November 2018

Biggest pay gaps in procurement

The CIPS/HAYS Procurement Salary Guide and Insights annual report continues to identify a gender pay gap in the profession, with the biggest gap seen in the Private Sector at Advanced Professional level where men earn 43% more than women. While the implementation of mandatory gender pay gap reporting in April 2018 should assist in narrowing the differences seen in pay, this is only one area of D&I that organisations must address in order to harness the many benefits of diversity in the workplace ... from increased innovation and creativity, to improved talent recruitment and retention, and competitor differentiation, all leading to a positive impact on the bottom line…More


D&I policies at the heart of talent management

A well-planned and implemented diversity and inclusion strategy is crucial to effective talent management and your organisation’s sustained success. The Hays Diversity & Inclusion 2018 Report surveyed over 9,300 UK professionals to provide a snapshot of today’s world of work. It also offers practical recommendations to enhance your D&I policies as part of better managing talent and securing stronger operational performance…More


Four business benefits of a diverse workforce

If you need some real reasons to increasing diversity, Hays points out four key benefits in a recent article:


Employing the same sort of person again and again delivers the same old attitudes again and again. The more diverse the team, the more diverse the ideas and solutions.


Open up your potential talent pool and you'll attract the best skills and create a diverse workforce people want to be part of in the long term.


There is clear statistical evidence that improving gender balance has a direct, positive impact on an organisation's bottom line.


When employees are encouraged to be their authentic selves and given true equal opportunity they thrive and drive a high-performance culture.

Read the full article


Awareness of unconscious bias is key to diversity and innovation

In a recent Supply Management article, CIPS Group Director Cath Hill explores the need for procurement leaders to become inclusive and conscious, rather than recruiting in their own image. It is about being aware of how we make decisions in order to widen the net and develop the diverse teams that can result in increased organisational innovation and performance. Read full article


Indigenous-owned company wins at CIPS Australasia Supply Management Awards 2018

Small furniture business Winya became the overall winner at this year’s CIPS Australasia Supply Management Awards in 2018 for their innovative and collaborative approach to procurement. This socially inclusive business also won Best Contribution to Corporate Responsibility.

Winya works with remote communities for the supply of their unique, sustainable timbers to build their furniture from indigenous land holding and also with communities to build skills and business in these remote areas. The judges were impressed with the social inclusion aspects of the entry and the public good aspect which resonates as a core mission of the Institute…More


CIPS Supply Management Europe Awards 2018 Winner of Best Contribution to Corporate Responsibility Turkcell İletişim Hizmetleri AŞ

Turkey hosts the most refugees in the world with nearly three million registered refugees, a situation exacerbated by the ongoing Syrian conflict. It also has the lowest female workforce participation rate among the 35 OECD countries. These facts were on the minds of the procurement team at telecommunications giant Turkcell last year when it announced plans to outsource 50% of its call centre operations.

The subsequent auction ended with the awarding of one contract to a supplier in Istanbul and three to newly created companies in rural cities that had among the lowest employment rates in the country.

Not only did this result in a cost-saving of 18.5% (equating to EUR 5.1million over three years), but the three new suppliers are now the first or second largest employers in their regions, 950 new jobs have been created – the majority going to women – and, thanks to it being a condition of the contract, the Istanbul supplier has created jobs for 18 Syrian refugees. This also enabled Turkcell to deliver Arabic call services, an important step when only 10% of arriving Syrians speak Turkish.

Judges’ comments:

“An outsource programme with clear activities and timescales and procurement heavily involved. An outstanding programme delivering significant humanitarian benefit.”


Leading the fight against slavery in the supply chain

The Co-op has been praised by CIPS for its ten-page modern slavery statement detailing its ethical policies, supplier approval process and how it carried out 444 audits in 2016. The document sets a standard in policy development in this area and sends an important message to suppliers.

Read more about the work CPO Fabienne Lesbros and group policy and campaigns director Paul Gerrard are prioritising in their drive to root out slavery in the supply chain…More


CIPS Foundation continues its focus on increasing social inclusion within the procurement profession

CIPS Foundation is a charity that's devoted to supporting those who struggle to get into, or continue their studies and career in procurement and offers bursaries to support in book purchases, mentoring and exams. The charity receives funding from CIPS and other professionals who donate and fundraise. In 2018, CIPS received over 250 applications for bursaries in 15 different countries and there are over a hundred ‘active’ bursaries where individuals are continuing their studies, right now.

See how you can help or benefit from the Foundation


Why is social value important?

