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The theme of November 2019 AGM was on Future Development of Procurement.This interim newsletter summarizes the views of many local senior practitioners onthis topic for your reflection considering the year 2020 appears to have started badlyand grown progressively worse. There have been record bush fires in Australia,swarms of locusts in Africa and Asia, the threat of war between the United States andIran and, then the emergence of a coronavirus pandemic.
Today the most pressing problem (of course, climate change is a greater long-termchallenge) for the international community is the Covid-19 outbreak. This emergingpandemic is undeniably a massive challenge both locally and globally.
The contagiousness of the virus is seemingly greater than the quarantiningcapabilities of states – even ones such as China, which has effectively shut downwhole cities – and now it has certainty end up spreading right across the globe.
Covid-19 is not a minor threat. People are dying and millions are affected (directly orindirectly) while the economic costs are going to be meteoric. Furthermore, thefatality rate for Covid-19 appears similar to the 2.5 per cent for the 1918 Spanish flupandemic.
China has 1.4 billion people, a world-class logistical network, and decades ofmanufacturing experience unrivalled in alternative hubs. Many companies find itdifficult or impossible to leave, while the scale of the country means most bigcompanies will need to retain some manufacturing presence in the mainland, even asthey reduce their overall capacity. Over the past couple of years, companies haverealized they were a little bit overbalanced, relying on China a little too much, despitemany warnings.
But many companies who have moved some or all their production out of China havetheir eyes wide open to the deficiencies of new locations. They will not be as well-oiled, efficient, or reliable, but they will be cheaper and, they hope, carry less risk.
Now, with the coronavirus proving such a huge disruption, big-name companies likeMicrosoft and Google are moving production to other Asian hubs, mainly Vietnamand Thailand. Board rooms around the world have become “war rooms”, asexecutives try to calculate their exposure to China and figure out how to reduce it. Anarea where Procurement must play a senior leadership role.
A big thank you to all our branch volunteers who regularly demonstrate dedicationand support across Hong Kong in developing capability and status of the profession.Keep Safe, keep in contact while maintaining self separation.
Mr. John Burchett – Vice ChairChartered Institute of Procurement & Supply (CIPS Hong Kong Branch)
Who’s Who at CIPS 2019-2020
(Hong Kong Branch)
Chair: Ms. Susan SiuVice Chair: Mr. John BurchettSecretary: Ms. Grace Tsang
Career Development Committee:Ms. Lily Heo (Chairlady)
Membership Committee:Mr. Raymond Goh (Chairman)
Professional Development Committee:Ms. Carrie Lau (Chairlady)Mr. Barry Wong, Ms. Grace Wong& Ms. May Yip
Corporate Relationship Committee:Ms. Winnie Au (Chairlady)
Social Media Committee:Ms. Cheris Tsang (Chairlady)Mr. Raymond Lee
CIPS Youth :Ms. Nicola Or (Team Lead)Mr. Andrew Lo, Mr. Arthur Li, Ms. Canadice Nam, Mr. Donald Wong, Mr. Hardy Ho, Ms. Cindy Wong, Mr. Eric Law, Mr. Eric Lo, Mr. Michael Chow, Mr. Rico Lau, Ms. Zoe Lee
Contact: Ms. Grace Tsang – SecretaryMobile 92682692
Email: [email protected]: www.facebook.com/hkcips
2020 NewsletterHong Kong Branch
CIPS Year 2020
Page 2CIPS Year 2020
Events
2020 NewsletterHong Kong Branch
Ms. Susan Siu, Chair, CIPS HK chaired the
AGM with
Mr. John Burchett, Vice Chair, CIPS HK and
Ms. Grace Tsang, Secretary, CIPS HK
[ 20th AGM & Procurement Seminar on 2nd November 2019 ]
Ms. Amanda Boustred,
Group Professional
Development Director,
CIPS UK delivered a
Speech on behalf of
CIPS UK
[ 20th AGM & Procurement Seminar on 2nd November 2019 ]
Page 3CIPS Year 2020
Events
Mr Richard Scase, Director
of Localization & Solution Experts,
SAP Ariba & Fieldglass Greater
China conducted a presentation on
“Realize the Future of Procurement
using Intelligent Technologies”
Ms. Pamela Mar, Executive
Vice President, Supply Chain
Futures Director, Sustainability of
