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Your global network of procurement professionals WINTER 2014
UPCOMING EVENTS
IFPSM Europe Virtual Meeting 19 January 2015 IFPSM Board Meeting 11 March, 2015 Oslo, Norway IFPSM Europe Meeting 13 March 2015 Oslo, Norway (TBC) Asia Pacific Meeting 22 June 2015 Singapore (TBC) IFPSM Europe Virtual Meeting 13 July 2015 IFPSM Summer School 6-10 July 2015 Netherlands IFPSM Board Meeting 16 September 2015 Barcelona, Spain IFPSM Council Meeting 17 September 2015 Barcelona, Spain IFPSM World Summit 2015 18-19 September 2015 Barcelona, Spain Asia Pacific Regional Meeting 27 November 2015 Taipei, Taiwan (TBC) IFPSM World Summit 2017 Taiwan
IN THIS ISSUE:
IFPSM Awards 2014 Sweden Minister New Partnership
The Future it's in your hands A profession in Transition
IFPSM Meetings Colombo ISMM International Seminar
IFPSM Global Standard Stop Press
13 17 18 20 22 23 24 26 28
President’s Report
Upcoming Events Association Listing
CEO Report IFPSM Board Elections 2015
A Picture is worth a thousand words IFPSM Summer School 2014
New Board Member NEVI & SILF
Help required on history of IFPSM
01 01 02 04 07 07 10 11 12 12 www.ifpsm.org www.pgstandard.org
President’s Year End Report
2014 has been a year of change and progress for IFPSM.
We said farewell and Bon Voyage to Charles Holden and thanked him for his
wise and sensitive leadership over many years and welcomed Malcolm
Youngson as the new CEO in February.
We introduced new members to the Federation during 2014 while maintaining a
positive dialogue with associations who left us over the last few years and were
fully engaged with a significant pipeline of potential members of IFPSM.
Importantly, we have achieved an excellent retention rate of members
throughout the year and grown the Global Standard pipeline of organisations
who seek accreditation.
APICS from the USA joined our family early in 2014 as did SAPP from Serbia.
These two associations have added their expertise to the Federation and have
strengthened our global reach.
They also illustrate an ongoing challenge for IFPSM which is to offer a full suite
of opportunities that are tangible to members from across the world and
beneficial to associations who have just commenced their journey or are fully
mature associations.
IFPSM has welcomed new Board members from Asia and Africa during 2014,
elections are now fully transparent and allow all members to become actively
engaged with their Federation’s development strategy.
At the Sri Lanka Council meeting it was agreed to endorse a new membership
tier structure that will be implemented for the membership year of 2015. This
new structure is designed to allow members to understand our fee structure
and again increase transparency for future members.
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Association Listing
AACAM Argentina
ABCAL Belgium
AERCE Spain
APICS USA
APCADEC Portugal
APROCAL Mexico
BME Germany
BMOE Austria
CAP Croatia
CAPP Trinidad & Tobago
CBEC Brazil
CFLP China
CIPSMN Nigeria
DILF Denmark
Forum Einkauf Austria
FZUP Russia
HALPIM Hungary
HPI Greece
IAPI Indonesia
IIMM India
IIPMM Ireland
IPLMA Israel
IPPU Uganda
IPSHK Hong Kong
ISMM Sri Lanka
JMMA Japan
KISM Kenya
LOGY Finland
MIPMM Malaysia
MIPS Malawi
NEVI Netherlands
NIMA Norway
PASIA Philippines
PISM Philippines
procure.ch Switzerland
PROLOG Estonia
PSCMT Thailand
PSML Poland
SAPPP Serbia
SCMA Canada
SILF Sweden
SIMM Singapore
SMIT Taiwan
VIB Belgium
ZNS Slovenia
Project update 1
President’s Year End Report Contd.
In Sri Lanka, the Council meeting which was hosted superbly by ISMM, also
agreed to extend the Affiliate membership grade to Universities and this will be
implemented during 2015.
ISMM is a fantastic example of an Association that proves how a committed team
of volunteers can deliver benefits for its members and also play a strategic role in
supporting its nation’s aspirations. I would urge members of IFPSM to use their
membership of IFPSM and connect with them to learn from their development
story and experience.
As your President I have represented the Federation and the Profession during
2014 on many occasions across the world at international conferences and it is
very obvious to me how global our profession is and how collaboration is key to
success both for our member associations and this also can deliver a commercial
advantage.
IFPSM provides a conduit for collaboration which is unique and I have seen real
benefits being delivered for those members who are fully engaged with the
Federation.
My call to action for those members who do not currently maximise their
membership of IFPSM is to connect with colleagues in other Associations through
the IFPSM regional structure.
During 2014 the Europe region has delivered many opportunities for this to take
place under the leadership of Jan Willem Van der Meer of NEVI and I am
delighted that the Asia/Pacific region is following their lead through the
leadership of the region’s RVP Akanit Smitabindu of PSCMT. The region now has
a clear action plan in place created from their recent meeting in Manila which
was hosted by PASIA and which will deliver more tangible benefits for those
members in 2015.
We welcomed Chris Oanda from KISM in Kenya to the Board in 2014 and Chris
now has the responsibility as RVP for Africa to lead this region and to fully engage
with IFPSM, again for the benefit of those members.
Malcolm, who attended the KISM East Africa Regional Conference in Kigali
Rwanda during October, continues to share the lessons he learnt from them and
how a national association can collaborate with partners to bring change to a
nation and a region.
He also travelled to Nigeria during 2014 and again there is a great deal that we
can learn from the development of CIPSMN and its support to the profession in a
fast developing economy.
3
We are currently holding an election for the RVP position that will lead the Americas region as Cheryl Paradowski,
the current RVP for this region, was elected by the Board to the President Elect position and will replace me as
President in 2016.
I urge all members within that region to step forward and seek election to this vital strategic post within the Board of
IFPSM.
Looking forward to 2015, IFPSM must continue on its change path and increase the pace of our development.
We must offer more tangible and appropriate benefits such as the recently launched Monthly E-Zine.
We must listen more to you, to fully understand what you want from IFPSM and strive to bring our family of nations
closer together for the benefit of the associations, their members and the development of the profession.
