CIPS Egypt Branch Procurement Transformation in Egypt

Leading global excellence in procurement and supply

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CIPS Egypt Branch

Procurement Transformation in Egypt Monday 28 March 2016


Marwa Aburahma – CIPS Egypt Branch Chair

Procurement Transformation

Welcoming Note


05:30 ‐ 06:00 Registration

06:00 ‐ 06:10 Welcoming Note – Marwa Aburahma CIPS Egypt Branch Chair

06:10 ‐ 06:30 The Future of Procurement & Supply – Sam Achampong FCIPS, General Manager, CIPS MENA

06:30 ‐ 06:45 Speed Networking – Tamer Hussein CIPS Egypt Branch Co‐Chair & HaythemEtemad CIPS Egypt Branch Education Officer

06:45 ‐ 07:15 Procurement Transformation in Egypt ‐ Amr Abdel Naby, Chief Procurement Officer, BP

07:15 ‐ 07:45 Break, prayer & networking

07:45 ‐ 8:30 Moving Procurement from Tactical to Strategic in Egypt – Eng. Ayman Amer, Director of Procurement at SODIC

08:30 ‐ 9:00 CIPS MENA – CIPS Capability Development

9:00 ‐ 9:30 Awards Ceremony, CIPS MENA GM will give out certificates for the delegates who recently graduated

09:30 ‐ 09:45 Event Survey

Agenda


CIPS and the future of

Procurement & Supply

Sam Achampong FCIPSGeneral Manager ‐ CIPS MENAMarch 2016


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Chartered Institute of Procurement & Supply

CharteredBody

CharteredBody

CharitableStatus

AwardingBody

Membership Organisation

CIPS for Business

“CIPS is the world's largest procurement and supply professional organisation and is recognisedthroughout the world as the voice of the procurement and supply management profession.”

• Established 1932• to “promote and develop for the public benefit the art and science of purchasing

and supply…”


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Who we areThe largest global professional body in Procurement and Supply

• Offices on 4 continents in 6 countries• Members in over 150 countries

The global standard for the profession• Mandated by sovereign countries, multi‐lateral agencies and multi‐national

companies

The professions advocate for ‘Licensing the Profession’

The only professional P&S body to degree level, independently regulated

The leading voice of the profession • www.cips.org ‐ c1 million annual users


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Key Trends (CEO concerns)• Industry convergence• Digital invaders• Cyber risk• Ideas economy

The Business EnvironmentEconomic Shifts• 2030 – two thirds of middle class in

Asia Pacific

• 2030 – 750 cities will provide 61% GDP

Changing Business Models• “Uberisation” of business models

• Digital economy represents 22.5% of global GDP

Human Knowledge• 1905 – doubled every 100 years• 1945 – doubled every 25 years• 2014 – doubled every 13 months• 2020 – will double every 12 hours

Ethics and Compliance• Increased legislation and

regulatory pressures

• Non‐compliance makes media grabbing headlines

• Davos 2016 – Global Value Chain Partnership (cooperation between governments integrating their economies into global supply chains)


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Government Procurement• 10 – 20% of global GDP

(19% EU GDP)

The Procurement and Supply EnvironmentOutsourcing• Exponential rise as seek to divest

assets

• Reshoring reversing to offshoring

3D Printing• Product differentiation will be

materials they’re made of not how made

Mergers and Acquisitions• 60‐80% of deals fail to deliver their

expected return often down to procurement non‐involvement up front

Supply Risk• Increasing regulation

• UK anti‐slavery legislation

• Cyber risk

• MalpracticeChanging Views• 48% of Business leaders believe

CSO a boardroom role by 2020

• 68% of Business leaders believe Supply Chain has direct impact on a country’s economic and industrial development


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Third world 20% leakage in government budgets due to fraud

More than US $1 trillion are paid in bribes annually

Corruption adds 10% to the cost of business and 25% to public procurement in developing countries

Facing the Worsening StormHow many tiers of your supply chain would you ascertain your organisation have visibility of?

