Embed Size (px)
Citation preview
Leading global excellence in procurement and supply
Innovation in Procurement: A Journey that never ends?
Malcolm YoungsonChief Executive Officer
IFPSMPSPTB Conference
Arusha City 7th December 2016
IFPSM
The International Federation Purchasing and Supply Management
Since 1973-ISM and CIPS Co-Founders
46 Member Associations in 4 Regions Africa,AsiaPac,Americas,Europe
Conferences and Events Programme
Help and Support Associations
Accreditation Organisation
The Business Challenges of our Times
• Integrity
• Liquidity
• Marketing & Customer Loyalty
• Short Term Thinking
• Regulatory Environments
• Risk Management
• Talent
The Challenges we face!
• Early Involvement in the Project• The Journey of Process to Performance• Creating Competitive Suppliers• Scarcity of Resources• Price Volatility of Natural Resources• Currency Fluctuations• Regulation and Litigation• Supply Chain Disruption and Disorder• Shortage of TalentAnd………………Around the Corner What Next?
What determines the way an organisation is run?
· Market forces
· Environmental forces
· Social forces
· Specific Customer forces
· Internal forces
· Controllable forces
· Supplier forces
· Political forces
· Cultural forces
· Technological forces
· External forces
· Uncontrollable forces
Probably a combination!
How are we expected to contribute ?
• Treats symptoms• Repairs damage• Recommends action• Refers to specialist• Knows ‘enough’ about
many areas• Can be seen quickly
GP:
• Skilled in specific area• Can work on ‘root cause’• Can offer preventative
action• Often more than one
required • Long wait to see them• More expensive
Specialist:
Probably a combination!
We Have Come Such a long Way!
Purchasing•Process Managers•Operational•Administrators•Conserver Holders•Problem Solvers•Risk adverse
Procurement•Risk Managers•Strategic•Internal Consultants•Adaptor Dealers•Research & Design•Risk Experts
But What do we have to do now?
The Five Dimensions
Process Excellence
People Development
Platform Optimisation
Performance Management
Professional Competence
Process Excellence Review Everything
Map Activities
Analyse the work
Opportunity Assessments
Develop Strategy
People Development
Qualifications
Training Courses
ELearning
Mentoring
Continuing Professional Development
Platform Optimisation Wants and Needs analysis
Objectives and Outcomes
Specification
Selection
Optimisation
PerformanceChange
Knowledge
BPR
Transformation
Game Changing
ProfessionalismPart of a Community of
Practice
More than a Buyer
Professional Credentials
Integrity and Probity
Delivers Real VFM/VA
So lets look at what Professionalism is really all about for the future
How do other departments see us ?
How we see ourselves?
• Market aware• Legally aware• Financially aware• Professional & Ethical• Good communicators• Change agents• Able to ADD VALUE• Able to MANAGE RISK
We ARE:
You don’t have to know all the answers, but you do have to know the questions to ask
How we see ourselves?
• A solo act• A technical expert• A lawyer• A Clerical function
We are NOT:
Making It Happen
The organisation is a business model and the Procurement
Professional is the glue !
Making It Happen
Anything that does not add value or
manage risk is potentially waste
The Procurement Professional has the toolkit to improve and maintain the
organisation’s performance !
The Procurement Professional’s Toolkit:
• Team Dynamics• Capability Mapping• Strategic Modelling• Legal frameworks
• Market analysis• Spend analysis• Process Mapping• Negotiation
THEY WORK - It’s not just theory to pass an exam and then be left on the shelf.
some of the tools
Team Dynamics
TEAMWORK - The spirit of unity that allows a team to utilise a mixed range of skills
A TEAM - A group of people with complimentary skills, committed to a common purpose, with performance goals and a united approach, for which they hold themselves mutually accountable.
ResponsivenessProduct quality
Delivery lead-times
Relationship quality
Reliability
Competitive Price
Market reputation
Customer service
Required
Actual supplier
Supplier capability mapping
Spend
Riskx
Complexity
High
Low High
Bottleneck Core
Routine Leverage
Supplier capability mapping
Legal Frameworks
Local
National
Regional
International
Market Analysis
Industry Competitors
Potential Entrants (Barriers)
Buyers (Barriers)
Substitute Products /
Services (Barriers)
Providers (Barriers)
Porter’s 5 Market Forces
Spend Analysis
£-
£5,000.00
£10,000.00
£15,000.00
£20,000.00
£25,000.00
£30,000.00
Mai
n
Ste
elw
ork
Sta
rt c
ircu
its
Tele
met
ry
Rel
ays
So
ftw
are
Term
inal
s
Po
wer
su
pp
lies
Sw
itch
es a
nd
Mai
n c
irc
uit
Iso
lato
rs
Cab
lin
g
Co
nta
cto
rs
Inst
rum
enta
tio
n
Lig
htn
ing
Po
wer
Fan
s
Fu
ses
Th
erm
o
Met
res
Su
b c
ircu
it
Tru
nki
ng
,
Co
ntr
oll
ers
Po
wer
Su
pp
lies
Tran
sfo
rme
rs
En
clo
sure
s
Dio
de
s
Sp
end
0
2
4
6
8
10
12
14
No
of
sup
pli
ers
Whole Life Costing
$Maintenance Cost
Implementation Training
Procedures AdministrationStorage
Disposal Spares DepreciationCarriage
Revenue Analysis
£0
£500,000
£1,000,000
£1,500,000
£2,000,000
£2,500,000
£3,000,000
£3,500,000
£4,000,000
£4,500,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
Client Code Number
Ann
ual R
even
ue
0
5
10
15
20
25
Ann
ual Q
uote
s Is
sued
Supply Chain Process Mapping
• Risk (H, M, L)
• Value Added (H, M, L)
Phases of Negotiation
Strategic analysis
Know your limits
Strategic choice
PrepareTeams?
Persuasion
Presenting the need for change
Receiving info
Giving concessions
Agreeing
Closing
Negotiate
StrategicImplementation
Review & monitor
Implement
Continuous Improvement
Negotiation
Arrange objectives using the L.I.M.IT approach
Objectives you would LIKE to achieve
Objectives you INTEND to achieve
Objectives you MUST achieve
The Benefits of ProfessionalProcurement & Supply Chain Management
An opportunity to be innovative and learn from others
A realisation of the levels of performance that can be achieved
An opportunity to reduce
WASTE in all its forms
What’s in it for me?
+ -
+
Add value Reduce risk
Cutsupply chain waste Improve reputation
The Individual
Career developmentRecognition
The Organisation
Value Add activities Risk Management
Countries and Neighbours Trust
Fair Trade
The Industry
Standardised Practices Standard ‘rules of
engagement
Message
Procurement & Supply Chain Management is not just about managing suppliers.
It is about managing your
WHOLE BUSINESS
Procurement & Supply Chain Management in your Business
T&C sSCMTQM
Scope Of Work
Relationships OrganisationCommunication Motivation
RISK( Probability X Impact )
Time
Best Practice
So In Conclusion
The Future is already with us we just need to use it NOW!
Thank you very much for listening to me…
ANY QUESTIONS ?
