All posts by Procurious HQ

“I’m Just Not Very Creative!” Three Ways To Unleash Creative Potential

According to Creative Change Agent James Bannerman, there’s no such thing as a lost cause when it comes to unharnessing creativity.

Bannerman spoke with Philip Ideson as part of Procurious Even Bigger Ideas, a 5-part podcast series sponsored by State of Flux. You can access the series exclusively on Procurious.

The stifling of creativity is a slow but inexorable process. Evidence suggests that humans are incredibly creative as children.  By the time we reach adulthood, however, we have often lost the ability to connect with our innate creativity due to a combination of upbringing, education, fear of criticism, the need for conformity and the boundaries of the corporate environment.

The good news is that innovation is now firmly on the agenda for businesses worldwide. Managers are pushing their teams to be more creative which,  for some individuals,  can be quite daunting, especially when you believe you’re simply “not a creative type”.

According to Bannerman, though, everyone has innate creativity. It’s simply a matter of re-educating ourselves and learning some tips and tricks to unlock your creative potential. “Our minds become so full of ‘you can’t do this’ and ‘you can’t do that’, and ‘that won’t work’, and ‘that’s been done before’, that a lot of our innate creativity gets squashed and stifled.”

Here are three tips on unleashing creativity from Bannermann’s interview with Philip Ideson. 

  1. Stop labelling yourself

There’s no such thing as a lost cause. Bannerman has worked across multiple sectors, unleashing creativity in teams including Aston Martin, Rolls Royce, and some space agencies. But you don’t have to work in a “creative” profession to be creative. “It doesn’t matter if people are nuclear physicists,  or accountants, or if they work in the world of marketing. The point is that creativity can manifest itself in many different ways.”

“I haven’t yet seen a completely lost cause. In fact, some of the best ideas I’ve ever come across have been from the people working in professions where you’d least expect to see creativity. The TV companies and the advertising agencies aren’t always the most innovative and creative because often they’re just regurgitating what they’ve done before. It’s in other groups, like accountants, where people generate ideas that make you think: ‘Wow’.”

  1. Stop trying too hard

“Trying to be creative is like trying to go to sleep. If you’re too busy focusing on going to sleep, you’ll stay awake because there’s all sorts of brainwave activity linked to beta waves that will keep you from falling asleep.”

Bannerman explains that there’s a sweet-spot that allows creativity to flourish. “We tend to be most creative when we’re focused but not over-focused, and relaxed but not too relaxed. You’re more likely to think creatively when you step away from your desk, and do something like go for a run, or go for a drive, or simply look out the window. If you say to yourself ‘I must come up with the best procurement idea ever right now’, chances are that you’ll become stressed and nothing will come to mind. It’s about finding that optimum state.”

  1. Make room to be creative

Bannerman has observed that creativity is often hamstrung by legislation, regulations and an atmosphere unconducive to lateral thinking. “There has to be wriggle room in a team’s dynamic. If people are too afraid of getting things wrong, or if they continually feel that everything has to be 100 per cent perfect straight away, then they’ll fall into a practical mindset. They’ll only do what they know will work, what has been done before, and will endlessly repeat old patterns rather than contemplating new patterns.”

“Any part of an organisation can be creative by looking at how it can improve itself, solve problems and imagine where it wants to be in two to five years’ time. Creativity can manifest itself in many different ways, depending on the context – it could just be about improving processes, systems or structures. It doesn’t have to be about inventing the next iPhone.”

Procurious Even Bigger Ideas is a 5-part podcast series available exclusively to Big Ideas Digital Delegates. Sponsored by State of Flux, this series features interviews with five of the most intriguing power players at this year’s Big Ideas Summit in London.

The Flaw At The Heart Of Trump’s America First policy

5.6 million U.S. manufacturing jobs didn’t move to China and Mexico – they simply disappeared with the march of technology. And that’s the flaw in America First! 

Trump’s stunning election win has been linked to his successful portrayal as both a friend of Corporate America and a champion of the working class. His business-friendly policies include large-scale deregulation, slashing tax rates and a huge infrastructure spend, which (in theory) are designed to boost jobs through trickle-down economics.

But the support of Corporate America isn’t enough to remain in power. In order to retain the presidency for another four years after the 2020 election, Trump will have to deliver on the key promise that won the support of the disillusioned working class – bringing industry home and reviving jobs in America’s once-thriving industrial rust belt.

