Seizing & Sustaining the opportunity

1. Seizing & Sustaining the opportunity • Globalisation: longer lead times and a need for greater flexibility • Increasing logistics costs: In the last 5 years transportation costs have increased by 50% • Supply risk: Lean manufacturing, outsourcing and off-shoring has driven high risk • Rising labour costs: Globalisation has been happening for some 20 years… in China in the last 5 years labour costs have increased on average by 20% year on year • Core material volatility – increasingly scarce resource = volatilityHedging/Supply risk management • Companies with major supply chain disruption suffer up to 20% share price falls.… see Georgia Tech research USA www.mgt.gatech.edu The world’s largest procurement and supply professional organisation

2. Supply chain efficiency is increasingly seen as the key differentiator in business The majority of value add in an enterprise comes from outside their boundaries 60%+ of major corporations have Procurement & Supply at the top table The world environment globalisation, recessions and environment all sit squarely in our space CIPS - 52%+ of membership is international and growing 60%+ of revenues are International and growing We will always be UK heritage but have to recognise the reality Our professional opportunity

3. The changing environment 2010 2050

6. One CIPS Thinking global, being local The Public Good UNOPS / UNIDO Trusts – Donor Funding Seizing & Sustaining the opportunity The Worlds largest Procurement & Supply professional organisation MCIPS the Global Procurement & Supply standard Knowledge Leaders

7. Seizing & Sustaining the opportunity How CIPS can help Expanding the CIPS spotlight

8. Seizing & Sustaining the opportunity How CIPS can help • Purchasing representation • MCIPSqualification • Corporate certification • Membershipbenefits Expanding the CIPS spotlight

9. Seizing & Sustaining the opportunity How CIPS can help • Purchasing representation • MCIPSqualification • Corporate certification • Membershipbenefits Expanding the CIPS spotlight

10. Seizing & Sustaining the opportunity How CIPS can help • Purchasing representation • MCIPSqualification • Corporate certification • Membershipbenefits Expanding the CIPS spotlight

11. Seizing & Sustaining the opportunity • CIPS total supply footprint How CIPS can help • CEO & gov representation • Public good trusts INDEPENDENTBODY INTEGRITY • Purchasing representation • Products • Advancedsuppliermanagement • Award for non-professionals • Advanced educational products • Theglobal standard • Business indices • MCIPS + benchmarking • MCIPSqualification • Corporate certification • Membershipbenefits THOUGHTLEADER LICENCE TO PRACTICE • Sustainability • Risk management Expanding the CIPS spotlight • Capability

12. CIPS and the public good Seizing & Sustaining the opportunity • UNOPS alliance – to enhance procurement and supply capability in developing countries • UNIDO alliance – working with private companies to encourage development of indigenous suppliers in developing countries • Trusts – CIPS overseas operating sites dedicate % of profits to grants / supporting students bursaries etc. • Donor funding – full time team working on aid programmes (Bangladesh/Bhutan) enhancing procurement and supply capability • Broaden CIPS educational fund – (bursaries and scholarship) • Free learning materials – libraries in Africa The world’s largest procurement and supply professional organisation

13. Selling the profession Seizing & Sustaining the opportunity

14. CIPS is strong and leading the international community in P&SM professional organisations Membership is our heritage and remains one of our three main growth streams But – We must not get complacent How do we capture more of the membership market in the UK? How do we incorporate the social media revolution and Generation Y? What more do we need to do with the membership proposition and our communities Summary