Transcript The Elephant in the room… - Chartered Institute of

Seizing Today, Embracing Tomorrow
Peter Rushton – CIPS President
11h May 2011
The Elephant in the room…
Seizing Today, Embracing Tomorrow
Seizing Today
The changing world
Seizing Today, Embracing Tomorrow
trn
The E7 will overtake the G7…
GDP at purchasing power
parity (constant 2008 $s)
60
G7
E7 GDP
45
US, Japan, Germany,
UK, France, Italy, Canada
E7
China, India, Brazil,
30 Indonesia, Turkey,
Russia, Mexico
G7 GDP
15
0
2000
2010
Sunday Times
2020
2030
The changing world
Seizing Today, Embracing Tomorrow
2010
2050
Energy in crisis
Seizing Today, Embracing Tomorrow
Fossil fuels are running out
“After 2015, supplies of easy to access oil and gas will no longer be
able to keep up with demand”
CEO of Shell, Jan 2008
Procurement & Supply is in the news
Seizing Today, Embracing Tomorrow
• Our profession is in the spotlight
• The performance bar has been raised
• Can we deliver & meet expectations?
Organisational requirements are changing
Procurement
Seizing Today, Embracing Tomorrow
Supply
Value
Proposition
•
Risk management
•
Logistics
•
Outsourcing
•
Globalisation –
China price
•
Sustainability
•
Volatility in
commodities &
currencies
•
Collaboration
•
Reputation
World Class Supply ROI
Seizing Today, Embracing Tomorrow
Return on Investment
Ratio of total expenditure
cost savings to the cost of
procurement effort, 2010
11.3
176%
4.1
•
25% of CPO’s
report directly to
the CEO
•
Procurement is
represented on
70% of all Boards
of directors
Source ; Cap Gemini
consulting
Non-World-Class
Source: The Hackett Group, Chris Sawchuk, 2010
World-Class
The Elephant in the room…
Seizing Today, Embracing Tomorrow
Embracing Tomorrow
Capturing the next generation of talent
Seizing Today, Embracing Tomorrow
We ALL need to do
more • Educate
• Promote
• Win hearts and
minds
What can you offer me?
Seizing Today, Embracing Tomorrow
•
Middle Manager pay better by 8%
•
Senior Manager pay better by 16%
•
Head of function pay better by 10%
•
Director pay better by 20%
Thank you
[email protected]
Tel 0844 800 2515
Mobile +44 7595 607792
The world’s largest procurement and supply professional organisation