
Bicara Supply chain. had a great chat with Bernard Gracia from EIPM – The European Institute of Purchasing Management discussed the topic of key skills for #purchasing professionals.
EIPM is a pioneer in purchasing training in Europe and today stands as the leading Global Centre in Executive Procurement and Supply Management Education.
In this episode, Bicara supply chain ask the following key questions:
– How do you see the role of purchasing in the recent date where almost every organization faces challenges in their businesses?
– What are some key skills in purchasing that will be valuable in the coming years?
– What advice can you offer to the leader on how to improve their purchasing organization skills? And How can the professional body such as EIPM (and others which have a similar program) play a significant role in this space?
Paris, 13th of December 2019.
The 10th edition of the EIPM-Peter Kraljic Awards was celebrated yesterday, the 12th of December 2019, in Paris, France.
The EIPM-Peter Kraljic Awards recognise Purchasing organisations across the world for their outstanding practices and for modelling the way forward.
The winners are elected by a jury chaired by Dr. Peter Kraljic and composed of industry leaders and purchasing experts as the outcome of a very detailed and fact-based process. Companies are evaluated using the EIPM Maturity Assessment Tool based on the EFQM Business Excellence Model, followed by on-site audits for the finalists.
In this edition, recipients were recognised on the following categories: “Value Creation”, “Transformation”, “Talent Management”, “Process Excellence”, “Sustainability”, as well as the acknowledgement of remarkable overall performance for “The Organisation of the Year”.
Mr Bernard Gracia, EIPM President, announced the winners and the trophies were handed by Dominique Lebigot, Chief Purchasing Officer of Moët Hennessy (LVMH Group), winner of the 2018 EIPM-Peter Kraljic Organisation of the Year award.
The 2019 EIPM Peter Kraljic Awards winners are:
Value Creation Top Line – ANA Aeroportos de Portugal (Vinci Group) Corporate Procurement
ANA Corporate Procurement delivers large savings and collaborates with stakeholders and partners to increase airport capacity, passenger fluidity and revenues.
It develops open innovation to achieve top line growth and improvement in passenger satisfaction.
Transformation with Sustained Results – Bondalti Chemicals Procurement Organisation
Bondalti new centralised Procurement & Chemical Regulatory Affairs team generates unquestionable value that, beyond the company, also benefits the customers and society. It is particularly caring about the environment, sustainability and risk management.
Sustainability – EFACEC Supply Chain Corporate Division
EFACEC Supply Chain Corporate Division deployed advanced tools and solutions to satisfy company needs. Sustainability is a business opportunity and procurement contributes to this through the product passport by consolidating the use of resources during its lifecycle and implementing scope for the circular economy.
Talent Management – Community Drive – ENEL Global Procurement
ENEL Global Procurement invests in its talents to support its transformation and maximise value creation and stakeholder experience. The team has redesigned and is deploying new processes, strengthening open, innovative and sustainable procurement strategies.
Process Innovation and Digitalisation – Sprint Purchasing
Sprint Purchasing delivers ongoing results using fully digitalised processes.
It continuously enhances its solutions to create additional value, and pilots new approaches and tools though its Digital lab and Connected lab, some using AI and cognitive technologies.
The Organisation of the Year – Saudi Telecom Company Purchasing Organisation
The Organisation of the Year award acknowledges a remarkable overall performance.
STC Procurement team has deployed more advanced solutions delivering superior results against STC challenging objectives: decisions are shared with the business, talent management is comprehensive, end-to-end processes are fully digitalised and automated, big data are exploited using AI. STC Procurement has played a decisive role to localise critical suppliers.
In addition to the 2019 Awards, the 10th Anniversary Special Awards recognise the 2010-2019 trophy winners that the jury has identified as inspiring organisations and practices for future excellence. These are:
Risk Management – INFRABEL Procurement
Assessing and monitoring risks and their mitigation measures over the execution of very long term contracts.
Talent Development – Atlantic Grupa Central Purchasing
Developing human resources and talents that project the organisation towards its vision.
Digitalisation & Big Data – Saudi Telecom Company Purchasing Organisation
Enabling better end-customer experience and additional revenues through optimisations based on Big Data and Artificial Intelligence.
Community Management – ESSILOR GSP Organisation
Creating and developing a united and complementary team in a global organisation.
Corporate Transformation – E.ON Supply Chain
Being the leading organisation in the corporate transformation.
Responsible Relationships – Aéroport de Paris Procurement Division
Maintaining responsible relationships with all the stakeholders and suppliers that make up the extended enterprise.
New Business Models – Capgemini Group Procurement
Selling PaaS, Procurement as a Service.
Collaborative Relations – Avril Direction des Achats
Providing added value to the ecosystem through collaboration with suppliers in win-win-win relationships.
Impact on Revenue – Moët Hennessy Purchasing
Creating sales opportunities in the Supply Chain and generating additional income.
Sustainability and Procurement: Time to look beyond compliance
Over the past 10 years, Sustainability defined as Social, Environmental and Economic performance has been on the agenda of all procurement teams. The initial focus has been on managing risks and achieving desired levels of compliance with company’s commitments and existing sustainability standards.
Today, as sustainability is taking a more centre stage position within business activities. It is now time for Procurement to look beyond compliance matters and to further integrate in its activities and goals. We need to see the pursuit of environmental and social performance as a core business requirement and as an opportunity to optimize cost and create value.
The table above outlines some sustainability levers that purchasing teams can build on. It can be used as map to trigger discussions within a project or for a purchasing segment. This is not an exhaustive list but a good starting point. Underneath we describe how we see this evolving in the coming years.
