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WINNERS BOOK Leading global excellence in procurement and supply AUSTRALASIA SUPPLY MANAGEMENT AWARDS 2019

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Page 1: AUSTRALASIA SUPPLY MANAGEMENT AWARDS 2019€¦ · 3 Congratulations from CIPS 5 Congratulations from RS Components 7 The Judging Panel 9 Overall Winner Supplier Relationship Management

WINNERS BOOKLeading global excellence in

procurement and supply

AUSTRALASIA SUPPLY MANAGEMENT AWARDS 2019

SUPPLY MANAGEMENTAWARDS 2019

Page 2: AUSTRALASIA SUPPLY MANAGEMENT AWARDS 2019€¦ · 3 Congratulations from CIPS 5 Congratulations from RS Components 7 The Judging Panel 9 Overall Winner Supplier Relationship Management

3 Congratulations from CIPS

5 Congratulations from RS Components

7 The Judging Panel

9 Overall Winner

Supplier Relationship Management

11 Ethical Procurement – Public Sector

11 Ethical Procurement – Private Sector

13 Diversity and Inclusion

13 Global Sourcing

14 Collaborative Teamwork – Public Sector

14 Collaborative Teamwork – Private Sector

15 Supplier Diversity

15 Public Procurement

16 Risk Mitigation

16 Procurement Consultancy

17 Procurement Transformation

17 Supply Chain Integration

18 Technology Innovation

18 People Development

19 Procurement Team of the Year – Small Teams

19 Procurement Team of the Year – Large Teams

20 Young Talent

20 Leader of the Year

22 Previous Winners

CONTENTS

2 www.cips.org

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This year, the CIPS Supply Management Awards have

had a record year for entries and I would like to congratulate not only the winners, but also all of the shortlisted organisations. The competition has been tough, so well done to you all for making the shortlist.

We have reviewed and updated our categories for 2019 to better reflect the modern business environment. We have been truly impressed by the innovation and creativity in your submissions, so thank you all for embracing the new categories and continuing to make these awards a success.

We do not underestimate the time and effort it takes out of your already busy schedules to enter these awards, so thank you for taking on the challenge. It is a great opportunity to reflect on your achievements, as well as celebrate your success, so I hope you have found it useful too. These valuable stories will be shared and retold to others who aspire to achieve equally great things in their own organisations – this is something you should all be very proud of, becoming

a beacon of best practice and innovation in our profession. Please ensure you do maximise this opportunity to shout about your success within your business, across your sector and within your supply chain.

I would really like to thank our expert panel of independent judges for helping us to select this year’s winners. We pride ourselves in having the very best leaders in our profession on our panel. They are a very busy group of CPOs and their time is scarce, so I want to thank them for the hours of reading and marking the submissions they have done; it is testament to their commitment to CIPS and the wider procurement and supply profession. The level of integrity and scrutiny in our process makes judging quite an undertaking, and we make no apologies for this. It is one of the reasons that the CIPS SM Awards stand out from other awards and it makes winning one even more special.

CONGRATULATIONS

Malcolm Harrison FCIPSGroup CEO, CIPS

3 www.cips.org

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Engine for growthRS is proud to be the exclusive CIPS Knowledge Partner for MRO (Maintenance, Repair and Operations). We’re committed to providing exclusive expert insight aimed at helping organisations drive procurement efficiencies to achieve growth.

Knowledge Partner

Find out more at cips.org/rscomponents

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5 www.cips.org

Engine for growthRS is proud to be the exclusive CIPS Knowledge Partner for MRO (Maintenance, Repair and Operations). We’re committed to providing exclusive expert insight aimed at helping organisations drive procurement efficiencies to achieve growth.

Knowledge Partner

Find out more at cips.org/rscomponents

Congratulations to all the winners at this year’s CIPS Supply Management

Awards, and also to those who took the time to enter the awards. Your efforts have been recognised by an industry-respected accolade for excellence in the procurement and supply chain world.

The CIPS Supply Management Awards provide an opportunity to celebrate and reflect upon the success achieved across the complete procurement spectrum over multiple industry sectors. They demonstrate the importance of striving for efficiency and effectiveness in supply management.

As proud sponsors of the CIPS Supply Management Awards for the fifth consecutive year, we share this commitment to driving procurement excellence as an enabler for growth. RS distributes more than 500,000 industrial and electronics products to over one million customers worldwide. We work with our customers to help improve their supply management processes to realise commercial success.

We are also proud to be a CIPS Knowledge Partner and through this and our Connected Thinking website gives us the opportunity to share best practice and help organisations achieve excellence in procurement. Procurement decision makers are challenged with a changing world, financial pressures and demanding stakeholders and need suppliers with a partnership mentality who can help.

Our data insights can enable customers to optimise their suppliers and processes and help define cost-saving strategies to reduce the true cost of procurement, which is significantly more than simply the cost of products.

