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’

Leading global excellence in procurement and supply

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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

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”.

Leading global excellence in procurement and supply

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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 generationof 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 CIPSqualification and membership

•Target for Designated Post holders to be CIPS qualified

•Currently at 80%

•Procurement Allowance

Leading global excellence in procurement and supply

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People DevelopmentThe three R’s

RecruitRetain

Reward

Leading global excellence in procurement and supply

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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?

Leading global excellence in procurement and supply

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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…