Autumn Procurement PDF

APPOINTP R O C U R E M E N T

THE GLOBAL MAGAZINE FOR REED. FIRST CHOICE FOR RECRUITMENT

THE AUTUMN 2015 EDITION

PROCUREMENT: THE VITAL COG

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2 Autumn 2015 | Procurement

Inside this issue

3 How to Get negotiation right by doing your research, examining your goals and being patient

9 Learning on the job The first Advanced Apprenticeship in Procurement has been launched

12 Cog in the machine Effective supply chains can make or break organisations. Supply chains skills are vital

16 The right balance Diversity makes good business sense.

But men still outnumber women in top procurement roles

6 Need to know Top external challenges for procurement operations; biggest resource challenges for supply chains; category management savings

8 The global jobs market How procurement and supply chain jobs are spread worldwide

21 My career path What made Joseph McCracken MCIPS, choose a career in procurement

FEATURES NEWS & VIEWS

PROFESSIONAL PRACTICE

Senior procurement professionals often say they ‘fell into’ procurement, rather than actively seeking a career. It’s a common scenario that the profession’s institute, CIPS, is trying to address, by highlighting procurement to school leavers and graduates as a diverse, interesting and lucrative career option. In light of this, the first Advanced Apprenticeship in Procurement has been launched (page 9). But the issue continues to exacerbate skills shortages in supply chains, jeopardising the role they play in organisations’ growth. Having the best skilled professionals (page 12) and encouraging gender diversity (page 16) will make all the difference.

A diverse, interesting career

Welcome p2

3

The ability to reach a beneficial solution with suppliers and stakeholders is fundamental for the procurement function

Career tips

“Rushing things can result in opportunities missed and savings lost. Do your research so you are aware of all

available options”

Autumn 2015 | Procurement

p3

How to… getrightnegotiation


Career tips

Strong interpersonal skills are essential for procurement professionals. “We need to ask questions, understand the business’ requirements and not

be afraid to challenge the status quo,” says Chris Ayscough, purchasing director at SITA, in the latest best practice video from REED. This is also an apt description of what procurement must do during negotiations – another vital skill. So what does successful negotiation look like and how can professionals develop the ability to reach the best solution for all parties?

Examine your own goals It’s surprising how many organisations begin negotiations not knowing what they want. If you’re buying products, what specification do you need? If you’re purchasing services, what kinds of people do you want involved? Don’t go into a negotiation setting with vague ideas of requirements. Know what your BATNA (Best Alternative To a Negotiated Agreement) is before you start. Devised by co-founders of the Harvard Negotiation Program, Roger Fisher and William Ury, this refers to the stage when negotiation stops, and agreement cannot be reached. Don’t accept anything less than this. Thoroughly research the factors that will help you decide what your BATNA is, and ensure it is actionable – it should be seen as a way of leveraging negotiations further. Equally, don’t be rigid. Be prepared to adapt it as negotiations progress. If the supplier has done their preparation sufficiently you should be made aware of alternative solutions which may be more appropriate.

Do your research You must be aware of your suppliers’ challenges and understand their goals. They want to win your business, but they might not want to win it under any circumstances. Inform yourself of their current and previous clients, learn what you can from peers or competitors about their approach to negotiation and try to understand their business strategy and challenges they face. What kind of market are they operating in? Don’t focus on your own challenges; instead focus on the supplier’s. That way you can have control of the situation and establish where they might be willing to be flexible. If a particular supplier does win the contract, this knowledge will also enhance your supplier relationship in the long term.

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Be patient Rushing the negotiation process can result in opportunities missed and savings lost. Give yourself enough time to carry out research, and undertake full discussions with the other party, so you can ask all the pertinent questions and truly understand the options available. This will enable you to make the most informed decision you can. At the same time, don’t allow conversations to continue ad infinitum. Know when the negotiation is not going anywhere, and when the time comes to take a step back.

“Rushing things can result in opportunities missed and savings lost. Do your research so

you are aware of all available options”

Don’t be aggressive It might seem a good idea to aggressively push for what you want no matter the consequences but, even if this works, it will only do so in the short-term and will result in a poor supplier relationship. Show that you are listening to suppliers in negotiations and acknowledge their objections. Have alternatives to disputed points prepared. For example, if a supplier cannot offer at that price can they suggest a longer-term contract for a cheaper deal? If you take a respectful approach, there will be more trust in the relationship, which ultimately leads to stronger negotiation.

