Transcript Leading global excellence in procurement and supply
CIPS President – Mission 2013
CIPS Branch Meeting Southampton 14
th
March 2013
Leading global excellence in procurement and supply
Who is Paula Gildert?
1980’s Getting Qualified •Physics Degree •ICI – Chartered Engineer •Open Windows in Engineering •Young Engineer for Britain • Met Steve at Manchester University ‘82 married ‘87 1990’s Getting Going • ICI / Zeneca • Production Manager • BPR Leader • Supply Chain Manager • Fellow RSA • Starbucks Cool Coaching Project Leader • Chair PTA / Chair School Governors • Natalie 90, Naomi 94 2000’s Keeping Going • AstraZeneca •Director Outsourcing •Head UK Purchasing •Global Procurement Transformation Programme Leader • Head R&D Procurement •CIPS Member / Fellow •Natalie to University ‘09 2010’s What next?
•Novartis •Head Development Strategic Sourcing •Chair / President CIPS •CIPS Modernisation Project Sponsor •Numi to University ‘12
Leading global excellence in procurement and supply
What do I want to achieve as President?
• Raise Awareness & Profile of Procurement & Supply Chain as a Profession • Build responsibility for Leadership & Legacy in our Community of Practice
Leading global excellence in procurement and supply
What do I want to achieve as President?
• Promote & Develop our Value proposition – a new winning strategy that goes beyond savings
Leading global excellence in procurement and supply
An Example
Novartis Pharma - Development Gen Meds Cost Reduction Performance
Savings $m 144 96 7% 10% 120 9% 127 Target 9% 2010 2011 2012 2013
Leading global excellence in procurement and supply
What does Value Beyond Savings look like?
Cost Corporate responsibility Continuous Improvement Innovation & Insight Assurance of supply & risk mitigation Quality & Service
Leading global excellence in procurement and supply
DSS – 2012 Executive Summary Dashboard 70-90% of run rate/target Ahead of run rate/target 90 -100% rate/target <70% of run rate/target
Productivity 2012 Sourcing Productivity Savings
Development GenMed Dec 2012 YTD: USD 120m
Measure
Savings Spend* Savings %* LO 2012
YTD Target Status
*based on succeed actuals
Measure
Cost savings Other Development Cost savings Other Novartis Div Cost Avoidance TPC reduction
eROI YTD / Target / LO Status eAuction Spend ( w/Projections), $M
7 | Development Strategic Sourcing| Pharma Dev| Dec 2012 | Sourcing Productivity | Business Use Only
DSS - BSC 2012 Executive Summary 70-90% of run rate/target Ahead of run rate/target 90 -100% rate/target <70% of run rate/target
Measure
Satisfaction* People
Actual Target Status
Internal Processes
Measure
Focus on Core Activities*
Actual Target Status
*portfolio / portfolio enabling: Oct 2012 data * May 2012 DSS pulse check survey results Customer
Measure
Satisfaction*
Actual
* July 2012 DSS customer survey.
Targ et Status
Baseline
Measure
Satisfaction* Quality – actions complete Study Performance Suppliers
YTD Target Status
Baseline Baseline Baseline 8 | Development Strategic Sourcing| Pharma Dev| Dec 2012 | Sourcing Productivity | Business Use Only
Development Productivity 2009-2012
$1bn
in Productivity gains & $900m in Reinvestments
In USD$Mio @ Budget 2012 rates Productivity delivery
Total Reinvestment $900m Key Drivers of Success:
Embedding productivity in objectives & intro of KPIs Clinical savings through Design Excellence & use of preferred providers & partners TRD transformation of clinical supply chain and capacity utilization and process optimization initiatives Better Development and Productivity Mindset
Actual 2009 Actual 2010 Actual 2011
9 | 2012 Update | Neil Johnston | Jan 2013 | Confidential
Actual 2012
Reinvestments to address increased volume needs: Reinvestments into projects above what was expected in budget
Reinvestments into new innovations
Other reinvestments
Financial risk management
Development Productivity 2012 Enabling reinvestment in the pipeline, building capabilities and improving Pharma bottom line 10 | 2012 Update | Neil Johnston | Jan 2013 | Confidential
Leading global excellence in procurement and supply
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Thought
How does CIPS make this a real possibility?
• Building the Brand on a Global stage • Building Global Standard • Building a Global Network
Leading global excellence in procurement and supply
Strategic Themes FY14 +
Public Good Leading the Global Standard Membership Transformation Knowledge Leadership Global Reach Sustainable growth in Corporate Customers
Leading global excellence in procurement and supply
CIPS – the vital statistics
• Global Community of over 88,000 in 150 countries • Offices in South Africa, Australia, the Middle East, the UK, and setting up in China • Over 130,000 education assessments conducted in 2011 • 8.7 million page views of the CIPS website each year • Our PR coverage exceeds £20 million Advertising Value Equivalent each year • Over 6,000 members a year attend our events including our annual conferences attracting thousands of guests • Purchasing Managers’ Indices, key economic indicators used by the Bank of England and organisations all over the world
Leading global excellence in procurement and supply
CIPS Foundation
Leading global excellence in procurement and supply
CIPS Qualifications Programme
Leading global excellence in procurement and supply
The strategic importance of the Branches
Leading global excellence in procurement and supply
Thank you
Leading global excellence in procurement and supply