cips egypt branch procurement transformation in egypt · 3/28/2016 · • digital invaders •...
TRANSCRIPT
Leading global excellence in procurement and supply
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CIPS Egypt Branch
Procurement Transformation in Egypt Monday 28 March 2016
Leading global excellence in procurement and supply
Marwa Aburahma – CIPS Egypt Branch Chair
Procurement Transformation
Welcoming Note
Leading global excellence in procurement and supply
05:30 ‐ 06:00 Registration
06:00 ‐ 06:10 Welcoming Note – Marwa Aburahma CIPS Egypt Branch Chair
06:10 ‐ 06:30 The Future of Procurement & Supply – Sam Achampong FCIPS, General Manager, CIPS MENA
06:30 ‐ 06:45 Speed Networking – Tamer Hussein CIPS Egypt Branch Co‐Chair & HaythemEtemad CIPS Egypt Branch Education Officer
06:45 ‐ 07:15 Procurement Transformation in Egypt ‐ Amr Abdel Naby, Chief Procurement Officer, BP
07:15 ‐ 07:45 Break, prayer & networking
07:45 ‐ 8:30 Moving Procurement from Tactical to Strategic in Egypt – Eng. Ayman Amer, Director of Procurement at SODIC
08:30 ‐ 9:00 CIPS MENA – CIPS Capability Development
9:00 ‐ 9:30 Awards Ceremony, CIPS MENA GM will give out certificates for the delegates who recently graduated
09:30 ‐ 09:45 Event Survey
Agenda
Leading global excellence in procurement and supply
CIPS and the future of
Procurement & Supply
Sam Achampong FCIPSGeneral Manager ‐ CIPS MENAMarch 2016
Leading global excellence in procurement and supply
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Chartered Institute of Procurement & Supply
CharteredBody
CharteredBody
CharitableStatus
AwardingBody
Membership Organisation
CIPS for Business
“CIPS is the world's largest procurement and supply professional organisation and is recognisedthroughout the world as the voice of the procurement and supply management profession.”
• Established 1932• to “promote and develop for the public benefit the art and science of purchasing
and supply…”
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Who we areThe largest global professional body in Procurement and Supply
• Offices on 4 continents in 6 countries• Members in over 150 countries
The global standard for the profession• Mandated by sovereign countries, multi‐lateral agencies and multi‐national
companies
The professions advocate for ‘Licensing the Profession’
The only professional P&S body to degree level, independently regulated
The leading voice of the profession • www.cips.org ‐ c1 million annual users
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Key Trends (CEO concerns)• Industry convergence• Digital invaders• Cyber risk• Ideas economy
The Business EnvironmentEconomic Shifts• 2030 – two thirds of middle class in
Asia Pacific
• 2030 – 750 cities will provide 61% GDP
Changing Business Models• “Uberisation” of business models
• Digital economy represents 22.5% of global GDP
Human Knowledge• 1905 – doubled every 100 years• 1945 – doubled every 25 years• 2014 – doubled every 13 months• 2020 – will double every 12 hours
Ethics and Compliance• Increased legislation and
regulatory pressures
• Non‐compliance makes media grabbing headlines
• Davos 2016 – Global Value Chain Partnership (cooperation between governments integrating their economies into global supply chains)
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Government Procurement• 10 – 20% of global GDP
(19% EU GDP)
The Procurement and Supply EnvironmentOutsourcing• Exponential rise as seek to divest
assets
• Reshoring reversing to offshoring
3D Printing• Product differentiation will be
materials they’re made of not how made
Mergers and Acquisitions• 60‐80% of deals fail to deliver their
expected return often down to procurement non‐involvement up front
Supply Risk• Increasing regulation
• UK anti‐slavery legislation
• Cyber risk
• MalpracticeChanging Views• 48% of Business leaders believe
CSO a boardroom role by 2020
• 68% of Business leaders believe Supply Chain has direct impact on a country’s economic and industrial development
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Third world 20% leakage in government budgets due to fraud
More than US $1 trillion are paid in bribes annually
Corruption adds 10% to the cost of business and 25% to public procurement in developing countries
Facing the Worsening StormHow many tiers of your supply chain would you ascertain your organisation have visibility of?