Supply management is a complicated topic, but is also a route to a successful business. As the winners of this year’s CIPS Supply Management Awards have demonstrated, procurement excellence is an achievable goal we should all strive for.

Peter MalpasRegional Vice President, Northern Europe, RS Components

Driving procurement excellence as an enabler for growth

CONGRATULATIONS FROM RS COMPONENTS

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YOUR HARD WORKOUR CONGRATULATIONSAs an official knowledge partner of The Chartered Institute of Procurement & Supply, Hays Procurement would like to congratulate all winners announced at this year’s CIPS Supply Management Awards.

We understand the impact that a procurement team can have on the success of an organisation and the difficult task that many procurement teams face, in having to reach savings targets whilst ensuring value for money and delivering excellence.

We work with many of the UK’s leading organisations helping them to recruit the best procurement talent in the market. Our consultants are dedicated to key procurement areas such as interim management, indirect and direct procurement, public sector and senior appointments which enables them to build up expert knowledge of the market in your area and a deep understanding of the specific skills, experience and technical knowledge needed to succeed.

Whether you’re looking to recruit or considering your next career move, we have the expertise to help you. For a further discussion, including topics such as skills shortages contact Scott Dance at [email protected], call on 020 3465 0056 or visit hays.co.uk/procurement.

hays.co.uk/procurement

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Head JudgeJulia BrownChief Procurement Officer Carnival Corporation & Plc

Duncan Brock Group Director CIPS

Rob Douglas Chief Procurement Officer Direct Line Group

Laura Faulkner Director of Supply Chain Services Nationwide Building Society

Jan Fokke Van Den BoschChief Procurement Officer HSBC

Cath HillGroup Director CIPS

JUDGING PANEL

7 www.cips.org

Tom Rae Group Director of Purchasing & Supply ChainJCB

Alex Jennings Chief Procurement Officer DS Smith

Melinda Johnson Commercial Director Department of Health and Social Care

Nik Kirner Chief Procurement Officer Thomas Cook Group

Klaids Lafon de Ribeyrolles Procurement Director, EU Operations Amazon

Emma Scott Representation Manager CIPS

Katharina Stenholm Senior Vice President, Chief Cycles & Procurement Officer Danone

Ninian Wilson Global Supply Chain Director Vodafone

Marco Salzedo Director of Commercial & Contract Management CapabilityCabinet Office

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Market-based business happens when transaction becomes collaboration.

We are an innovative working capital solution that easily integrates into

your existing supplier finance programmes to improve margins and lower

costs. You generate extra income from your A/P, and your suppliers get

paid early to offer the best products on time.

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OVERALL WINNER

Having driven the benefits of category management for a long time, year-on-year value improvement at Rolls-Royce had slowed. To achieve a further step-change, the engineering company needed to engage with its supply chain in a new way. Through collaborating deeper, Rolls-Royce realised it could significantly increase the benefits to both itself and its suppliers.

Its bold ambitions to be the world’s leading technology company and improve its cash position by an extra £1 billion by 2020 necessitated a similarly bold approach to procurement. So, rather than being prescriptive with a “one-size-fits-all” approach, Rolls-Royce decided to empower both the Direct and Indirect procurement teams to develop what they saw as best for their specific areas and supply chains. It wasn’t just about cost reduction and improving supplier quality performance, but also about developing trust to enable both sides to invest in new technology and bring that technology to market, with the benefits shared.

Within Direct procurement the focus was on unifying the cross-functional and supply chain unit teams with a one-team approach involving 100 key suppliers representing some 75% (£2 billion) of Civil Aerospace spend. The plan was designed to challenge the usual processes, behaviour and culture, and to engage the “hearts and minds”

SUPPLIER RELATIONSHIP MANAGEMENT CATEGORY FINALISTS: AO.com • Dana Incorporated • Department for International Development • Driver and Vehicle Licensing Agency • GRI and Biffa • Smart DCC and The Smart Cube

of senior leaders and their teams. Procurement wanted to make Rolls-Royce the customer of choice for its suppliers.

Among the initiatives was a “collaborate, don’t tell” annual conference ensuring messages were shared collaboratively, accepting and acting on feedback and building trust. An integrated supplier scorecard was introduced and a supplier engagement plan co-created and co-owned by Rolls-Royce and the supplier to drive simplicity and pace. Ambiguity has been removed.

Within Indirect, a Premier Supplier Group (PSG), chaired and led by the suppliers, was established. The chair rotates between members every 12 months. Category PSGs have been introduced to share best practice, with the location rotating through suppliers’ key sites to allow for “go-look-sees” rather than PowerPoint presentations.

Competitors now often work together for the greater good. In Direct Civil Aerospace the approach has enabled the business to deliver savings of £153.2m, as well as helping to shape Rolls-Royce’s strategy in several areas. In Indirect the procurement team is now able to deliver at least 5% cost savings each year, with £91 million saved in 2018 alone. Overall there has been more than £250 million in annualised hard savings.