I look forward to welcoming all members to the World Summit in Barcelona in September and at the Regional
meetings.
Godt nytår
Søren Vammen
IFPSM President
President’s Year End Report Contd.
4
It came to my attention recently that 2014 is the Chinese Year of the Horse and certainly this is appropriate for me as
since I joined IFPSM in February, I have galloped around the world representing your Federation and visited Estonia,
Switzerland, Nigeria, Ireland, Rwanda, Sri Lanka, USA, Thailand, Hong Kong, the Philippines and Taiwan.
I have on occasions stumbled and almost fell at the first fence in Tallinn (y ou would have had to been there to see my
spectacular tumble) but have recovered to finish the race, I hope successfully.
It is such an honour to have these opportunities and I am incredibly proud to be your representative and attend
some inspiring conferences and events in amazing cities such as Lagos, Kigali, Las Vegas, Colombo, Bangkok, Manila
and Taichung.
During my race round the world I have met some amazing individuals and associations such as CIPSMN in Nigeria,
KISM during their East Africa Regional Conference in Rwanda and ISMM in Sri Lanka who are proactively supporting
their countries aspirations to become a major regional hub by 2020.
During my visit to Rwanda I met Nkunja Eilud who is leading on a project that will bring procurement into a strategic
role, that supports the development of small and local farmers to provide a service to their local schools, to ensure
that school children receive a healthy and nutritious diet and that the profession delivers sustainable change.
Opportunities such as these confirms the shared vision that members of IFPSM have and how our profession is much
more than a transactional function but can and must become more strategic to deliver the full range of economic
and social benefits to our nations.
Members of IFPSM play a key role in achieving this mission and I am extremely fortunate to play a small role
supporting your endeavours.
One initiative that I have been privileged to play a small part in is the development of the ISO standard for
sustainable procurement which our Netherlands member NEVI is leading for IFPSM. This will result in a new global
procurement standard and the involvement of IFPSM and its members in this project will impact positively on the
whole world.
IFPSM is an incredible and unique family of associations who come together to share their knowledge and expertise
freely and not for commercial gain, but to develop the profession.
A recent example of this took place at the IFPSM Council meeting in Sri Lanka where members from across the world
met together to test and support the development of the Federation, but as importantly, to support each other and
provide thought leadership across the whole network.
This was my first experience of our Council meeting and the member’s passion and commitment was thrilling to
observe.
CEO’s Report December 2014
5
Many excellent initiatives such as a new buddy system were debated and adopted, so please let me know who within
your organisation would like to take this opportunity to buddy with members across the world and share your
development story and expertise with other IFPSM family members.
This is a great volunteer/staff opportunity.
We also enjoyed four stimulating workshop sessions and supported the Board decision to introduce a new
membership fee tier system that will be more transparent and equitable for 2015.
Please check out the IFPSM web site to see a copy of the minutes which give a flavour of the debate and I would
encourage those that couldn't attend to note in their schedule the 17 September, 2015 Council meeting that will
take place alongside the World Summit in Barcelona on 18 September.
Attending Council and regional meetings are a key benefit of being a member of IFPSM and those that do attend
confirm to me that they take away with them not just good memories but a pack of information and ideas that help
the future development of their associations.
We have delivered a new E-Zine on a monthly basis that is designed to offer you a new tangible benefit that can be
offered in turn to your individual members. Please let me know how this can be delivered further.
We have delivered more regional meetings and webinars than ever before.
An excellent example of the value of regional meetings is the Asia/Pacific meeting that took place in Manila on
Tuesday 18 November. A strong regional action plan was agreed and its implementation will be led by the RVP for
the Region, Akanit Smitabindu from PSCMT. This meeting, which PASIA hosted, again illustrates the benefit of cross
country collaboration. I urge all members to participate with their RVP to ensure that you all benefit from these
excellent events.
During 2014 IFPSM attracted new members, delivered an increase in organisations achieving the Global Standard,
held hotly contested Board elections and recognised four outstanding individuals by awarding them the 2014 IFPSM
award. I hope that in 2015 all associations ensure that they nominate their outstanding members for these
prestigious awards.
A great opportunity to recognise your members.
We continue to have a tremendous record of retention of members which in my previous role with another
association I would have been envious of.
IFPSM continue to work with partners such as CERN, ITC and the World Bank to promote the development of
international standards and new association development and even just about balanced our finances at the same
time.
CEO Report Contd.
6
However we are by no means complacent and a major challenge for the Federation is to provide more tangible
benefits to our members and continue to develop in such a way that this will be sustainable against the ongoing
challenge of limited resource.
As an example of more new benefits you will see in this newsletter an article that launches a new partnership with
Kogan Page the leading procurement and supply chain publishers to bring new content to our Knowledge Bank
section on the IFPSM website, new webinars and a monthly discount opportunity for your members.
While our central resources may be quite limiting, our brand is very powerful, influential and recognised by global
organisations.
Crucially, we have a major community advantage as our true strength is you, our members no matter how mature,
embryonic, large or small your association may be.
I have enjoyed tremendously my role as your CEO during 2014 and have had some amazing experiences, such as
presenting to 16-17
year old students in
Hong Kong,
participating in the
oath of allegiance for
the new board
members of PISM in
Manila at their 5th
general meeting of
2014, spending time
with members of SMIT
in Taiwan (even when I
had to sing at the end of their conference dinner) and meeting so many of you, our members who I am here to serve
and support.
So the race is really only just beginning for our IFPSM steed, it’s a thoroughbred of course, with good health and
experience gained over many years, it still has a tremendous appetite and capacity to develop and overcome any
hurdle that is put in its path and will continue to gallop forward to be first past the post, guided by you the winning
jockeys and trainers
Nollaig Chridheil agus Bliadhna Mhath ùr
CEO Report Contd.
