seizing & sustaining the opportunity

Seizing & Sustaining the opportunity

• Globalisation: longer lead times and a need for greater flexibility

• Increasing logistics costs: In the last 5 years transportation costs have increased by 50%

• Supply risk: Lean manufacturing, outsourcing and off-shoring has driven high risk

• Rising labour costs: Globalisation has been happening for some 20 years… in China in the last 5 years labour costs have increased on average by 20% year on year

• Core material volatility – increasingly scarce resource = volatilityHedging/Supply risk management

• Companies with major supply chain disruption suffer up to 20% share price falls.… see Georgia Tech research USA www.mgt.gatech.edu

The world’s largest procurement and supply professional organisation

http://www.mgt.gatech.edu/

Our professional opportunity

• Supply chain efficiency is increasingly seen as the key differentiator in business

• The majority of value add in an enterprise comes from outside their boundaries

• 60%+ of major corporations have Procurement & Supply at the top table

• The world environment globalisation, recessions and environment all sit squarely in our space

CIPS -

• 52%+ of membership is international and growing• 60%+ of revenues are International and growing• We will always be UK heritage but have to recognise

the reality

The changing environment

2010 2050

The Public Good UNOPS / UNIDO

Trusts – Donor Funding

Knowledge Leaders

The Worlds largest Procurement & Supply professional organisation

MCIPS the Global Procurement & Supply standard

One CIPS

Thinking global, being local



How CIPS can help

Expanding the CIPS spotlight


How CIPS can help


MCIPSqualification

Corporate certification

Purchasing representation

Membershipbenefits



How CIPS can help

SustainabilityRisk

management

Business indices

MCIPS + benchmarking

Award for non-

professionals

Advanced educational

products

CIPS total supply footprint

Capability

MCIPSqualification

Corporate certification

Purchasing representation

Membershipbenefits

INDEPENDENT

BODY

LICENCE T

O

PRACTICE

INTEGRITY

THOUGHT

LEADER

Theglobal

standard

Advancedsupplier

management

Products


• UNOPS alliance – to enhance procurement and supply capability in developing countries

• UNIDO alliance – working with private companies to encourage development of indigenous suppliers in developing countries

• Trusts – CIPS overseas operating sites dedicate % of profits to grants / supporting students bursaries etc.

• Donor funding – full time team working on aid programmes (Bangladesh/Bhutan) enhancing procurement and supply capability

• Broaden CIPS educational fund – (bursaries and scholarship)

• Free learning materials – libraries in Africa

The world’s largest procurement and supply professional organisation

CIPS and the public good

Selling the professionSeizing & Sustaining the opportunity

Summary

• CIPS is strong and leading the international community in P&SM professional organisations

• Membership is our heritage and remains one of our three main growth streams

• But – • We must not get complacent• How do we capture more of the membership

market in the UK?• How do we incorporate the social media revolution

and Generation Y?• What more do we need to do with the

membership proposition and our communities

seizing & sustaining the opportunity

Documents