Good procurement can have a real and very positive impact on society. Take a look at this video for some compelling reasons for the importance of social value. Watch Now


Game theory empowers procurement

CIPS and TWS Partners recently conducted a second annual survey to explore the understanding, awareness and application of game theory within procurement. And the results are in! The survey identifies a growth in awareness of game theory as a powerful strategy in the negotiation process, but that day-to-day application, whilst still having grown significantly, is still relatively limited…More


Exploring the drivers of change for MRO Procurement

In a new whitepaper, RS Components presents the findings of the second annual survey of CIPS members. The results of the survey provide a current global state of play for procurement and supply professionals when it comes to maintenance, repair and operations (MRO). The whitepaper features insights on:

  • Pressures organisations are facing on MRO procurement, including external factors such as Brexit
  • Managing inventory and supplier knowledge, with a focus on key strategies such as vendor-managed inventory (VMI)
  • Importance of managing stakeholders, within the context of the vast complexity of MRO procurement

Innovation, with a focus on the Industrial Internet of Things.

Download the White Paper


Now available ... BCI Supply Chain Resilience Report 2018

Featuring a foreword by CIPS Group CEO Malcolm Harrison FCIPS, the results of this tenth survey reveal the top five disruptions organisations faced in the past 12 months and indicates the type of mitigation measures being implemented. Read the report


Are you prepared for a black swan event?

In a more volatile world, managing risk should be more important than ever. And yet it has fallen to the bottom of the list of priorities, meaning that supply chains are often just one step away from a major disruption. A potential hard or no-deal Brexit, the spreading threat of Islamic State, domestic French and German politics hampering EU progress, catastrophic natural disasters, growing resistance to Chinese foreign investment ... disruptions are inevitable but procurement must be prepared to respond quickly to ensure that organisations can weather the storms…

Read the Rapid Ratings risk whitepaper for more


Delays of just half an hour at customs could cause one in ten businesses to go bankrupt

One in ten UK businesses believe they would likely go bankrupt if goods were delayed by just 10 – 30 minutes at customs as a result of Brexit, according to the last survey from CIPS. A quarter of UK businesses will stockpile goods to alleviate the impact of customs delays and half of UK companies would struggle to find suppliers and skills in the UK post-Brexit…Read the full report


Brexit and Beyond: Tips and tools to help procurement prepare – On demand webinar

Despite all of the 'unknowns', procurement is in a prime position to step up and help organisations to understand and manage the impact of Brexit. Cross-border trade, supply chain and movement of goods are already priorities, so how can procurement think beyond the obvious and harness technology to address risk? Download Recording


How are we doing? Have your say by taking part in our membership survey…

As a valued member of CIPS we want to know how we’re doing, and give you the opportunity to tell us what you think of CIPS membership.  We are currently looking ahead into our new strategy cycle and want to ensure that the membership proposition we offer is fit for the future and meets our members’ needs at all stages of their career.

We constantly look to improve ourselves and welcome your feedback, so please take 15minutes to complete our membership survey. This is aimed at finding out more about your satisfaction with the current membership proposition, what you value as a member and how we could better meet your needs to support you in your future career journey.

As a thank you for completing the survey you will be given the opportunity to be entered into a prize draw for the chance to win: first prize £300 Amazon Voucher, second prize £200 Amazon Voucher, third prize £100 Amazon Voucher (or equivalent to your local currency for all vouchers).

Many thanks for your valuable contribution and time and we look forward to receiving your feedback…Take part


Regional Update: Mena

CIPS Northern Emirates Branch conducted their 1st Annual Conference at Hotel Radisson Blu, Sharjah in celebration of their first year of conducting 12 branch events.

Attended by over 85 professionals including Branch representatives from Oman, Sudan, Dubai, Abu Dhabi as well as FCIPS and CPOs from diverse global business sectors. The first phase of the conference focused on Drivers of Business Sector Simulation where all professionals got into four groups of Manufacturing, Banking, Technology and Food & Hospitality – and engaged in understanding the business sector, sector drivers, validating skills and competencies, sector success factors and positioning to form a Business Model.

The session ended with a presentation by Gopal Naidu, Chair of Oman Branch on Block chain in Banking emphasizing evolution and the future practices.

Mr. Laxminarayan (NE Branch Chair) then briefed everyone on the facts & figures of year, reflecting on future events and applauding the efforts of the NE Branch committee who single handedly contributed to the success of the branch.

Sam Achampong (Regional Head of CIPS MENA) released the NE Branch Annual Report. Key Note messages followed from Mr. Sam Achampong, Sara Omer (Director of Tejari & CIPS Board Member), Ghazala Ilyas (Vice-President of FAB – Technology & Sourcing) and Kurt Warren (Chairman of CIP MENA Fellow Committee) sharing key challenges, opportunities and emerging future trends in Supply Chain and Technology.

This was followed by a CPO Round Table chaired by Kurt Warren and Lisa Campbell (Vice-Chair of CIPS MENA Fellow Committee). The distinguished panel of 15 CPOs and FCIPS were simulated by the MENA Fellows Committee to ponder and bring out their thoughts on the actions for the vision of CPOs in next 10 years. Which included licensed qualified professionals, innovation and skill to adapt technology with skill mapping, touchless buying, zero transactional buying, emerging chief.