7
Three members of the IFPSM Board, Anita Kohegyi (HALPIM), Holger Hildebrandt (BME) and He Liming (CFLP) come to the end of their terms of office at the end of 2014. Therefore IFPSM is inviting nominations to fill these three vacancies. The Council and Board of IFPSM wish to take this opportunity to publicly record and recognise the immense contribution made by Anita, Holger and He Liming to the Federation over many years. If you would like to stand as one of the At Large Board members and you meet the criteria, please complete the nomination form and send it to Malcolm Youngson by 19 December 2014. You can find details of the criteria which follows on from the nomination form by clicking on the link: http://ifpsm.org/wp-content/uploads/2014/12/Nomination-form-and-Criteria-November-2014-At-Large.doc In the event we have more than three nominations, a ballot will be undertaken and the results will be advised on 20 January 2015. This is an excellent opportunity to help influence and direct the future of your association and therefore we would encourage you to stand for election. The new Board members will be welcomed to the IFPSM Board meeting on 11 March 2015 which is being hosted by NIMA in Oslo, Norway. There will also be an election for a new RVP of the Americas as Cheryl Paradowski who currently holds this position, is also the President Elect and Treasurer. If you have any queries, please do not hesitate to contact Malcolm Youngson. When I attended the PISM 5th General Meeting of 2014 in November, I was struck by how brilliantly they recognised their members. In my previous role with another association, I was always looking at ways where we could bind members of the Institute into being actively engaged and hence support some very stretching targets in this area. I wish I had had the opportunity to travel to the Philippines and meet the PISM dedicated team who are delivering real value to their members by implementing a range of sustainable initiatives that ensures all members both individuals and corporates see value to being part of their family. I am certain that Mariel, Erwin and Ricky would welcome any opportunity of sharing their expertise with other IFPSM members and as I have, we can learn from their expertise in this area. Malcolm Youngson.
IFPSM Board Elections 2015
A Picture is worth a Thousand Words
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A Picture is worth a Thousand Words Contd.
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A Picture is worth a Thousand Words Contd.
10
This year the 19th IFPSM Summer School was organised for the first time by NEVI and the University of Twente in the Netherlands. The IFPSM Summer School took place on the campus of the University of Twente between 30 June and 5 July. The quality of papers and discussions were extremely high. There were presentations and comments by some very distinguished professors: Professor Jan Telgen, Professor Holger Schiele, Professor Christine Harland, Professor Wendy Tate and Professor Guido Nassimbeni. Presentations and the quality of feedback comments were on average above 8, so the evaluation was excellent. A student from Sri Lanka gave the following comment: “This school helps any supply chain management PhD candidate to gain knowledge and get exposure to a panel of experts, which consisted of academics and practitioners from many countries. They provided professional knowledge to guide us to do and complete a better PhD”. An introduction to IFPSM was given by Svante Axelsson, a Past President of IFPSM. Next year the 20th IFPSM Summer School will be held from 6 July - 10 July in the Netherlands. Please support the Summer School as it is a major initiative by the Federation to ensure the future leaders of the profession are developed.
IFPSM Summer School 2014
11
LALBHAI PATEL
After graduating in Mechanical Engineering, Mr. Lalbhai Patel opted for a career in the field of Materials Management/Supply Chain Management. Mr. Lalbhai Patel has played a pivotal role in starting an organised movement in Materials Management/SCM over 30 years in India. For over three decades he has been associated with IIMM as Life Member, Chairman, National Council Member, Vice President, Sr. Vice President and now he is National President of IIMM. Mr. Patel has a rich experience in SCM with large MNCs like Reliance Industries, Indian Petrochemicals Corporations Ltd., a Government of India undertaking and many other Engineering and Chemical Industries. IIMM Mission: To promote professional excellence in Materials Management towards
national prosperity through sustainable development". IIMM Vision: To be a world class Institute furthering the interest of all Supply Chain Professionals and stake holders. Objectives as IFPSM Board member
To increase member organisations of IFPSM.
To increase the ability of IFPSM's Network of member organizations to be more effective in serving our members and the profession by synergizing its activities and services for mutual benefits.
IFPSM is recognized as the International Federation that facilitates the development and sharing of the practice of the purchasing and supply management profession, wherever it is practiced, through our network organization.
The vision of the IFPSM supports synergizing, by sharing practical experiences of purchasing and supply management among member countries. We must join hands to achieve the IFPSM vision.
To encourage participation at National Conventions/Events, each country to depute delegates / eminent speakers to share each other’s expertise and knowledge.
Endorsement of academic programmes of one institute by another potentially.
Providing dual membership at economical rates for the benefit of members.
To carry out the joint research programs as suggested by IFPSM Board based on the needs of the industries.
Extending support for approval of Global Standards of IFPSM by the Governments of each country.
New Board Member
12
Being a member of IFPSM has great advantages not only through the meetings and exchanging knowledge, but also in joining projects and working together. NEVI (Netherlands) and SILF (Sweden) are working together on the Purchasing Leader Program. NEVI initiated the program and SILF joined this year to make it an international program. A number of modules are given in the Netherlands at the Maastricht University and module 4 will be in Stockholm. The theme is: Developing Purchasing Leaders. Today's global economy calls for multifaceted leaders who are creative strategists, confident decision makers and inspiring team builders. Providing a broader and more comprehensive view of business operations, the Purchasing Leadership Programme (PLP), accelerates the transformation from a functional specialist into a business leader. Participants will come out with a better understanding of themselves, their industry, their company's competitive position and on how to turn (un)expected threats and opportunities into a competitive advantage. Purchasing Leader is a high end program and intake interviews will be held in order to see whether the candidate has the right level of experience. If members in your association are interested in this international program they can find more information (in English) on the NEVI website and download the brochure https://www.nevi.nl/opleidingen/leader. We hope that this collaboration between NEVI and SILF will be extended in the future to other associations
As IFPSM grows and gains a greater public image, so increasingly questions are asked about the history of the Federation. Each and everyone of us have our own perspectives, based on our experiences, of how, what and when has happened over the 35 years of the Federations history. It would be highly beneficial to have an authoritative history of the Federation, something that has always been hard to bring to the top of the priority agenda. However, I am now disengaged from the daily demands of IFPSM. Consequently, I have made a promise to Malcolm Youngson that I will endeavour to generate that much needed history. I am already in touch with personalities from the past - Jack Wagner, Karl Panos, Arnold Backhofner and several Past Presidents. The purpose of this short piece is for me to try and access the wealth of information that you will have at your fingertips from your experiences in IFPSM - dates, events, personalities etc - maybe, even, a photo or two. Please let me have as much as you can - what part has your association played in the governance of the Federation? Who represented your association on IFPSM bodies and when - Education Committee, Chairman of ECPS/Europe region etc? An event you attended where and when? A change in structure and how it impacted on you/your association? Contact details of anyone with whom you think I should exchange emails? Anything that you think might be helpful to me in compiling that comprehensive history…….. There is not a finish date for this project (you have no idea how exhausting and frenetic retirement actually is!!) but it is my intention that a finished product will be available for the World Summit in Barcelona. So I would be grateful if you could get material to me sooner rather than later - [email protected]. I look forward to hearing from you and, in anticipation, thank you.
