Leading global excellence in procurement and supply

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CIPS Furness Branch Event
Driveline Engineering
8th October 2014
Leading global excellence in procurement and supply
Agenda
17:30
Registration
18:00
ChairmanтАЩs Opening
Including PresidentтАЩs Theme
Furness Enterprise
Driveline Engineering
Questions, Networking & Close
18:15
18:30
19:30
Jeannette Medati
Stuart Klosinski
Mike Meehan
Leading global excellence in procurement and supply
ChairmanтАЩs Opening
тАв Welcome & Introductions
тАв The Branch
тАУ
тАУ
тАУ
тАУ
тАУ
тАУ
Committee
Next Committee Meeting 18th November 2014
Budgets
Events (Mike)
Social Media / Communications (Natalie)
CIPS Branch Conference тАУ 21/22 Nov 2014
тАв The PresidentтАЩs Theme
Leading global excellence in procurement and supply
The Committee
Name
Jeannette Medati
Mike Farnworth
Donna Martin
Mike Miles
Lauren Goulding/Lydia Waites
Natalie Threadingham
Andy Payne/Ian Crawshaw
Position
Chair
Vice-Chair/Treasurer
Secretary
Communications Officer
Education Liaison Officers
Social Media Officer
General Committee
Members
Tenure expires
April 2015 AGM
April 2015 AGM
April 2015 AGM
April 2015 AGM
April 2015 AGM
April 2015 AGM
April 2015 AGM
Next Committee meeting 18th November 2014
Leading global excellence in procurement and supply
Budget
тАв Budget submission approved тАУ Sept 2014
тАв ┬г1200
Leading global excellence in procurement and supply
Events
Date
Topic
8 October 2014
Driveline тАУ Branch event
November / December 2014
Party Lites тАУ tbc
March 2015
Branch Event - tbc
June 2015
Branch Event - tbc
September 2015
Branch Event - tbc
Ideas for future events welcomed
Leading global excellence in procurement and supply
Social Media
For discussion, branch updates, event news and
meeting like minded professionals, the Furness
Branch can now be found on:
@cipsfurness
Furness Branch
CIPS Furness Branch
Join us!
7
CIPS Branch Conference
Day 1
Thursday 20th November
11-00am
Registration тАУ Tea/Coffee
11-15am
Branch Chairs to join the Congress Meeting
11-15am
CIPS Update тАУ David Noble, CIPS Group CEO
12-00pm
Update on Chartered Status/Name Change - tbc
Knowledge Update тАУ Helen Alder, Head of Knowledge and
Product Development
12-30pm
1-00pm
2-00pm
3-15pm
Lunch
тАШBrand MCIPSтАЩ workshop тАУ facilitated by Cath Hill, Group
Membership and Marketing Director and Vicki Oliver,
Marketing Membership Manager
3-30pm
Break
тАШBrand MCIPSтАЩ workshop continued тАУ facilitated by Cath Hill,
Group Membership and Marketing Director and Vicki Oliver,
Marketing Membership Manager
5-00pm
End of the first day
7-00pm
Cash Bar
7-30pm
Dinner
Day 2
Friday 21st November
09.00am
Welcome/Introductions тАУ Cath Hill, Group Membership &
Marketing Director
09-15am
Stuart Quinn, Chair North Lancashire Branch - Personal
communications Presentation/Update on the Branch Pages-
09-45am
Emma Scott, Representation Manager тАУтАШ Profession of ChoiceтАЩ
Presentations
Session - tbc
11.00am
Break
11.20am
Session - tbc
1-00pm
Close and Lunch
Leading global excellence in procurement and supply
2014 Presidents theme
Do one good thingтАжand do one in return
Craig Lardner FCIPS: President 2014
Sept/Oct 2014
Leading global excellence in procurement and supply
Like any good procurement person
тАж.. I needed to create some KPIтАЩs
How else would I know that I had an effective year?
Goals: the words and the numbers
тАв Visible President
тАв Impact and тАШThe ThemeтАЩ
тАв Giving belief that тАШYou too can beтАЩтАж
40 in 52 тАжwill hit 66
50 тАж.will hit 46
30тАжwill hit 30 [including 2 teleconferences]
5тАжwill hit 10
4,000тАжwill hit 4,200
SoтАжwhat is тАШone good thingтАЩ
Leading global excellence in procurement and supply
Presidents theme for 2014
Do one good thing тАжand do one in return
Why this theme?
1.
2.
3.
4.
5.
6.
7.
It directly supports our strategic platform of тАШFor public goodтАЩ
It focuses on a personal benefit as well as for our profession
It creates 100,000 good things done (+100,000 more)
ItтАЩs measureable
ItтАЩs local as well as globalтАжit spans countries and cultures
It brings us together as a global family
It brings merit and credibility to The CIPS Foundation
Leading global excellence in procurement and supply
Understanding the theme.