However, there’s a miscalculation at the heart of the rhetoric around bringing jobs back from overseas factories.

Robots, not overseas workers, have taken 85% of manufacturing jobs

A recent study from the Centre for Business and Economic Research at Ball State University found that:

  • Employment in the manufacturing sector fell by 5.6 million between 2000 and 2010.
  • Productivity growth (automation) accounted for more than 85% of jobs lost in manufacturing in this period.
  • Only 13% of the overall job loss resulted from trade (including Chinese imports).
  • Meanwhile, U.S. manufacturing output has risen steadily, growing 17.6% between 2006 and 2013.

Simply put, American factories – and factories worldwide – are producing more goods with fewer people. Automation is rendering millions of low-skilled jobs redundant, yet Trump’s key policy aim to “bring back jobs” seems to be mistakenly focused on increasing trade protectionism.

Protectionism could backfire by further accelerating automation

ABC’s business editor Ian Verrender writes that even if Trump “slaps massive import duties on Chinese goods and forces his country to start producing everything at home via the magic of ‘America First’”, it risks leading to a domino effect where business will be forced to find efficiencies in order to survive.

  1. The loss of access to low-cost labour would drive up the cost of consumer goods, meaning Americans would find themselves unable to afford the goods to which they’ve become accustomed.
  2. This lack of affordability would spark demands for wage rises.
  3. Firms would respond by pushing even further into automation, using robotics and AI to cut costs.

Verrender comments: “Where once corporations scoured the globe for low-cost labour, and duly shifted their operations, they [would] now seek ways to eliminate labour altogether, particularly in manufacturing.”

Accelerating automation is inevitable

The loss of jobs to robots is only expected to broaden and accelerate. A report from two Oxford researchers found that an incredible 45% of U.S. jobs, across all sectors and professionals, are vulnerable to being automated within the next 20 years.

For example, self-driving technology alone could lead to the unemployment of 1,000,000 truck drivers in the U.S., along with approximately 160,000 Uber drivers, 230,000 taxi drivers and over 600,000 bus drivers.

Some of the big names to comment on the coming social disruption include Stephen Hawking, who wrote last year: “The automation of factories has already decimated jobs in traditional manufacturing, and the rise of artificial intelligence is likely to extend this job destruction deep into the middle classes, with only the most caring, creative or supervisory roles remaining.”

In February, Elon Musk asked the audience at the World Government Summit in Dubai: “What to do about mass unemployment? This is going to be a massive social challenge. There will be fewer and fewer jobs that a robot cannot do better [than a human]. These are not things that I wish will happen. These are simply things that I think probably will happen.”

Bill Gates commented: “You cross the threshold of job-replacement of certain activities all at once. Warehouse work, driving, room clean-up – there’s quite a few things that are meaningful job categories that, certainly in the next 20 years, [will go away].”

What’s the answer?

Marc Benioff, chief executive of Salesforce.com, warned the World Economic Forum in Davos of the “digital refugees” that would be created by AI. “This is the moment … when we have the highest level of anxiety because we can see advances in AI that are beyond what we had expected,” he said. “It’s happening at a rate and a capability that we are worrying about how it will impact the everyman, the broad range of workers around the world . . . There is no clear path forward”.

One hopeful sign is that a public discourse on the disruptive effects of automation has begun. Thought-leaders have already put forward some solutions, although they may seem politically unpalatable at present. Elon Musk recommends that the U.S. adopts a universal basic income (such as that being trialled in Finland) to keep the economy going and guarantee a standard of living for the millions of workers expected to be displaced by automation. Bill Gates has suggested taxing robotic workers to recapture some of the money displaced workers would have paid as income tax. Education, too, will need to transform to equip future generations with the skills needed to find work in a highly-automated future.

Although Trump appears to be currently focused on the wrong job-stealing “villain” (China), there is hope that leaders will listen to the likes of Bill Gates and Elon Musk and start planning ahead for the social upheaval of what has been dubbed the fourth industrial revolution.

In other news this week:

France passes “duty of vigilance” supply chain law

  • Last week, France passed a law that pushes for accountability for multinational companies sourcing from global supply chains.
  • The “duty of vigilance” law requires companies to establish safeguards designed to ensure that labour rights and other human rights are respected in the production sites they source from.
  • The law requires large companies based in France to create a document that sets out their procedures for evaluating suppliers and mitigate human rights abuses. Violating the “duty of vigilance” law can lead to a penalty of up to €10 million.

