CIPS Furness Branch Event Driveline Engineering 8th October 2014 Leading global excellence in procurement and supply Agenda 17:30 Registration 18:00 Chairman’s Opening Including President’s 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 Chairman’s Opening • Welcome & Introductions • The Branch – – – – – – Committee Next Committee Meeting 18th November 2014 Budgets Events (Mike) Social Media / Communications (Natalie) CIPS Branch Conference – 21/22 Nov 2014 • The President’s 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 • Budget submission approved – Sept 2014 • £1200 Leading global excellence in procurement and supply Events Date Topic 8 October 2014 Driveline – Branch event November / December 2014 Party Lites – 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 – Tea/Coffee 11-15am Branch Chairs to join the Congress Meeting 11-15am CIPS Update – David Noble, CIPS Group CEO 12-00pm Update on Chartered Status/Name Change - tbc Knowledge Update – Helen Alder, Head of Knowledge and Product Development 12-30pm 1-00pm 2-00pm 3-15pm Lunch ‘Brand MCIPS’ workshop – facilitated by Cath Hill, Group Membership and Marketing Director and Vicki Oliver, Marketing Membership Manager 3-30pm Break ‘Brand MCIPS’ workshop continued – 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 – 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 –‘ Profession of Choice’ 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 thing…and do one in return Craig Lardner FCIPS: President 2014 Sept/Oct 2014 Leading global excellence in procurement and supply Like any good procurement person ….. I needed to create some KPI’s How else would I know that I had an effective year? Goals: the words and the numbers • Visible President • Impact and ‘The Theme’ • Giving belief that ‘You too can be’… 40 in 52 …will hit 66 50 ….will hit 46 30…will hit 30 [including 2 teleconferences] 5…will hit 10 4,000…will hit 4,200 So…what is ‘one good thing’ Leading global excellence in procurement and supply Presidents theme for 2014 Do one good thing …and do one in return Why this theme? 1. 2. 3. 4. 5. 6. 7. It directly supports our strategic platform of ‘For public good’ It focuses on a personal benefit as well as for our profession It creates 100,000 good things done (+100,000 more) It’s measureable It’s local as well as global…it 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 ‘one good thing’ is for someone NOT in your country The ‘do one in return’ 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 • What are you especially good at?...then offer that • 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 …ask them to let you know what they did Leading global excellence in procurement and supply Before 31st October please Hand up …stand up OR Sit down…stay down Leading global excellence in procurement and supply 2014 Presidents theme Do one good thing…and 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 1980s’ 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 £2.00 2015-17 102op Centrica Energy Roosecote Decommission N/A 2015 50c BAE Systems Barrow site infrastructure £0.37 2014-21 750c GSK Bio-pharm Ulverston £0.35-0.40 2015-20 450c Centrica Energy Gas Processing Rampside, Barrow £0.10 2014-16 200c Unprecedented scale of opportunities quantified by Furness Economic Development Forum* team Centrica Energy East Irish Sea Gas Exploration £0.10 2014-20 N/A Note * Fe, Bae Systems, Furness College, Barrow Council Industrial Expansions Barrow / Ulverston Kimberly-Clark Oil States Barrow Ltd Siemens Gyrodata £0.16 2015-20 500 Some are nationally strategic endeavours take place between 2015 and 2024 E-Lift Barrow Barrow health centre £0.02 2015+ N/A National Grid Moorside to Lancashire 400KV electricity lines £3.00 2017-26 500c Electricity NW 132KV power line upgrade £0.50 2017-26 200c United Utilities Rampside Outfall pipeline Ulverston facility enhancement £0.008 £00.05 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 £6.158+ N/A 2014+ N/A £16.00 2018+ 5,000c + 1,000op £16.00 Note c construction Op operational jobs £22.158 Lead Programme Value when Jobs Furness BAE Systems Siemens GSK Ulverston KimberlyClark, Barrow Successor and Astute £11submarine 14.00bn programmes Sub Sea Connector £0.50bn manufacturing*** 2014-32 2014-20 Cephalosporin and Bio-pharm Manufacturing*** £0.16bn/yr 2014+ Manufacture of tissue*** £0.10bn/yr 2014+ Sellafield Decommissioning £8.00bn** 1,0001,500 100-400 208-708 25 West Cumbria NMP Sellafield TOTAL £1922.76bn 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 chains…. 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 Information market failures, Lack of access to, and information about opportunities – SMEs may be unaware of how to access tenders and other opportunities to supply; Lack of confidence OR inability to respond to tenders combined with issues over whether SMEs are “fit to supply, Are the necessary management environmental, quality and equality policies and systems in place to meet the requirements of large firms’ buyers; lack of confidence in the procurement process, Unwillingness of some SMEs to commit valuable time or resources to respond to tenders they believe they have no chance of winning. 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; Risk aversion from tier1/2 procurers-rely on established suppliers; 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 and… 33.33% Information does not flow between companies 27.78% Shared vision in local area is lacking (reluctance to… 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% Lack of clear information about local suppliers A lack of knowledge about where to find appropriate and relevant information about the specific and relevant contracts. Respondents that are looking to gain directly from contracts all require support in meeting and networking with the correct contacts. An approved local supplier list is seen as a positive move and a must have by the local service organisations Attracting construction / permanent workforce Pay structures locally are lower than other parts of the country local hotels see large organisations like Premier Inn and Travel Lodge gaining the lion’s 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 “The prize share of £1.6b 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 companies” 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% • 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 • MORE LOCAL CONTENT OPPORTUNITY GROW GRANT SCHEME 494 companies 137 Local Firms involved £234,571,517 £22,918,215 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 £2.3m 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 what’s 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 – how to win and retain clients; Coaching, mentoring, access to finance, training, innovation support to facilitate required growth HELPING SMES BECOME MORE ‘FIT TO SUPPLY’& WIN NEW CONTRACTS Increase their awareness of contract opportunities, procurement policies and process understanding to help them win new contracts “the 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 SUPPLIED” Astec Precision - fasteners and screw machine products (Oxley) Tritech - acoustic sensors for global markets (Systems Technologies) Accurite Industries – stone cutting machinery (Burlington Slate) Joss Engineering-precision engineering Agusta Westland Approved Athena PTS - electrical design consultancy, project support,specialist installation in energy, marine electrical, nuclear, (Agrilek) 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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