CIPS RoI Branch EventFeb 21 2018

Procurement Talent in Ireland - A Supplier's Market?

Agenda

18.30 - Event Registration and Refreshments

19.00 - Welcome and Opening (CIPS Branch Chair & Hays)

19.05 - Mike McDonagh, Director Hays Recruitment Ireland

19.25 - Anne Stewart, Director of Group Procurement eir

19.45 - Eoin Lonergan Director EY (Procurement Lead)

20.05 - Panel Discussion with Q&A

20.30 - Networking

21.00 - Event Close

Introducing the RoI Branch Committee

Eoin Lonergan FCIPSChairman

Helen Lambert MCIPSEvents Co-ordinator

Marie O’DonoghueSecretary

Matt Lowe MCIPSVice Chairman

Vincent Lattimore MCIPS

Education Liaison

Andrew BreenTreasurer

Bassey Duke Social Media

PROCUREMENT IN IRELANDSALARIES AND RECRUITMENT TRENDS

Mike McDonagh, Hays Ireland

THE CURRENT MARKET

of organisations plan to hire in 201874%

of organisations faced challenges finding the right staff in the last 12 months78%

of employees expect to move jobs in 201851%

EMPLOYEE CONFIDENCE IS GROWING

TOP 5 REASONS FOR WANTING TO LEAVE

WHICH BENEFITS ARE IMPORTANT v OFFERED

WHAT WORKERS WANT

WE KNOW WHAT WORKERS WANT

CULTUREPACKAGE &

BENEFITS

CAREER

PROGRESSION

TRAINING &

DEVELOPMENT

JOB ADVERTS

WHAT ABOUT PROCUREMENT & SUPPLY CHAIN?

HAYS IRELAND SALARY GUIDE

Procurement

Executive

27% increase Procurement

Manager

2.5% increase

Head of

Procurement

11% increase

IGNORE THE BELOW AND SALARY IS IMMATERIAL

CULTUREPACKAGE &

BENEFITS

CAREER

PROGRESSION

TRAINING &

DEVELOPMENT

JOB ADVERTS

MCIPS CAN EARN MORE

Average salary disparity between

MCIPS and non-MCIPS

22%

BREXIT

BREXIT OPPORTUNITY

RECOMMENDATIONS

RECOMMENDATIONS FOR EMPLOYERS

Create a strong value proposition for candidates

Ensure career progression pathways are clear

Evaluate and communicate your benefits packages

QUESTIONS?

How long will my job last?

• How Technology is impacting Procurementroles

• Anne Stewart • 21/02/2018

22

Agenda

The Robots Are Coming

Robots & Automation – Human v’s Cognitive

V’s Machine

How does this relate to Procurement

Some things can’t be automated

How to stay relevant?

What is eir doing?

Summary

23

If current marketing is to be believed we will all be replaced by

Robots in the not too distance future.

• However, this marketing is mainly aimed at large corporations

• Often references FTE savings of 5 to 10 per robot

• Dominated by references to Finance and Insurance verticals

• Procurement falling under the Finance Category

• Misleading statements relative to ML, AI, NLP

• Executives get caught up in the hype

The Robots Are Coming

24

Will Robots and automation cause a huge number of jobs to be lost ?or

Will it lead to a change in the nature of Jobs?

All work can be divided into four types:

Routine – Same tasks day in day out

Non-Routine – Varies day to day

Cognitive – Using the brain

Manual – Using the body

Automation is focused on exact codifiable tasks which often means routine

tasks e.g. Workflows that can be programmed into various platforms

A Robot is focused on structured repeatable tasks e.g. Swivel Chair tasks

moving data from one system to another (where an API is not available or

too expensive to develop)

But are Robots and automation just

new words for Change?

25

Human vs Cognitive vs

Machine

Source IBM

26

How does this relate to Procurement?

Order managementContract and

catalogue

management

Reporting

Manual Order

Processing:▪ Purchase

Requisition

creation

▪ Requisition to PO

processing

▪ PR approvals

▪ PO Closure

▪ PO Communication

▪ PO Change

Blocked invoice resolution

▪ PO blocked invoice

(variance on GR and

Price / Qty)

▪ Blocked invoice

validation

▪ Auto notification

Catalogue

Administration:

▪ Catalogue upload

▪ Validation

▪ Catalogue maintenance

activities

Contract Admin

▪ Contract

creation and

amendment

▪ Contract

signature &

Approval

▪ Line item modification

▪ Cross validation

▪ Renewal Reporting

▪ Find and input meta data

Format specific

Dashboards:

▪ Metrics & Reporting

▪ Supplier performance

▪ Savings analysis and real

time reporting of

realised savings and run

rate savings.