First Tier only First and Second Tier
only
Tier Three and Beyond
Complete Visibility all the
way down
15%
57%
17%11%
CIPS YouGov Survey 2014 Base: B2B senior decision makers whose business has a supply chain
Leading global excellence in procurement and supply
THE SUPPLY CHAIN ERAOur Profession’s Problem
REAL
VALUE
PERCEIVED VALUE
BRAND: ‘PROCUREMENTAND SUPPLY’
• Fit the business strategy
• Contribute at top table• Talk the right language
Strategic Sourcing & enterprise development
Supply chains a competitive differentiator
Risk impacts = Brand value
Cost savings
Only 1/3 of CEO’s believe P&S professionals are ready for the strategic challenges ahead
Category management
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Likelihood of Automation?Buyers and Procurement Officers 141st most likely to have their job automated, out of 366 professions
64% ‐ Buyer and Procurement Officer
97% ‐ Finance Officer95% ‐ Chartered and Certified Accountant
58% ‐ IT Engineers
73% ‐ Cook
36% ‐ Importer / Exporter
15% ‐ Economist orStatistician
Source: The Future of Employment: How susceptible are jobs to automation, Michael Osborne and Carl Frey, Oxford University
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• Those implementing this technology are not seeking our permission to implement• Algorithms with intelligence can replace large parts of our roles• Shrinking the bottom tier of the profession?• Their arrival is raising the intellectual entry point
Leadership
Managerial
Tactical and operational
Artificial Intelligence and Big Data
CIPS 2015 Future survey respondent job categories
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Capability Development
CIPS Applied LearningLeadership vs. Management
Performance
Process
ProfitabilityEfficiency
People
Effectiveness
VALUE
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CIPS Knowledge
Procurement & Supply Cycle
Knowledge Partnerships
Members
Third Party Relationships Tools and Templates
White Papers and News Insights
Category and Commodity Expertise
Procurement Topic Expertise
Webinars and EventsKnowledge Groups
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A Global Institute, a Global VoiceUK
(Head Office)MENA(Dubai)
Asia Pacific(Singapore)
Australasia(Melbourne)
Turkey(Istanbul)
Africa(Johannesburg)
Partnerships:
ChinaPoland Denmark USA Romania United Nations
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Global Reach and Influence
• Angola• Egypt• Sunbury• Baku
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CIPS for Business
Helping organisations achieve sustainable value delivery from their supplier base
All organisationsAll sectorsAll around the world
CAPABILITY DEVELOPMENT
SUPPLYASSURANCE
AND COMPLIANCE
PERFORMANCE
CIPS FORBUSINESS
Professional training and certified qualifications assessed against a global standard.
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Addressing our Profession’s problem
Qualified Professionals,Effective organisations…
• Certified qualifications
• CPD
• Industry Knowledge
• Peer networks
• Ethics tests
• Code of Conduct
Assessed against a Global Standard
“promote and develop for the public benefit the art and science of purchasing and supply…”
Leading global excellence in procurement and supply
Tamer Hussein – CIPS Egypt Branch Co-Chair
Haytham Etemad - CIPS Egypt Branch Education Officer
Procurement Transformation
Speed Networking
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Speed Networking Goals for Tonight
Speed Networking
Tips
Opportunity to develop
and practice your
networking skills
It’s a starting point, not an ending point!
Find ways to connect with every person
you meet.
Networking is a two way
street.
Feeling frustrated that
your conversation
ended too soon? Follow
up later tonight.
Continue to use and
practice this skill whenever the opportunity presents itself.
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Live Session Exercise– PRACTICE!
TIMING: (20 MINUTES)• STEP 1: Form groups per table!
• STEP 2: Group member #1 give your 30 seconds introduction
• STEP 3: Repeat with group members #2, #3, #4, etc(round the table)
• STEP 4: 4 members from the table to switch with others from other table
• STEP 5: Repeat step# 2 & 3
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Speed Networking
Name
Company
Experience, (DON’T FORGET TO INCLUDE EXPERIENCES OUTSIDE OF WORK)
PRACTICE, PRACTICE, PRACTICE!!!Something unique about yourself
BIGGEST MISTAKE IS NOT PARTICIPATING
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Speed Networking Photos
Leading global excellence in procurement and supply
Amr Abdel Naby – CPO BP North Africa
Procurement Transformation
Case Study - Transformation in the Egyptian Oil & Gas Industry
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“There is hardly anything in this world that someone cannot make a little worse and sell a little cheaper, and the people who consider price alone are that person’s lawful prey”
John Ruskin
What does this tell us ?
Procurement IS NOT about obtaining Lowest Price , but rather delivering Best Value for money.