Fung Group gave a presentation
on “Sharing Sustainable Supply
Chain Development at Fung’s
Group”
2020 NewsletterHong Kong Branch
[Guest Speakers ] - Theme: Future Development in Procurement
Ms. Di Harn Yeh, Account
Executive, EcoVadis presented on
“Measuring Sustainability in
Procurement”
<< Group Photo with Guest Speakers >>
Page 4CIPS Year 2020
<< Volunteers who
have been working in CIPS HK Branch for
10 years, (from left),
Mr. Raymond Goh, Ms. Grace Tsang, Mr. John Burchett, Ms. Carrie Lau & Mr. Eric Law
Events
2020 NewsletterHong Kong Branch
[ 20th AGM & Procurement Seminar on 2nd November 2019 ]
<< Group Photo of Executive Committee and CIPS Youth of CIPS HK Branch >>
Degree Level…
[ Categories of Awards ] [ Awardees ] [ Institutes ]Best Student Awards – HK$5,000 HUI Cheuk Yin, Jack 許卓賢 PolyU (SPEED)
Best Student Awards – HK$5,000 YOUNG Wai Ying 楊慧盈 PolyU
Certificate of Merit – HK$2,000 LAM Gladys 林琬婷 Hang Seng University
Certificate of Merit – HK$2,000 HO Cheuk Kiu 何綽喬 Hang Seng University
Certificate of Credit – HK$1,000 LEUNG Hin Yan 梁顯恩 PolyU (SPEED)
Certificate of Appreciation WONG Ka Ho 黃嘉浩 Hang Seng University
Certificate of Appreciation HU Nai-wen 胡乃文 PolyU
Certificate of Appreciation WANG Qing王晴 Lingnan University
Certificate of Appreciation MA Chao, Grace 馬超 CityU
Certificate of Appreciation ZHU Jiang 朱江 Lingnan University
Certificate of Appreciation WANG Jingyi 王靜伊 CityU
Certificate of Appreciation MAKASHEVA Adeliya PolyU
Certificate of Appreciation CHAN Chun Ho 陳俊豪 Poly (SPEED)
Certificate of Appreciation ZHU Xing Yu 朱星宇 Lingnan University
Page 5CIPS Year 2020
[ Best Student Awardees ]
Presenter >> Ms. Lily Heo, General Manager, Procurement, Hong Kong Airport Authority
Presenter >> Ms. Winnie Au, Senior Strategic Procurement Manager, CLP Power Hong Kong Limited
Mr. HUI Cheuk Yin, Jack 許卓賢The Best Student Award, Degree Level
Congratulations
Ms. YOUNG Wai Ying 楊慧盈The Best Student Award, Degree Level
2019 Best Student Awards
2020 NewsletterHong Kong Branch
Sponsoring Companies
CLP Power Hong Kong LimitedGammon Construction Ltd.Hong Kong Airport AuthorityMTR Corporation Limited
[ Best Student Awardees ]
Page 6CIPS Year 2020
Presenter >> Mr. Daniel Yu, Purchasing Manager, MTR Corporation Limited
Ms. LAM Gladys 林琬婷Certificate of Merit, Degree Level
Ms. HO Cheuk Kiu 何綽喬Certificate of Merit, Degree Level
Mr. LEUNG Hin Yan 梁顯恩Certificate of Merit, Degree Level
2019 Best Student Awards
2020 NewsletterHong Kong Branch
Congratulations
Presenter >> Ms. Carrie Lau, Chair of Professional Development Committee, CIPS HK Branch
Mr. WONG Ka Ho 黃嘉浩Certificate of Appreciation, Degree Level
Mr. ZHU Jiang 朱江Certificate of Appreciation, Degree Level
Ms. MAKASHEVA Adeliya
Certificate of Appreciation, Degree Level
Presenter >> Mr. Raymond Goh, Senior Strategic Procurement Manager, CLP Power Hong Kong Limited
Mr. ZHU Xing Yu 朱星宇Certificate of Appreciation, Degree Level
Page 7CIPS Year 2020
Sub-degree Level…
[ Categories of Awards ] [ Awardees ] [ Institutes ]Best Student Awards – HK$5,000 CHU Ho Fai, Jacky 朱浩輝 HKU Space
Certificate of Merit – HK$2,000 LAM Hon Kit, Ben 林漢傑 HKU Space
Certificate of Credit – HK$1,000 YIM Hei Man, Avis 嚴晞雯 IVE
Certificate of Appreciation LEE Tsz Chung, Gary李子聰 IVE
Certificate of Appreciation CHAN Chung Ho, John陳仲豪 IVE
Certificate of Appreciation CHEUNG Yee Man, Joyce張綺敏 HKU Space
Mr. CHU Ho Fai, Jacky 朱浩輝The Best Student Award,
Sub-degree Level
Mr. LAM Hon Kit, Ben 林漢傑Certificate of Merit,
Sub-degree Level
Ms. YIM Hei Man, Avis 嚴晞雯Certificate of Credit,
Sub-degree Level
[ Best Student Awardees ]Presenter >> Ms. Susan Siu, Head of Procurement, Gammon Construction Limited
2019 Best Student Awards
2020 NewsletterHong Kong Branch
Congratulations
Mr. CHAN Chung Ho, John陳仲豪Certificate of Appreciation,
Sub-degree Level
Presenter >> Mr. John Burchett, Vice Chair of CIPS HK Branch
Ms. CHEUNG Yee Man, Joyce張綺敏Certificate of Appreciation,
Sub-degree Level
Page 8CIPS Year 2020
The Future Development of Procurement
2020 NewsletterHong Kong Branch
Mr. Barry WongCPO & General Manager – Procurement,
Swire Coca Cola Limited
“The future of procurement has to
strive for building E2E supply chain
synergistic collaboration via digital
technologies and professional supplier
management.”