ROLLS-ROYCE

Creating Collaborative Supply ChainsCategory: Supplier Relationship Management

9 www.cips.org

Judges’ comments: “The introduction of a structured focus on collaboration in the project has resulted in significant benefits and a step-change in performance for both Rolls-Royce and their suppliers. This innovative approach focused not only on savings, but improving end-to-end supply chains.”

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Procurement solutions to deliver the best possible outcome

At Commerce Decisions, we have over 15 years’ experience in delivering complex procurements. To date, we’ve supported over 16,000 projects

across the globe, worth over $500 billion. Underpinned by our expert thought-leadership, our AWARD® software

is specifically designed to support strategic, complex and high risk procurements.

Deliver robust and defensible

decisions

Maximise value for money

Manage complex projects

Meet environmental

and sustainability targets

Embed best practice

Reduce cost, risk and time

to contract

Enablecollaboration

$

AWARD® $

We’re delighted to be sponsoring the CIPS Supply Management Awards once again this year. Congratulations to all the finalists!

www.commercedecisions.com

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FINALISTS: Heathrow Airport • Jaguar Land Rover

Ethical Procurement – Private Sector

In 2018, environmental charity WWF UK wanted to accelerate its impact through more diverse partnerships. The end of the incumbent facilities management contract presented an opportunity to help deliver this ambition through a new contract to manage the flagship UK headquarters. The aim was to embed ethical criteria at every stage of the procurement process. As the contract was just £370,000 per year, the team recognised the process would need to excite businesses with a similar ethical focus. It entered into a

non-financial collaboration with Sustainable Facilities Management Index to deploy measurable sustainability enhancements to every stage of the process. To embed the 30 plus ethical requirements, WWF and successful bidder Engie produced a corporate responsibility plan to track progress. In just a few months a wide range of benefits were delivered, from the removal of 4,500 single use plastic bottles per year in cleaning through to the payment of the Real Living Wage. On top of that, a year one saving of £20,400 (circa 7.5% reduction of fixed charges) was delivered.

Judges’ comments: “The WWF UK team has been able to select and drive significant environmental and social impact. Well managed, a good honest approach with real benefits. Sometimes ethical procurement is just embedded in an organisation’s DNA and this is a great example.”

WINNER: WWF UK PROJECT: Procuring the Leading Sustainable Facilities Management Service in the UK

When Lord Blunkett says your initiative is “excellent”, you know it is really something. When that initiative is in the cash-strapped local government sector, you know it could have a huge impact on society. Ambitious, but that is exactly what Sheffield Council wanted to be when it decided it could use its supply chain to maximise ethical behaviours and increase benefits for local people and businesses. A task force was established to develop products in partnership with third parties including a new acquisition model and team structure; tender thresholds raised to £150,000 (the UK’s highest), a sourcing team with the mandate to source locally, and a 15% mandatory minimum weighting for social value. The sheer ambition

impressed judges, as did the achievements, including 80% of supply chain paid Real Living Wage, the top UK procurement score in Stonewall 2019, 50% of contracts awarded to local suppliers, £547,000 savings, and the introduction of a Pay Plus scheme improving supplier relationships.

FINALISTS: Home Office, Crown Commercial Services and Cabinet Office • NHS Arden & GEM CSU and NHS Nottingham City CCG • NHS England

 Judges’ comments: “An ambitious programme with wide ranging benefits and comprehensive stakeholder management. It’s a truly sustainable ethical procurement programme that has also looked to improve and address a low pay culture in the local area. A punchy submission.”

WINNER: Sheffield City Council PROJECT: Ethical Procurement: How Sheffield Would Like to do Business

11 www.cips.org

Ethical Procurement – Public Sector

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Proud legal sponsors of the CIPS Supply Management Awards 2019

Belfast | Bristol | Edinburgh | Glasgow | London | Manchester

Find out more at: www.tltsolicitors.com

Our dedicated procurement and state aid specialists advise on all stages of the process from strategy and design to award and governance, including under the European procurement regime and WTO rules. We are experts in dealing with any disputes or challenges that may arise We can ensure that your procurements are

compliant, commercially minded and attractive to bidder organisations. Our team has extensive in-house experience of complex transactions in the public and private sectors, allowing us to offer a unique proposition in the market for bidders and authorities: a one-stop shop for public procurement.

TLT is a top 50 law firm providing a full range of advisory, dispute resolution and transactional services across the three UK legal jurisdictions.

Contact Bill Hull, Partner and Head of TLT’s Commercial Services Group: [email protected]

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Global Sourcing

Customers of automotive firm Jaguar Land Rover (JLR) need to be able to experience premium service anytime and anywhere. Roadside Assistance Services (RSA) had been sourced by country or region, leading to a fragmented base with varying service levels. So the company conducted its first global tender for RSA services covering 41 countries. It was key to improve service level agreements (SLAs), with a strong focus on customer experience and cost control and ensure consistency across all European countries. It used a game theory-based tender process, aligning all commercial and non-

commercial elements before the negotiation took place. This enabled the firm to negotiate customer experience alongside price. The result? The project delivered all strategic objectives including harmonised and enhanced SLAs and consistent service and customer experience. By delivering additional cost savings of 25% and also selling JLR vehicles through innovative incentive schemes, the team exceeded expectations while putting the customer firmly centre stage.