Value Proposition
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Procurement is a critical process that must be given considerable attention due to it’s;• Contribution to overall profit, • Role in supporting an organization's strategic goals, • Delivering value to multiple areas of operations
As such, successful companies have been found to pay strongattention to the Procurement Transformation which is thefocus on strategies to enable major and long-termimprovements to procurement and supply managementprocesses, activities and relationships
Procurement Transformation
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Case Study – Transformation in the Egyptian Oil & Gas Industry
How to Transform ?
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Market Context
• 2014 was the beginning of the storm to hit the oil and gas industry, • with the world’s demand for oil falling and supply increasing, the resulting
price of a barrel has plummeted to record lows.• Since then, the industry has deferred $200 billion worth of projects to
protect dividends.
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Impact of the External Environment
A change of attitude across the industry to really examine
expenditure & massive cost saving exercises initiated
Procurement function pushed to the forefront on the mission to
maintain a healthy profit margin and manage operational spend.
The industry faces the likelihood of a long term low-price environment,
procurement teams needed to look beyond short-term tactics and take a
more strategic stance within their organizations and Transform.
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Such Challenges and demand requires Procurement functions to shift from the traditional tactical approach and adopt strategies that focus on effective Procurement Management which reduces costs while improving efficiency and performance.
Tactical Vs Strategic
– Many suppliers
– Adversarial and competing
– Short term
– Distanced
• ‘Arms length’
– Information is power
– Fewer suppliers
– Integrated/Collaborative
– Long-term
– Close, complex
• Shared information
– Involved up-front
• Tactical • Strategic
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Company Procurement Profile
• Procurement framework was outdated, complex , and bureaucratic lacks modern administration qualities and is in need of updating.
• Procurement organization complex and needed restructuring.• Waste was identified throughout the procurement cycle. • Procurement framework has not undergo any assessment or effective
review for more than 15 years. • No application of technology. Process paper based with an emphasis
on control through multiple signatures. • Arms length adversarial supplier relationship. • No spend analysis carried out. • No supplier segmentation. All suppliers treated equally without any
emphasis on strengthening relationships• Reactive process & late buyer involvement. No planning and
forecasting.
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• Defined the Scope of Procurement Transformation –– Identified what needs to change (organization - technology - supply base – supplier
relationships, etc…)• Established Baseline for People, Processes, and Technology –
– Documented key findings to assess progress Where are we starting from• Conducted a Gap Analysis & Developed Transformation Plan –
– Prioritized & staged the transformation targeting quick wins to build momentum. • Developed Stakeholder Relationships -
– Identified and development communications plans for key leaders to build support• Set Service Level Expectations – Avoid over promising Gain alignment on what we’d deliver• Defined Performance Metrics - developed metrics to assess transformation.• Structured Organization to Support Transformation -
– Understood spend patterns and categories to help decide organizational structure.• Developed Standardized, Optimized, and Documented Procurement Processes -
– developed detailed, yet understandable process. • Created Policies to Support Transformation - Who has the delegation of Authority (commit
funds). • Reviewed and Refined - Reviewed our goals and progress after 90 days and at least twice per
year thereafter
The Transformation Process
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• Staff Development• Supply base Optimization• Supplier Segmentation• Supplier Relationships• Market Intelligence• Ethical Procurement• Electronic Procurement • Procurement Cycle• Total cost focus• Supplier Performance Evaluation & Development
Keys to Procurement Transformation
Staff Development
• Professional accreditation (CIPS, ISM)adds value to the human resource.
• Developed an industry specific certificate for procurement professionals in improve capabilities .
Procurement transformation requires strengthening team competences & building skills that provide a high return on investment.
Supply Base Optimization
• The goal of supply base optimization is reduce costs, improve quality, shorten delivery, and enhance information sharing with the supplier.
• Conducted a complete review of the supply base which reduced suppliers from 1500 to 800
Supply base optimization is a continuous process where marginal and under performing suppliers are eliminated from a company’s suppliers list.
Supplier Segmentation
High
Low High
Bottleneck(technology focusearly selection
Might be sole sourced)
Critical(High impact on operation.
Early selection of supplier.Relationships are important)
Routine(Spot buy or
supply agreements)
Leverage(Low impact on core business operation. Robust contract, relationships less important)
Expenditure/Profit Impact
Supp
ly R
isk
• Use a KraljicPortfolio purchasing Model.
• Classify commodities by supply risk / profit impact.
