educating and putting into practise the moving universe
TRANSCRIPT
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
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Tra
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Motivate
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esults o
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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