cips president – mission 2013
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CIPS President – Mission 2013. CIPS Branch Meeting Southampton 14 th March 2013. Who is Paula Gildert?. What do I want to achieve as President?. Raise Awareness & Profile of Procurement & Supply Chain as a Profession Build responsibility for Leadership & Legacy in our Community of Practice. - PowerPoint PPT PresentationTRANSCRIPT
Leading global excellence in procurement and supply
CIPS President – Mission 2013 CIPS Branch MeetingSouthampton 14th March 2013
Leading global excellence in procurement and supply
1980’sGetting Qualified•Physics Degree•ICI – Chartered Engineer
•Open Windows in Engineering
•Young Engineer for Britain
• Met Steve at Manchester University ‘82 - married ‘87
1990’sGetting Going • ICI / Zeneca• Production Manager• BPR Leader• Supply Chain Manager
• Fellow RSA• Starbucks Cool Coaching Project Leader
• Chair PTA / Chair School Governors
• Natalie 90, Naomi 94
2000’sKeeping Going• AstraZeneca•Director Outsourcing •Head UK Purchasing•Global Procurement Transformation Programme Leader
• Head R&D Procurement
•CIPS Member / Fellow•Natalie to University ‘09
2010’s What next?•Novartis•Head Development Strategic Sourcing
•Chair / President CIPS•CIPS Modernisation Project Sponsor
•Numi to University ‘12
Who is Paula Gildert?
Leading global excellence in procurement and supply
• Raise Awareness & Profile of Procurement & Supply Chain as a Profession
• Build responsibility for Leadership & Legacy in our Community of Practice
What do I want to achieve as President?
Leading global excellence in procurement and supply
• Promote & Develop our Value proposition – a new winning strategy that goes beyond savings
What do I want to achieve as President?
Leading global excellence in procurement and supply
20102011
20122013
96
144
120 127
Novartis Pharma - Development Gen Meds Cost Reduction Performance
Savings $m
An Example
7% 10% 9%Target 9%
Leading global excellence in procurement and supply
Continuous Improvement
Cost
Innovation & Insight
Quality & Service
Assurance of supply & risk
mitigation
Corporate responsibility
What does Value Beyond Savings look like?
DSS – 2012 Executive Summary Dashboard
Productivity
eROI
Measure YTD / Target / LO Status
Cost savingsOther Development
Cost savingsOther Novartis Div
Cost Avoidance
TPC reduction
Measure YTD Target Status
Savings
Spend*
Savings %*
LO 2012
7 | Development Strategic Sourcing| Pharma Dev| Dec 2012 | Sourcing Productivity | Business Use Only
2012 Sourcing Productivity Savings Development GenMed Dec 2012 YTD: USD 120m
*based on succeed actuals
Ahead of run rate/target 70-90% of run rate/target <70% of run rate/target90 -100% rate/target
eAuction Spend (w/Projections), $M
DSS - BSC 2012 Executive Summary
People
Customer Suppliers
Internal Processes
Ahead of run rate/target 70-90% of run rate/target <70% of run rate/target
Measure Actual Target Status
Satisfaction*
Measure Actual Target Status
Satisfaction* Baseline
Measure Actual Target Status
Focus on Core Activities*
Measure YTD Target Status
Satisfaction* Baseline
Quality – actions complete Baseline
Study Performance Baseline
* May 2012 DSS pulse check survey results
* July 2012 DSS customer survey.
90 -100% rate/target
8 | Development Strategic Sourcing| Pharma Dev| Dec 2012 | Sourcing Productivity | Business Use Only
*portfolio / portfolio enabling: Oct 2012 data
Development Productivity 2009-2012$1bn in Productivity gains & $900m in Reinvestments
Development $1b Productivity 2009-2012Key Drivers of Success: Embedding productivity in objectives & intro of KPIs Clinical savings through Design Excellence & use of
preferred providers & partners TRD transformation of clinical supply chain and
capacity utilization and process optimization initiatives Better Development and Productivity Mindset
Reinvestment of Savings $900m (90%): Reinvestments to address increased volume
needs: Reinvestments into projects above what was
expected in budget Reinvestments into new innovations Other reinvestments Financial risk management
Productivity delivery
In USD$Mio @ Budget 2012 rates
Total Reinvestment
$900m
Actual 2009
Actual 2010
Actual 2011
Actual 2012
9 | 2012 Update | Neil Johnston | Jan 2013 | Confidential
Development Productivity 2012Enabling reinvestment in the pipeline, building capabilities and improving Pharma bottom line
Reinvestments to address increased volume needs in
IDFR $50m
Example 1
Example 2
Reinvestments into projects/risk management
$174m
Dev Proj 1
Dev Project 2 etc..
Reinvestments into new innovations in Tech Research &
Development $70m
Project 1
Project 2
Project 3
$294m in Reinvestments
10 | 2012 Update | Neil Johnston | Jan 2013 | Confidential
Leading global excellence in procurement and supply
12
Thought
Leading global excellence in procurement and supply
• Building the Brand on a Global stage
• Building Global Standard
• Building a Global Network
How does CIPS make this a real possibility?
Leading global excellence in procurement and supply
Strategic Themes FY14 +
Public Good
Leading the Global Standard
Membership Transformation
Knowledge Leadership Global Reach
Sustainable growth in Corporate Customers
Leading global excellence in procurement and supply
• Global Community of over 88,000 in 150 countries• Offices in South Africa, Australia, the Middle East, the UK, and
setting up in China • Over 130,000 education assessments conducted in 2011 • 8.7 million page views of the CIPS website each year• Our PR coverage exceeds £20 million Advertising Value
Equivalent each year• Over 6,000 members a year attend our events including our
annual conferences attracting thousands of guests • Purchasing Managers’ Indices, key economic indicators used by
the Bank of England and organisations all over the world
CIPS – the vital statistics
Leading global excellence in procurement and supply
CIPS Foundation
Leading global excellence in procurement and supply
CIPS Qualifications Programme
Leading global excellence in procurement and supply
The strategic importance of the Branches
Leading global excellence in procurement and supply
Thank you