First Tier only First and Second Tier

only

Tier Three and Beyond

Complete Visibility all the

way down

15%

57%

17%11%

CIPS YouGov Survey 2014 Base: B2B senior decision makers whose business has a supply chain


THE SUPPLY CHAIN ERAOur Profession’s Problem

REAL

VALUE

PERCEIVED VALUE

BRAND: ‘PROCUREMENTAND SUPPLY’

• Fit the business strategy

• Contribute at top table• Talk the right language

Strategic Sourcing & enterprise development

Supply chains a competitive differentiator

Risk impacts = Brand value

Cost savings

Only 1/3 of CEO’s believe P&S professionals are ready for the strategic challenges ahead

Category management


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Likelihood of Automation?Buyers and Procurement Officers 141st most likely to have their job automated, out of 366 professions

64% ‐ Buyer and Procurement Officer

97% ‐ Finance Officer95% ‐ Chartered and Certified Accountant

58% ‐ IT Engineers

73% ‐ Cook

36% ‐ Importer / Exporter

15% ‐ Economist orStatistician

Source: The Future of Employment: How susceptible are jobs to automation, Michael Osborne and Carl Frey, Oxford University


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• Those implementing this technology are not seeking our permission to implement• Algorithms with intelligence can replace large parts of our roles• Shrinking the bottom tier of the profession?• Their arrival is raising the intellectual entry point

Leadership

Managerial

Tactical and operational

Artificial Intelligence and Big Data

CIPS 2015 Future survey respondent job categories


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Capability Development

CIPS Applied LearningLeadership vs. Management

Performance

Process

ProfitabilityEfficiency

People

Effectiveness

VALUE


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CIPS Knowledge

Procurement & Supply Cycle

Knowledge Partnerships

Members

Third Party Relationships Tools and Templates

White Papers and News Insights

Category and Commodity Expertise

Procurement Topic Expertise

Webinars and EventsKnowledge Groups


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A Global Institute, a Global VoiceUK

(Head Office)MENA(Dubai)

Asia Pacific(Singapore)

Australasia(Melbourne)

Turkey(Istanbul)

Africa(Johannesburg)

Partnerships:

ChinaPoland Denmark USA Romania United Nations


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Global Reach and Influence

• Angola• Egypt• Sunbury• Baku


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CIPS for Business

Helping organisations achieve sustainable value delivery from their supplier base

All organisationsAll sectorsAll around the world

CAPABILITY DEVELOPMENT

SUPPLYASSURANCE

AND COMPLIANCE

PERFORMANCE

CIPS FORBUSINESS

Professional training and certified qualifications assessed against a global standard.


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Addressing our Profession’s problem

Qualified Professionals,Effective organisations…

• Certified qualifications

• CPD

• Industry Knowledge

• Peer networks

• Ethics tests

• Code of Conduct

Assessed against a Global Standard

“promote and develop for the public benefit the art and science of purchasing and supply…”


Tamer Hussein – CIPS Egypt Branch Co-Chair

Haytham Etemad - CIPS Egypt Branch Education Officer


Speed Networking


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Speed Networking Goals for Tonight

Speed Networking

Tips

Opportunity to develop

and practice your

networking skills

It’s a starting point, not an ending point!

Find ways to connect with every person

you meet.

Networking is a two way

street.

Feeling frustrated that

your conversation

ended too soon? Follow

up later tonight.

Continue to use and

practice this skill whenever the opportunity presents itself.


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Live Session Exercise– PRACTICE!

TIMING: (20 MINUTES)• STEP 1: Form groups per table!

• STEP 2: Group member #1 give your 30 seconds introduction

• STEP 3: Repeat with group members #2, #3, #4, etc(round the table)

• STEP 4: 4 members from the table to switch with others from other table

• STEP 5: Repeat step# 2 & 3


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Speed Networking

Name

Company

Experience, (DON’T FORGET TO INCLUDE EXPERIENCES OUTSIDE OF WORK)

PRACTICE, PRACTICE, PRACTICE!!!Something unique about yourself

BIGGEST MISTAKE IS NOT PARTICIPATING


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Speed Networking Photos


Amr Abdel Naby – CPO BP North Africa


Case Study - Transformation in the Egyptian Oil & Gas Industry


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“There is hardly anything in this world that someone cannot make a little worse and sell a little cheaper, and the people who consider price alone are that person’s lawful prey”

John Ruskin

What does this tell us ?

