A procurement board was just one of the innovations that wowed this year’s judges, who awarded the procurement team at Caltex the Overall CIPS Australasia Supply Management winner for 2016.
Caltex was presented with the award, in addition to its category win as the Most Improved Procurement Operation - step change, at the CIPS awards ceremony, in Park Hyatt, Melbourne.
The company's procurement team took less than two years to transform from its former position as a department operating below industry standards and poorly perceived by suppliers.
As part of the department's transformation, new CPO Johanne Rossi started by launching the procurement board to ensure Caltex leaders came onside with the changes.
What followed included restructuring the procurement team, hiring staff with diverse backgrounds in areas such as mergers and acquisitions and customer relationship management, and introducing more strategic roles that focused on value and relationships. Priority was given to training, using skilled professionals. “A diverse team can be more flexible, solve problems more quickly and is not tied to ‘how we’ve always done procurement’,” said Caltex.
The new team has been engaging with suppliers through road shows to explain the changes and had its first ever supplier forum earlier this year.
The team has already secured Aus$105m in benefits, and believes that its new reputation as a strategic partner in the business will lead to much more value creation.
Melbourne Health won Best Contribution to the Reputation of Procurement for its transformation from a 'blame culture' and risk averse department two years ago to a strategic function using category management. The proof of its success, believes the team, was the approval for its purchase of 3D navigation equipment for surgeons to operate with greater precision.
Air New Zealand scooped two awards, the International Procurement Project of the Year for a five-year simplified catering contract with 4% cost reduction, and the award for Best Contribition to Corporate Responsibility through its drive to create an entirely electric or hybrid fleet of light ground vehicles.
CIPS Supply Management Australasia Award winners 2016
Best Contribution to Corporate Responsibility
Air New Zealand (Sustainability Framework Launch: Procurement’s role in collaboration and activation)
Best Contribution to the Reputation of Procurement
Best Cross-Functional Teamwork Project
Best Process Improvement Initiative
Best Public Procurement Project
The University of Sydney
Best Supplier Relationship Management
Telstra - Netgear
International Procurement Project of the Year
Air New Zealand
Most Improved Procurement Operation – Start Up
City of Gold Coast
Most Improved Procurement Operation – Step Change
Most Innovative Use of Technology
NSW Department of Education
CIPS Young Procurement and Supply Chain Management Professional of the Year
Pauline Rolfe, Accenture
CIPS Procurement and Supply Chain Management Professional of the Year
Peter Morichovitis FCIPS, City of Gold Coast