FINALISTS: Jaguar Land Rover - Accessories Purchasing - Strategy Transformation – Steps Category • O2 Business

Judges’ comments: “Innovative use of game theory and so great to see that customer experience is taken as most important. Execution is solid, and great results. Love this entry!”

WINNER: Jaguar Land RoverPROJECT: Customer Value Driven by Procurement

Diversity and Inclusion

Barclays Bank initiated a Women in Procurement (WIP) team last year with the aim of advancing the gender agenda in procurement and changing the culture from within. Using feedback from focus sessions as well as market research, five objectives were set: increase the number of females at leadership level; introduce a mandatory balanced interview panel for all hiring campaigns; deliver unconscious bias training for all directors and managing directors; raise awareness of the WIP team; and open dialogue

across procurement and promote work-life balance programmes. Barclays launched The Incubator: a specific programme for high-performing female talent to develop skills, widen procurement knowledge, and increase cross-procurement collaboration and leadership experience. Results against all five objectives have been impressive. There has been an increase in female applicants from 28% to 36%, 55% of all new starters are female and women in leadership roles have increased by 4%. WIP has created a framework from scratch with clear measurable objectives.

FINALISTS: Clifford Chance • IBM

Judges’ comments: “Well planned and executed initiative, underpinned with measurement. The gender diversity agenda is very high profile and good to see the progress in what is traditionally a difficult sector for gender diversity. Good to see SMART objectives put in place to measure the effectiveness of women in procurement activities and that tangible outputs could be seen.”

WINNER: Barclays Bank PROJECT: Women In Procurement

13 www.cips.org

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Collaborative Teamwork – Private Sector

National Grid’s existing purchase to pay (P2P) system was outdated, slow and complex. It needed replacing and that, believed procurement, was an opportunity to seize. Cue a shared vision across IT, business services and global procurement to create the iBuy platform to revolutionise the user experience for colleagues and suppliers. With director sponsorship, the team held a customer immersion event to identify pain points and found three core customers: sporadic users, new starters and delegated professionals. By delving deeper into the challenges, it established “signature moments”

for each customer persona and created user stories. By engaging colleagues from the start and using agile approaches, the team helped colleagues make the shift from seeing procurement as a transaction to viewing it as a service. The result? Active users of the P2P system increased four times, there was an 80% reduction is requisition order time, a 44% increase in fully automated contracts and customer satisfaction jumped to 8.6/10. National Grid expects to achieve £800,000 in bottom line operational benefits a year from iBuy in this game-changer for the business.

FINALISTS: Engie UK & Ireland • Hitachi Rail • Jaguar Land Rover – Commercial Issue Resolution • Jaguar Land Rover – Fastening Together a Winning Team • SUEZ Recycling & Recovery UK Ltd – Silo Labs to Sharing Labs • SUEZ Recycling & Recovery UK Ltd – Waste Ash to Valuable Asset

Judges’ comments: “Clear vision and a huge step forward on customer satisfaction. The team had to work collaboratively across a number of areas of business and we particularly liked the approach to seeking customer feedback. An excellent project with great execution and solid business delivery. Well done!”

WINNER: National Grid PROJECT: iBuy – A Customer Journey

14 www.cips.org

It’s a challenge to secure bed spaces for those who may otherwise be in prison, as the Ministry of Justice and Her Majesty’s Prison and Probation Service know only too well. In 2018, an eight-year contract was due to expire for 550 bed spaces for the Bail Accommodation and Support Services. There had been several contract extensions, but lack of visibility was causing costs to the business and impacting on the prison population. It was a

chance to re-procure the service to provide value for money and also add value to the rehabilitation journey. A payment model based on paying for beds “in service” was implemented, transferring risks associated with non-availability of bed spaces and incentivising the supplier to bring them back into service as quickly as possible. Due to resourcing issues, a fluid approach to defining roles and responsibilities was taken. A re-work of metrics was also undertaken. The contract was awarded to a social justice charity and early indications are that, while the metrics are challenging, they are driving the behaviours the authority is seeking.

FINALISTS: Business Services Organisation • National Commercial Board • Network Rail

Judges’ comments: “Excellent results and a great example of a complex sourcing event managed well within a cross-functional, collaborative team. Good to see small social enterprises able to compete with more established players. Love the “pay for beds in service” model.”