• Allowed us to develop procurement strategies for each of the different classifications
Kraljic Portfolio purchasing model (1983)
Supplier Relationships
• Relationship-based purchasing encompasses communication with the supplier and in some cases strategic alliances which result in flexibility, combined problem solving, shared risks and rewards.
• Identified strategic suppliers & developed longer more sustainable relationships with them.
To achieve the greatest value from a supplier, a supplier relationship-based culture should be adopted instead of transactional-based purchasing in which each party attempts to obtain the best outcome for themselves leading to poor performance and increased costs.
• Market Intelligence is the monitoring of the market data of suppliers to improve procurement decision making. – Supplier information :spend, performance, financial health, demand
and quality. – market information: industries, competitors, and technologies.
• A defined Code of Ethics is essential for an organization to ensure that all company employees uphold ethical standards and practices while conducting procurement activities.
• Technology maximizes business productivity by creating and enabling better communication between teams and simplifying, shortening and streamlining the procurement cycle reducing costs and improving efficiency.
Market Intelligence / Ethical Procurement/ Electronic Procurement
Procurement Cycle
• Procurement Planning: Essential for informed decision making and.Provides a structured approach to market as well as efficiently managingelements of the SC such as delivery, inventory, material movement andcash flows.
• Decision making: In a fast paced environment, decision making isbecoming more and more important to enable rapid response to changingmarket conditions. With the availability of accurate information, decisionmaking is fast and focused.
Best in class procurement process creates both economies and efficiencies within the procurement cycle.
Total Cost of Ownership
• Change in oil prices invariably impacts economics of a majority of thecategories. It is important for category managers to understand cost structuresor Total cost of ownership (TCO).
• buyers should look not just at an item's short-term price, which is its purchaseprice, but also at its long-term price, which is its total cost of ownership.
• The mindset shifted from looking only at the purchase price establishing aculture that focuses on a total cost of ownership
• This shift resulted in an overall improvement to plant reliability and reducedsafety incidents on site.
Supplier Performance Evaluation
• Suppliers should be evaluated on specific criteria such as cost, quality,productivity and delivery in addition to other specialized criteria such assafety and environmental performance.
• Developed Periodic performance review with suppliers and identifiedKPIs to manage performance and delivery.
Supplier performance evaluation is used to identify poor performing suppliers & areas for performance improvement.
Outcome
• Reliability + Production = Value + Cost
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Conclusions
• Near-term projections for the global oil & gas industry continue to forecast increases in supply against weak demand growth.
• No sign of a quick return to higher prices, it will become increasingly important for procurement teams to step up their game.
• Short-term cuts can sometimes be penny wise and pound foolish. Long-term improvements require more balanced strategic capabilities.
• Through transformation, procurement teams can become one of the most important agents in the industry’s transformation for leaner times
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• Questions
Thank you for listening
TRANSFORMING FROM TACTICAL TO STRATEGIC PROCUREMENT
Ayman Amer – Procurement Director SODIC
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Content
About SODIC Journey in Procurement Tactical Vs Strategic Procurement Balanced Procurement Operating Models Market Analysis & Mitigating Risks Key Learnings and Best Practices
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At the Forefront of Egyptian Real Estate Market
Headquartered in Cairo with lands in the West and East of Cairo and the Northern Mediterranean Coast
Established in
199612.3 mn sqm Lank Bank
SODIC is one of Egypt’s largest, listed real estate development companies with two decades of successful operations
Developing large scale award‐winning mixed use projectsmeeting Egypt’s ever‐growing need for high quality housing, commercial and retail spaces
EGP 3.7 bnMarket Cap
DiversifiedShareholder Base
Attracting capital from across the globeA diversified shareholder base
13%
13%
9%
8%4%4%3%
46%
Olayan Abu Namay Ripplewood
Rashed EFG Hermes Norges Bank
Juma Al Majid Others
37%
35%
13%
4%4%4%
4%
Egypt Saudi Arabia UK
Norway UAE USA
Others
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Historical Milestones
1996 ‐2005
BeginningsIncorporated 1996Publicly listed
Developed Beverly Hills
2006 ‐2010
Repositioning SODIC to capitalise on the
opportunities in EgyptGrew land bank
Successful launch of 5 projects
Rapid Growth
2011 ‐2013
Continue timely delivery across 8 projects
Immediate reaction & recovery 1st to Launch new inventory
Successfully Steering through the Downturn
1st developer to settle disputesfreeing up 250 acres
