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Leading global excellence in procurement and supply 1 The Chartered Procurement Professional Duncan Brock, Director, CIPS [email protected] +44 (0)1780 761470

The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

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Page 1: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

1

The Chartered Procurement Professional

Duncan Brock, Director, CIPS [email protected] +44 (0)1780 761470

Page 2: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

2

Introducing CIPS

Chartered Body

Charitable Status

Awarding Body

Membership Organisation

CIPS for Business

Page 3: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

Beyond Cost Savings

Intelligent Spending Managing Risk

Social Value

Transparency and Integrity

Win New Business

Relationship Experts

£ £££

Driving Innovation

Page 4: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

Artificial Intelligence and Big Data

• 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

CIPS 2015 Future survey respondent job categories

Page 5: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

Our Profession’s Evolution

• Cost Management • Sourcing • Contract

Management

PURCHASING

• Category Management

• Upstream Procurement

• Supplier Management

PROCUREMENT

• Protecting the Enterprise

• Advantages through supply networks

• Enterprise development

SUPPLY CHAIN

PR

OFE

SSIO

NS

IMPA

CT

TIME

5

Page 6: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

Ethics & Transparency • 29.8m people are forced to live in slavery

around the world today

• Every day 6,000 people around the world die from work-related accidents or diseases

• Integrity in food supply chains is at a low

Ethics & Transparency • 29.8m people are forced to live in slavery

around the world today

• Every day 6,000 people around the world die from work-related accidents or diseases

• Integrity in food supply chains is at a low

The Burning Platform

Fraud • Corruption adds 10% to the cost of

business and 25% to public procurement in developing countries

• More than US $1 trillion are paid in bribes annually

6

Page 7: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

7

Driving Blind

Without full visibility of the supply chain organisations are at risk of:

• Unknowingly acting illegally

• Reputational damage

• Potential supply disruption

• Increased costs

No Visibility Little to no Tier 1 supplier visibility

Some Visibility Limited Tier 1

supplier visibility, but not Tier 2 and

beyond

Enhanced Visibility Complete Visibility Tier 1, 2, and beyond

supplier visibility

Tier 1 supplier visibility and some Tier 2

supplier visibility

How much visibility of supply and capacity information do you have across your suppliers and logistics partners?

4%

49%

32%

9%

Page 8: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

8

The Professional Licence

Policy Statement

Advanced Licence

Raising the Bar

Licensed Profession

Barrier to Entry

29.8m people are forced to live in slavery around the

world today

Corruption adds 10% to the cost of business and 25% to

public procurement in developing countries

More than US $1 trillion are paid in bribes annually

Integrity in food supply chains is at a low

Page 9: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

The Global Standard for Procurement and Supply

9

A comprehensive competency framework to enhance organisational and individual procurement performance

It identifies:

WHAT DOES IT DO?

KNOWLEDGE

BEHAVIOURS

CAPABILITIES

Page 10: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

THE FIVE LEVELS OF COMPETENCY

Tactical

Applies key tasks associated with the work of procurement and supply.

Structure of The Global Standard

Operational

Provides advice and guidance to key stakeholders on the performance of organisational procedures and Processes connected with procurement and supply.

Managerial

Develops, improves and fulfils organisational and functional objectives in procurement and supply.

Professional

Formulates direction and advice, manages change, and leads and influences both internal and external stakeholders in Procurement and supply.

Advanced Professional

Leads procurement teams within an organisation and influences the board to adopt leading-edge procurement strategies and establish best practice. Influences supply markets with innovative sourcing solutions.

10

Page 11: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

THE FOUR PILLARS AND ELEVEN THEMES

PEOPLE DEVELOPMENT

11 ETHICS

10. DEVELOPING SELF AND

PERSONAL SKILLS

9. DEVELOPING TEAMS AND INDIVIDUALS

PERFORMANCE

8 METRICS AND

MEASUREMENT

7 DELIVERING OUTCOMES

PROCESS

6 SOURCING

5 CONTRACTING

4 SPEND

MANAGEMENT

Structure of The Global Standard

3 TECHNOLOGY

2 EXTERNAL

ENVIRONMENT

1 POSITION

AND INFLUENCE

INFRASTRUCTURE

11

Page 12: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

12

Capability Development

Procurement Leadership Chartered Status

Raising the standard of procurement and supply

Chartered Procurement and Supply Professional

A Leader of procurement teams and board level influencer who adopts leading-edge procurement strategies, influencing supply markets with innovative sourcing solutions.

Page 13: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

13

Capability Development

Procurement Leadership Chartered Status

CIPS Global Standard – Advanced competency level

THEMES SEGMENTS

1 Position and influence of Procurement and Supply Building productive relationships with stakeholders

2 External Environment in Procurement and Supply Strategy in the Organisation and its Supply Chain

Finance in the Organisation and its Supply Chain

3 Technology in Procurement and Supply Improving Systems Capabilities for Supply Chain Management

Data Integrity in Supply Chains

4 Spend Management in Procurement and Supply Developing Operational Expertise in Procurement

Developing Organisational Expertise in Category Management

5 Contracting in Procurement and Supply Leading Improvements in Contracting Practice

6 Sourcing in Procurement and Supply Evaluating and Advising on Risks in Strategic Procurement and Supply

7 Delivering Outcomes in Procurement and Supply Applying Improvement Methodologies for the Supply Chain

8 Metrics and Measurement in Procurement and Supply Developing Metrics for the Supply Chain

9 Developing Individuals and Teams in Procurement and Supply

Championing Culture Change

Managing Ambiguity in Procurement

10 Developing Self and Personal Skills in Procurement and Supply

Strategic leadership in Procurement

11 Ethics in Procurement and Supply Establishing Standards in Procurement and Supply

Page 14: The Chartered Procurement ProfessionalCapability Development Procurement Leadership Chartered Status Raising the standard of procurement and supply Chartered Procurement and Supply

Leading global excellence in procurement and supply

14

CIPS for Business

CAPABILITY DEVELOPMENT

SUPPLY ASSURANCE

AND COMPLIANCE

PERFORMANCE

CIPS FOR BUSINESS

For more information : www.cips.org/CIPS-for-Business