To watch REED best practice videos, visit

reedglobal.com/pscvideos

Career tips p5


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Need to know

Category management = a strategic approach to organising procurement resources to focus on specific areas of a company’s spend

12% The savings rate produced by optimised category management

5% The amount of organisations which describe their category management as “fully optimised”

p6

132

5

7

89

64

Supply chain risks

Oil

Regulation and audit

Tax

Eurozone crisis

Supply chain fraud

Fluctuation in currencies and exchange rates

Lack of supplier

innovation

Political risk

Top 9 external challenges for procurement operations

Source: Xchanging

Biggest resource challenges for supply chains in next 10 years

1 People

Where will skills shortages exist for supply chains?

2Water

How much will water shortages affect supply chains?

3Energy

How much will energy cost over the coming decade?

Source: SCM World


“Supply chains cannot tolerate even 24 hours of disruption. So if you lose your place in the supply chain because of wild behaviour you could lose a lot. It would be like pouring cement down one of your oil wells.” Thomas Friedman, author

“You need to understand what you are buying, and why, how it will affect your business, and what the potential risks are. That detailed understanding may be beyond the scope of a procurement department.” Owen Williams, engineer and architect

“If you pick the right people and give them the opportunity to spread their wings – and put compensation as a barrier behind it – you almost don’t have to manage them.” Jack Welch, General Electric

“Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.” Steve Jobs, Apple

Soundbites

Need to know p7

44%

18%

OF PROCUREMENT PROFESSIONALScite “very close” relationships with Finance, IT and Sales and Marketing

OF FINANCE, IT AND SALES & MARKETING PROFESSIONALS cite “very close" relationships with procurement

Sources: FreeAgent, Wax Digital

13%OF MICROBUSINESSES wait more than one year to be paid

http://www.brainyquote.com/quotes/quotes/t/thomasfrie342293.html







THE GLOBAL JOBS MARKET

LATIN AMERICA Pace of growth has slowed significantly, affecting labour markets

GDP forecast to fall below that of advanced economies for the first time since 2002

Unemployment is growing across the whole region, particularly in countries reliant on export of natural resources

MIDDLE EAST AND NORTH AFRICA Socio-political transitions continue to weigh on employment prospects

GDP growth is estimated to be 2.6 per cent in 2014, growing to 3.8 per cent in 2015

Projected economic growth is not sufficient to reduce high unemployment rates

SUB-SARAHAN AFRICA Strong growth rates remain despite infrastructural weaknesses and institutional challenges

Highest labour force participation rate of all regions at 70.9 per cent, compared with 63.5 per cent globally

Unemployment, at just under eight per cent, is expected to remain stable in 2015

EUROPE Labour markets increasingly affected by economic and political turmoil

Uneven and fragile recovery

Turmoil in financial markets may make it difficult to bring unemployment back to pre-crisis rates

SOUTH AND SOUTH- EAST ASIA Jobless growth persists

In 2010 to 2014, overall employment grew by 1.8 per cent per year

Growth has been hampered by Indonesia’s weak exports since 2013

EAST ASIA China’s slowdown to 7.4 per cent in 2014, from 7.7 per cent in 2013, is affecting growth prospects of entire region

Unemployment has increased to 4.7 per cent in 2014

For young people, unemployment is highest, at 10.5 per cent

Need to know p8

SOURCES: International Labour Organization, LinkedIn, www.supplibase.com, CIPS

Numbers of people working in procurement around the world

US – 10.8 million

UK – 398,116

INDIA – 237,227

AUSTRALIA – 185,484

CANADA – 148,588

103,000 members of CIPS work in the UK, Middle

East and Africa, Sub-Saharan Africa, Australasia,

China, Hong Kong and India

9

The first Advanced Apprenticeship in Procurement has been launched, just as the government announces that the word “apprenticeship” will be enshrined in law. Only recognised, high-quality qualifications can legally be described as apprenticeships

Apprenticeships


p9


Apprenticeships

More than 2.2 million apprenticeships have been launched since 2010, and the government

has promised to deliver 3 million by 2020.