WINNER: Ministry of Justice PROJECT: Re-procurement of the Bail Accommodation and Support Services Contract

Collaborative Teamwork – Public Sector

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Supplier Diversity

Fortune 500 corporation Cummins designs, manufactures and distributes engines, filtration and power generation products. Through its Diversity Procurement Initiative, its goal was to increase purchasing opportunities for under-represented supplier groups. It recognised traditional sourcing methods were not moving fast enough to increase opportunities, engagement and spend. So it designed an innovation gateway to break down corporate barriers. Using Six Sigma methodology, a cross-functional business team addressed supplier diversity

and inclusion, as well as key objectives of reducing water, waste and energy linked to Cummins 2020 environmental targets. A pilot resulted in more than 80% of the 80 plus submissions coming from under-represented groups. Some 26 finalists were selected to pitch, and 12 innovations taken through to test and verification phase in UK sites. Cummins also worked closely with MSDUK and WEConnect to ensure ethnic minority and women owned businesses were represented. Diverse spend has jumped from 12.6% to 30.5% of UK spend and the programme is now rolling out globally.

FINALISTS: Crown Commercial Service • Dana Incorporated • Heathrow Airport • IBM

Judges’ comments: “A strong submission in an increasingly important area for procurement, with good metrics and measurement. This introduction of the innovation portal for suppliers included diversity as an ambition and has seen some good results in the early stages. A “real” approach to supplier diversity.”

WINNER: Cummins PROJECT: Cummins Innovation Gateway

Complications from pregnancy and childbirth in Africa are a leading cause of death among 15-19-year olds. The Department for International Development (DFID) launched a programme to help women avoid unintended pregnancies, prevent unsafe abortions and maternal deaths, and provide family planning services for nearly 50 million people in 27 countries. Using innovative commercial design and a ground-breaking procurement approach, DFID was able to weight countries by greatest need

and incentivise suppliers to focus on hard-to-reach populations for the first time. A key issue was Couple Years of Protection (CYP), the number of couples protected. Bidders proposed the number of results per country for designated outputs and allocated a percentage of financial risk to delivery of those numbers. Both bidders proposed 100% of fees to be retained until the proposed targets were met or exceeded. Analysis showed 20.44 million CYPs could be delivered for the budget. Through the competition, DFID was able to drive greater value, with the winning suppliers proposing to deliver 24.48 million CYPs – an additional four million couples who will receive life-saving protection, representing efficiency savings of over £47 million.

FINALISTS: CERN • DE&S • Liverpool City Council • Network Rail • NHS Arden & GEM CSU, West Midlands Combined Authority and NHS Wolverhampton CCG and Social Finance • NHS Digital • YPO

Judges’ comments: “First class example of a structured and well implemented procurement process being applied to a complicated and challenging aid problem. Innovative and insightful, leading to best practice now being shared among other government agencies. Role modelling how UK aid is well spent – procurement at its best. Excellent.”

WINNER: Department for International Development PROJECT: Women’s Integrated Sexual Health Programme (WISH)

Public Procurement

15 www.cips.org

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Procurement Consultancy

The procurement function at Yorkshire Building Society operated in a traditional, tactical way. Procurement and supplier relationship management was run as two separate entities. Legacy software wasn’t fit-for-purpose going forward. It needed a shake-up to optimise the entire operation to drive more efficiency, performance and savings, enable continuous improvement and improve procurement’s standing in the business. Enter a partnership with GEP. Following a review, GEP recommended a three-pronged approach: redesigning the procurement organisation

structure, process redesign and optimisation and technology-driven transformation. Using a best practice approach, the comprehensive transformation programme has resulted in the creation of a robust risk management framework, one central supplier repository, a high level of automation and standardisation, best practices sourcing methodologies and improved supplier management and category management. What’s more, Yorkshire Building Society has achieved a 250% jump in savings and more than doubled the spend under management. An all-round win.

FINALISTS: Proxima & HRMC

Judges’ comments: “End-to-end consultancy engagement driving clear and sustainable business benefits. A good example of a transformational project, including the roll-out of a new organisation and process redesign. A clear, well written submission with great results.”

WINNER: GEP and Yorkshire Building SocietyPROJECT: Driving Greater Performance, Productivity & Value

Risk Mitigation

Pharmaceutical organisation Astellas employs some 17,000 people, with EMEA being highly fragmented across 40 countries. It is increasingly reliant on third parties, bringing significant risk in a highly regulated market. To move away from an ad hoc system of risk mitigation, it created “mySupplierRisk”, a third-party lifecycle management programme to identify risks while embedding a sustainable EMEA-wide approach. Phase one delivery was “time-boxed” to deliver four priority risk domains in the UK by

June 2018. MySupplierRisk was designed to be as simple as possible with few intuitive touchpoints. Most important was the level of automation – at every stage of the process Astellas looked to second guess the outcome of individual question/answer sets. Through moving to mySupplierRisk, Astellas has gained business owner accountability at a single touchpoint, a complete Source-to-Pay process that encompasses risk mitigation, and transparency and full auditability. Moreover, the programme has addressed nine risk domains across 23 affiliates in nine languages – in just 10 months.