NEVI and SILF are working together
Can you help us with the history of IFPSM?
13
Each year the International Federation of Purchasing and Supply Management makes four awards. The 2014 IFPSM Awards were awarded to:
Garner Thémoin Award – Martin Montanti, SCMA, Canada Lewis E. Spangler Award - Yang Chor Leong, MIPMM, Malaysia Hans Ovelgönne Award – Anil Ponweera, ISMM, Sri Lanka The President’s award went to Peter Kraljič and the President presented this to him recently in Slovenia.
Soeren Vammen presenting the President’s Award to Peter Kraljič
MARTIN MONTANTI - GARNER THÉMOIN AWARD In 2014 the Garner Thémoin award was presented to Martin Montanti, Vice President of Corporate Services for Southern Health - Santé Sud. The prestigious Garner Thémoin Award which is presented to an individual whose unselfish, sincere and persistent efforts have furthered the advancement of the supply chain profession.
Montanti never chose to go into the profession, rather the profession chose him. He started off working as a dispatcher for a United States Trucking Company. He then went to work for a wholesale baking supply company, where he started in the warehouse, but soon moved to the office where he started his purchasing career. Montanti enrolled in the SCMA supply chain management accreditation program, and consequently found a job in the aerospace industry working for Standard Aero. Here he earned the reputation as Canada’s “inventory guru” by reducing inventory from $80 million to $30 million, while at the same time sales were boosted to $200 million from $120 million. Montanti left Standard Aero to work for businessman Michael Shamray, who within an 18-month time span grew his business from three millwork/cabinetry companies to 10 companies but unfortunately Shamray then went bankrupt.
01
02
03
04
I
New Global Assessors IFPSM Awards 2014
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Montanti then accepted a position as Director of Materials for the Regional Health Authority Central Manitoba. He developed a centralized materials model, consolidating 30 independent services into one. He also oversaw a number of other operations including the diagnostic services (lab and imaging), EMS, food services and risk/disaster management. When Regional Health Authority Central Manitoba merged with South Eastman Health, he became Vice President of Corporate Services. Montanti credits much of his success to being a member of the Supply Chain Management Association of Canada (SCMA) for almost 30 years. He says, “As a member it allowed me the opportunity to advance my career, develop and teach courses, seminars and workshops and the SCMP (CPP) designation met one of the prerequisites for gaining entry into the University of Liverpool’s MBA program were I obtained my MBA with Distinction”. He went on to say the greatest benefit of being a member of SCMA is the network that he has built. “The association over the years has given me access to over 10,000 supply chain individuals by attending courses, teaching courses, and attending meetings and conferences”. Montanti not only received great value as being a member of SCMA but he also believed in giving back to the associations by being an active member and he served in numerous roles such as President of SCMA Manitoba etc. He goes on to say, “The association is a member organization that relies heavily on its members to giving back to the profession to grow it in the future”. While Montanti enjoys his career, he also values his private time with his wife Lori and twin boys, Anthony and Andrew. He loves all sports and plays hockey and golf. To see the Martin’s full biography you can visit the IFPSM website. ANIL PONWEERA - HANS OVELGÖNNE AWARD Anil Ponweera, current President of ISMM, is a well-known qualified professional in the field of Supply Chain Management (SCM) who has over 33 years hands on experience in almost all areas of the supply chain which includes over 18 years at senior managerial level. He has successfully completed his MBA from the Australian Institute of Business Administration in Adelaide. He has devoted his spare time serving ISMM as a Senior Vice President and the faculty since 1995 to maintain his professional advancement and impart his vast experience with the SCM professionals. He has undergone many train the trainer (TOT) programs conducted by ITC/WTO/UNCTAD in International Purchasing Supply Chain Management and many other training institutions around the globe. He is a fellow member of 2 prestigious Institutions namely the Institute of Supply & Materials Management of Sri Lanka and the Institute of Certified Professional Managers, a Charter member of the Institute of Logistics & Transport and a member of the International Purchasing in Supply Education Research Association, (IPSERA) Italy.
IFPSM Awards 2014 Contd.
15
He is a talented cricketer where he has captained the two Airline teams where he worked and Jinasena Limited in Mercantile division three and four tournaments conducted in Sri Lanka. Mr. Ponweera is currently serving as the Manager Materials & Logistics of the National Carrier Sri Lankan Airlines Ltd at a very senior level of management. He is fully responsible for the entire operational materials management and logistics functions of the Engineering Procurement & Logistics department. He has vast experience in government as well as private sector organizations which includes Multi National/Local cultures in Manufacturing, Telecommunication, Aviation, Banking and Financial Sectors. Air Lanka (presently known as Sri Lankan Airlines) and Emirates Airlines – Dubai are the two major airlines which he worked to gain 10 years of aviation exposure in SCM. He is capable in implementing highly efficient and streamline processes to achieve effective results through Key Performance Indicators (KPI’s) to monitor business activities, contributing to profitability through cost leadership, negotiation savings and economies of scale. Further he has a proven track record in meeting deadlines and milestones consistently along with more efficient and enhanced business processes. During his tenure as a Supply Chain Professional he has attended many international forums, workshops, global, regional supply chain conferences and round tables conducted by foreign countries. In March 2014 he was invited to present a paper at PISM’s Supply Link Forum in Manila on Supplier Relationship Management in the SC Context for the Industry. He also attended the IFPSM Summer School in 2008 held in Austria for researchers. ISMM was established by an act of Parliament in 1979 and Anil has been with ISMM Sri Lanka since 1995 and has served the Council of Management as General Secretary, Vice President and headed many sub committees as Chairman. He is an able and skillful lecturer and Train the Trainer for ISMM. Winning an internationally recognized award by him for the profession has given him enormous strength to work more for the supply chain community. It is more than an honour for him and ISMM as the recognition he has received from IFPSM has motivated him to impart the knowledge acquired amongst the network members of the profession. More importantly, it has given him the strength to dedicate himself to the Supply Chain profession with vigor to encourage young professionals to work for the arena with passion and commitment in order to gain momentum for the upliftment of the profession. His hunger and thrust for the upliftment of the supply chain profession in Sri Lanka and all the hard work for the supply chain profession finally paid dividends after becoming the recipient of the Hans Ovelgönne Award for 2014 from IFPSM on 24 October in Sri Lanka.
