David Smith CB FCIPS Commercial Director

Department for Work and Pensions

Securing the future, getting our profession to the ‘top table’ and

keeping it there!

The ‘Hats’ that I wear! -some of my ‘other’ jobs!

• Deputy CPO for UK Government

• Crown representative for 7 Key Suppliers to UK Government

•CIPS President

"The nine most terrifying words in the English

language are:

'I'm from government and I'm here to help.'"

Quotes from Ronald Reagan

"I am not worried about the deficit. It is big enough to take care of itself."

Procurement is ‘Big Business’

Procurement is ‘Big Business’

• UK Central Government spent over £65 billion in 2009-2010 on Goods and Services (non military)

• UK Public Sector spends over £250 billion per year on Goods and Services

“from paperclips to prisons”

“mouse to mainframes”

What’s been good!

Why do we need to change

Where did it all go right!!!!

Requisitions - Low

Level Activity

Pre 1980 1980s 1998-2010

Requisitions - Low

Level Activity

Introduction of

Professional

Purchasing

Pre 1980 1980s 1998-2011

Requisitions - Low

Level Activity

Introduction of

Professional

Purchasing

Effectiveness

Collaboration

Government CPO

Efficiency

Procurement –an established profession

Making a business Contribution

Board Level Recognition/Presence

Policy through procurement

E-enabled solutions

Pre 1980 1980s 1998-2011

Procurement at the heart of the Public Sector’s

efficiency drive

THEMES

• Collaboration (and meaning it!)

• Mandation

• Access to better MI

• Coordinated Commodity Procurement

• Procurement Shared Service Centres

• Key Suppliers Managed Centrally and Locally

• This works for Public and Private sectors!

Sir Philip Green

Review

• We must leverage our spend,

credit rating and buying power

• We must mandate centralised

procurement for common

categories

• We must improve, produce and

use accurate spend and

consumption data

• We must manage down demand

and specifications

• Negotiating with Government’s Key Suppliers

• £800m Savings!

• Appointment of Crown Representatives

Cabinet Office Minister Francis Maude said the “… crown representatives will help to achieve value for money by ensuring the government acts a single customer”. “These appointments follow the renegotiation of contracts with over 50 suppliers since July last year. The renegotiations have saved the Government £800 million in 2010/11”.

The Overall Prize

Billions of Pounds in Savings

Joined up Sector

Better Service to Citizens

Improved Supply Arrangements

Shared Service

This works for Public and Private sectors!

Future!

•SMEs

•Lean Process

•Transparency

•…and the role of procurement in Growth

• ‘Licence to Operate’

•Early Engagement with Market

•Reducing Expenditure and delivering vfm

So What Are the Challenges…..

The inevitable cynicism and scepticism

The continuous scrutiny; Press, PQs, FOIs

UNCLASSIFIED

Government Procurement – GPC Headlines

UNCLASSIFIED

Government Procurement – Award Headlines

Train-Maker

Bombardier Cuts

Over 1,400 Jobs

What Keeps Us Motivated…..

The need, challenge and size of the prize

The positive profile, reporting progress we’re making

UNCLASSIFIED

Government Procurement – Reform Headlines Recent SME Headlines

UNCLASSIFIED

Biggest Motivation of All …..

The opportunity to ensure

the Procurement Profession,

through delivery and

behaviour, is valued and

appreciated at the very

highest levels of business,

now and for the future.

Our profession

NEEDS YOU!

My Theme

“We’re in the spotlight almost as never before. To ensure we’ve got the right people now and in five and 10 years’ time, we need to be more inclusive.

We want people of ages, backgrounds and skills to make this the profession

of choice.”

Presidential Theme CIPS Presidential Theme 2011 / 2012

“Future supply”

Procurement and Supply as the Career of Choice

Young People

“Choose your career, change your life, make a difference”

“Procurement & Supply – the career of choice”

Mid Career

“Choose your career, change your life, make a difference”

Age is no barrier to making a difference”

•Engaging Gen Y and inspiring them to consider a career in Procurement and Supply Management

•Negotiation Challenge – a competitive buying game rolled out to schools and colleges

•Teaching CIPS level 2 qualifications at schools and colleges

•Procurement and Supply Management case study as educational research tool

YOUNG PEOPLE

•Graduate recruitment promotion in conjunction with CIPS’ new recruitment

suppliers, including careers guide

•Case studies / PR Campaign

•Inspirational talks to schools, colleges and universities by senior Procurement and Supply

Practitioners

YOUNG PEOPLE

• Promotion of the profession to relevant partners (including Job Centre Plus)

• Promotion in conjunction with CIPS’ new

recruitment suppliers

• Case studies / PR Campaign

MID CAREER

This profession is (or should be): • Stimulating • Fun • Sexy • Interesting • Relevant • Important • Very High Profile

TELL EVERYBODY THAT!!!!!

MY CHALLENGES TO YOU

• Can you give a little of your time to:

• visit a school, college or university

• mentor someone

• take on a work experience apprentice!

www.dwp.gov.uk/policy/welfare-reform/ get-britain-working/#experience

MY CHALLENGES TO YOU

• Can you give a little of your time to:

BE A REAL ADVOCATE FOR OUR PROFESSION

The CIPS Branch Network is hugely important, our heartland

and is pivotal to me and my theme!

Thank you for listening

and enjoy……