301 acre plot acquisitionRecord contracted sales of EGP 3bn
Market cap doubledDoubled annual investments
& spend
2014
Record Year for SODIC & Tangible Improvement in
Operating Environment
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3 mn sqmBUA Developed
5.7 mn sqmLand Developed
EGP 2.6 bnRaised in Capital Markets
1.74
4.39
5.25
5.72
1996‐2005
2006‐2010
2011‐2013
2014
0.92
2.21
2.69
2.98
1996‐2005
2006‐2010
2011‐2013
2014
100
1,550
‐
993
1996‐2005
2006‐2010
2011‐2013
20142014‐2015
2015
Growth TrajectoryLand Bank Doubles
3.3mn sqmSwift Management
Change• Sales 4.4bn (46% increase in sales)• First Second‐home expanding to
North Coast• First Recurring income asset
commenced operation HUB
2014‐20152014‐2015
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Journey In Procurement
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1996 – 2010 Procurement in SODIC Outsourced2011 – Present Procurement in SODIC In‐house
Add‐Ons
• Hire excellent calibers• Becoming more cost conscious• Precise market analysis• Adding value to SODIC clients
2011 2012 2013 2014 2015
X½ X 0.8 X X
3X
X 13X 8X 4X 4X
Tenders
Variation Orders
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Tactical Vs Strategic Procurement
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Tactical Sourcing:• In Conclusion:The major contract expires tomorrow, we have no idea what we want and no knowledge of the market. It is time to pass this across to the Procurement Team.
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Tactical Vs Strategic Procurement
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Tactical Sourcing:• Tactical sourcing is commonly found in organizations favoring routine
administrative tasks executed in a reactive environment. One or more individuals is responsible to requesting quotes from vendors, placing orders, expediting the delivery of the products, etc. Tactical sourcing is generally done outside of the context of focus on the enterprise as a whole. The individual making the purchasing decisions is not focused on continuous improvement or contributing to specific goals set forth by executive level management. Companies leveraging tactical sourcing may be smaller organizations lacking the necessary infrastructure or learning environment to support strategic sourcing
• Mainly concerned with:1. Short term2. Transactional3. Re‐active
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Tactical Vs Strategic Procurement
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Strategic Sourcing:• strategic sourcing focuses on making a connection between your company’s
operational base to your business aspirations. This approach takes your service delivery model and aligns it with the information technology and critical operational aspects within your business strategy. Strategic sourcing does not react to situations as tactical sourcing does; it will consider the direction of the organization as a whole, proactively making decisions based on this direction to support all efforts. Tactical sourcing is very much an isolated decision, where strategic sourcing is an ongoing process that balances external and internal activities, services and knowledge.Mainly concerned with:
1. Systematic2. Long term3. Holistic
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The 10 Steps to Transform your organization from Tactical to Strategic Sourcing
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1‐ Spend Analysis: Strategic purchasing teams examine the amount of money they spend in each category of goods and services and use this analysis to identify opportunities for improvement.
2‐ Supplier Relationship Management: Strategic purchasing teams measure supplier performance and regularly spend time meeting with their most important suppliers to implement improvements.
3‐ Technology Implementation: Strategic purchasing teams frequently update and add technologies that measurably reduce costs, decrease cycle time, and make the purchasing process more efficient.
4‐ Developing Project Plans: Strategic purchasing teams use project management practices to map out both recurring activities and one‐time projects. 5‐ Enterprise‐wide Contracts: Strategic purchasing teams consolidate spend across all parts of their organizations and enter into contracts with a limited supply base to serve the needs of the entire organization.
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The 10 Steps to Transform your organization from Tactical to Strategic Sourcing
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6‐ Forecasting: Strategic purchasing teams regularly document changes that they foresee in price levels, availability, and markets to ensure a competitive advantage for their organizations.
7‐ Involvement in Spec Development: Strategic purchasing teams are involved at the early stages of specification development, lending specialized knowledge in material availability, cost drivers, standard parts, and reliability of supply.
8‐ Development of Productivity Tools: Strategic purchasing teams develop tools (e.g., RFP templates) so repetitive tasks can be done more quickly and error‐free.
9‐ Supplier Development: Strategic purchasing teams don't blindly accept the suppliers and products that are currently available. They work with suppliers to develop new capabilities or products that will improve cost or quality.