Read more at Supply Chain Dive

Trump seeks historic increase in military spending

  • President Trump’s first budget seeks to boost military spending by $US54 billion. The US currently spends about $US584 billion annually on defence.
  • If passed by Congress, the 9% increase will be funded by cuts to non-defence spending, including environmental programs, diplomacy and foreign aid.
  • Last year, the rest of the world combined spent a total of $US317 billion on defence. The highest-spending countries under the US were China ($US146 billion), Saudi Arabia ($US82 billion), Russia ($US66 billion) and the UK ($US56 billion).

Read more at ABC News

Big Ideas Summit 2017: Understand Your World

Every procurement pro needs somebody to tell them the world weather forecast so they can figure out when they’re going to need an umbrella! 

At the Big Ideas Summit 2017, we once again challenged our thought leaders to share their Big Ideas for the future of procurement.

Our attendees spoke about everything from creativity to politics, from cognitive technology to workplace agility, current affairs, economics and the future. Whatever your industry and wherever you are in the world, there are some top tips to takeaway!

Be Sure To Understand Your World Weather Forecast

Justin Crump, CEO at Sibylline thinks that procurement organisations need to become more worldly wise in order to better manage future risk.

At present, larger organisations might be competent at managing risk but often this is very much in silos. This makes it very hard to fully understand what they are facing as a result of global events.

Given the rate at which technology is evolving and how global events are impacting the world, it is increasingly difficult for companies to keep up without considering risk in real-time.

Intelligence about the world we live in drives business operations and the better informed we are the easier it is to drive progress.

Justin urges us to gain a clear view of the world to measure against so the we can focus  our resources on what world means to us.

Want to find out more about Big Ideas 2017? Join the group on Procurious.

You’ll find all of the Big Ideas Summit 2017 videos in the learning section on Procurious. If you enjoy this Big Idea  join Procurious for free today( if you haven’t done so already).  Get connected with over 20,000 like-minded procurement professionals from across the world. 

A Noble Cause: CIPS CEO David Noble’s Enduring Legacy

From his fight against modern slavery to his campaign to licence the procurement profession, Procurious highlights the enduring legacy of the late CIPS CEO, David Noble.

David Noble’s professional accomplishments were many and varied, both within his role as CIPS Group CEO and during his stellar career beforehand. After his sudden and untimely passing late last week, however, there have been tributes from procurement leaders around the world. The tributes emphasised two of Mr Noble’s stand-out achievements.  Firstly, his fight against modern-day slavery and secondly, his work in promoting and licensing the procurement profession.

The crusade against modern slavery

In an interview with Procurious before his appearance at the Big Ideas Summit, David Noble stressed that the profession is in a unique position to drive the eradication of modern slavery. “Whether it’s child labour, inhumane working conditions, forced labour or slavery, there is no doubt that the procurement and supply profession has a unique opportunity to step up to this challenge as a professional community and effect real change”.

Mr Noble believed that in terms of corporate social responsibility, procurement has come to a significant crossroad and needs to adapt to survive in the face of rapidly-changing parameters, starting with accountability.

“Accountability for inadequate or exposed supply chains now goes right to the top, with the company’s reputation on the line. Good corporate supply chain governance demands accountability, and to have accountability means the appropriate authority and capability to act.”

The  2015 Modern Slavery Act

2015 was a watershed year for Mr Noble and his crusade against modern slavery, with two significant milestones taking place. Firstly, the UK Government signed into law the 2015 Modern Slavery Act, after seeking considerable guidance from CIPS while the Act was being created. CIPS was sought out as a subject-matter expert due in no small part to its 2013 partnership with Traidcraft and Walk Free, which led to the creation of the Ethical and Sustainable Procurement Guide. The Guide helped procurement professionals identify suppliers who subjected workers to poor wages, inhumane conditions or forced labour, and advised them on how to put preventative measures in place. Following the release of the Guide, CIPS also created an ethical e-learning course and test, which covered corruption, fraud, bribery, exploitation, human rights and forced labour.

After the Modern Slavery Act was signed, Mr Noble’s message to the profession was again focused on accountability: “For too long supply chain transparency has been overlooked, and we hope that this legislation sends out a clear message to business leaders that they are accountable for all discrepancies, no matter how far down the chain.”