Procurement IS NOT about obtaining Lowest Price , but rather delivering Best Value for money.

Value Proposition


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Procurement is a critical process that must be given considerable attention due to it’s;• Contribution to overall profit, • Role in supporting an organization's strategic goals, • Delivering value to multiple areas of operations

As such, successful companies have been found to pay strongattention to the Procurement Transformation which is thefocus on strategies to enable major and long-termimprovements to procurement and supply managementprocesses, activities and relationships



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Case Study – Transformation in the Egyptian Oil & Gas Industry

How to Transform ?


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Market Context

• 2014 was the beginning of the storm to hit the oil and gas industry, • with the world’s demand for oil falling and supply increasing, the resulting

price of a barrel has plummeted to record lows.• Since then, the industry has deferred $200 billion worth of projects to

protect dividends.


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Impact of the External Environment

A change of attitude across the industry to really examine

expenditure & massive cost saving exercises initiated

Procurement function pushed to the forefront on the mission to

maintain a healthy profit margin and manage operational spend.

The industry faces the likelihood of a long term low-price environment,

procurement teams needed to look beyond short-term tactics and take a

more strategic stance within their organizations and Transform.


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Such Challenges and demand requires Procurement functions to shift from the traditional tactical approach and adopt strategies that focus on effective Procurement Management which reduces costs while improving efficiency and performance.

Tactical Vs Strategic

– Many suppliers

– Adversarial and competing

– Short term

– Distanced

• ‘Arms length’

– Information is power

– Fewer suppliers

– Integrated/Collaborative

– Long-term

– Close, complex

• Shared information

– Involved up-front

• Tactical • Strategic


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Company Procurement Profile

• Procurement framework was outdated, complex , and bureaucratic lacks modern administration qualities and is in need of updating.

• Procurement organization complex and needed restructuring.• Waste was identified throughout the procurement cycle. • Procurement framework has not undergo any assessment or effective

review for more than 15 years. • No application of technology. Process paper based with an emphasis

on control through multiple signatures. • Arms length adversarial supplier relationship. • No spend analysis carried out. • No supplier segmentation. All suppliers treated equally without any

emphasis on strengthening relationships• Reactive process & late buyer involvement. No planning and

forecasting.


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• Defined the Scope of Procurement Transformation –– Identified what needs to change (organization - technology - supply base – supplier

relationships, etc…)• Established Baseline for People, Processes, and Technology –

– Documented key findings to assess progress Where are we starting from• Conducted a Gap Analysis & Developed Transformation Plan –

– Prioritized & staged the transformation targeting quick wins to build momentum. • Developed Stakeholder Relationships -

– Identified and development communications plans for key leaders to build support• Set Service Level Expectations – Avoid over promising Gain alignment on what we’d deliver• Defined Performance Metrics - developed metrics to assess transformation.• Structured Organization to Support Transformation -

– Understood spend patterns and categories to help decide organizational structure.• Developed Standardized, Optimized, and Documented Procurement Processes -

– developed detailed, yet understandable process. • Created Policies to Support Transformation - Who has the delegation of Authority (commit

funds). • Reviewed and Refined - Reviewed our goals and progress after 90 days and at least twice per

year thereafter

The Transformation Process


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• Staff Development• Supply base Optimization• Supplier Segmentation• Supplier Relationships• Market Intelligence• Ethical Procurement• Electronic Procurement • Procurement Cycle• Total cost focus• Supplier Performance Evaluation & Development

Keys to Procurement Transformation

Staff Development

• Professional accreditation (CIPS, ISM)adds value to the human resource.

• Developed an industry specific certificate for procurement professionals in improve capabilities .

Procurement transformation requires strengthening team competences & building skills that provide a high return on investment.

Supply Base Optimization

• The goal of supply base optimization is reduce costs, improve quality, shorten delivery, and enhance information sharing with the supplier.

• Conducted a complete review of the supply base which reduced suppliers from 1500 to 800

Supply base optimization is a continuous process where marginal and under performing suppliers are eliminated from a company’s suppliers list.

Supplier Segmentation

High

Low High

Bottleneck(technology focusearly selection

Might be sole sourced)

Critical(High impact on operation.