FINALISTS: Department for International Development • Leica Biosystems • Lloyds Banking Group

Judges’ comments: “In this expansive project, Astellas ensured all bases were covered in managing supplier risk, as well as creating an ongoing focus on this in the company via the “mySupplierRisk” brand. They kept it simple to generate user adoption and commitment. Good to see 29% of the team was female too.”

WINNER: Astellas Pharma Europe PROJECT: mySupplierRisk – An Engaging Programme of Work

16 www.cips.org

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Procurement Transformation

Vodafone has long been an exemplar in procurement, but in 2017 the telecommunications company embarked on another transformative journey, shifting focus from price negotiation to embedding cost and value creation into the DNA of the business. It launched Design2Cost, with the aim of delivering at least €300 million in impact in five years and an aspiration to deliver €1bn. The team performs detailed “teardowns” – physical disassembly of a product or logical disassembly of

a service to determine the cost of each constituent element at the most granular level possible. A webcast explaining the concept is available to all 90,000 Vodafone employees globally and gamified learning rewards staff best able to grasp the principles. Vodafone reported €125 million of savings from D2C in its first year. Provisional numbers for 2018-19 are for a further €278 million, against a target of €60 million and €180 million respectively. D2C methodology has now been applied to 24% of its global spend, with a plan to reach 41% in the next 12 months. The function was awarded Vodafone’s annual Finance Award for 2018. It can now add a CIPS award.

FINALISTS: Astellas Pharma Europe • J Sainsbury • NFU Mutual • Rolls-Royce • The Royal British Legion

Judges’ comments: “While “design to cost” is not a new concept, Vodafone’s approach has accelerated it to a new level. I like the engagement approach and also the innovation using machine learning to reduce component identification time. “Design to cost” reinvented and put back to life in a very effective way.”

WINNER: Vodafone Procurement Company PROJECT: Design2Cost

Supply Chain Integration

Jaguar Land Rover Trading Division is responsible for the buying, moving and selling of parts to JLR plants in China and Brazil. The majority of parts are routed via one of three export sales centres (ESCs) in the UK or Germany, where parts are re-packed and consolidated for shipment. During the five years since the division’s creation, only two direct ship supply chains had been introduced, due to the complex process required to implement an alternative supply

chain. Not to be deterred, it developed a case to provide a comparison between routing from Japan via EU to UK to China, using the ESCs, or routing parts directly from Japan to China. In January 2019, parts were re-routed from Japan directly to the Chinese plant, while the transaction was routed virtually, avoiding planned import into the EU and UK. The project required more than £100,000 investment in IT change. JLR has saved £85 per car, reduced freight lead time from 23 weeks to 23 days and created stronger stakeholder teamworking. Furthermore, direct ship will not be affected by potential trade tariff changes in the UK and EU.

FINALISTS: Dstl • Nationwide Building Society

 Judges’ comments: “A well thought through plan with many business benefits from costs through to customer service lead times and CO

2 emissions.

While it appears a simple solution to achieving improving supplier chain integration, it was clearly extremely challenging to implement the required cross functional working and changes to IT. Great thinking.”

WINNER: Jaguar Land Rover PROJECT: Trading Division Direct Ship

17 www.cips.org

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Technology Innovation

Telecommunication provider Turkcell’s supply chain process development team was established three years ago to innovate process flows in procurement, logistics, and real estate and construction. It continually looks at how improvements can be made and bottlenecks eliminated. A procurement chatbot has been developed to eliminate non-value-adding time by answering business partner and vendor queries, saving as much as an hour a day for every

procurement team member. Biometric signatures were introduced, decreasing completion time of the contract signature process from 10 days to 6-10 hours. Mobile signature is now used on procurement contracts, decreasing both supplier and internal signatures time from 15-20 days to one to two days. Finally, a procurement committee portal has been established to create organisational memory. Staff fill in fields on the platform and the presentation is prepared automatically. PowerPoint is removed and there has been a time saving of 25 hours in a month. No wonder Turkcell’s CEO calls it the most productive meeting in the company.

FINALISTS: Dana Incorporated • Dstl • GEP and Yorkshire Building Society • Home Office, Cabinet Office and Crown Commercial Service • Jaguar Land Rover – How to Leverage Complexity with Innovative Sourcing Technology when Sourcing a High-technology CAPEX Project • Jaguar Land Rover – Robotic Process Automation • National Grid • NATS • NHS Wales Shared Services Partnership and AdviseInc

Judges’ comments: “Holistically thought through implementation of a digital strategy with various examples of how Turkcell achieved quick wins. I love the use of AI and robots – it is clear Turkcell is driving hard into digital. I would love to learn more!”