Vatican City declaration  to eradicate modern slavery

The second milestone that took place in 2015 was Mr Noble’s invitation to Vatican City to witness a historic signing by faith leaders of a joint declaration to eradicate modern slavery. Leaders from the Buddhist, Christian, Hindu, Jewish and Muslim faiths signed the declaration, which had been developed by Andrew Forrest’s Global Freedom Network. Mr Noble was invited as a guest of Andrew Forrest and also by the Archbishop of Canterbury Justin Welby, in recognition of CIPS’ work in addressing modern slavery and the integral role supply chain management will play in the ongoing campaign.

Many of the tributes to Mr Noble published on Procurious called out this aspect of his career, beginning with CEO ISM Tom Derry, who wrote that “[David’s] moral vision and leadership was instrumental in CIPS’ crucial role in the passing of the U.K.’s Modern Slavery Act in 2015.”

CIPS General Manager for the Asia-Pacific region, Mark Lamb, wrote: “He was particularly vocal about ethical procurement, eradicating bribery and corruption, and ensuring that supply chains are free from modern slavery.” Similarly, The Art of Procurement host and producer Philip Ideson wrote about Mr Noble’s “leadership of efforts to eradicate slavery across the supply chain, impacting millions of workers without their own voice”.

Broadspectrum’s Executive General Manager of Procurement, Kevin McCafferty, worked closely with Mr Noble on the development of the Ethical Procurement Guide: “David was instrumental in getting the UK Government to introduce the Modern Slavery Act 2015.” Mike Blanchard, Deputy Chief Executive Operations at the New Zealand Tertiary Education Commission, wrote that Mr Noble’s focus has led to CIPS becoming “a professional body with ethics as a pillar”.

Licensing the profession

When Mr Noble was asked to bring his “Big Idea” to London as part of Procurious’ 2015 Big Ideas Summit, the subject for him was a no-brainer. “My big idea is something we have as a policy statement – licensing the profession,” he told the camera. Watching his comments today, it becomes immediately clear that his drive to license the profession was inseparable from his campaign to improve ethics in procurement and, ultimately, eradicate modern slavery.

The need for CIPS to licence the profession became increasingly apparent to Mr Noble as he received calls from the media after supply chain disasters linked to malpractice or ethical breaches. Reporters asked him the simple question: “Why is the procurement and supply profession allowing this to happen?”

Bringing accountability and consequence to procurement

It was difficult to bring accountability and consequences to those on the front line who were making decisions that led to malpractice and reputational risk. Licensing, said Mr Noble, was therefore the answer. “There’s a huge public good agenda linked to supply chains around the world … [and] companies are increasingly realising that having licensed supply professionals makes a real differentiator to success.”

Licensing brings with it the threat of consequences: “If they behave unethically, they stand to lose that license and they’ll find it difficult to work in the profession again,” said Mr Noble. “But the good side is that it gives them the protection of saying ‘You’re putting my professional license at risk’ if they’re ever asked to do something unethical or wrong.”

CIPS President and former Rio Tinto CEO Sam Walsh noted Mr Noble’s extraordinary achievements in moving forward with the professionalisation of procurement: “His initiatives such as training, licensing of procurement professionals, establishment of standards for anti-corruption, anti-bribery and anti-modern slavery have led to CIPS being highly regard by governments, employers and members.”

Visna Lampasi, General Manager Group Procurement for Woolworths (Australia) also commented on Mr Noble’s “energy behind licensing the profession … and major contribution to procurement’s development”.

 A legacy of thought-leadership

A valued contributor to the Procurious Blog, Mr Noble appeared at the Big Ideas Summit in 2015. His thought-leadership published on Procurious includes:

This article concludes our three-part series honouring the achievements and memory of CIPS CEO David Noble. Readers can leave a tribute to Mr Noble on the Procurious discussion board.

No More Excuses: Procurement Needs To Take Ownership Of CSR

Supply chain is one of the most critical areas of CSR. So why aren’t more procurement teams taking greater ownership when it comes to establishing policy?

CSR, ethics and sustainability – three topics that it’s hard to get away from in procurement. The greater focus enabled by the Internet and social media means there’s no hiding place for organisations. And there’s certainly no acceptance of organisations burying their heads in the sand.