Early selection of supplier.Relationships are important)

Routine(Spot buy or

supply agreements)

Leverage(Low impact on core business operation. Robust contract, relationships less important)

Expenditure/Profit Impact

Supp

ly R

isk

• Use a KraljicPortfolio purchasing Model.

• Classify commodities by supply risk / profit impact.

• Allowed us to develop procurement strategies for each of the different classifications

Kraljic Portfolio purchasing model (1983)

Supplier Relationships

• Relationship-based purchasing encompasses communication with the supplier and in some cases strategic alliances which result in flexibility, combined problem solving, shared risks and rewards.

• Identified strategic suppliers & developed longer more sustainable relationships with them.

To achieve the greatest value from a supplier, a supplier relationship-based culture should be adopted instead of transactional-based purchasing in which each party attempts to obtain the best outcome for themselves leading to poor performance and increased costs.

• Market Intelligence is the monitoring of the market data of suppliers to improve procurement decision making. – Supplier information :spend, performance, financial health, demand

and quality. – market information: industries, competitors, and technologies.

• A defined Code of Ethics is essential for an organization to ensure that all company employees uphold ethical standards and practices while conducting procurement activities.

• Technology maximizes business productivity by creating and enabling better communication between teams and simplifying, shortening and streamlining the procurement cycle reducing costs and improving efficiency.

Market Intelligence / Ethical Procurement/ Electronic Procurement

Procurement Cycle

• Procurement Planning: Essential for informed decision making and.Provides a structured approach to market as well as efficiently managingelements of the SC such as delivery, inventory, material movement andcash flows.

• Decision making: In a fast paced environment, decision making isbecoming more and more important to enable rapid response to changingmarket conditions. With the availability of accurate information, decisionmaking is fast and focused.

Best in class procurement process creates both economies and efficiencies within the procurement cycle.

Total Cost of Ownership

• Change in oil prices invariably impacts economics of a majority of thecategories. It is important for category managers to understand cost structuresor Total cost of ownership (TCO).

• buyers should look not just at an item's short-term price, which is its purchaseprice, but also at its long-term price, which is its total cost of ownership.

• The mindset shifted from looking only at the purchase price establishing aculture that focuses on a total cost of ownership

• This shift resulted in an overall improvement to plant reliability and reducedsafety incidents on site.

Supplier Performance Evaluation

• Suppliers should be evaluated on specific criteria such as cost, quality,productivity and delivery in addition to other specialized criteria such assafety and environmental performance.

• Developed Periodic performance review with suppliers and identifiedKPIs to manage performance and delivery.

Supplier performance evaluation is used to identify poor performing suppliers & areas for performance improvement.

Outcome

• Reliability + Production = Value + Cost


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Conclusions

• Near-term projections for the global oil & gas industry continue to forecast increases in supply against weak demand growth.

• No sign of a quick return to higher prices, it will become increasingly important for procurement teams to step up their game.

• Short-term cuts can sometimes be penny wise and pound foolish. Long-term improvements require more balanced strategic capabilities.

• Through transformation, procurement teams can become one of the most important agents in the industry’s transformation for leaner times


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• Questions

Thank you for listening

TRANSFORMING FROM TACTICAL TO STRATEGIC PROCUREMENT

Ayman Amer – Procurement Director SODIC

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Content

About SODIC Journey in Procurement Tactical Vs Strategic Procurement Balanced Procurement Operating Models Market Analysis & Mitigating Risks Key Learnings and Best Practices

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At the Forefront of Egyptian Real Estate Market

Headquartered in Cairo with lands in the West and East of Cairo and the Northern Mediterranean Coast

Established in

199612.3 mn sqm Lank Bank

SODIC is one of Egypt’s largest, listed real estate development companies with two decades of successful operations

Developing large scale award‐winning mixed use projectsmeeting Egypt’s ever‐growing need for high quality housing, commercial and retail spaces