Apprenticeships are increasingly favoured by organisations, helping them to grow their own talent by developing a motivated, skilled and qualified workforce.

“Our figures show that 81 per cent of apprentice employers say they make their businesses more productive (with the average apprentice-completers increasing productivity by £214 per week) and 80 per cent of apprenticeships reduce staff turnover,” says Angela Gill, employer & delivery service manager at the National Apprenticeship Service.

It comes as little surprise that procurement, a sector which suffers both a significant skills gap and finds it difficult to attract candidates

now has its first apprenticeship. According to CIPS, 65 per cent of purchasing staff require improvement in their skills and, coupled with an ageing workforce, the industry experiences talent gaps. In partnership with the City of London Corporation, the institute has launched the Level 3 Advanced Apprenticeship in Procurement, which aims to boost both technical competencies and core skills such as literacy and numeracy.

Equivalent to two A-Levels, the apprenticeship has been developed to include two qualifications: the Level 3 Diploma in Procurement and Supply Chain – that demonstrates the apprentices’ competence in the role, and the Level 3 CIPS qualification Advanced Certificate in Procurement and Supply Operations, which provides the under-pinning knowledge.

Candidates undertake 265 hours of training, which is predicted to take 18–24 months to complete. The diploma has a number of mandatory

and optional modules dependent on a job role, in areas such as identifying and appraising potential suppliers of non-critical supplies, placing and expediting orders with suppliers and administering

contracts. Apprentices also learn how to manage procurement in accordance with EU Public Procurement Rules.

The CIPS qualification has five units that provide apprentices with an understanding of the challenges facing procurement professionals, in relation to supply environments, supply operations, supply workflow,

supply relationships and inventory and logistics operations.

“The apprenticeship provides employers with a clear programme of learning and development to attract new employees into the sector,” Gill says. “It can provide flexible routes for those wishing to get into procurement roles and progress to a range of higher level jobs. It can offer opportunities for existing staff to gain Level 3 qualifications which recognise their knowledge and experience, or it can be used to replace staff who leave or retire.”

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"Having a respected qualification to improve the

skills of the existing and current workforce will

undoubtedly boost employment opportunities

and help address the persistent skills gap"


Apprenticeships

Barbara Hamilton, head of Adult Community Learning, Community & Children’s Services at the City of London Corporation, adds: “Launching the apprenticeship will help raise the quality of candidates and provide young people with a respected qualification in a diverse and interesting career.”

This is particularly important for a profession such as procurement, which many school leavers are not aware of as a career option.

“Procurement is often considered an ‘invisible industry’, but it is the engine driving many sectors,” says Mark Boleat, policy chairman at the City of London Corporation.

“Making sound purchasing decisions and managing a complex supply chain are vital to many businesses. Having a respected qualification to improve the skills of the existing and current workforce will undoubtedly boost employment opportunities and help address the persistent skills gap.”

In addition, procurement apprentices will receive insight into the wide variety of procurement and supply chain jobs available, including assistant buyers, assistant contract officers, contract analysts and stock and inventory controllers and planners.

“The training will hopefully help candidates understand the varied and rewarding career paths within the procurement discipline,” says Hamilton.

“The qualification can open doors to a wide variety of sectors including retail, public sector and finance. We are confident this development will represent a game-changer in the industry and more young people will consider procurement as a viable career option.”

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IBM Software giant IBM developed an apprenticeship programme to help meet the “severe shortages in IT and technical skills”, according to Jenny Taylor, UK Graduate, Apprenticeship and Student Program manager. The three-year scheme leads to a Level 3 diploma qualification, and apprentices join as permanent employees of IBM on the first day of their apprenticeship. They receive a range of work experience, testing and developing programs and project management, and take up client-facing roles.

“As a new channel it was a bit scary at first because everyone has to be client-facing at IBM, and they need all those skills that are saleable, but it has exceeded all our expectations,” Taylor says. “Our apprentices have a tremendous work ethic and a desire to succeed. They are more cost effective and have a much lower attrition rate.”

Emma Pople, a technical apprentice who began at IBM after completing her A-levels in maths, economics and computing, says she has gained confidence and improved her communication skills. “It’s an opportunity to earn while you learn, and it’s very different from going to university and coming out with three years’ debt,” she adds.