From a risk management point of view, we will see more efforts on communicating and enforcing codes of conducts. A lot has been done but more will take place. Monitoring suppliers’ practices, implementing corrective actions and establishing basic improvement projects will become more systematic and will be turned into an efficient routine activity. In the years to come we will continue to see the development of sustainability scoring and assessment services. In this area, collaborations with not for profit organisation who have a privilege access to some suppliers will become more usual and well-organised. Gaining visibility beyond the first line of suppliers will remain a challenge. Some companies such as Vodafone have started to offer some of their supplier’s employee’s specific channels of communications to report sustainability issues. Everyone player along the chain will be expected to monitor its own first line of suppliers. New opportunities will emerge out of current business transformations. Big data and the Internet of things will allow remote monitoring of the condition of equipment, workers, goods and supply chain. Start-ups such as provenance.org have already taken steps in this direction.
To simultaneously improve financial, social and environmental performance buyers will increasingly consider three different strategies: First, they will leverage their supply market knowledge. It offers opportunities to secure access to quality resources at a good price. In the food industry, companies such as Danone have changed their commitment to farmer to achieve. Such initiatives will without doubt inspire other companies and industries. In the same vein, we will also see cannier use of sustainable transportation solutions, renewable energy and materials. Second they can work with stakeholders to reframe requirements so social and environmental performance can be improved while cost can be reduced. Some companies have started to bring together lice cycle analysis and life cycle costing to achieve this. Also, many recent developments in packaging area are great example of this. By reframing requirements and looking creatively at solutions it is possible to lower resource consumption, it is possible to adopt leaner and greener processes and sometime what needs to be sourced can be radically simplified. Third by revisiting operational and business models, new levels of performance can be achieved. Products can be efficiently recycled, reused or taken back by suppliers. In this area, Philips has established collaborations with Not for Profit Organisations and governmental bodies to implement “circular procurement” practices. Local sourcing strategies will flourish in some industries to deliver positive financial and sustainability impacts. New technologies will help personalise and dematerialise business activities so costs, waste and risks are eliminated. If stay awake and if we bring people together to implement new ideas purchasing can improve its performance and gain recognition a driver of change.
Finally sustainability is increasingly part of company’s product offerings and competitive advantages. This is an additional opportunity for purchasing teams to create value for the business. Working for the greater good motivates people, it creates loyal customer, it strengthens the brand and it provides opportunities to develop new offerings. By working closely at early stages with suppliers, purchasing can create value and achieve higher levels of sustainability. New market can be explored and game changing innovation can be introduced. Constraints can make us see the world with different eyes so we can come up with fantastic results.
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Archamps, 6th of December 2018.
The 9th edition of the EIPM-Peter Kraljic Awards was celebrated yesterday, the 6th of December 2018, in Archamps, France.
The EIPM-Peter Kraljic Awards recognise Purchasing organisations across the world for their outstanding practices and for modelling the way forward.
The winners are elected by a jury chaired by Dr. Peter Kraljic and composed of industry leaders and purchasing experts as the outcome of a very detailed and fact-based process. Companies are evaluated using the EIPM Maturity Assessment Tool based on the EFQM Business Excellence Model, followed by on-site audits for the finalists.
In this edition, recipients were recognized on the following categories: “Transformation”, “Process Excellence”, “Value Creation“ as well as the acknowledgement of remarkable overall performance for “The Organisation of the Year”.
Winners were announced by Mr Bernard Gracia, EIPM Director, and the trophies were handed by Dominique Etrourneau, Procurement Director of Aéroports de Paris, the 2017 EIPM Peter-Kraljic Award Winner for the Organisation of the Year and James Letche, Director at EFQM.
This year’s winners are:
E.ON Supply Chain continues to successfully build its legitimacy with the business units, furthering the development of its capabilities and performance by the Optima programme, and contributes as a model to the transformation for the company. It is integrated in key company business strategies and creates events to secure innovations from external partners. Enhanced category management and tender board processes deliver sustainable contribution and increasing stakeholder satisfaction.
Keywords:
OMK Procurement has reached a high level of maturity in Category Management, Supplier Relationship Management and Project and Risk management. There was a clear shift from operational relevance to strategic contributions achieved through the leadership of the procurement team. Today Procurement is involved in the most strategic projects of the business before board decision to proceed.
Keywords:
Within Avril, Direction des Achats acts as a transformation agent that builds cross-company network focused on sustainable value delivery through category management and collaboration with Suppliers (Win Win Way programme). This is achieved thanks to a continuous development of buyer’s leadership capabilities, relationships and involvement of stakeholders in the decisions.
Keywords:
GPO has demonstrated Excellence in diverse areas: Category Management, Market intelligence, and Risk management. This was achieved simultaneously to the successful transformation from a decentralized to a centralized procurement function and with a strong leadership and perseverance of the procurement team. The long-term benefits of this transformation are well charted and their progresses are conducted in a systematic and structured way.
Keywords:
The Organisation of the Year award acknowledges a remarkable overall performance.
Moët Hennessy Purchasing excels on their focus on stakeholders, innovation, people management, sustainability, and supplier relationship management practices. Purchasing is perceived and leveraged by the Executive management as a high impact transverse network in the organisation.
Comprehensive multi-year roadmaps drive the development of the organisation’s maturity and impact on the business.
Keywords:
In the photo from left to right: Christian Kaemmerlen, Project Manager at EIPM; Dominique Etourneau, CPO at Aéroports de Paris, Heinrich Berger, VP Global Raw Material Procurement at ICL, Claudia Viohl, CPO at E.ON, Dominique Lebigot, CPO at LVMH Wines & Spirits, Elvire Regnier Lussier, CPO/Tranformation Leader at Groupe Avril, Alexander Sidorin, CPO at OMK and Bernard Gracia, EIPM Dean & Director.