EGP 3.7 bnMarket Cap

DiversifiedShareholder Base

Attracting capital from across the globeA diversified shareholder base

13%

13%

9%

8%4%4%3%

46%

Olayan Abu Namay Ripplewood

Rashed EFG Hermes Norges Bank

Juma Al Majid Others

37%

35%

13%

4%4%4%

4%

Egypt Saudi Arabia UK

Norway UAE USA

Others

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Historical Milestones

1996 ‐2005

BeginningsIncorporated 1996Publicly listed

Developed Beverly Hills

2006 ‐2010

Repositioning SODIC to capitalise on the

opportunities in EgyptGrew land bank

Successful launch of 5 projects

Rapid Growth

2011 ‐2013

Continue timely delivery across 8 projects

Immediate reaction & recovery 1st to Launch new inventory

Successfully Steering through the Downturn

1st developer to settle disputesfreeing up 250 acres

301 acre plot acquisitionRecord contracted sales of EGP 3bn

Market cap doubledDoubled annual investments

& spend

2014

Record Year for SODIC & Tangible Improvement in

Operating Environment

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3 mn sqmBUA Developed

5.7 mn sqmLand Developed

EGP 2.6 bnRaised in Capital Markets

1.74

4.39

5.25

5.72

1996‐2005

2006‐2010

2011‐2013

2014

0.92

2.21

2.69

2.98

1996‐2005

2006‐2010

2011‐2013

2014

100

1,550

‐

993

1996‐2005

2006‐2010

2011‐2013

20142014‐2015

2015

Growth TrajectoryLand Bank Doubles

3.3mn sqmSwift Management

Change• Sales 4.4bn (46% increase in sales)• First Second‐home expanding to

North Coast• First Recurring income asset

commenced operation HUB

2014‐20152014‐2015

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Journey In Procurement

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1996 – 2010 Procurement in SODIC Outsourced2011 – Present Procurement in SODIC In‐house

Add‐Ons

• Hire excellent calibers• Becoming more cost conscious• Precise market analysis• Adding value to SODIC clients

2011 2012 2013 2014 2015

X½ X 0.8 X X

3X

X 13X 8X 4X 4X

Tenders

Variation Orders

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Tactical Vs Strategic Procurement

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Tactical Sourcing:• In Conclusion:The major contract expires tomorrow, we have no idea what we want and no knowledge of the market. It is time to pass this across to the Procurement Team.

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Tactical Sourcing:• Tactical sourcing is commonly found in organizations favoring routine

administrative tasks executed in a reactive environment. One or more individuals is responsible to requesting quotes from vendors, placing orders, expediting the delivery of the products, etc. Tactical sourcing is generally done outside of the context of focus on the enterprise as a whole. The individual making the purchasing decisions is not focused on continuous improvement or contributing to specific goals set forth by executive level management. Companies leveraging tactical sourcing may be smaller organizations lacking the necessary infrastructure or learning environment to support strategic sourcing

• Mainly concerned with:1. Short term2. Transactional3. Re‐active

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Strategic Sourcing:• strategic sourcing focuses on making a connection between your company’s

operational base to your business aspirations. This approach takes your service delivery model and aligns it with the information technology and critical operational aspects within your business strategy. Strategic sourcing does not react to situations as tactical sourcing does; it will consider the direction of the organization as a whole, proactively making decisions based on this direction to support all efforts. Tactical sourcing is very much an isolated decision, where strategic sourcing is an ongoing process that balances external and internal activities, services and knowledge.Mainly concerned with:

1. Systematic2. Long term3. Holistic

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The 10 Steps to Transform your organization from Tactical to Strategic Sourcing

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1‐ Spend Analysis: Strategic purchasing teams examine the amount of money they spend in each category of goods and services and use this analysis to identify opportunities for improvement.

2‐ Supplier Relationship Management: Strategic purchasing teams measure supplier performance and regularly spend time meeting with their most important suppliers to implement improvements.

3‐ Technology Implementation: Strategic purchasing teams frequently update and add technologies that measurably reduce costs, decrease cycle time, and make the purchasing process more efficient.

4‐ Developing Project Plans: Strategic purchasing teams use project management practices to map out both recurring activities and one‐time projects. 5‐ Enterprise‐wide Contracts: Strategic purchasing teams consolidate spend across all parts of their organizations and enter into contracts with a limited supply base to serve the needs of the entire organization.

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The 10 Steps to Transform your organization from Tactical to Strategic Sourcing

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6‐ Forecasting: Strategic purchasing teams regularly document changes that they foresee in price levels, availability, and markets to ensure a competitive advantage for their organizations.

