leading global excellence in procurement and supply sustainable capacity building for enhanced...
TRANSCRIPT
Leading global excellence in procurement and supply
Sustainable Capacity Building for Enhanced Public Procurement Performance
David Smith CB FCIPS
Leading global excellence in procurement and supply
Procurement is ‘Big Business’
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Business growth
Financial performance
People Development
Process Excellence
Customer’s Change Drivers
Drivers
Enablers
Minimising risk
Private sector
Reducing debt
Service performance
Minimising risk
Public sector
Performance
Leading global excellence in procurement and supply
The Solutions?
• Smarter Procurement• Trained & Qualified Staff• Better and Managed Suppliers• Use of Technology
Leading global excellence in procurement and supply
• Better understanding of our spend!• Incentivised Contracts• Investment in People• Simplified but improved processes• ‘Real’ Market Management• Deriving real value from our ‘e-investment
SmarterProcurement
Leading global excellence in procurement and supply
• Systems , Processes, Technology and Knowledge - Data
• Influence
• Suppliers
• People
‘The Enablers to Change’
Leading global excellence in procurement and supply
Our e-Investment
Our e-Challenge
Leading global excellence in procurement and supply
Procurement Focus
Value
TACTICAL LEVERAGE
STRATEGICCRITICAL
Criti
calit
y
Leading global excellence in procurement and supply
But e-Procurement is not:
• All about technology• A panacea• A quick fix• A substitute for good practice• An end in itself• Mechanising existing processes
Leading global excellence in procurement and supply
• Managing Key Suppliers
• Appointment of Crown Representatives
Cabinet Office Minister Francis Maude said the “… crown representatives will help to achieve value for money by ensuring the government acts a single customer”.
“These appointments follow the renegotiation of contracts with over 50 suppliers since July last year. The renegotiations have saved the Government £800 million”.
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People Development
Leading global excellence in procurement and supply
What do we expect from the next generation of public sector procurers?
• Act with Propriety• Know what they want to buy and why• Market Aware• Commercially and financially aware • Act on behalf of the public sector
Leading global excellence in procurement and supply
What do we expect from the next generation of public sector procurers?
• Improve and drive value from existing contracts• Manage corporate demand,• Understand the future supply chain• Is not averse to risk in procurements but knows
decisions must be managed, commercially advantageous and legally sound
Leading global excellence in procurement and supply
Our People
• UK Government has over 3,500 people involved in Procurement Activities
• In Designated Posts’(those that are 100% procurement)
• Training and Developing based on CIPS qualification and membership
• Target for Designated Post holders to be CIPS qualified
• Currently at 80%
• Procurement Allowance
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People DevelopmentThe three R’s
RecruitRetain
Reward
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Add value Reduce risk
Cutsupply chain waste Improve reputation
People DevelopmentProperly trained, qualified and continually developing procurement staff enable organisations to…
Leading global excellence in procurement and supply
Procurement People Development
– Raising the procurement capability across the organisation
– Providing a framework for People Development– Reviewing existing technical competencies, and
developing a curriculum of procurement learning and development to meet the needs of our procurement people AND OUR CUSTOMERS!
Leading global excellence in procurement and supply
• Commercials Skills• policy, delivery, negotiation, customer relations, supply
chain, relationship management, e systems, basic contract law etc
• MCIPS as a standard• Financial• Project & Process Management• People Management• Marketing• Risk Management• Delivery• Ethical• Pragmatism!
Our People – What Skills?
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People DevelopmentRoutes to MCIPS
Academic• CIPS Diploma
CIPS Diploma Membership
Applied Learning• CIPS Corporate Award
practitioner
Three years’ experience
Membership (MCIPS)
AcademicCIPS
Professionaldiploma
ExperientialManagement Entry
Route for senior practitioners
AppliedLearning
CIPS Corporate Award Advanced
Practitioner
AccreditedOther approved
qualificationse.g. relevant
MBA or S/NVQ
Leading global excellence in procurement and supply
To ensure sustainable procurement delivery in the future, we need to get the right people now but also in 5 and 10 years’
time. We want people of all ages, disciplines and skills to make this the
profession of choice.”
Leading global excellence in procurement and supply
Biggest Motivation of All …..
The opportunity to ensure the Procurement Profession, through delivery and behaviour, is valued
and appreciated at the very highest levels of business, now and
for the future.
Leading global excellence in procurement and supply
Thank you for listening
and enjoy…