Procurement is not Purchasing – P2P tasks can, should and

will be automated

27

Many Human skills are incredibly hard to replace:

Social skills such as persuasion, influencing

Rapport and relationship building

Commercially Savvy

Empathy

Emotional intelligence

Cultural awareness

These are all the skills required to develop into a highly functional

Procurement Professional

Best to focus on “How do I develop those skills” then focus on “How to

stop my boss from automating my job”

Change is a constant – “Resistance is futile”

Some things can’t be

automated or done by Robots

28

Know your Direct Manager’s objectives and what is required of them by their boss – Be

aligned

Be aligned to Company Strategic objectives

What is important to the Board

What is important to the CEO

What is important to the CFO

Focus on refining skills that mean you can work on company growth enhancing activities:

Cash Savings

Risk reduction

Improved Cash-flow

Revenue Generating Initiatives

Report success in a clear and concise way. Numbers matter.

Remember: A Manager is only as good as the people around them. “A rising tide raises all boats”

How to stay relevant / Get

the recognition you want

29

Our Journey….

We crawled before we could walk – Focused on small wins

eSignatures

Contract approval and signing went from weeks to days

1 FTE reduction

Walking before we start to run:

End to end Source to Pay, SRM, CLM, P2P, Analytics

AI for auto classification of items

NLP for Reporting and Analytics

Contract Authoring –templates, clause library, auto approvals

Procurement Ops moving from admin to Tactical Buyer roles

What has eir been doing ?

30

What is eir doing?Ready to Run

• Blue Prism

• Procurement helping the business and

ourselves

• Sales order entry, Fault reporting

in the network, AP Invoice

processing, Purchase Requisition

Approvals

• 6 FTE reductions in order

processing, Fault Reporting team

focused on exception handling, AP

team FTE reductions and refocus

on tactical functions, Procurement

time freed for tactical purposes

Digital

enablement

Operational

flexibility

Transforma

-tional

lever

31

Don’t sweat the small stuff !

Robots and automation is just another change and evolution of our role

and profession

Embrace the change – enjoy becoming a Co-Bot

Use this opportunity to finally get away from the mundane tasks that

pull you away from delivering true value to the business

The more you use those growth enhancing skills, the more relevant,

indispensable an asset you become

In Summary

eir.ie

Thank You

Anne Stewart

Hiring Manager Perspective & Advisory View

Eoin Lonergan FCIPS - EY Advisory (Procurement Lead)

Eoin will share his personal reflections on the biggest procurement recruitment drive in Ireland when in 2014 the newly established Office of Government Procurement was tasked with hiring 100 sourcing and category managers in just six months. Eoin will also share his thoughts on what he is seeing in terms of client demand for procurement services from advisors

Personal reflections on the biggest procurement recruitment drive in Ireland

The Challenge in 2014:

• Recruit 100+ sourcing and procurement staff @ €40k -€80k

• 6 weeks of back to back Interviews in panels of 3/4 board members (interviewers)

• Reviewed 250+ cvs & Interviewed over 80 candidates

• Procurement qualifications not (initially) a requirement

10 Observations

Those who performed the best at interview:• Could distinguish between working in procurement and

procurement as a profession

• Had some Procurement Qualifications and could articulate the benefits

• Had strong customer focus but provided examples of the need for robust business challenge when required

• Drew on experience beyond running tender processes

• Had procurement experience across categories / sectors

• Demonstrated judgement and discretion when providing examples and

• Viewed procurement as much more than purchasing

• Demonstrated experience of working in project teams

•

• Showed a passion for procurement

Some observations on client demand for Advisory support in procurement space

• Typically not bought by procurement

• Many clients still don’t fully understand the benefits of strategic procurement

• Skills & Knowledge transfer emphasised in RFTs but rarely executed during engagements

• Readiness of client to accept need for transformational change not always there

• “Savings” work has gone very quiet…

Some “hot” areas

- Contract Management & SRM skills, especially multi vendor projects

- Strategic Outsourcing support (operational not financial)

- Complex procurement - major infrastructure /regulated sectors/ strategic ICT projects

- Digital Procurement -all areas but client procurement maturity and capability challenges

- Lots of tenders for small scale support and advice – better off growing internal capability?

Should focus move away from finding the right candidate ?

CEB research (2014) shows that there are six competencies that drive strategic performance in procurement..

But only 10 per cent of procurement professionals excel at all six competencies, (Less than half of one per cent of all non-procurement employees excel at all six so we are still 20 times better!

- Focus should be on creating a team with right mix of competencies

Thank you Q&A