Ms. Catherine YipManager-In-Charge (Procurement & Supplies)
Hong Kong Baptist Hospital
“QUALITY & RISK MANAGEMENT – “In view of keen
competition and rapidly changing technology &
environment, strategic procurement is getting
increasing importance. In line with the direction of
business development and mission of a company,
procurement has to become more proactive, vivid and
dynamic. It is essential to strengthen strategic planning &
sourcing, build up effective partnership with internal
stakeholders, identify potential suppliers for fostering
mutual development, strengthen supply chain
infrastructure & streamline workflow, etc. Ultimately
strategic procurement will help to lower the overall total
cost, enhance quality & efficiency and enable sustainable
development in long run. ”
“The future development in procurement
should closely associate with technology
advancement which makes available
more efficient and cost effective solutions
pacing with the changing business
environment. HK Electric has lately
exercised a comprehensive transformation
of the entire enquiry process to e-
tendering with a niche system and will
continue with this expedition and keep
abreast with future evolution. ”
Mr. Arthur Y. K. WongGeneral Manager (Group Commercial)
Hong Kong Electric
“
Page 9CIPS Year 2020
“Professionalism is the future of
procurement. Technology helps tighten
process control and allows quick
information access. Knowledge &
expertise in sourcing, contracting & vendor
management are the competitive edge of
the procurement professionals.”
Ms. Carrie LauGeneral Manager, Strategic Procurement
Hong Kong Aircraft Engineering Company Limited
“A total borderless and an active yet
seamless trade environment,
transparency and secure transactions
are the norms of the day that would be
how the future in procurement would
look like. Samples would be seen and
verified digitally and instantaneous
buying decisions are made with the
support of big data analysis to reduce
risk exposure.
Ms. Ceci WongSenior Vice President – Purchasing
Genting Hong Kong Limited
”
Mr. Dannies HoChairman
The Institute of Purchasing & Supplyof Hong Kong
“The future of procurement is driven by technology.
Digital technologies will enable a stronger procurement
capability in years to come. In the digital world
procurement not only create an opportunity to improve
efficiency they also pave the way for procurement teams to
play a strategic role in accelerating innovation “Digital
Procurement” may be the next step in the discipline’s
evolution. ”
The Future Development of Procurement
2020 NewsletterHong Kong Branch
“
Page 10CIPS Year 2020
“Digital technology applications on
procurement should become a trend in all
companies. The rapid development of
cognitive procurement technologies such
as Big Data Analysis, Artificial
Intelligence, IoT and the use of Smart
Devices will reconfigure the procurement
process to be more smart and green. On
the other hand, there is an increasing
demand on compliance and pro-active
disclosure of supply chain activities in
order to comply with the ESG
requirements. ”
Mr. Felix KM LeeGeneral Manager –
Corporate Supplies and AdministrationThe Hong Kong and China Gas Company Limited
“Procurement is transforming form savings
driver to be value creator to business by
strategies and stakeholder engagement.
Agility is becoming crucial as disruptions and
uncertainties are frequent nowadays.
Leveraging technology to bring in smart
process change and intelligent insight is part of
the roadmap whereas talent mindset and skillset
are equally important. Last but not the least,
only procurement with risk management is well-
balanced and holisticMs. Grace Wong
Procurement Manager – Groceries, Supply ChainMaxim’s Caterers Ltd ”
Mr.. Kenith PoonChairman
Institute for Supply Management (Hong Kong)
“As the world is moving to digital, digital
procurement is going to be the future too.
However no matter how the technology is
shaping, people is the key and
procurement is no different, doesn’t matter
if it is in the past, present or future.”
