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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!
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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
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"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."
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Procurement is ‘Big Business’
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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”
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What’s been good!
Why do we need to change
Where did it all go right!!!!
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Requisitions - Low
Level Activity
Pre 1980 1980s 1998-2010
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Requisitions - Low
Level Activity
Introduction of
Professional
Purchasing
Pre 1980 1980s 1998-2011
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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
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Procurement at the heart of the Public Sector’s
efficiency drive
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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!
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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
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• 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”.
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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!
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Future!
•SMEs
•Lean Process
•Transparency
•…and the role of procurement in Growth
• ‘Licence to Operate’
•Early Engagement with Market
•Reducing Expenditure and delivering vfm
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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
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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
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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.
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Our profession
NEEDS YOU!
My Theme
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“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.”
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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”
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•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
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•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
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• 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
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This profession is (or should be): • Stimulating • Fun • Sexy • Interesting • Relevant • Important • Very High Profile
TELL EVERYBODY THAT!!!!!
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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!
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www.dwp.gov.uk/policy/welfare-reform/ get-britain-working/#experience
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MY CHALLENGES TO YOU
• Can you give a little of your time to:
BE A REAL ADVOCATE FOR OUR PROFESSION
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The CIPS Branch Network is hugely important, our heartland
and is pivotal to me and my theme!
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Thank you for listening
and enjoy……