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 = volatility
Hedging/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
Seizing & Sustaining the opportunity
The Worlds largest Procurement & Supply
professional organisation
One CIPS
Thinking global,
being local
MCIPS the Global Procurement &
Supply standard
The Public Good
UNOPS / UNIDO
Trusts – Donor Funding
Knowledge Leaders
Seizing & Sustaining the opportunity
How CIPS
can help
Expanding
the CIPS spotlight
Seizing & Sustaining the opportunity
How CIPS
can help
Purchasing
representation
MCIPS
qualification
Corporate
certification
Membership
benefits
Expanding
the CIPS spotlight
Seizing & Sustaining the opportunity
How CIPS
can help
Purchasing
representation
MCIPS
qualification
Corporate
certification
Membership
benefits
Expanding
the CIPS spotlight
Seizing & Sustaining the opportunity
How CIPS
can help
Purchasing
representation
MCIPS
qualification
Corporate
certification
Membership
benefits
Expanding
the CIPS spotlight
Seizing & Sustaining the opportunity
CIPS total supply footprint
How CIPS
can help
CEO & gov
representation
Public good
trusts
Purchasing
representation
Products
Advanced
supplier
management
Business
indices
MCIPS +
benchmarking
MCIPS
qualification
Corporate
certification
Membership
benefits
Expanding
the CIPS spotlight
Sustainability
Risk
management
Capability
Award for
nonprofessionals
The
global
standard
Advanced
educational
products
CIPS and the public good
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
Selling the profession
Seizing & 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