10‐Work Responsibility Refinement: Strategic purchasing teams constantly identify ways to automate, delegate, or eliminate tactical, non‐value‐added work
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To Apply this we Need to CHANGE
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Mindset/ Attitude Skills Expectation Action
• Willingness to Change
• Stakeholder Focus
• Cross‐Functional involvement
• Focus on Value Creation
• Strategy Development
• Category Playbooks
• Opportunity Assessment
• communication• Strategy
development• Opportunity
Assessment • Category
Playbooks Development
• Leadership Involvement
• KPIs• Personal Goals
and Performance Review
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Benefits of applying Strategic Sourcing
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• Raise Strategic contribution of procurement to the business.
• Improves stakeholder buy‐in to results.
• Reduces risk in supply chain
• Establishes more effective use of resources.
• Establishes more effective levels, quality, availability.
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Balanced Procurement Operating Model
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Heart
Brain
Action/Result
Functional Team
Core Team
Head of Procurement
Team
2011 2012 2013 2014 2015
SODIC Model
Tenders
Variation Orders
Savings
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Balanced Procurement Operating Model
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Market Analysis & Risk Mitigation
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290.00
292.17275.00
294.32
346.64
292.50
250
270
290
310
330
350
370
2010 2011 2012 2013 2014 2015
Solid Cement Bricks (per 1000)
3,714.75
4,788.25
4,577.75
5,145.83 5,200.08
4,997.96
3000
3500
4000
4500
5000
5500
2010 2011 2012 2013 2014 2015
26.94
26.44 26.26
31.76
37.49
35.93
25.000
27.000
29.000
31.000
33.000
35.000
37.000
2010 2011 2012 2013 2014 2015
Steel (per ton)
Cement Portland (per bag)
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Key Learnings & Best Practices
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• Electronic Systems: SODIC will start applying new e‐procurement system to replace the current system for PO’s, Tenders & Vendors master log. This will reduce the cycle time, involved teams efforts & will result in reducing the company’s soft cost significantly .
• Centralized Global Procurement Strategy;SODIC have achieved very high savings by following Global Procurement strategy that was introduced for the first time to SODIC on November 2010 thru a list of items that can be directly procured or nominated under main Contractor's scope.This Strategy also has very positive impact on the delivered quality since SODIC has the upper hand in selecting the right product in terms of quality & price.This Exercise is spread out all over SODIC new developments giving a better negotiation position to the procurement team while discussing & negotiating tenders.
• Standard Guide Lines:SODIC has started in applying a standard guide line booklet thru the Technical Design team & approved by the Development team; reflecting their Development business case. This booklet is issued for SODIC similar prototypes (Villas – Town Homes ‐ City Villas – Duplexes – Apartments) as a standard frame work that all involved parties should stick to such as;‐ Aluminum profiles.‐ External Painting material.‐ Standard opening sizes (to be limited to a certain number per Prototype & repeated thru the project).
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Key Learnings & Best Practices
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• Research & Development SODIC is investing in the R&D of the materials used at each development; starting from the structural systems up to the new generation of sustainable & cost efficient material that have very high return on both running & initial costs.
• Barter DealsBy Q4 2013 it was the first time for Procurement department to start thinking of these special deals & results were actually very successful.
• HedgingIn a market that has such sudden fluctuations & currency devaluation the hedging approach especially in the key commodities (Concrete – Steel) is considered to be one of the major keys that any organization working in the construction/real estate market would think of; an exercise was done in 2014 to hedge all concrete supplies this saved 20% on the flat rate after the sudden raise of price of Cement from 570EGP/ton to 780EGP/ton. Same exercise was applied on Steel which saved 10% of the total steel rate after the sudden raise of steel from 4800EGP/ton to 5300EGP/ton.