WINNER: Turkcell PROJECT: Harnessing The Latest and Innovative Technologies for Digital Transformation Journey of Supply Chain & Procurement

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People Development

IT services and solutions provider Fujitsu wanted to upskill its procurement function to address shortfalls in training across the world. Working collaboratively with HR and learning and development, it developed Passport 2 Procure – a comprehensive, structured training programme that could be delivered anytime, anywhere. When procurement staff complete their allocated training, they are rewarded with a pin badge, certificate and personal emails from the international chief procurement officer. Passport 2 Procure has delivered some 3,000 learning events across eight competencies and 28 topics, benefiting

120 employees across 20 countries and two continents. The latest phase, Expert, adds new areas including diversity and inclusion, cultural awareness and import/export. Procurement staff now also have the opportunity to study with the International Association for Contract and Commercial Management to gain an external qualification. The scheme has enabled Fujitsu to deliver 70 courses for less than €300 per person per annum, cost effectively up-skilling employees by using web-based training methods and utilising internal expertise.

FINALISTS: CBRE Global Workplace Solutions• Clifford Chance • Turkcell

Judges’ comments: “A really impressive programme to educate, evaluate, upskill, create career paths and improve engagement of the global procurement team. Well structured, well managed and well perceived. A great story.”

WINNER: Fujitsu PROJECT: Passport 2 Procure

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In 2016, the future of Formica Group was in doubt. Sales were falling, costs spiralling out of control and it posted a huge loss. A new European procurement director was engaged to transform procurement from an underperforming, disengaged, tactical function to a value-focused strategic team, positively driving change. To achieve this, it needed to gain credibility and secure top-down endorsement of its strategy. Culture and engagement had to improve and external best practice brought in. It built a strategy focusing on what could be delivered in a 12-month horizon. To bring this to life it had to believe and live four

behaviours: relationship (build the foundation on which it could challenge and change); win-win (educate stakeholders to collaborate to seek shared value); challenge (overcoming decades of “always doing it this way”); and innovation. The results speak for themselves: cost savings exceeded with impact of NZD 3.7 million across 121 initiatives. The team is energised and the perception of procurement has improved. It says it is incredibly proud of its achievements, and against such strong competition it should be!

FINALISTS: Co-op Insurance • Department for International Trade • Driver and Vehicle Licensing Agency • Legal and General Modular Homes • NHS Shared Business Services • The Royal British Legion • Tideway • Vectura Group

Judges’ comments: “With the business making a loss, there was the opportunity to establish great procurement at the heart of the turnaround. New leadership, clear strategy and plan, re-engagement with a sceptical business...result.”

WINNER: Formica Group Europe

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Procurement Team of the Year — Small Teams

Procurement Team of the Year — Large Teams

With a new CPO and a tough trading environment, retailer J Sainsbury set out to move the dial from good to great. Not one to go for half measures, procurement set a goal to become a leader of commercial change across the group, developing and leading a group-wide cost-conscious culture. It focused on key areas, including upweighting the team to improve quality and expertise, promoting internally where possible,

and creating The Ministry – a way of driving team culture, social and charity work, recruitment and training in which every team member helps shape at least one area. Not only has this approach delivered £90 million in P&L savings and delivered 349 projects, but the £160 million P&L synergy target at J Sainsbury-owned Argos was delivered nine months early. No wonder the group CEO says the team has transitioned “into an outstanding team of connected professionals with a shared mindset, influencing and leading the commercial change agenda across our business”.

FINALISTS: Foodbuy • Jaguar Land Rover

Judges’ comments: “A fantastic transformation of the team backed by good testimonials from the business and supplier. I like the focus on four key areas to ensure success, the team’s ability to deliver at pace and the engagement and communications created. The results speak for themselves.”

WINNER: J Sainsbury

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Young Talent

Jessica Jones is described by Royal Mail’s procurement director as a “trusted member” of the team who “delivers in an exemplary manner.” Not only has she focused on optimising supply chains, delivering substantial savings for Royal Mail Group across three categories – international air, automation and vehicles – she actively seeks opportunities to expand her skillset. She has procured outside of her category, leading a cross-

functional working team, and volunteering on an engineering nightshift to gain first-hand experience into the business challenges of the project. She sits on a continuous improvement working group, is involved in the Women’s Network, and is an ally to the LBGT+ Group. She also attends LEAD, a group for women in retail. As a result, Jones says she gets insight into customer needs and trends in their businesses directly, invaluable in helping to deliver strategies that are meaningful and beneficial to the customer. This maturity is just one of the reasons she has been awarded Young Talent of the Year.

FINALISTS: Bryony Gale, Cabinet Office • Jody Mower, Dentsu Aegis Network • Dawn Hutchison, Department for International Development • Stuart Harrod, HSBC

Judges’ comments: “Jessica demonstrates real passion for her job and a mature understanding of the areas in which the profession needs to improve. She is very self-motivated and pushes herself to improve. We were particularly impressed with her strong focus on business first, supported by the function. She also showed a good appreciation of how CIPS adds value to the profession.”