12

Managing increasingly complex global and virtual supply chains plays a crucial role in organisations’ survival and growth. What skills do supply chain professionals need and how can they get them?

Supply chain skills


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Supply chain skills

The activities undertaken by supply chain professionals cover a wide range of organisations’ activity

and spend. Effective supply planning, procurement and sourcing, demand planning and forecasting, and logistics and distribution all contribute to cost and time savings. In particular, reduced time to market, increased efficiency and effective cost savings, can all help meet consumers’ increasing desire for products and services, ‘anywhere, anytime’.

Recognising the value of effective supply chain management, the Confederation of British Industry has called on the UK government for targeted action to revitalise domestic supply chains, injecting £30 million into the UK economy and creating more than half a million jobs by 2025 in the process.

At the other end of the spectrum, a lack of knowledge about organisations’ supply chains can

have disastrous consequences for reputation and revenue. International news stories highlighting unsustainable sourcing methods or buying from organisations employing children or adults in unsafe conditions have rocked the profession.

Cost accounting, project management and problem solving are just some of the skills needed to understand the complexity of upstream and downstream supply chains, and the threats and opportunities afforded by both. Yet, Deloitte found that just 38 per cent of the 400 supply chain leaders it interviewed in its annual survey of supply chain professionals, are “extremely” or “very confident” in their supply chain organisations.

The implications of this for organisations are significant, not least because supply chains are subject to such change. Deloitte’s report notes the “rapid changes in supply chain activities, tools and goals, which call for new skills

in management and leadership”. Organisations need to both establish the supply chain skills they are lacking now, and predict the skills they will need for their future supply chains.

“Supply chains evolve over time, in some eras more quickly than others,” say the report’s authors, Ben Dollar and Kelly Marchese. “The coming years will most likely be one of those eras of dramatic transformation thanks

to a combination of accelerating technology development and widespread experimentation with new operating models.”

For example, professionals will need to understand advanced analytics in order to predict trends from the reams of data generated by supply chains. This growing area involves analysing not just historical data of organisations’ needs for certain products and services at different times, but also using predictive analytics to anticipate how changes in the economy or competitive environment might affect what a company offers.

In addition, operating models for supply chains are moving towards “centres of excellence”, in which organisations group their supply chain expertise and knowledge into one physical or virtual area of the company. Nearly half (48 per cent) of supply chain executives expect their organisations to change to this operating model for their high-value supply chain activities in the next

p13

52% of supply chain professionals think their organisation has a

‘very good’ ability to negotiate and collaborate

with partners


Supply chain skills p14

five years, “with an eye to leveraging scarce talent”, says Deloitte.

Skills shortages currently lie in leadership and professional competencies. Despite 79 per cent of respondents saying they are extremely important, just 52 per cent said their supply chain organisations had a “very good” ability to negotiate and collaborate with partners. The other professional competencies were ranked as “very good” in the minority of respondent organisations; collaborating across functions (47 per cent); strategic thinking and problem solving (43 per cent); ability to manage global and virtual team (43 per cent); ability to persuade and communicate effectively (42 per cent).

Technical competencies are “extremely” or “very important” to 73 per cent of respondents, yet shortages across all areas apply. A small majority of organisations say they have competence in the areas of compliance/regulatory

expertise (58 per cent); sourcing and procurement practices (51 per cent) and planning and scheduling practices (50 per cent). But there is even more room for improvement in competencies within logistics and distribution practices (49 per cent); analytics (46 per cent); process engineering and redesign (42 per cent) and manufacturing and operations practices (41 per cent).

There are a number of practices that organisations can adopt to upskill team members. One aspect of high performing procurement organisations that Deloitte identified was that they typically establish a separate supply chain function within the company led by either an executive or senior vice president. This enables the skills and best practice required to be identified and honed within organisations, and given the necessary attention at the highest levels of the company.

In addition, high performing companies rely on a holistic approach to talent management

which recognises that their organisations’ investments in enabling technologies and advanced supply chain management concepts must be matched by advances in talent management capabilities.