Thank You
Leading global excellence in procurement and supply
Procurement Transformation
CIPS Capability Development / Applied Learning
Diya NasereddinCIPS Country ManagerMarch 2016
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Capability Development
You need… …to ensure your team• has the skills to spend your
company’s money wisely and manage your spend and suppliers
• is operating to a professional standard and continually building their skills and capabilities
We help by……building skills, knowledge and capability within procurement and supply chain teams so you achieve sustainable value delivery from your supplier base
CAPABILITY DEVELOPMENT
CIPS FORBUSINESS
Capability Development
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Capability Development
Applied LearningCorporate Award
Build Capability of Your Brightest and Best to Achieve:
Tangible return on investment
People development• Capability enhancement• Business skills• Positive behaviours
Business and performance improvements
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Capability Development
Routes to MCIPS
Membership (MCIPS)
CIPS Diploma CIPS Corporate Award Practitioner
CIPS Professional Diploma
CIPS Diploma Membership
Three years’ experience
CIPS Corporate Award
Advanced Practitioner
ManagementEntry Route for senior
practitioners
Other approved qualificationse.g. relevant
MSc
AccreditedExperientialAcademic Applied Learning
CIPSAdvanced Diploma
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Capability Development
Applied LearningCorporate Award
Programme Levels and Professional Journey
Practitioner(Diploma Equivalent)
AdvancedPractitioner(Honors Degree Equivalent)
MasterPractitioner
(Postgraduate Degree Equivalent)
CHARTEREDAdvancedProfessionalLicence
Diploma Membership
MCIPSProfessional Licence
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Capability Development
Applied LearningCorporate Award
Programme Development
Organisational context – people, process, policy, performance
Course contextualisation
Practitioner programme
Advancedpractitioner programme
Organisational objectives
Masterpractitioner programme
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Capability Development
Duration12 – 14 months formodules and assessed assignments
Duration1 Week
Applied LearningCorporate Award Practitioner and Advanced Practitioner
Overview
STEP 1Skills
Analysis / Entry Criteria
STEP 2Induction
STEP 3Modules
Assessed Assignments
STEP 4Final Assessed Assignment
Oral Presentation (Optional at Practitioner Level
Mandatory at Advanced Practitioner Level)
Duration4 – 6 months for final assessed assignment
1 Hour 1 Day 15 Days 1 Day + 3 x 1 Hour
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Capability Development
Online skills analysis mandatory for direct entry to Advanced Practitioner
Applied LearningCorporate Award Advanced Practitioner
Step 1: Skills Analysis
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Capability Development
Applied LearningCorporate Award Advanced Practitioner
Step 1: Skills Analysis – Report for Each Individual
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Capability Development
Applied LearningCorporate Award Advanced Practitioner
Step 1: Skills Analysis – Company Report
Entry criteria for Advanced Practitioner is a minimum score of 3
Position and
Influence
External Environment
Technology SpendMgmt
Contracting Sourcing Delivery Outcomes
Metrics and
Measurement
Developing Individuals
and Teams
Developing Self and Personal Skills
Ethics Total
4.50 3.50 5.00 4.00 4.50 4.00 3.50 4.50 4.50 5.00 5.00 48.00
4.50 3.00 4.00 4.00 4.50 4.00 4.00 3.50 3.50 4.50 3.00 42.50
5.00 4.00 4.50 4.50 4.00 5.00 4.00 4.00 4.50 4.50 4.50 48.50
Strength Meets the standard Development need Significant
development need
Leading global excellence in procurement and supply
73
Capability Development
Applied LearningCorporate Award Advanced Practitioner
Step 1: Skills Analysis – Company Report
Leading global excellence in procurement and supply
74
Capability Development
Applied LearningCorporate Award Practitioner and Advanced Practitioner
Step 2: Induction
• Face to face• 1 Day• Intro to fellow participants• What participants can
expect• What’s expected of
participants• Tips for success
Leading global excellence in procurement and supply
75
Capability Development
Mod
ule 4
Mod
ule 3
Mod
ule 5
Mod
ule 1
Mod
ule 2
Applied LearningCorporate Award Practitioner
Step 3: Modules and Assessed Assignments
Effective negotiation in procurement and supply(3 days)
Driving value through procurement and supply(3 days)
Sourcing essentials in procurement and supply(3 days)
Managing expenditures with suppliers(3 days)
Developing contracts in procurement and supply(3 days)M
ODULE
S
ASSESSEDASSIG
NMEN
T 13,000WORDS
ASSESSEDASSIG
NMEN
T 2
3,000WORDS
ASSESSEDASSIG
NMEN
T 3
3,000WORDS
FINAL AASSESSED
ASSIGNMEN
T
5,000WORDS
Leading global excellence in procurement and supply
76
Capability Development
Mod
ule 4
Mod
ule 3
Mod
ule 5
Mod
ule 1
Mod
ule 2
Applied LearningCorporate Award Practitioner
Step 3: Modules and Syllabus
Effective negotiation in procurement and supply(3 days)