7‐ Involvement in Spec Development: Strategic purchasing teams are involved at the early stages of specification development, lending specialized knowledge in material availability, cost drivers, standard parts, and reliability of supply.

8‐ Development of Productivity Tools: Strategic purchasing teams develop tools (e.g., RFP templates) so repetitive tasks can be done more quickly and error‐free.

9‐ Supplier Development: Strategic purchasing teams don't blindly accept the suppliers and products that are currently available. They work with suppliers to develop new capabilities or products that will improve cost or quality.

10‐Work Responsibility Refinement: Strategic purchasing teams constantly identify ways to automate, delegate, or eliminate tactical, non‐value‐added work

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To Apply this we Need to CHANGE

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Mindset/ Attitude Skills Expectation Action

• Willingness to Change

• Stakeholder Focus

• Cross‐Functional involvement

• Focus on Value Creation

• Strategy Development

• Category Playbooks

• Opportunity Assessment

• communication• Strategy

development• Opportunity

Assessment • Category

Playbooks Development

• Leadership Involvement

• KPIs• Personal Goals

and Performance Review

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Benefits of applying Strategic Sourcing

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• Raise Strategic contribution of procurement to the business.

• Improves stakeholder buy‐in to results.

• Reduces risk in supply chain

• Establishes more effective use of resources.

• Establishes more effective levels, quality, availability.

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Balanced Procurement Operating Model

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Heart

Brain

Action/Result

Functional Team

Core Team

Head of Procurement

Team

2011 2012 2013 2014 2015

SODIC Model

Tenders

Variation Orders

Savings

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Balanced Procurement Operating Model

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Market Analysis & Risk Mitigation

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290.00

292.17275.00

294.32

346.64

292.50

250

270

290

310

330

350

370

2010 2011 2012 2013 2014 2015

Solid Cement Bricks (per 1000)

3,714.75

4,788.25

4,577.75

5,145.83 5,200.08

4,997.96

3000

3500

4000

4500

5000

5500

2010 2011 2012 2013 2014 2015

26.94

26.44 26.26

31.76

37.49

35.93

25.000

27.000

29.000

31.000

33.000

35.000

37.000

2010 2011 2012 2013 2014 2015

Steel (per ton)

Cement Portland (per bag)

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Key Learnings & Best Practices

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• Electronic Systems: SODIC will start applying new e‐procurement system to replace the current system for PO’s, Tenders & Vendors master log. This will reduce the cycle time, involved teams efforts & will result in reducing the company’s soft cost significantly .

• Centralized Global Procurement Strategy;SODIC have achieved very high savings by following Global Procurement strategy that was introduced for the first time to SODIC on November 2010 thru a list of items that can be directly procured or nominated under main Contractor's scope.This Strategy also has very positive impact on the delivered quality since SODIC has the upper hand in selecting the right product in terms of quality & price.This Exercise is spread out all over SODIC new developments giving a better negotiation position to the procurement team while discussing & negotiating tenders.

• Standard Guide Lines:SODIC has started in applying a standard guide line booklet thru the Technical Design team & approved by the Development team; reflecting their Development business case. This booklet is issued for SODIC similar prototypes (Villas – Town Homes ‐ City Villas – Duplexes – Apartments) as a standard frame work that all involved parties should stick to such as;‐ Aluminum profiles.‐ External Painting material.‐ Standard opening sizes (to be limited to a certain number per Prototype & repeated thru the project).

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Key Learnings & Best Practices

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• Research & Development SODIC is investing in the R&D of the materials used at each development; starting from the structural systems up to the new generation of sustainable & cost efficient material that have very high return on both running & initial costs.

• Barter DealsBy Q4 2013 it was the first time for Procurement department to start thinking of these special deals & results were actually very successful.

• HedgingIn a market that has such sudden fluctuations & currency devaluation the hedging approach especially in the key commodities (Concrete – Steel) is considered to be one of the major keys that any organization working in the construction/real estate market would think of; an exercise was done in 2014 to hedge all concrete supplies this saved 20% on the flat rate after the sudden raise of price of Cement from 570EGP/ton to 780EGP/ton. Same exercise was applied on Steel which saved 10% of the total steel rate after the sudden raise of steel from 4800EGP/ton to 5300EGP/ton.