IFPSM Awards 2014 Contd.
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YANG CHOR LEONG - LEWIS E. SPANGLER AWARD
It is with deepest appreciation and gratitude that I express my thanks for being chosen as a recipient of the 2014 IFPSM Lewis E. Spangler Award. It is a tremendous honour to be acknowledged by such an esteemed, prestigious organisation. This award has brought motivation and gratification, reminding me that dedication and commitment in voluntary services and in supporting others in our Institute and with the affiliations in the professional development and academic endeavors will eventually be recognized. The Malaysian Institute of Purchasing & Materials Management (MIPMM) is a leading educational institution in promoting the professionalism in materials and supply chain management in Malaysia and had its inception in 1997. It was registered with the Human Resources Development Council of the Ministry of Human Resources and granted as the Approved Training Provider. Today, the Institute remains as a non-profit, self sustainable institution and a National Certification Body. I am one of the founding members and the current President of the Central Region based in Kuala Lumpur. My involvement with the movement of the national professional body started way back in 1985. I am confident that with the continuous support and commitment, MIPMM will move into the next decade towards upgrading the global standards in the profession that promotes quality and affordable programs in the field of materials and supply chain management. Chor Yang Leong has over 35 year in SCM senior positions with multi-national companies in Malaysia and abroad (Panasonic, Nkamichi, FACB and PDL in New Zealand). He currently owns and is the Executive Director of Strategic Alliance Resources (Asia Pacific) Sdn Bhd. He is currently the President of MIPMM, a Council member of the Malaysia Standard Department – Accreditation Committee and a Board member of the Asia Pacific Logistics Federation (APLF)
IFPSM Awards 2014 Contd.
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Interview with Ardalan Schekarabi, Minister of Public Administration By
Svante Axelsson Immediate past President IFPSM
Ardalan chekarabi was born in 1978 in UK (Manchester) raised in Teheran, Iran and came to Sweden as a refugee at the age of 11. He was a PhD student at Uppsala University in law with Public Procurement as his special area. He then worked at the university and in the administration at the ministry of justice. He then became MP of Sweden for four years. In an extract of a recent interview with Ardalan he was asked: “Q: At the installation of the new government, the Prime minister said explicitly that your responsibility was “the important area of Public Procurement” how come? A: The Prime minister has declared that Public Procurement is part of the new government strategies. It’s an honour to have been appointed to fulfil these expectations. We will formulate a national strategy and combined it with strategies on local government level. As responsible minister I do not only have full support of the prime minister but also high demands. Q: More direct – what goals and results do you expect from a better usage of public procurement as a tool? A: The government has so far proposed a new goal for the public procurement policy in the budget bill for 2015 “Public procurement is to be effective, legally secure and make use of the competition in the market while promoting innovative solutions as well as taking environmental and social concerns into account. Hence public procurement will contribute to well-functioning community service for the benefit of citizens and business development while tax revenues are made the most of.” The government intend, during the year to come, to develop this overarching goal for public procurement into a strategy for the Swedish public procurement. The intention is to develop the strategy in close co-operation with municipalities and county councils that stands for approx. 2/3 of the public procurement. To see the full interview please click on: http://ifpsm.org/wp-content/uploads/2014/12/Interview-with-Ardalan-Schekarabi-Minister-for-public-administration-1.pdf
Sweden for the first time has a minister responsible for Public Procurement
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IFPSM is pleased to announce a new partnership with Kogan Page, the leading independent global publisher of specialist
professional books. Kogan Page publishes groundbreaking books on Supply Chain Management, Procurement, and Logistics
from leading thinkers in the field from academia and industry.
This means more benefits for IFPSM members, including:
Exclusive content from thought leaders in supply chain management and procurement
Special member discounts on selected Kogan page books
You can find out more about Kogan Page here > http://www.koganpage.com/
Kogan Page are actively seeking to collaborate with more key figures in the industry and we encourage you to contact them
with any suggestions on collaborative projects to create new opportunities for you and your business. Contact: Laura Brown,
Are We There Yet? The Road to Professionalising Procurement
By Gerard Chick
"Study the past if you would define the future...." - Confucius. Arguably then, we first need to understand procurement’s past to understand its present and future. Procurement began with various dubious roots. Twenty-five years ago, I regularly attended purchasing conferences at an organization known as the “National Association of Purchasing Management". The meetings, by and large, served largely as a social function for a lot of buyers to get together, sit at the bar, and tell war stories. If one were to attend a supply management conference today, one would meet a very different type of individual, and engage in a very different set of conversations. Modern societies have for some time articulated the division of expert labour into various ‘professions’. Whilst procurement does meet certain criteria needed to be recognised as a profession, it does not meet all criteria. Nevertheless, present-day associations in the procurement field have never seen so many opportunities for creativity and leadership via professional procurement. Some of these opportunities can be seized and realised by individuals, but more usually they require a team effort under some professional sponsorship. So what does all this mean for procurement? Is it possible that we at the foot of a new beginning on the road to professionalising procurement? Or has procurement hit a dead end in any aspiration to become a true profession? While procurement has undoubtedly come a long way, a para-profession may be, it still has far to go if it wishes to be seen in the same light as medicine or the law. Nevertheless, perhaps the past is not so critical after all. Is it not down to the present and future procurement professionals themselves to shape procurement’s future? Is it not their thoughts and actions that will determine if procurement can truly become a profession? In their new book, The Procurement Value Proposition, Gerard Chick and Prof Robert Handfield question the future of procurement in further detail. Whilst recognising there is still a lot of work to be done, their thought-provoking insights set the foundation to drive the profession of procurement to new heights. You can read the full article here: http://www.koganpage.com/article/are-we-there-yet-the-road-to-professionalising-procurement Looking for further inspiration? Visit The Procurement Value Proposition landing page where you can download valuable
resources http://www.koganpage.com/article/are-we-there-yet-the-road-to-professionalising-procurement
New Partnership to benefit IFPSM members
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Overturn your thinking on procurement with The Procurement Value Proposition
To face important shifts in the business world, procurement professionals are craving new thinking, new skills, ultimately, an
entirely new approach. Tackling critical challenges head-on, The Procurement Value Proposition by Gerard Chick and Robert
Handfield set a bold new vision for procurement.