Driving value through procurement and supply(3 days)
Sourcing essentials in procurement and supply(3 days)
Managing expenditures with suppliers(3 days)
Developing contracts in procurement and supply(3 days)M
ODULE
S
• The roles of procurement and supply
• Procedures in procurement and supply
• The impact of the external environment on procurement and supply
• Effective purchasing
• Developing contracts
• Developing specifications
• Contract management
• The sourcing process and effective tendering
• Supplier appraisal
• Effective negotiation
• Negotiation simulation
SYLL
ABUS
Leading global excellence in procurement and supply
77
Capability Development
Mod
ule 1 Strategic
supply chain management (3 days)
Mod
ule 5
Mod
ule 4
Mod
ule 3
Mod
ule 2
Applied LearningCorporate Award Advanced Practitioner
Step 3: Modules and Assessed Assignments
Advanced category management in procurement and supply chain management(3 days)
Developing people in procurement and supply chain management(3 days)
Implementing change in procurement and supply chain management(3 days)
Contracting excellence in procurement and supply chain management(3 days)
MODULE
S
ASSESSEDASSIG
NMEN
T 1
3,000WORDS
ASSESSEDASSIG
NMEN
T 23,000WORDS
ASSESSEDASSIG
NMEN
T 3
3,000WORDS
ASSESSEDASSIG
NMEN
T 4
3,000WORDS
FINAL ASSESSED
ASSIG
NMEN
T &ORAL PRESEN
TATION
10,000WORDS
Leading global excellence in procurement and supply
78
Capability Development
Mod
ule 1 Strategic
supply chain management (3 days)
• Legal aspects of commercial contracts
• Managing risks in contracting
• Developing individuals and teams in procurement and supply
• Developing leadership capabilities to improve procurement & supply
• Effective procurement and supply chain management
• Leading stakeholders to achieve change
• Supply chain management
• Corporate strategy, procurement & supply chain management
• The impact of globalisation on supply chains
• Developing systems for procurementand supplychain management
• Category management
• Supply chain improvement
Mod
ule 5
Mod
ule 4
Mod
ule 3
Mod
ule 2
Applied LearningCorporate Award Advanced Practitioner
Step 3: Modules and Syllabus
Advanced category management in procurement and supply chain management(3 days)
Developing people in procurement and supply chain management(3 days)
Implementing change in procurement and supply chain management(3 days)
Contracting excellence in procurement and supply chain management(3 days)
SYLL
ABUS
MODULE
S
Leading global excellence in procurement and supply
79
Capability Development
Applied LearningCorporate Award Practitioner and Advanced Practitioner
Step 3: Assessed Assignments
Organisation specific• Address challenges faced by candidates in their company• Context specific• Verify ability to practically apply learning• Confirm knowledge transfer and capability development• Support development of the organisation, function and individual
Leading global excellence in procurement and supply
80
Capability Development
ROI
Applied LearningCorporate Award Practitioner and Advanced Practitioner
Step 4: Final Assessed Assignment
Work‐based projects• Project chosen by candidate
in area approved by their sponsoringmanagement team
• Must tackle challengesfaced by their company
• Must deliver business benefits
The outcome…
Leading global excellence in procurement and supply
81
Capability Development
Applied LearningCorporate Award Practitioner and Advanced Practitioner
Step 4: Final Assessed Assignment and Oral Presentation
Workshop day
Surgery Surgery Surgery Business project and presentation
Pass / credit/ distinction
ROI
Leading global excellence in procurement and supply
82
Capability Development
Applied LearningCorporate Award
• Angola• Egypt• Sunbury• Baku
Leading global excellence in procurement and supply
83
Capability Development
Applied LearningSyndicated Corporate Award
What and Why
• Open to organisations across the industry supply chain with a geographical emphasis
• Bespoke content and sector specific case studies• Incorporates industry terminology, practices and unique challenges• Develops sector focussed professionals• Improves industry networking at junior and mid management levels• Addresses resource constraints – budget, manpower and “time on the
job”• Pilot intervention to gauge results and commit larger groups to the
program
Leading global excellence in procurement and supply
84
Capability Development
Current Participating Organisations:• Etihad Airways• Emirates Steel• ADUPC• GASCO• Maersk Oil Qatar• RasGas• Qatar Petroleum• Qatar Foundation
Applied LearningSyndicated Corporate Award
Middle East Syndicated Programs
• Qatar Shell• Masdar Institute• ADCO• TDIC• ADNOC Group• Borouge• Al Hosn Gas
Leading global excellence in procurement and supply
Next Steps
For More Information
www.cips.org/ businesswww.cips.org/cips‐for‐business
Leading global excellence in procurement and supply
Next Steps
For More Information
contact :
Tel: +971‐564460463
Leading global excellence in procurement and supply
RECOGNITION CEREMONY
Leading global excellence in procurement and supply
88
CIPS Team
CIPS Egypt linkedin pagehttps://www.linkedin.com/groups/8300026