Thank You



CIPS Capability Development / Applied Learning

Diya NasereddinCIPS Country ManagerMarch 2016


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You need… …to ensure your team• has the skills to spend your

company’s money wisely and manage your spend and suppliers

• is operating to a professional standard and continually building their skills and capabilities

We help by……building skills, knowledge and capability within procurement and supply chain teams so you achieve sustainable value delivery from your supplier base

CAPABILITY DEVELOPMENT

CIPS FORBUSINESS



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Applied LearningCorporate Award

Build Capability of Your Brightest and Best to Achieve:

Tangible return on investment

People development• Capability enhancement• Business skills• Positive behaviours

Business and performance improvements


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Routes to MCIPS

Membership (MCIPS)

CIPS Diploma CIPS Corporate Award Practitioner

CIPS Professional Diploma

CIPS Diploma Membership

Three years’ experience

CIPS Corporate Award

Advanced Practitioner

ManagementEntry Route for senior

practitioners

Other approved qualificationse.g. relevant

MSc

AccreditedExperientialAcademic Applied Learning

CIPSAdvanced Diploma


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Programme Levels and Professional Journey

Practitioner(Diploma Equivalent)

AdvancedPractitioner(Honors Degree Equivalent)

MasterPractitioner

(Postgraduate Degree Equivalent)

CHARTEREDAdvancedProfessionalLicence

Diploma Membership

MCIPSProfessional Licence


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Programme Development

Organisational context – people, process, policy, performance

Course contextualisation

Practitioner programme

Advancedpractitioner programme

Organisational objectives

Masterpractitioner programme


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Duration12 – 14 months formodules and assessed assignments

Duration1 Week

Applied LearningCorporate Award Practitioner and Advanced Practitioner

Overview

STEP 1Skills

Analysis / Entry Criteria

STEP 2Induction

STEP 3Modules

Assessed Assignments

STEP 4Final Assessed Assignment

Oral Presentation (Optional at Practitioner Level

Mandatory at Advanced Practitioner Level)

Duration4 – 6 months for final assessed assignment

1 Hour 1 Day 15 Days 1 Day + 3 x 1 Hour


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Online skills analysis mandatory for direct entry to Advanced Practitioner

Applied LearningCorporate Award Advanced Practitioner

Step 1: Skills Analysis


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Step 1: Skills Analysis – Report for Each Individual


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Step 1: Skills Analysis – Company Report

Entry criteria for Advanced Practitioner is a minimum score of 3

Position and

Influence

External Environment

Technology SpendMgmt

Contracting Sourcing Delivery Outcomes

Metrics and

Measurement

Developing Individuals

and Teams

Developing Self and Personal Skills

Ethics Total

4.50 3.50 5.00 4.00 4.50 4.00 3.50 4.50 4.50 5.00 5.00 48.00

4.50 3.00 4.00 4.00 4.50 4.00 4.00 3.50 3.50 4.50 3.00 42.50

5.00 4.00 4.50 4.50 4.00 5.00 4.00 4.00 4.50 4.50 4.50 48.50

Strength Meets the standard Development need Significant

development need


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Step 1: Skills Analysis – Company Report


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Step 2: Induction

• Face to face• 1 Day• Intro to fellow participants• What participants can

expect• What’s expected of

participants• Tips for success


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Mod

ule 4

Mod

ule 3

Mod

ule 5

Mod

ule 1

Mod

ule 2

Applied LearningCorporate Award Practitioner

Step 3: Modules and Assessed Assignments

Effective negotiation in procurement and supply(3 days)

Driving value through procurement and supply(3 days)

Sourcing essentials in procurement and supply(3 days)

Managing expenditures with suppliers(3 days)

Developing contracts in procurement and supply(3 days)M

ODULE

S

ASSESSEDASSIG

NMEN

T 13,000WORDS

ASSESSEDASSIG

NMEN

T 2

3,000WORDS

ASSESSEDASSIG

NMEN

T 3

3,000WORDS

FINAL AASSESSED

ASSIGNMEN

T

5,000WORDS


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Mod

ule 4

Mod

ule 3

Mod

ule 5

Mod

ule 1

Mod

ule 2

Applied LearningCorporate Award Practitioner

Step 3: Modules and Syllabus

Effective negotiation in procurement and supply(3 days)