This approach involves adopting an attitude of continuous improvement in both professional and technical skills: constantly focusing on current and future skills requirements and gaps, and investing in a range of development methods – both formal and informal – to address them.

At a more detailed level, organisations can look to determine what competencies are necessary for performing a given role which will enable them to avoid pigeonholing jobs into generic roles, instead reflecting the idiosyncratic nature of particular jobs, and identifying the skills needed to meet them.

Adopting an approach to recruitment which encourages diversity, considers career paths for professionals which encourage

cross-functional skill sharing and examines how different supply chain roles can work together across the entire organisation can result in a detailed examination of skills competencies. For their part, external recruiters can advise on both external skills pressures and trends, and encourage non-traditional talent pools to consider.

Dollar and Marchese say that, “relative performance in supply chain management has become more boardroom relevant than it has ever been”. Now is the time for supply chain professionals and supply chain organisations to really hone the skills they have.

Essential skills for supply chain professionals

Business process design and redesign Identifying processes needed for supply chain activities.

Contract management Including negotiation, compliance and understanding legal issues.

Data integration Combining technical and financial data from a range of sources.

Interpersonal skills The ability to effectively communicate, persuade, influence, facilitate, co-ordinate, manage change and challenge existing policies and procedures.

IT integration Understanding how IT systems can be combined to work effectively and what role e-commerce can play.

Outsourcing Establishing when and what aspects of the supply chain should be outsourced from the organisation to increase efficiency and reduce cost savings.

Project management Including problem solving, planning, motivating and achieving specific goals.

Relationship management Communicating effectively and openly with external suppliers of all kinds and relevant internal stakeholders, including Planning, Sales, Marketing, Finance, Production/Operations, Procurement and Logistics/Distribution.

Risk management Understanding and preparing for risks arising from global economic, environmental, political, regulatory and cultural issues.

Supply chain modelling Understanding the range of supply chain models to measure total performance of upstream and downstream supply chains, including inventory management, performance management and cost accounting.

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Supply chain skills p15


16

Diversity makes good business sense. Yet within senior procurement and supply chain roles, men outnumber

women. Why?

Gender diversity


p16

Thebalance

right


Gender diversity

James Surowiecki’s landmark 2004 book, The Wisdom of Crowds: Why Many Are Smarter Than The Few and How Collective Wisdom

Shapes Business, Economies, Societies and Nations, highlights how diverse groups make better and more accurate decisions than individuals.

“If you don’t understand what diversity is about, this is the book to read,” says Shirley Cooper, commercial director of Tapestry Compliance, chairman of CIPS’ Fellows and past president of CIPS.

The business case for diversity is becoming increasingly clear – a range of research from around the world has identified that having a diverse workforce isn’t just a nice thing to do, but has a financial imperative.

Deloitte in Australia’s Diversity, Inclusion and Business Performance Survey of more than 1,550 people, found that when employees think

their organisation is diverse and feel included, an 83 per cent uplift in ability to innovate, a 31 per cent increase in responsiveness to customers and a 42 per cent rise in team collaboration are reported.

Diversity doesn’t just have a positive effect on employees, however; “Consumers are interested in knowing where they are buying from,” says Gill Thorpe, CEO of the Sourcing Team. “Companies have to have relevance to them, they have to understand the market.” Shirley Cooper agrees, pointing out that retailers “often quote that 80 per cent of their customer base is female”.

For procurement professionals specifically, diversity is also an increasingly important consideration for supply chains. According to Achilles, which manages and consults with a network of buyers and suppliers, diverse supply chains benefit from the different advantages of larger suppliers – global services, competitive prices

and legal protection – alongside the locality, flexibility, efficiency and quicker service offered by SMEs.

In addition, encouraging the development of supply chains with female or ethnic-minority owned small and medium-sized businesses, can create a resilient, innovative and forward-thinking supply chain, which is effective at reducing risk and increasing opportunity, Achilles says. 96 per cent of women and 74 per cent of supply chain practitioners surveyed by SCM World said that the skills which are commonly believed to be typically ‘female’ – including emotional intelligence, humility and steadfastness – are “advantageous” for supply chain management.