1.
2.
3.
4.
Your тАШone good thingтАЩ is for someone NOT in your country
The тАШdo one in returnтАЩ is for someone IN your country
The good thing is for the individual and for the profession
It does not have to be money /cost/donation
тАв What are you especially good at?...then offer that
тАв What clever thing did you learn?...then pass that on.
5. 3 hours out of your year
6. Log it
7. When you do your one good thing remember to tell the recipient
they have to do theirs тАжask them to let you know what they did
Leading global excellence in procurement and supply
Before 31st October please
Hand up тАжstand up
OR
Sit downтАжstay down
Leading global excellence in procurement and supply
2014 Presidents theme
Do one good thingтАжand do one in return
Craig Lardner FCIPS: President 2014
Sept/Oct 2014
Leading global excellence in procurement and supply
SUPPLY CHAIN
STRENGTHENING
The 2015 business
support priority for
Furness and west
Cumbria
Stuart Klosinski
Industrial Development Manager
Furness Enterprise Limited
c/o Wax Lyrical
Lindal Business Park
Lindal in Furness
Cumbria
LA12 0LD
Tel: 01229 820611
Mobile: 07836254721
Fax: 01229 827226
Web: www.furnessenterprise.co.uk
CORE
OPPORTUNITIES
Crucial stimulus for GVA, Jobs, Skills, Exports
On verge of biggest growth since 1980sтАЩ
Initially a construction focus
Followed by
Energy
Defence
Nuclear
Astute
Life
Sciences
(civil and
defence)
Successor
Biopharm
UK and
global supply
chain
But need to know if firms are up for it
Cephalos
porin
Identify gaps in support then help firms:
1400
companies
Life saving
drugs
- Access potential
The
submarine
enterprise
Global
market
decommissi
oning
Oil+Gas
Offshore
Wind
Global
suppliers of
specialist
equipment
Aerospace
electronics
Research
NHS
universitie
s
- long term manufacturing or
- operations maintenance
- Address barriers
- Grow our own skills
- Attract in more talent
COMING INVESTMENT
IS HUGE
7,000 CONSTRUCTION
JOBS
Lead
Project
Cost
When
Jobs
Dong Energy
Walney Extension
┬г2.00
2015-17
102op
Centrica Energy
Roosecote Decommission
N/A
2015
50c
BAE Systems
Barrow site infrastructure
┬г0.37
2014-21
750c
GSK
Bio-pharm Ulverston
┬г0.35-0.40
2015-20
450c
Centrica Energy
Gas Processing
Rampside, Barrow
┬г0.10
2014-16
200c
Unprecedented scale of opportunities
quantified by Furness Economic
Development Forum* team
Centrica Energy
East Irish Sea Gas Exploration
┬г0.10
2014-20
N/A
Note * Fe, Bae Systems, Furness College, Barrow Council
Industrial
Expansions
Barrow /
Ulverston
Kimberly-Clark
Oil States Barrow Ltd
Siemens
Gyrodata
┬г0.16
2015-20
500
Some are nationally strategic endeavours
take place between 2015 and 2024
E-Lift Barrow
Barrow health centre
┬г0.02
2015+
N/A
National Grid
Moorside to Lancashire
400KV electricity lines
┬г3.00
2017-26
500c
Electricity NW
132KV power line upgrade
┬г0.50
2017-26
200c
United Utilities
Rampside Outfall pipeline
Ulverston facility enhancement
┬г0.008
┬г00.05
2014-15
50c
aim to keep as much of this investment as
possible is embedded here
How do we persuade developers to
commit to helping grow local supply
capability
Risks:
spend value flows out of the area
limited openings for new suppliers
local suppliers may add risk
Sub Total
NDA Drigg
Nugen Toshiba
Drigg storage facilities
Moor Side AP1000 Nuclear
Generating Station
Sub Total
TOTAL
┬г6.158+
N/A
2014+
N/A
┬г16.00
2018+
5,000c +
1,000op
┬г16.00
Note c construction Op
operational jobs
┬г22.158
Lead
Programme
Value when Jobs
Furness
BAE
Systems
Siemens
GSK
Ulverston
KimberlyClark,
Barrow
Successor and Astute ┬г11submarine
14.00bn
programmes
Sub Sea Connector
┬г0.50bn
manufacturing***
2014-32
2014-20
Cephalosporin and
Bio-pharm
Manufacturing***
┬г0.16bn/yr 2014+
Manufacture of
tissue***
┬г0.10bn/yr 2014+
Sellafield
Decommissioning
┬г8.00bn**
1,0001,500
100-400
208-708
25
West Cumbria
NMP
Sellafield
TOTAL
┬г1922.76bn
2014-20
STRATEGIC
MANUFACTURING FOR
GLOBAL MARKETS
N/A
1,8332,733
Continuing realisation of major
production programmes
Some serving UK strategic
interests,
UK domestic and global market
reach with specialist products
Not always reliant on local supply
chainsтАж.