Driving value through procurement and supply(3 days)

Sourcing essentials in procurement and supply(3 days)

Managing expenditures with suppliers(3 days)

Developing contracts in procurement and supply(3 days)M

ODULE

S

• The roles of procurement and supply

• Procedures in procurement and supply

• The impact of the external environment on procurement and supply

• Effective purchasing

• Developing contracts

• Developing specifications

• Contract management

• The sourcing process and effective tendering

• Supplier appraisal

• Effective negotiation

• Negotiation simulation

SYLL

ABUS


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Mod

ule 1 Strategic

supply chain management (3 days)

Mod

ule 5

Mod

ule 4

Mod

ule 3

Mod

ule 2


Step 3: Modules and Assessed Assignments

Advanced category management in procurement and supply chain management(3 days)

Developing people in procurement and supply chain management(3 days)

Implementing change in procurement and supply chain management(3 days)

Contracting excellence in procurement and supply chain management(3 days)

MODULE

S

ASSESSEDASSIG

NMEN

T 1

3,000WORDS

ASSESSEDASSIG

NMEN

T 23,000WORDS

ASSESSEDASSIG

NMEN

T 3

3,000WORDS

ASSESSEDASSIG

NMEN

T 4

3,000WORDS

FINAL ASSESSED

ASSIG

NMEN

T &ORAL PRESEN

TATION

10,000WORDS


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Mod

ule 1 Strategic

supply chain management (3 days)

• Legal aspects of commercial contracts

• Managing risks in contracting

• Developing individuals and teams in procurement and supply

• Developing leadership capabilities to improve procurement & supply

• Effective procurement and supply chain management

• Leading stakeholders to achieve change

• Supply chain management

• Corporate strategy, procurement & supply chain management

• The impact of globalisation on supply chains

• Developing systems for procurementand supplychain management

• Category management

• Supply chain improvement

Mod

ule 5

Mod

ule 4

Mod

ule 3

Mod

ule 2


Step 3: Modules and Syllabus

Advanced category management in procurement and supply chain management(3 days)

Developing people in procurement and supply chain management(3 days)

Implementing change in procurement and supply chain management(3 days)

Contracting excellence in procurement and supply chain management(3 days)

SYLL

ABUS

MODULE

S


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Step 3: Assessed Assignments

Organisation specific• Address challenges faced by candidates in their company• Context specific• Verify ability to practically apply learning• Confirm knowledge transfer and capability development• Support development of the organisation, function and individual


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ROI


Step 4: Final Assessed Assignment

Work‐based projects• Project chosen by candidate

in area approved by their sponsoringmanagement team

• Must tackle challengesfaced by their company

• Must deliver business benefits

The outcome…


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Step 4: Final Assessed Assignment and Oral Presentation

Workshop day

Surgery Surgery Surgery Business project and presentation

Pass / credit/ distinction

ROI


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• Angola• Egypt• Sunbury• Baku


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Applied LearningSyndicated Corporate Award

What and Why

• Open to organisations across the industry supply chain with a geographical emphasis

• Bespoke content and sector specific case studies• Incorporates industry terminology, practices and unique challenges• Develops sector focussed professionals• Improves industry networking at junior and mid management levels• Addresses resource constraints – budget, manpower and “time on the

job”• Pilot intervention to gauge results and commit larger groups to the

program


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Current Participating Organisations:• Etihad Airways• Emirates Steel• ADUPC• GASCO• Maersk Oil Qatar• RasGas• Qatar Petroleum• Qatar Foundation

Applied LearningSyndicated Corporate Award

Middle East Syndicated Programs

• Qatar Shell• Masdar Institute• ADCO• TDIC• ADNOC Group• Borouge• Al Hosn Gas


Next Steps

For More Information

www.cips.org/ businesswww.cips.org/cips‐for‐business


Next Steps

For More Information

contact :

[email protected]

Tel: +971‐564460463


RECOGNITION CEREMONY


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CIPS Team

CIPS Egypt linkedin pagehttps://www.linkedin.com/groups/8300026

CIPS Egypt Branch Procurement Transformation in Egypt

Documents

Transcript of CIPS Egypt Branch Procurement Transformation in Egypt