Regional Update: Australia

Rio Tinto finds solution for more diversity in the workplace

The company was struggling to fill a full-time role for its warehouse operations in Queensland and had to come up with an innovative solution. They filled the role with two part-time jobs for return-to-work mothers, increasing inclusion and diversity and changing the culture.

Here more about what they did during this CIPS Webinar about Championing Gender Diversity.


Regional Update: USA

CIPS opens first US office

CIPS is expanding our global presence with a new office about to open in the US. The office will be in Chicago, a central base from which to serve CIPS members and corporate clients. One of the largest cities in the US and an important logistics hub, Chicago is also home to CIPS strategic partner APICS, the American association for supply chain management. The new CIPS office will be co-located with APICS, to facilitate our joint work on a new procurement certification for the North American market.


Regional Update: Africa

The Gauteng Province Branch event covered the topical subject of “Supplying the Future – creating value through intelligent supply chains”. The impact of the 4th Industrial Revolution and Artificial Intelligence in particular is a fascinating area that brings in the Internet of Things (IoT), Robotic Process Automation (RPA) and Distributed Ledger Technologies (DLT), including the gamut of cryptocurrencies. Agility, end-to-end integration (from source to recycling at the end of the lifespan of every product), hyper-connectedness, visibility across the product tiers and lowest cost of time to deliver are key components of how supply chains will operate in the future.

The event also presented an analysis of the recently launched Global Competitiveness Report 2018. Key findings related to how technological changes add to volatility and risks, and that technological leapfrogging, while showing lots of promise, remains elusive for many countries. The struggle to make innovation a meaningful engine for growth persists, and agility and future-readiness are key to a rapid and ever-changing world. Also by 2022, it is expected that current employees will require reskilling and upskilling if they want to remain relevant, and play value adding roles.

The Annual Conference, hosted by the CIPS Zimbabwe Branch, was held from 31 Oct-1 Nov. President of Zimbabwe, His Excellency Dr Emmerson Dambudzo Mnangagwa, graced the occasion and delivered a keynote address on the second day, demonstrating the increased prioritising of procurement and supply chain issues and the importance of CIPS in the journey to professionalisation. The Procurement Regulatory Authority of Zimbabwe (PRAZ) is now fully operational and staffed to tackle procurement-related tendering in the public service. PRAZ is headed up by the former Africa Congress member for CIPS, Mr Nyasha Chizu, and is poised to make a significant impact on ensuring good procurement practice is embedded into all contracts and tendering/sourcing processes. Dr Abdul Majid Mahomed, the Head of the SA Professional Body, also deliver a keynote address which was well received.

CIPS Africa shines the spotlight on Procurement and Supply Professional Lebogang Letsoalo

With focus on Diversity and Inclusion within the African Procurement and Supply Industry, we celebrate and highlight Procurement and Supply Professional, Lebogang Letsoalo.

Lebogang Letsoalo is the Director of Sincpoint, a South African organisation focusing on Sustainable Supply Chain Consulting and Advisory Solutions, and Chairperson of the African Women in Supply Chain Association (AWISCA), an organisaiton that focuses on elevating and transforming the Southern African supply chain skills in collaboration with a network of corporate, government entities, universities and industry at large.

Lebogang has over 18 years of experience within different facets of the supply chain fraternity. Her extensive range of experience varies within different sectors of the business where she held different portfolios within the energy, chemicals and mining industry.

“Lebo has been a strenuous protagonist in bringing about elevated levels of inclusion and diversity in the Procurement and Supply Industry and this is why we celebrate her. The focus has for a long time has been on governance and ethics. Whilst crucial, this should now be intrinsic to the industry. We have to realise that gender equality, new talents and mind-sets will positively impact governance, ethics and process excellence within the industry.” – Hemant Harriellal, General Manager CIPS Africa

Lebogang believes successful procurement and supply lies in integration within an organisaiton, and a firm move from being a tactical business to a strategic entity. Skills Development plays a big role in the industry’s ability to make this shift.

“Supply Chain has evolved, but the one thing that was not invested on is Skills Development. Really focusing the skills on the core technical issues and practicality.” -Lebogang Letsoalo

She is the former Vice President of Supply Chain at South African Petroleum giant Sasol and has held Executive roles in Project Development and Capital Procurement within State Owned Entities and Multinationals like Eskom, DeBeers, Fluor and IBM. In 2008, Lebo was profiled and cited on Financial Mail as one of the top 10 most inspiring women within South African State Owned Entities.

Lebo is also the Chairperson of the Southern Africa Shippers Transport & Logistics Council (SASTALC) which focuses on supporting and advocating the requirements of shippers, service providers and government on all matters pertaining to: national and regional freight; transport and logistics legislation; policy and procedures for infrastructure; services that facilitate cost-effective, reliable, safe and globally competitive supply chains.

Lebogang is a mentor, coach and a change agent in the Supply chain sector, influencing positive change in people and organisations. Her depth of knowledge and wisdom about socio-political issues has seen her give key addresses in different forums. CIPS Africa celebrates Lebogang and commends her contribution to the industry.

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