The book:
• Assesses important changes that will have a profound effect on the way future procurement is
carried out
• Examines how organizations that position procurement as a core business function will be able
to drive competitive advantage
• Features insights from CPOs, Commercial Directors, and other business leaders
• Features case studies of companies that are moving through procurement transformation
• Considers a variety of geographical contexts and highlights differences between the US, the UK and
China
This book is essential reading for anyone that wants to innovate, drive change, and set alight a transformation through
procurement in their own organisation.
“The Procurement Value Proposition takes on some of the most pressing challenges facing procurement today and makes them
seem both more comprehensible and realistically addressable” (Kelly Barner, Buyers Meeting Point)
Visit the dedicated landing page for the book to download valuable resources - www.koganpage.com/PVP
About the authors Gerard Chick is Chief Knowledge Officer at Optimum Procurement Group. He has ten years' experience working with some of the keenest minds at the most senior level in the Supply Management profession. An accomplished speaker and writer on business and procurement issues, he has written for leading 'industrial' journals and is regularly invited to make keynote presentations on strategic procurement to senior executive teams across the world. Read full bio > http://www.koganpage.com/author/gerard-chick Robert Handfield is the Bank of America University Distinguished Professor of Supply Chain Management at the North Carolina State University Poole College of Management, and director of the Supply Chain Resource Cooperative. He was recently recognized as a 'Pro to Know' in Supply and Demand Chain Executive. He is a leading speaker at executive forums, has consulted with over 25 Fortune 500 companies and he has published more than 100 articles in top management journals. Read full bio > http://www.koganpage.com/author/robert-handfield
Exclusive member offer The Procurement Value Proposition is available to buy now. Don't miss this exclusive limited time offer. Buy The Procurement
Value Proposition direct from the Kogan Page website before 15th January 2015 to receive your exclusive 25% discount. Simply
go to www.koganpage.com/PVP , click buy now and enter discount code IFPSM1214 when prompted at the checkout.
New Partnership to benefit IFPSM members Contd.
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On Sunday 16th November, I was delighted to present to 75 first and second year students of the Hong Kong Institute of Vocational Education (IVE). Being a member of the Group of “Vocational Training Council”, the Hong Kong Institute of Vocational Education (IVE) is the leading vocational education provider in Hong Kong, committed to nurturing professionals valued by industries. IVE has been evolving in tandem with the economic development of Hong Kong, building a competent and innovative workforce needed in a knowledge economy. I have been fortunate to present to IVE students over the past few years and it was great to have this opportunity again but this time as the IFPSM CEO. Amazingly the students were so motivated that they gave up their own time on a Sunday to attend the event and meet me (this would not happen in the UK!). The presentation was run as a workshop where the students formed teams to discuss what the future of the profession might be by 2020 and what new skills they might need to meet these new challenges They then had to prepare a slide presentation to feedback to the group. It was great to see them working together and their presentations were far superior to my opening remarks. Meeting these young people is always a delight and inspirational as they represent the profession’s future and I can confirm that it’s in very good hands in Hong Kong. The winning groups of students were made up of - CHANG Nga Lam, JOSEPHINE CHIU Wing Lam, ANGELA CHUNG Siu Fong, SHIRLEY LAM Tung Kwai, CANDY LEUNG Ching Yi, CARLITA Please follow this link http://ifpsm.org/wp-content/uploads/2014/12/Winning-Group-1.pdf to access their winning slide presentation and you will, as I do, appreciate their talent and professionalism. I believe that this experience is a great example of how IFPSM members can connect with Colleges and Universities to support the next generation of practitioners and also support our own development by such an engagement. After enjoying the great pleasure of announcing the winners I was then thrown a major “surprise curve ball” by the students!