There is a growing movement to encourage buying organisations to choose female-owned companies, in particular. Shirley Cooper runs the Blueprint Club on LinkedIn, a networking group for women in procurement, and works with WE Connect International, a not-for-profit organisation which certifies corporate members with at least 51 per cent female ownership, management and control. Members are then connected to senior procurement professionals in organisations in the public and private sector.

Its research, in conjunction with Bizas Coaching & Consulting and Talent Innovations, found that although women possess the essential qualities needed to lead businesses, they are not utilising those skills to progress to senior leadership roles.

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"Encouraging the development of diverse supply chains can create a resilient, innovative

and forward-thinking supply chain, effective at reducing risk

and increasing opportunity"


Gender diversity

The majority of more than 1,000 female respondents said that they were known to deliver, were good at what they do and got results. In addition their strengths included motivating others, making a difference to their teams and standing with pride.

Yet the areas in which they were less confident included managing their profile, talking about their success with peers and personal career development. “When you consider the type of politicking and

networking needed to progress up the ranks of a company, it becomes clear that a natural modesty is a major contributor to what’s holding women back from progressing in their jobs,” says Ishreen Bradley, founder of Bizas Coaching & Consulting.

Other figures suggest there is a long way to go before women are equally reflected in procurement within organisations. A review of Fortune Global 500 firms with physical supply chains by SCM World found that just 10 per cent of senior leadership roles in supply chain operations are held by women. This compares with 24 per cent of leadership roles being held by women across all areas of business worldwide.

Starting out in procurement, however, is a different story. “At the junior level it seems to be more balanced, particularly at the clerical level, there seems to be a fair representation of women and men,” says Shirley Cooper.

One issue is the way procurement is promoted as a career option. “Anecdotally we hear that people ‘fall into’ procurement as a career,” Emma Scott, representation manager at CIPS said on the launch of beabuyer.com, its website designed to promote procurement and supply management to school leavers and graduates as a profession of choice.

In professions with a shortage of women at low levels, such as engineering, the lack of diversity can in part be explained by low numbers of girls choosing STEM subjects throughout school and university. If people tend to “end up” in procurement, however, whether from school, university, or another role within an organisation, men and women are more likely to be represented in equal numbers.

However, like other professions, the gaps in diversity emerge as individuals move through the ranks. “As soon as you start to go up the food chain, as soon as the

promotions start, that’s where the diversity starts to weaken,” says Cooper. Also like other professions, the gaps in seniority levels between men and women also lead to gaps in pay between the genders (see table).

There’s a number of reasons for this, typically driven by the factors that emphasise differences between the genders more generally. Firstly, business has traditionally recognised and rewarded what are often thought of as male traits: competitiveness, assertiveness and dominance, for example. The cultural dynamics of the business are often driven by these traits. Cooper cites many examples of women not applying for top jobs for a whole host of reasons.

“Women just don’t think to promote themselves,” she says. “As you start to go up, there are all sorts of politics involved with the culture of the company, the way the job adverts then get written, the way people are interviewed, the

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Gender diversity

competencies required for a job. Men and women have different natural competencies, particularly relating to personal promotion.”

However, as SCM World’s and WE Connect International’s

research shows, so-called female

qualities are in demand.

“Women in the supply chain are too few,” says Kevin O’Marah, chief

content officer at SCM

World. “Yet it seems we all

believe they bring something to the party

that will make it better.”

For Gill Thorpe, women need to get more confidence about pushing themselves forward when they get to a particular level. “There is

that middle section where women tend to get held back because they haven’t got someone there to drive them forward, women are terrible at going, ‘oh, I don’t know if I’m good enough’,” she says. This is why WE Connect International and a whole host of other networking organisations exist.

For companies, on a practical level, encouraging mentoring can inspire women to understand their abilities, and get past the cultural dynamics which might seem to work against them.

“I think there is a certain level where there is a great support within businesses, but it stops,” says Thorpe. “It has to come from the very top of the business. Virtually every corporate puts out there all that information about their diversity, but they need to ensure everybody within that business understands why diversity is a benefit and what it really means.”

This requires flexibility of work,

the lack of which provides another reason that women tend to occupy fewer senior roles and earn less than men – they are typically providing caring roles elsewhere. Thorpe says that when women apply for certain roles there is definitely still a feeling of “is she going to be right for that role because she may be going to have a family?” “The stigma has to be taken away,” she adds.

