educating and putting into practise the moving universe

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Educating and putting into practise the moving Universe …of Modern P rocurement Craig Lardner FCIPS Procurement Advisory Services Pty Ltd v1

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Educating and putting into practise

the moving Universe

…of Modern Procurement

Craig Lardner FCIPS

Procurement Advisory Services Pty Ltdv1

Dynamics in the market today:

1. Organisations are looking to their procurement and supply chain functions to deliver more.

1. They’ve heard about something new and impactful

1. They don’t understand it …after all they didn’t come from ‘procurement’ or Supply chain

1. The Damascus moment of 13=1

1. A realisation that it’s not just ‘buying’ anymore …if you don’t want it to be

1. Maybe suppliers aren’t the enemy?

1. The successful ones have data and research to support decisions, not just an opinion

Procurement Advisory Services Pty Ltd

If you are going to educate and put it into practise…you better know how big it is

Where are its ‘edges’

What are its constituent parts that need to be joined up?

Transactional and Tactical and Strategic are not silos …they (can) operate in harmony

A profession can get out of step with its institute and its educators

It can be behind and lagging

It can be ahead and self-learning

Procurement Advisory Services Pty Ltd

Procurement has busted out

…and not by just a little bit

The Procurement Professionals’8 Commercial Priorities

Back then ...

1. Price reduction

2. Price reduction

3. Price reduction

4. Price reduction

5. Price reduction

6. Price reduction

7. Price reduction

8. ….Pay supplier…late

Now ...

1. Security of supply

2. Lower total costs

3. Risk reduction and management of residual risk

4. Increased efficiency

5. Faster speed to market

6. Improved quality

7. Greater added value

8. More innovation

Procurement Advisory Services Pty Ltd

Strategic Procurement ‘Best practice’ Operating ModelLinking (unifying) the bottom with the top)

A leading practice model addressing all core end-to-end Procurement related activities

STRATEGY

Procurement Strategy

and alignmentSourcing Strategy

Procurement Capability

Planning

AoP , 3yr Plan and

Target Setting

Strategic Supplier

Management

GOVERNANCE

Compliance Strategy Balanced Scorecard Risk ManagementProcess, Policies &

Standards setting

Roles &

Responsibilities

INTERNAL CUSTOMER MANAGEMENT

Internal Customer

Engagement

Project Procurement

Management

Long Term Demand

Planning

CATEGORY MANAGEMENT

Supply Market

Analysis

Category StrategySpend Analysis Demand Management

Supplier Relationship

Management

Supply Market

Development

COMPLIANCE MGMT

Internal customer

support and

administration

Compliance

monitoring

SOURCING MGMT

Needs analysis

RFX Creation

Supplier Selection

Contract Negotiation

RFX analysis and

recommendation

Contract Preparation

Contract Execution

CONTRACTS MGMT

Supplier contract

compliance

Company contract

compliance

SUPPLIER MGMT

Contract cycle

/monitoring

Supplier on-boarding

Supplier development

TRANSACTIONAL SUPPORT & REPORTING

Order

placementReceiving

Supplier

Payment

Benefits

Tracking &

Realisation

Contract

admin

Operational

Reporting

T’s & C’s

Contract

Review

Str

ate

gic

Tra

nsacti

on

al

Te

chnolo

gyE

na

ble

me

nt–

Rig

ht

To

ols

and

Consis

tent

Pro

cesses ‘ O

ne B

est

Way ‘

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ve

rna

nce

–C

lear

Role

s, R

esponsib

ilitie

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nd A

ccounta

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Rig

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igh

ly S

kill

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om

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ten

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Motivate

d r

esults o

rie

nta

ted

SPM Supplier perf

mgment PIP and SLA

Supplier segmentation

Internal customer

satisfaction

Right PCommunications Plan and execution …using a structured professional approach to target audience and messages needed

Tacti

cal

Procurement Advisory Services Pty Ltd

‘Transactional’Requisitions, PO’s, receipting,

expedite, 3-way-match.

‘Strategic’Business solutions, Supports Board goals,

innovates, thinks and acts enterprise-wide.

‘Tactical’Negotiating, buying, T’s & C’s,

write and review the contracts.

It’s a ‘back-office’

It’s a ‘department’

It’s a ‘Partner-enabler’

The SS… ‘Strategic Spread’All 50 live in their own layer …unified or silo’d?

Procurement Advisory Services Pty Ltd

The Educators

The professionals

The Institute

Procurement Advisory Services Pty Ltd

• Research for research sake.• Getting ‘it’ published is more

important than its commercialization

• If they can’t understand us (language) they should try harder

Are we this…

• I’ve studied enough, I know enough to make it

• If I studied more, it would just be the same old stuff re-packaged

• When I listen to them, it just goes over my head.

• As the governing body, we are above question.

• We oversee the profession, we know it all

• The educators are inflexible and hard to deal with

The Educators

The professionals

The Institute

Procurement Advisory Services Pty Ltd

• E’s and P’s collaborating to decide on useful future research

• Breakthrough research that’s needed by the profession.

• Commercialization rate is a KPI• We pitch our language to get

understood

ORAre we this…

• I can learn more if I expose my self to it

• When I study more, I fill my knowledge gaps

• When I listen to them, I understand them

• As the governing body, we have an obligation to tap into all quality inputs

• We oversee the profession, and, with others, bring new things to it

• The educators make us stronger and are in synch with us

The Educators

The professionals

The Institute

Procurement Advisory Services Pty Ltd

The new math…

1+0 < 1

0+1 < 1

1+1 = 3

Craig Lardner FCIPSProcurement Advisory Services Pty Ltd

[email protected]+61 (0) 2 9523 3704+61 (0)406 429 668

1994 Director of Procurement Australia and New Zealand for BOC

1997 CPO Chief Procurement Officer (Global) The BOC Group, based in London. 10 years.

Next 5 years in FMCG...George Weston Foods as Director of Procurement

Spent $5,000 per minute, non stop, for 20 Years

2011 formed Procurement Advisory Services

2012 Commissioned to NSW Government as advisor

Fellow of CIPS …the Chartered Institute of Procurement and Supply

Appointed to the global CIPS Congress …member’s choice, 3 year term

2013 Interim Managing Director of CIPS Australasia

2014 Global President CIPS

2015 Returned to Congress

2016 Appointed to The Board

Australia, New Zealand and other international clients across private and public sector

Guest Speaker – Craig Lardner FCIPS