The Future…..it’s in your hands
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With zero time for preparation and planning, I was asked to take part in the production of a short video that will form part of the students’ graduation and reluctantly as there was no other option or an obvious escape route, I accepted the challenge. The students have produced a great short video but I can only apologise for my performance! I really need some media training. You can enjoy my embarrassment and the student’s skill by accessing this link: https://www.youtube.com/watch?v=CfIfuJGFqXc I hope, despite my performance that I will be invited back by the IVE team which is brilliantly led by their Head of Department Mr Ken Wong and Ms Grace Tsang who is their senior lecturer and an inspirational role model to the students. Malcolm Youngson
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Introduction: With procurement focus shifting from a cost-centered approach to a focus on sustainability in all its forms, the challenge for procurement professionals is to keep their skills and competences relevant in a changing sector. Clare Gately, CEO of JoshCPD sets out her thinking on the need for continuing professional development (CPD) within the procurement and supply chain management profession. JoshCPD has partnered with the Irish Institute of Purchasing and Materials Management (IIPMM) to provide a learning and attendance tracking system and dedicated smartphone learning app for their members. Sean O’Dwyer, President IIPMM, said that the collaboration between the Institute and JOSH CPD was a clear demonstration of how organisations can work jointly to find innovative solutions to business challenges. In this instance, we were able to take the CPD system and with JOSH CPD adapt their smartphone app which now replaces the traditional paper based attendance records for our academic records. Responsible Business Practices – Finding New Ways to Work The recent launch of the United Nations Sustainable Public Procurement Programme (SPP) in October 2014, brings the need for responsible social and environmental business practices into sharp focus. This creates challenges and opportunities both for professional procurement associations and their members. From an entrepreneurship perspective, sustainability imperatives create opportunities for innovation in procurement and supply chain management. In shifting the procurement professional’s mindset from a cost-centric to a strategic focus, value can be created by new technologies, new processes, new products and services that enable strategic thinking and decision making. Think for example, how innovations in supply chain management systems have improved global communications and connectivity amongst supply chain members and their customers. From a human resource perspective, the changing nature of the procurement profession to an integral strategic function of the firm demands continuous skills and capabilities development. New and established procurement professionals need an array of competences to deliver on the strategic imperatives of their organisation. Skills such as critical thinking, strategic thinking and relationship management are needed to ensure procurement professionals are not just making decisions for now, but peering into the future in anticipating the impact of their decisions on future outcomes. Procurement Skills and Competences Development – New Ways to Learn Through education and continuing professional development (CPD), the procurement professional can enhance their knowledge and skills whilst adding value in a wider organisational context. With the advent of smartphones, new ways to learn and access knowledge open up. Busy procurement professionals can now learn on the move and track and share their learning progress from their mobile device. Equally, their learning can be instantly documented, audited and validated by their professional association. Smartphone technology presents a new means for professional associations to raise professional standards and expectations within the sector, whilst keeping their members engaged and informed. Using mobile devices as a learning tool is one members will quickly embrace given their ubiquitous presence in all our lives. Clare Gately, PhD is Chief Executive Officer of JoshCPD, which enables professional bodies to easily validate, track and audit their member’s training and CPD activities. Their members can use a customisable smartphone app to register their attendance at training events on or offline, track their CPD credit progress and receive reminders from their professional body about upcoming learning opportunities. W: www.joshcpd.com; E: [email protected]; T: 00 353 87.99.07.38.5; Twitter: @joshcpd
Procurement: A Profession in Transition
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Members of the IFPSM Board were invited to attend and speak at the ISMM International conference which was held on 23 October and which was a huge success and with a very large audience. The IFPSM Board meeting took place on Thursday, 24 October and welcomed the two new Board members, Lalbhai Patel and Chris Oanda. There was a very busy agenda to get through and it proved to be a very productive meeting. The minutes of the meeting will shortly be available on the website. In the evening, ISMM held their 42nd Anniversary dinner to which the IFPSM Board and Council members were invited. We were treated to an excellent evening of dance and speeches and everyone enjoyed the generous hospitality of ISMM. The 48th IFPSM Council took place in Colombo, Sri Lanka on Saturday, 25 October 2014 and was kindly hosted by the ISMM. The main points that were discussed at the meeting was the Global Standard, the frequency of future Council meetings, the importance
of regular regional meetings and a change to the membership fee calculation by introducing a model with six tiers of membership rather than the basis that was currently used. When the pro-forma for 2015 is distributed in January associations will receive the information on the new tiers together with an illustration of where each association would fall within the tiers. The goal was not to dramatically change the level of dues for the member institutes and not to dramatically increase the membership fees for IFPSM. This is not anticipated to create hardship for any single institute.
IFPSM Meetings in Colombo - 24/25 October 2014
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“Driving economic growth through competitive supply chains” was the theme for the 2014 international seminar hosted by The Institute of Supply and Materials Management (ISMM) Sri Lanka. The seminar was organized to commemorate ISMM’s 42nd anniversary with the purpose of highlighting the importance of supply chain and its contribution to economic growth. The seminar was held at the Pegasus Reef Hotel, Wattala – outside Colombo. Over 300 participants representing industry, government and academia attended the event which included representatives from 13 countries.
The seminar was addressed by a number of reputed local and international speakers in the fields of procurement and supply chain.
The keynote address was delivered by Prof Ananda Jayawardane, Vice Chancellor of University of Moratuwa, a leading university in the country which pioneered supply chain education. He stressed the importance of universities to collaborate with other professional institutes to build capacity to take the country forward. Considering the broad spectrum of involvement of supply chain professionals, yet currently much less understood, he stressed the importance of engaging policy makers in carving out a role in policy setting to create an environment more conducive to the profession. His final message was to be aware of the changing market dynamics and gearing oneself to acquire new skills in digital supply chains.
The Guest of Honour was Mr Ranjit Page, Managing Director of Cargills Ceylon Ltd. He spoke about his pioneering efforts in revolutionising the retail sector in Sri Lanka by introducing innovative supply chain solutions. He went on to state that his company was able to minimise postharvest losses from 40% to 10% by removing intermediaries and reaching farmers directly thereby providing a better price for their produce and passing the benefit to the consumers from the savings generated. His model has received attention internationally including the Gates Foundation.
“Importance of supply chain in fuelling business growth” was the topic of the presentation by Mr. Rajeeve Goonetilleke, the Supply Chain Director of GlaxoSmithKline. He stressed supply chain’s role in reviving the economy. His prescription was in building alliances, integrating backward and upward operations to bring everybody to the same platform and compete as chains. Thus one should be receptive to opportunities to create alliances that would cut lead time and be competitive in unknown terrains as the apparel industry had done in Sri Lanka. He also stressed the importance of making the supply chains efficient and agile.
Dr Indika Sigera, Head of Maritime, Department of Transportation and Logistics of University Moratauwa, spoke about “Logistics excellence to drive business growth”. He talked about efficient model choices and measures that can be taken to reduce costs to achieve competitive advantage. His theme was in sync with Sri Lanka’s intention of becoming a maritime hub in the region.
