seizing & sustaining the opportunity globalisation: longer lead times and a need for greater...
TRANSCRIPT
Seizing & Sustaining the opportunity
• Globalisation: longer lead times and a need for greater flexibility
• Increasing logistics costs: In the last 5 years transportation costs have increased by 50%
• Supply risk: Lean manufacturing, outsourcing and off-shoring has driven high risk
• Rising labour costs: Globalisation has been happening for some 20 years… in China in the last 5 years labour costs have increased on average by 20% year on year
• Core material volatility – increasingly scarce resource = volatilityHedging/Supply risk management
• Companies with major supply chain disruption suffer up to 20% share price falls.… see Georgia Tech research USA www.mgt.gatech.edu
The world’s largest procurement and supply professional organisation
Our professional opportunity
• Supply chain efficiency is increasingly seen as the key differentiator in business
• The majority of value add in an enterprise comes from outside their boundaries
• 60%+ of major corporations have Procurement & Supply at the top table
• The world environment globalisation, recessions and environment all sit squarely in our space
CIPS -
• 52%+ of membership is international and growing• 60%+ of revenues are International and growing• We will always be UK heritage but have to recognise
the reality
The changing environment
2010 2050
The Public Good UNOPS / UNIDO
Trusts – Donor Funding
Knowledge Leaders
The Worlds largest Procurement & Supply professional organisation
MCIPS the Global Procurement & Supply standard
One CIPS
Thinking global, being local
Seizing & Sustaining the opportunity
Seizing & Sustaining the opportunity
How CIPS can help
Expanding the CIPS spotlight
Seizing & Sustaining the opportunity
How CIPS can help
Expanding the CIPS spotlight
MCIPSqualification
Corporate certification
Purchasing representation
Membershipbenefits
Seizing & Sustaining the opportunity
How CIPS can help
Expanding the CIPS spotlight
MCIPSqualification
Corporate certification
Purchasing representation
Membershipbenefits
Seizing & Sustaining the opportunity
How CIPS can help
Expanding the CIPS spotlight
MCIPSqualification
Corporate certification
Purchasing representation
Membershipbenefits
Seizing & Sustaining the opportunity
Expanding the CIPS spotlight
How CIPS can help
SustainabilityRisk
management
Business indices
MCIPS + benchmarking
Award for non-
professionals
Advanced educational
products
CIPS total supply footprint
Capability
MCIPSqualification
Corporate certification
Purchasing representation
Membershipbenefits
INDEPENDENT
BODY
LICENCE T
O
PRACTICE
INTEGRITY
THOUGHT
LEADER
Theglobal
standard
Advancedsupplier
management
Products
Seizing & Sustaining the opportunity
• UNOPS alliance – to enhance procurement and supply capability in developing countries
• UNIDO alliance – working with private companies to encourage development of indigenous suppliers in developing countries
• Trusts – CIPS overseas operating sites dedicate % of profits to grants / supporting students bursaries etc.
• Donor funding – full time team working on aid programmes (Bangladesh/Bhutan) enhancing procurement and supply capability
• Broaden CIPS educational fund – (bursaries and scholarship)
• Free learning materials – libraries in Africa
The world’s largest procurement and supply professional organisation
CIPS and the public good
Selling the professionSeizing & Sustaining the opportunity
Summary
• CIPS is strong and leading the international community in P&SM professional organisations
• Membership is our heritage and remains one of our three main growth streams
• But – • We must not get complacent• How do we capture more of the membership
market in the UK?• How do we incorporate the social media revolution
and Generation Y?• What more do we need to do with the
membership proposition and our communities