seizing today, embracing tomorrow

Seizing Today, Embracing Tomorrow Peter Rushton – CIPS President11h May 2011

Seizing Today, Embracing Tomorrow

The Elephant in the room…


Seizing Today

G7US, Japan, Germany, UK, France, Italy, Canada

E7 China, India, Brazil, Indonesia, Turkey, Russia, Mexico

0

15

30

45

trn 60

2010 2020 20302000

E7 GDP

G7 GDP

The E7 will overtake the G7…GDP at purchasing power parity (constant 2008 $s)

Sunday Times

The changing worldSeizing Today, Embracing Tomorrow

The changing world

2010 2050


Energy in crisis

Fossil fuels are running out

“After 2015, supplies of easy to access oil and gas will no longer be able to keep up with demand”CEO of Shell, Jan 2008



• Our profession is in the spotlight

• The performance bar has been raised

• Can we deliver & meet expectations?

Procurement & Supply is in the news

RELEVANT

Organisational requirements are changing

Procurement

Supply

• Risk management

• Logistics

• Outsourcing

• Globalisation – China price

• Sustainability

• Volatility in commodities & currencies

• Collaboration

• Reputation

ValueProposition


Return on InvestmentRatio of total expenditure cost savings to the cost of procurement effort, 2010

11.3

4.1

Non-World-Class World-Class

176%

Source: The Hackett Group, Chris Sawchuk, 2010

World Class Supply ROISeizing Today, Embracing Tomorrow

• 25% of CPO’s report directly to the CEO

• Procurement is represented on 70% of all Boards of directors

Source ; Cap Gemini consulting

The Elephant in the room…


Embracing Tomorrow

Capturing the next generation of talent


We ALL need to do more -

• Educate

• Promote

• Win hearts and minds

What can you offer me?

• Middle Manager pay better by 8%

• Senior Manager pay better by 16%

• Head of function pay better by 10%

• Director pay better by 20%


Y NOT?

Thank you

[email protected] 0844 800 2515

Mobile +44 7595 607792

The world’s largest procurement and supply professional organisation

mailto:[email protected]

seizing today, embracing tomorrow

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