THE SUBMARINE
ENTERPRISE
SUPPLY CHAIN
Hub at Barrow
1400 companies Across UK
Some in Europe and USA
Potential possibly for
embedding extra capability
in NW England, Cumbria
Are we looking at Successor
or follow on to Astute as the
real opportunities for growth
SUPPLIERS ARE OFTEN
UK WIDE
Having a hub manufacturing asset based
locally may generate the best economic return
can we use government support to assist
suppliers to a hub to improve overall capability
Good transport links (road, rail) essential
But
Are local firms missing an opportunity to offer
more
Can local capability be enhanced
Do local firms wish to increase their roles
Can we grow attract the skills
яВД
Information market failures,
яВД
Lack of access to, and information about
opportunities тАУ SMEs may be unaware of how to
access tenders and other opportunities to supply;
яВД
Lack of confidence OR inability to respond to
tenders combined with issues over whether SMEs
are тАЬfit to supply,
яВД
Are the necessary management environmental,
quality and equality policies and systems in
place to meet the requirements of large firmsтАЩ
buyers;
яВД
lack of confidence in the procurement process,
яВД
Unwillingness of some SMEs to commit valuable
time or resources to respond to tenders they
believe they have no chance of winning.
яВД
Some SMEs may believe that there is a lack of
equality in the procurement process or other
organisations are far better placed to win
contracts than they are;
яВД
Risk aversion from tier1/2 procurers-rely on
established suppliers;
яВД
Onerous Pre-Qualification Questionnaires (PQQs);
SUPPLY CHAIN
BARRIERS
Some quoted examples
coming from companies
in supply chains and best
practice research
Other
Systems integration needs
improvement
22.22%
High risk / cost of R&D
27.78%
Access to finance is difficult for
new capital equipment andтАж
33.33%
Information does not flow
between companies
27.78%
Shared vision in local area is
lacking (reluctance toтАж
SOURCE:
RESEARCH TEAM
FOR FURNESS ENTERPRISE LTD, 2014
33.33%
Pre-qualification for tenders
Lack of skilled labour
BARRIERS TO
SECURING NEW
CONTRACTS PERCEPTIONS OF
FURNESS FIRMS
11.11%
50.00%
11.11%
77.78%
Knowledge of who to contact in
Prime or Tier 1 contractors
Information about pipeline of
emerging contracts
55.56%
яВД
Lack of clear information about local
suppliers
яВД
A lack of knowledge about where to
find appropriate and relevant
information about the specific and
relevant contracts.
яВД
Respondents that are looking to gain
directly from contracts all require
support in meeting and networking
with the correct contacts.
яВД
An approved local supplier list is seen
as a positive move and a must have
by the local service organisations
яВД
Attracting construction / permanent
workforce
яВД
Pay structures locally are lower than
other parts of the country
яВД
local hotels see large organisations
like Premier Inn and Travel Lodge
gaining the lionтАЩs share of incoming
business tourists to the area.
SERVICES AND
CONSTRUCTION
SECTOR VIEWS
SOURCE
RESEARCH TEAM
FOR FURNESS ENTERPRISE LTD 2014
What should be done to help
firms access supply chain
opportunities?
8%
Advice about the
industry
13%
Money for training
18%
16%
Contact with industry
buyers
Marketing assistance
11%
34%
Innovation support
for product
development
Other
Contact with industry
buyers is important
to help firms access
the opportunities.
Information on:
how to approach this sector;
Identify opportunities available;
Know what is needed
16 40.00%
Visibility of Tenders:
Opportunity to Tender:
Remove restrictive buying
practices
Information/Support for training
required skills
Sort out issues with NDA
7 17.50%
3
7.50%
2
5.00%
Nothing further required
1
2.50%
More Industrial space/premises
1
2.50%
Reduce paperwork/Red Tape
1
2.50%
Use UK Companies
1
2.50%
Promote local Supply Chains
1
2.50%
Invest in Local Companies
1
2.50%
Don't Know
11 27.50%
WHAT NEEDS TO
HAPPEN TO
IMPROVE ACCESS
TO THE
CIVIL/DEFENCE
NUCLEAR SECTOR
Research looked at civil and
defence nuclear sectors needs
тАЬThe prize share of ┬г1.6b year
spend it has potential to achieve
considerable sustainable
economic benefits for the region
and UK..its important that this
spending supports local regional
innovation and provides work for
local companiesтАЭ
Source: House of Commons Public Accounts
Committee Managing risk at Sellafield 201213
What two things are most needed to help
Cumbrian businesses exploit opportunities in
the nuclear sector?