The Future Development of Procurement
2020 NewsletterHong Kong Branch
“
Page 11CIPS Year 2020
Mr. Michael RichardsSenior Manager, Fuel Procurement
Qatar Airways
“The biggest challenge to the Future
Development of Procurement will be the
organization, dissemination and
application of “big data” in the face of ever
increasing globalization, compliance and
data protection.”
Ms. Lily HeoGeneral Manager, Procurement
Hong Kong Airport Authority
“The future is in the hand of those who
prepare for it. The future development of
procurement is in the hand of professional
procurement practitioners who prepare for
it today. I believe that building a strong
foundation with talented people is an
essential step to make ourselves ready.” “Procurement landscape is undergoing
major changes in recent years,
emphasizing on sustainability.
Procurement professionals of
organizations should integrate
sustainable criteria into their
procurement process and decisions as
greatest overall sustainability -- that is
economic, environmental and social
attributes and benefits.
Hong Kong practitioners can and should
take progressive and leadership roles. I
look forward to our further collaborations
with CIPS.”
Ms. Linda W P HoChief Executive Officer
Green Council
The Future Development of Procurement
2020 NewsletterHong Kong Branch
“
Page 12CIPS Year 2020
“Recruiting and retaining high caliber purchasing
professionals is not an easy task in any organizations.
Therefore, the utilization of these scarce resources should
be focused in areas that can derive the maximum benefits to
the organization such as enabling the visibility into major
spend categories, strategic supplier management, and the
identification of savings opportunities.
The pioneering purchasing organization should have in place
business applications built on AI to capture useful information
such as market intelligence, benchmarking intelligence,
supplier intelligence, spend intelligence, etc. so as to assist
these purchasing professionals in making the right decisions.”
Mr. Mayson Mak
Head of Group Purchasing & Supply
PCCW
“Restructuring the way of how we do procurement in a
fully “Digitalized World” is an inevitable topic to explore
for all the professionals in coming years. While to maintain
a proper balance between the current establishment and
future investment of business systems and to create a
harmonized ecosystem of all supply chain stakeholders
would require a thoughtful approach along our journey.”Mr. Nicholas Zhang,
Procurement & Contracts Manager –
Operations & General
MTR Corporation Limited
“The role of procurement has changed from
transactional procurement to partnership supply chain
management for the past decade. Most companies
nowadays are looking for further operations
improvement by means of information technology and
supplier collaboration and efficiency gain by
outsourcing of non-core functions with enhanced risk
management. Sustainability is the future.
Keeping abreast of the future development of
procurement and continuous professional development
are the keys to success. ”
Ms. May YipExecutive Committee Member
CIPS Hong Kong Branch
The Future Development of Procurement
2020 NewsletterHong Kong Branch
“
Page 13CIPS Year 2020
“The procurement role is going to be
more complex and disruptive than
before. Digital transformation and
embracing innovations are in the forefront
of the agenda for Procurement
leaders. Managing risks is critical with
concerns associated with climate change,
environment, modern slavery and
provenance in the supply chain. Talents
required for the profession will certainly be
different in the future landscape of
procurement.”
Ms. Susan Siu
Head of Procurement
Gammon Construction Limited
“Procurement’s impact to business will grow
tremendously. Companies collaborating with capable,
innovative and competitive suppliers, will have much better
chance to win. More companies will upskill the
procurement team, deploy procurement solutions to
strengthen their sourcing and supplier management
capabilities.
We procurement professionals are having a very
challenging role. Let’s keep abreast of the supply market
and latest technology, bring in the best-fit suppliers and
grow with the company. ”
Ms. Winnie Au
Corporate Relationship Officer
CIPS Hong Kong Branch
“In this Digital Age with increasing
uncertainties and volatility, the existence of
procurement in its old paradigm is
challenged especially when algorithms and
networked machines are perfect
substitutes. Transformation to future-proof
procurement with strategic orientation and
corporate foresight is under powerful
pressure. Procurement’s role has to be re-
invented as strategist for data and
innovation to competently manage
dynamic and complex developments
(“dynaxibility”) to contribute towards
company’s success!”
Ms. Sylvia Lam
Assistant Director, Procurement
The University of Hong Kong
The Future Development of Procurement
2020 NewsletterHong Kong Branch
“
Page 14CIPS Year 2020
>> Promoting CIPS membership and the Procurement / Supply Profession
Ms. Carrie Lau & Ms. Susan SiuSupported Project Mentorship for IVE students
University & College Talks
2020 NewsletterHong Kong Branch
Ms. Carrie Lau & Ms. Cheris TsangIntroduced Procurement profession to IVE students
on 5th Dec 2019