WINNER: Jessica Jones, Royal Mail Group

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Leader of the Year

Patrick is CPO at J Sainsbury with responsibility for all of the group’s procurement as well as leading its cost base transformation. More recently he has added the group’s extensive property portfolio for Sainsbury’s and Argos to his responsibilities as group property and procurement director. Previously he was SVP, chief property & procurement officer at Walgreens Boots Alliance. His role at J Sainsbury is to lead a programme of procurement-led business change across the group, challenging the traditional role of the company’s procurement department from a service provider into a major value-adding contributor to the bottom-line and realising ambitious targets for procurement

synergies and savings as well as leading an end-to-end review of the group’s cost base. His new role has him developing and leading the next generation of property strategy for the group.

Patrick started his career at the Nissan Motor Company where he spent 10 years playing leading roles in Nissan’s Revival and integration with Renault. He later worked for MFI plc as purchasing director, and subsequently spent time in Asia as managing director for MFI Asia.

He was later part of the team that grew Howden Joinery before being made chief operating officer for Howden Joinery Supply, where he restructured the sourcing, manufacturing and supply chains.

Judges’ comments: “Patrick’s acute commercial acumen and leadership has transformed procurement and supply in several large multi-national brands with a real focus on developing people and raising the bar for the function. He is an inspirational leader who regularly gives back to the profession, demonstrating procurement’s value beyond its more traditional roots.”

WINNER: Patrick Dunne, J Sainsbury

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WE ARE PROUD TO BE SUPPORTED BY:

OUR STELLAR SPEAKER LINE UP INCLUDES:

BILAL SHAYKHGroup CPO

Centrica plc

JULIET SOTNICKChief Procurement O� cer

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Hear from leading CPOs on how they’ve turned procurement into a strategic function

BOOKTODAY AND SAVE UP TO 20%^

FOR FULL SPEAKER LINE UP VISIT: CIPSUKCONFERENCE.COM/BOOK*Taken from the Procurement Salary Guide and Insights 2019 †CIPS members qualify for 14 CPD points by

attending this two day conference. ^Early bird offer ends 30 September 2019

71%* of you recently reported that procurement is valued in your organisation

QEII Centre London 31 October - 1 November 2019

This year’s CIPS UK Conference will provide you with actionable insights to implement into your organisation. Take advantage of:

● Two full days of insights from 40+ industry experts

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Plus discover key insights on:● Transforming a support function into a business critical division

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CATEGORY 2016 2017 2018

Best Contribution to Corporate Responsibility

Primark Heathrow Airport LimitedNorthumbrian Water Group

Best Cross-Functional Teamwork Project

Jaguar Land Rover John Lewis Partnership Ministry of Justice

Best Contribution to the Reputation of the Profession

Fusion21Department for International Development (DFID)

Barkers

Best People Development Initiative

Heathrow AirportUK SBS Shared Business Services

Cabinet Office – Government Commercial Function

Best Process Improvement Initiative

Sodexo UK & Ireland

Manchester Airports Group

United Utilities

Best Procurement Consultancy Project of the Year

OdesmaStradia and Northampton Partnership Homes

Jaguar Land Rover

Best Procurement Diversity Initiative

N/A N/A Intel

Best Public Procurement Project

DVLA

NHS Arden & GEM CSU and Nottinghamshire Clinical Commissioning Groups

Cornwall Council

Best Third Sector/Not-for-Profit Procurement Project

Scope Crown AgentsTogether for Sustainability

Best Supplier Relationship Management

Mitie TFM & Omni RMS

Jaguar Land Rover & Grupo Antolin

British Steel with Heraeus Electro-Nite UK

International Procurement Project of the Year

UK Shared Business Services

Interserve NHS Arden & GEM with NHS England

Most Improved Procurement Operation – Start Up

Pinsent Masons NHS EnglandA14 Integrated Delivery Team

Most Improved Procurement Operation – Step Change

Heathrow AirportSalisbury NHS Foundation Trust

Virgin Atlantic

Most Innovative use of Technology

Kier Group IBM CBRE GWS

CIPS Procurement and Supply Professional of the Year

Chris Bell, City of London Corporation

Tim Bullock, NATS

N/A

CIPS Young Procurement and Supply Professional of the Year

Lucy Morrison, Innovia Films

Conception Ribaud, MTR Crossrail

Karen Moorhouse, City of London Corporation

OVERALL WINNER Heathrow AirportJaguar Land Rover & Grupo Antolin

Northumbrian Water Group

PREVIOUS WINNERS

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AUSTRALASIA SUPPLY MANAGEMENT AWARDS 2019

SUPPLY MANAGEMENTAWARDS 2019

16 September 2020

Congratulations to all this year’s winners

Save the date for next year and be part of the event:

For more information about entering next year visit www.cipssmawards.com

H E A D L I N E S P O N S O R P L A T I N U M S P O N S O R

With thanks to this year’s sponsors