More knowledge/information of what
is required
12 30.00%
Visibility/Availability of tenders
7
17.50%
Increased skills/manpower
6
15.00%
Networking/Forums/Working together
4
10.00%
Promote/help local firms to win / give
contracts locally
4
10.00%
Space/Ability to expand capacity
and capability
Convince people we have the
capability
3
7.50%
2
5.00%
SUPPLIERS VIEWS
ON IMPROVING
ACCESS INTO THE
CIVIL/DEFENCE
NUCLEAR SECTOR
1 IN 2 NEED MORE
INFORMATION ON WHAT
IS REQUIRED AND
VISIBILITY OF TENDERS
Which of the following things should be done
locally to
help firms win business in the wind energy
sector
WIND ENERGY
SECTOR
SIMILAR POSITION TO NUCLEAR ON WHAT
IS NEEDED TO HELP FIRMS POSITION TO
WIN BUSINESS
BARROW NOW HAS:
Information on access to tenders
Advice about the industry
Money for training
Contact with industry buyers
Marketing assistance
Innovation support for product
development
Others
80.56
%
80.56
%
66.67
%
83.33
%
75.00
%
63.89
%
5.56%
тАв
4 BASES 180-220 JOBS
GOVERNMENT PRESSURE ON
DEVELOPERSTO INCREASE UK CONTENT
HOW SHOULD DONG/VATTENFALL
RESPOND
FOCUS ON CONSTRUCTION OR
OPERATIONS AND MAINTENANCE CONTENT
MERSEY, HUMBER LEPS , FE WORKING
WITH DONGSUPPLY CHAIN TEAM TO
IDENTIFY
тАв
MORE LOCAL CONTENT OPPORTUNITY
GROW GRANT SCHEME
494
companies
137 Local
Firms
involved
┬г234,571,517
┬г22,918,215
spend
Local spend
To date 9.7
% share
DONG ENERGY
OPERATIONS AND
MAINTENANCE
Is it possible to increase
this share of the contracts
value
a1% increase will
generate ┬г2.3m
Some Proposals - A Potential Response
Raise awareness of emerging contract package
opportunities
Assess whether firms are able to commit to enhance their
capacity or capability/ distribute information to all businesses
+help manage expectations of whatтАЩs achievable in
short/medium term
Build database of companies and researched capability
Raise awareness of individuals to required skills,
available job opportunities and career paths
Build company capacity and capability e.g. workshops on:
- How to research, identify, reach potential new contracts,
customers;
- Developing and communicating compelling competitive
advantage;
- Writing winning tenders and presenting winning pitches;
- Delivering successful sales presentations to clients and
tender interview panels;
- Excellence in customer service тАУ how to win and retain
clients;
Coaching, mentoring, access to finance, training, innovation
support to facilitate required growth
HELPING SMES BECOME MORE
тАШFIT TO SUPPLYтАЩ& WIN NEW
CONTRACTS
Increase their awareness of contract
opportunities, procurement policies
and process understanding to help
them win new contracts
тАЬthe types of perceived barriers that
we have consistently found are
centred on difficulties in
communication and information,
rather than implying a fundamental
inability of suppliers to provide
goods and services in competitive
tendering.
support measures most likely to be
effective:
facilitate contacts between suppliers
and procurement personnel;
provide greater knowledge of, or
some guarantee of quality;
offer training to help firms better
Supplier to supplier networking to explore collaboration
understand the tendering process
Apprenticeship bursaries to grow our own skills
ALSO NEED TO MANAGE LOCAL
EXPECTATIONS OF WHAT CAN BE
SUPPLIEDтАЭ
яВД
Astec Precision - fasteners and
screw machine products (Oxley)
яВД
Tritech - acoustic sensors for
global markets (Systems
Technologies)
яВД
Accurite Industries тАУ stone cutting
machinery (Burlington Slate)
яВД
Joss Engineering-precision
engineering Agusta Westland
Approved
яВД
Athena PTS - electrical design
consultancy, project
support,specialist installation in
energy, marine electrical,
nuclear, (Agrilek)
яВД
Siemens subsea connectors
(Tronic)
BUILDING ON
SUCCESS
Furness has history of
manufacturing supply chain
growth emerging from new
start-up businesses or spin
outs from existing firms which
go on to
Offer unique smart integrated
solutions to doing things
better
The objective should be to
encourage more of this
pedigree
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