Mr Rohan Pallewatte, Executive Chairman Lanka Harness Company Pvt Ltd., completed the local line up of presenters with a powerful presentation on “Conquering global markets through flawless supply chain execution”. He spoke on how impact sensors for airbags and seat belts supplied by his company to Japanese, European and US automobile companies (Toyota, Nissan, BMW, Opel, Volvo, Ford, General Motors etc.) with better than six sigma quality (1ppm defect level). He enthused the audience by stressing the importance of developing trust and transparency with
ISMM International Seminar in Sri Lanka 23 October 2014
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employees in order to drive a seemingly impossible quality level through ‘acculturation’, disproving the critiques that Sri Lanka cannot produce high quality precision products. You can access his presentation by clicking on: http://www.youtube.com/watch?v=60ZOupTM7mo&sns=em
The two international speakers from IFPSM were Mr Soeren Vammen, President IFPSM and Ms Cheryl Paradowski, President Elect IFPSM. Soeren spoke about “Future of good procurement practices” and Cheryl spoke about “The role of IFPSM in improving professionalism in supply chain education”
In his welcome address, Mr Anil Ponweera President ISMM, explained the greater strides ISMM had made over the years. He thanked IFPSM for selecting Sri Lanka to hold the Council and Board meetings of IFPSM.
Ms Gayani de Alwis, Conference Chairperson and Vice President ISMM, said that the seminar theme complemented very well the vision of the Government of Sri Lanka to develop the country as a “Regional Hub” at a time when the country was coming out of a 30 year old conflict and drive the economy to reach middle income status. All speakers gave valuable insights to develop the economy through supply chain solutions.
The Institute of Supply and Materials Management (ISMM) in Sri Lanka was established in 1972 with 36 founding members and was incorporated by an act of Parliament in 1981. In 1982 ISMM commenced its education programs and since then has trained more than 13,000 professionals in the field of Procurement and Supply chain management in the country. ISMM’s vision is to be the most sought after professional institution in the field of procurement & supply chain management. Presently, ISMM has over 2,400 members who are qualified in the Procurement and supply chain fields. In October 2014, ISMM obtained ISO 9000:2006 quality certification.
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We need your help to encourage organisations to achieve the IFPSM Global Standard. As an incentive to you, IFPSM is offering you £1,000 if the organisation you put forward completes the application process. So please help us by finding those organisations which would benefit by striving to be awarded the Global Standard.
The Global Standard for Professional Competence in Purchasing and Supply is conferred by the International Federation of Purchasing and Supply Management (IFPSM), Global Standards Board, to recognize and accredit educational programs, degrees and designations that meet the Global Standard’s comprehensive criteria. The standard reflects a mix of knowledge, learning and skills appropriate to the education and professional development of those in the procurement, purchasing and supply management profession. The Global Standard The Global Standard is a universal measure by which educational programs, degrees and designations may be assessed. It applies to programs of learning of a Bachelor degree level or equivalent or those that add knowledge to the holder of a Bachelor degree or equivalent, and equivalent degree programs from around the world, against the Standard’s clear and transparent criteria for content, delivery and assessment.
The principles of the Global Standard
The criteria for conferring the Global Standard are based on the following principles:
Transparency:
Essential information regarding the content of the standard and the approach to assessing a program, including the
criteria for assessment against that standard, is available and accessible to all parties.
Openness: Participation is open to all organizations that have the potential to meet the standard. Impartiality: The GSB and any assessors appointed by the GSB will remain impartial and no one interest or party will be favoured over another. Effectiveness & relevance: The standard is relevant and appropriate to the characteristics expected of a purchasing and supply management professional and will be updated periodically. The standard reflects regulatory and market needs as well as development in the body of knowledge. Outcomes-based: The standard is outcomes-based and does not prescribe detailed program design, delivery or assessment.
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To apply for Global Standard recognition or for additional information visit: www.psgstandard.com
BE THE FIRST ASSOCIATION TO EARN YOUR £1,000!
What the Global Standard means for educators, educational institutions and students
The Global Standard acknowledges that the learning programme:
• Has demonstrated its ability to produce students and candidates who meet a rigorous world standard.
• Has met the Global Standard’s comprehensive criteria for a degree, certification, credential or qualification. • Equips students and candidates with the knowledge, skills, attributes and characteristics of a purchasing and supply management professional.
What the Global Standard means for employers The Global Standard provides employers a relevant measure for hiring procurement, purchasing and supply management professionals based on the following:
• The standard is free from any commercial or subjective influence.
• The quality of the standard is reviewed regularly to ensure that it maintains requirements reflecting the developing nature of purchasing and supply management.
• An objective process of assessment is maintained.
• Those programs successfully attested against the standard are reviewed at regular intervals to ensure continued relevance and quality.
• The good governance of the standard is exercised at all times and in an appropriate manner.
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Measuring the Value of Indirect Procurement Experts from such leading businesses as Philips, Ericsson and Jaguar Land Rover reveal how they gauge the value of indirect procurement. A handful of procurement specialists explain why such metrics as cost savings, risk mitigation, supplier engagement and added value are key to success and to demonstrating the importance of procurement to internal stakeholders. Includes interviews with: 1. Arjan de Jongste, Global Head of Indirect, Philips 2. Nicolas Passaquin, Global Sourcing Vice President, Thomson Reuters 3. Simona Pavelescu, Head of the Global Sourcing Support Office, Ericsson 4. Jim Carter, Head of Contracts and Procurement Operations, Network Rail 5. Brian Davy, Procurement Director, Jaguar Land Rover To access the video please follow this link - http://wbresear.ch/ifpsmcon The importance of indirect procurement will be a main focus at ProcureCon Indirect 2015 which is taking place April 21-23 at the NH Grand Hotel Krasnapolsky in Amsterdam. To find out more about the topics which will be discussed, download the latest agenda here - http://wbresear.ch/ifpsmagenda IFPSM members will receive a 20% discount.
CALL TO ACTION
This newsletter’s mission is to provide a vehicle to update the IFPSM members on the Federation’s development and offer insights into our members’ activities and successes.
The Newsletter provides us with an opportunity to share our successes with the full membership but we need to ensure that its content is relevant and interesting.
The newsletter is also used in the IFPSM marketing activities and has an extensive readership that extends beyond the IFPSM membership and hence it provides you with an opportunity to offer articles as part of your marketing strategy.
Your feedback will help to evolve the newsletter to achieve its mission.
We welcome and need your feedback and suggestions so please use the opportunity to provide content that you believe will benefit your colleagues across our global community after all -
“Feedback is the breakfast of Champions!”
AND FINALLY…
Malcolm, Sally and the Board of IFPSM would like to wish you all a merry Christmas and a happy and prosperous New Year.
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