Download - CIPS President – Mission 2013
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Leading global excellence in procurement and supply
CIPS President – Mission 2013 CIPS Branch MeetingSouthampton 14th March 2013
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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?
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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?
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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?
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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%
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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?
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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
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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
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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
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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
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Leading global excellence in procurement and supply
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12
Thought
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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?
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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
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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
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Leading global excellence in procurement and supply
CIPS Foundation
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Leading global excellence in procurement and supply
CIPS Qualifications Programme
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Leading global excellence in procurement and supply
The strategic importance of the Branches
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Leading global excellence in procurement and supply
Thank you