Practically, says Cooper, this means “positive action”. “What time do you hold your key meetings – is it 8am or 6pm? This is a basic, key question. Looking at flexible working policies would be a number one step for me,” she says.

In addition, examining job adverts

and competencies required can help organisations and recruiters look at whether their corporate culture embraces diversity. Shirley Cooper was headhunted to be procurement and supply chain director at COMPUTACENTER. If she had seen the job advert and the job description first, “I would never have applied for it”, she says.

“The language has to be diverse and neutral and that is an art in itself,” she adds. “In a procurement job, if you put something out there that says something like ‘single-minded, needs to smash targets’, who is going to apply for that job? Men will. “If the language is different, ‘team driven, highly focused, delivering significant value to the business’, everybody will feel comfortable applying for that job.”

Ultimately, the notion that diversity is not just a morally right thing for organisations to have, but commercially vital, has to become part of corporate culture. “The executive board, the non-

p19

“When you consider the type of politicking and networking

needed to progress up the ranks of a company, it becomes clear

that a natural modesty is a major contributor to what is holding women back from progressing in their jobs”


Gender diversity

executives, they need to be sending out the right message and delivering that through the business,” Thorpe says.

“I think there are many organisations who are starting to really understand that if they want the talent, they have to change. Women bring a whole list of different talents and it’s so critical to have that on a procurement team.”

p20

Average salaries in procurement across genders

Level Average difference

Pay gap

Advanced professional

£10,300 15%

Professional £5,700 13%Managerial £3,600 10%Operational £2,300 8%Tactical £0 0%

Source: CIPS


Working life p21

The modules on his masters degree piqued Joseph McCracken MCIPS' interest in procurement as a career

My career pathProcurement as a career choice first caught my attention while undertaking my masters. The course consisted of modules such as Contract Development, which focused on construction contracts. This was the first insight into a profession that I didn’t know existed. From this I felt procurement and supply chain would be the type of career that matched my skills and ambition.

The variety of the job has meant the decision to choose procurement as a career was the correct one. After leaving university and entering the job market I always knew I wanted to be involved in a fast-paced business environment that involved collaborating with various stakeholders. I simply didn’t want to be stuck in a back office all day. Procurement offers me the opportunity every day to meet existing and potential suppliers, formulate strategy for the business’ needs, keep up-to-date with the external market environment and make decisions that can have an impact the bottom line of the company’s accounts.

There are two aspects of the job that I enjoy greatly. The long-term strategy and vision that procurement needs to put plans in place that will benefit the business, and the ability to go out and analyse an open market and frame the business’ needs around the capabilities of the supply chain is

always interesting. The second part I enjoy the most is getting the best deal for the business that will have a direct impact on our budget. The oil and gas industry currently faces a challenging external environment. Procurement can be seen to make the difference, and actually delivering savings to the business is very rewarding. However, if I had to choose, I would probably go with getting the best deal!

The biggest challenge is maintaining the performance levels of the supply base. People often think that the hard work stops once the contract is signed and executed; this is not the case. All the hard work put into awarding a contract and conducting all the necessary market analysis during the tender period can easily go to waste if the selected vendor does not meet the expected performance requirements of the business. This is why supplier performance management is so important; holding the supplier accountable to their deliverables contained within the contract and reviewing defined KPIs to ensure performance is maintained to an agreed level.

If I wasn’t working in procurement I would love to say I would be a professional footballer or something equally as glamorous but I never had the talent. Perhaps something in food, either opening a restaurant or a chef!

J O S E P H M C C R A C K E N M C I P S , P R O C U R E M E N T A N D S U P P LY C H A I N M A N A G E M E N T S P E C I A L I S T , B P

1. A-levels in business studies, geography and English literature

2. BSc (Hons) Environmental Planning, Queens University, Belfast

3. MSc Construction and Project Management, Queens University Belfast

4. CIPS Level 4 & 5 Diploma

5. Operative buyer, Sandvik Mining and Construction

6. Bus systems team manager, London 2012

7. Procurement & supply chain specialist, Global Projects Organisation, BP

8. Procurement & supply chain specialist, Global Operations Organisation, BP


Working life p22


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Autumn Procurement PDF