purchasing and supply management - global function global standard
DESCRIPTION
.TRANSCRIPT
Purchasing and Supply
Management: Global
Function, Global Standard
ww
w.s
ou
rce
do
gg.c
om
1st
Ed
itio
n -
MM
XII
- S
ou
rce
Do
gg
Buyers
Suppliers
Global Standard
Market
Bidding
Whitepaper Series
Purchasing and Supply Management: Global Function, Global Standard
Whitepaper Series
For more information on the Global Standard visit www.psgstandard.com.
1
Professionalism in Purchasing and Supply
While holding an accredited qualification in professions such as accountancy and law is a sine quo non, the same
cannot always be said of purchasing and supply chain management.
In smaller organisations with limited human resource capacity as well as across public sector organisations it is not
uncommon to find employees whose area of expertise lies elsewhere taking responsibility for supply chain
decisions. This was shown to be the case in a large scale survey of procurement practice discussed in last month’s
article.
From office managers to architects, and school principals to laboratory technicians, high value purchasing is
oftentimes undertaken by employees lacking the requisite expertise and qualifications. This has given rise to the
quip that “anyone can buy”, which is true to an extent. Anyone can buy, but experienced and qualified professionals
are much better positioned to buy effectively and in a way that adds value to the organisation
Towards a Global Standard
Within this context it is not surprising that purchasing has struggled to establish itself as a distinct profession.
Recent years have, however, witnessed a push towards elevating its status and laying down a career path for
aspiring procurement professionals to follow.
In business faculties purchasing and supply management is gaining in prominence and career opportunities in
these fields are becoming more visible to students and others entering the labour market. Internationally
recognised institutes such as Chartered Institute of Purchasing and Supply (CIPS) are continuing to develop a
presence in the education marketplace and promote purchasing as a challenging and rewarding career option.
In March of this year a very significant step forward was taken in advancing the purchasing profession with the
launch of a Global Standard for Professional Competence in Purchasing and Supply by the International Federation
of Purchasing and Supply Management (IFPSM) .
The rationale for the Standard and its benefits to industry and to individuals are overviewed in the remainder of this
article.
Purchasing and Supply Management: Global Function, Global Standard
Whitepaper Series 2
www.sourcedogg.com
What is the Global Standard?
Reflecting a mix of knowledge, skill and learning appropriate to the profession, the Global Standard aims to
recognise as wide a range of learning programmes, awards and designations as possible, including full-time, part-
time and distance learning offerings equivalent to Bachelor Degree standard.
Its primary objective is to create a internationally acceptable and authoritative standard against which programmes
in purchasing and supply can be assessed and accredited, such that:
• The Global Standard is objective and is free of any commercial influence
• The quality of the Global Standard is regularly reviewed to ensure that it reflects any
changes in the world of procurement and supply management
• An objective process of assessment is maintained
• Accredited programmes are regularly reviewed
• The good governance of the Global Standard is exercised at all times.
The Global Standard is based around 5 key principles, which can be summarised as follows.
1. Transparency: information regarding the content of the Global Standard and the approach to programme
assessment, including the criteria used, is to be underpinned by transparency
2. Openness: all organisations that have the potential to meet the Global Standard are eligible to put themselves
forward for accreditation
3. Impartiality: commissioned by the IFPSM, the Global Standards Commission (GSM) and any assessors
appointed by the GSM will exercise impartiality in making awards and no favouritism will be shown to any one
party or association
4. Effectiveness and Relevance: the Global Standard is to be relevant to the role of the modern purchasing and
supply management professional, will reflect regulatory and market needs, and will be subject to ongoing
review.
5. Outcome-based: an outcomes-based approach is central to the Global Standard. As such, no
recommendation is made with regard to programme design, delivery or assessment. Programme directors will
maintain discretion over the means for the attainment of outcomes expected of purchasing professionals. .
Purchasing and Supply Management: Global Function, Global Standard
Whitepaper Series 3
www.sourcedogg.com
Expected Standard
Educational programmes carrying the Global Standard are ones recognised as equipping students with the
knowledge, skills and attitudes required of today’s purchasing professional.
It will signify that they are competent in purchasing knowledge and capable in the application of tools, techniques
and models of purchasing and supply management; are knowledgeable in all aspects of strategic supply
management; and have demonstrated their application of purchasing knowledge, skills and attitudes to their work
role.
Eight topic areas are identified as central to the Global Standard and all prospective educational programmes are
required to spend at least 70% of course time on these eight topics, which are:
In addition to these eight topics more general business administration subjects are also expected to be taught and
examined, including marketing, finance, project management, storage and distribution, sustainable procurement
and operations management in the supply chain. However, discretion is allowed in respect of these topics
depending on the industry sector specialism of the course provider and/or their geographical location.
• Pre-contract
• Sourcing
• Contracting/legal issues
• Supplier management and performance
• Relationships
• Technology
• Professionalism/ethics/CSR
• Strategy/strategic issues
Purchasing and Supply Management: Global Function, Global Standard
Whitepaper Series 4
www.sourcedogg.com
Benefits of a Global Standard
The advantages to the purchasing and supply profession from the Global Standard are myriad. First and foremost,
it supports the development of the profession and enhances its credibility by establishing a universal quality control
standard for education and qualification purposes.
Arguably, the Global Standard will act as a spur to education programme providers to make their courses
compatible with its requirements or face the prospect of becoming irrelevant in the marketplace. This should have
knock-on implications for the quality of purchasing education and training as well as the credibility of purchasing
and supply as an academic discipline.
For graduates, the Global Standard allows for greater confidence that their educational attainments will be
recognised internationally. Against a backdrop of graduate migration both within and outside the European Union,
this is a positive development that holds practical benefits for those with qualifications that conform to the Global
Standard.
For employing organisations, the Global Standard provides a means to identify and select suitable candidates. It
can also serve as a benchmark against which the competency of existing staff can be assessed and career
development plans put in place. Taken collectively, these likely outcomes will underpin the rigour of purchasing
education and lead to a further strengthening and professionalization of the field.
Conclusion
That a globally recognised standard for professional competence in purchasing and supply has emerged
represents a step forward for all concerned. For too long the criteria for judging and assessing academic attainment
and professionalism in purchasing lacked clarity and suffered from a dearth of consensus.
The IFPSM Global Standard goes some way towards addressing what has been a drag-chain on the development
of the profession and its international credibility. Not only does the Global Standard benefit the disciplines of
purchasing and supply, it assists professionals in international career mobility and allows hiring organisations to
evaluate candidates using a recognised and credible professional and educational standard.
Only five months since its inception and NEVI, the Dutch purchasing association, has already attained its Global
Standard accreditation. Hopefully this is the first of many programme providers across the world to embrace the
Standard.
SourceDogg is an award winning blend of strategy, easy-to-use tools & live support, serving over
350 clients globally from SMEs to Fortune 500 Companies & Public Sector Organisations.
UK: 0203 481 0904
International: +353 19015096
Email: [email protected]
www.sourcedogg.com
Insights into Procurement Practice
Global Standards for Procurement Professionals
Relationship between Purchasing and Performance
Greening the Supply Chain: How and Why
Upcoming releases in the Whitepaper Series include:
Whitepaper Series