NATS (formerly National Air Traffic Services) was originally formed in 1962 and was a joint civil and military organisation. Today NATS is the UK’s leading provider and a world leader in air traffic management services. It handles some 2.4 million flights carrying around 220 million passengers each year, controlling some of the most complex and busiest airspace in the world. During 2008/2009 this helped create a turnover of £767.3 million and a pre-tax profit of £135.5 million.
After achieving CIPS Certification in 2007, NATS underwent an interim audit by CIPS in 2009 to confirm that its procurement continued to meet CIPS’ standards of organisational competence in taking care of corporate governance, risk management and professional practices.
“The success of the NATS Supply Chain Management team in achieving and retaining CIPS Certification proves that we have raised our game not only from a professional viewpoint, but also in terms of efficiency and creating real value for NATS.” Chris Odam, Director of Supply Chain, Facilities and Asset Management, NATS.
Procurement’s profile in the organisation
NATS’ external spend of £232 million is managed by 25 specialists within a central Supply Chain Management function. Of these, 17 staff members have a degree or CIPS qualification, with four working towards CIPS qualification.
Procurement’s Challenges
NATS' first and foremost priority is safety but it also aims to provide services in an efficient and cost-effective way. NATS must respond to differing commercial challenges and opportunities so cost management and supply chain management are seen as vital to the company’s future success.
Why choose CIPS Certification?
In recent years the original Contracts and Purchasing Department at NATS has been transformed into a modern and progressive Supply Chain Management function with the lead role in managing strategic supplier relationships and in determining supply and supplier strategies for the organisation.
Undergoing the CIPS’ Certification programme identified areas for greater efficiency in NATS’ end-to-end supply chain management process and reinforced the good procurement practices in evidence. In particular, the CIPS team commended the presence of the Supply Chain on the Internet, its policy booklet, skills matrix, conversation club (short listed for a 2008 CIPS/Supply Management award), SRM and code of conduct.
Contribution to business improvement
CIPS Certification has brought benefits for both NATS and for its key suppliers. NATS has become a more commercial organisation, with SCM now recognised as a key player in managing important supply chains and reducing operating costs. Managing relationships with strategic suppliers involved in the NATS investment programme has also delivered wins. SCM now has a professional Strategic Sourcing and Supplier Relationship Management programme to deal with all aspects of NATS requirements from external suppliers.