years and successful IPO Rationalised 13,000 suppliers down to 8,000 Supply Management Award winner First food manufacturer to be awarded CIPS Certification

25 Talent Management Case Study: Olympics 2012

26 A Reminder! Just in case you ve forgotten what happened the summer of

27 Delivering the Games 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

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29 LOCOG defined eight categories of supply Artists, Performance & Events Security Services Facilities Management & Catering Sports Technology Transport & Logistics Venues & Infrastructure

30 LOCOG Procurement faced a unique mix of challenges 1. Unprecedented set of requirements 2. The immovable deadline 3. Resource-constrained 4. Temporary organisation 5. Supporting the wider aims of London 2012 All under a significant level of media and public scrutiny

31 Finding a Winning Team Recruitment is key attract only the best Selling in the vision/strategy Prioritisation of sustainability, diversity and inclusion attractive to many potential recruits

32 The Challenge 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

33 The Opportunities Contributing to the biggest event in the world in 2012 Learning experience and growth opportunities Meeting glamourous people Being a member of a great team

34 Development Performance review system Training and development programme New projects e.g. sports Helped prepare team members for life after LOCOG

35 Results 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

36 Motivators 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

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