Organisations are now including these activities in strategic objectives. And as procurement’s strategic influence grows, the profession has greater responsibility for its role in CSR objectives as a whole. In light of this, it’s hard to understand why procurement and supply chain aren’t taking ownership of CSR activities in their organisation.

The Expert View

Gaining better insights into the current situation means speaking to the people on the ground. And that’s exactly what has been done by the ISM Committee for Sustainability and Social Responsibility. The Committee surveyed its members exclusively for Procurious on three questions relating to current CSR practices.

While the responses highlighted a wealth of knowledge in the profession, they also showed that there’s still plenty of work for procurement to do to take more ownership. Happily, there were also some practical suggestions on how procurement can help their organisations improve their CSR efforts.

Here’s what the members had to say:

To what extent do you think that Procurement and Supply Chain professionals “own” CSR?

The responses highlighted that procurement’s ownership was very much dependent on the organisation in question. However, there was a consensus that, in all cases, procurement and supply chain professionals needed to play an active role in the development and execution of CSR policies and initiatives.

While some aspects of CSR strategy are not supply-chain related, the majority of risks and opportunities are. Both social and environmental ‘hotspots’ exist within the extended supply chain, leaving it exposed in the event of any issues. Members stated that most organisations started with a materiality assessment. This assessment was usually focused on mitigating, or improving, financial and reputational loss. Importantly, supply chain was frequently seen as a critical area.

As a result, it was felt that procurement and supply chain professionals needed to be engaged in the process.

What is the real damage of a CSR breach?

The general consensus was that a CSR breach caused major damage in three key areas:

  • Shareholder Value
  • Brand
  • Human Cost

Consequences of a major or public CSR breach include:

  • An inability to recruit and retain top talent.
  • Losing the ability to differentiate the firm by its products, services and values in the marketplace.
  • Losing the opportunity to create an internal culture of commitment founded on ethics and a broader view of the firm’s role in the marketplace.
  • Financial loss through litigation, high cost of supplier replacement, brand, disruptions from labour disputes, etc.

Brands can be quickly damaged. A firm’s exposure can be quickly played out on social networks, within hours and minutes. However, one member of the Committee made an interesting observation on where the impact fell. “If the supplier has brand recognition, the buyer gets off the hook more for a CSR breach in the supply chain. If the supplier is unknown, (e.g. the contractor running the BP Deepwater Horizon rig), then the big brand takes the full brunt.”

This highlights the importance of strong policies, regardless of the size of the organisation.

What are your tips for professionals looking to improve CSR in their organisation?

Each member was asked to give three tips on how professionals can help make improvements in their organisation. There were so many good ones that we’ve been able to come up with a list of 8!

  • Understand the premise of sustainability – it’s not just being good, but meeting the needs of stakeholders impacted by decision. Any resulting actions by investors, business partners, employees, regulators and civil society will be of consequence. Top-down support is key.
  • Establish “rules to live” by and measure compliance across the entire organisation.
  • Create internal incentives for professionals to engage in sustainable purchasing. It’s important to use carrots as well as sticks.
  • A supplier code of conduct – with teeth – is considered best practice.
  • Collaborate with other parts of the organisation – procurement shouldn’t operate in a vacuum.
  • Use data to build the business case for sustainable supply chains.
  • Develop processes to identify risks in the supply chain and teach your suppliers these tools, so that they may employ them in sub-tiers.

Take Ownership Now

With CSR being such a critical activity for organisations, procurement can’t afford to be left behind. It’s time to step up to the plate, put procurement in the spotlight and take greater ownership of policies, processes and outcomes. With a wealth of supporting knowledge out there and so many professionals willing to help shape a robust CSR program, there’s really no excuse any more!

Transparency is the Key to Overcoming Hurdles to Industry 4.0

Procurement’s journey to Industry 4.0 will be far from smooth, with numerous hurdles to leap. But transparency could hold the key to making this jump.

Download your copy of ‘Procurement 4.0 – The Digitalisation of Procurement’ on the Fraunhofer IML website.

In our previous article, we touched upon the challenges procurement will face in its Industry 4.0 journey. Perhaps one of the biggest challenges will come from the people side, and assurances of roles in the digital era.

However, as with many challenges and roadblocks, communication is crucial to overcoming resistance. And, according to BME, for Industry 4.0 and procurement, transparency and knowledge sharing could be the key the profession is looking for.

“The key to success is to provide companies with the knowledge about opportunities and benefits by Industry 4.0 and to underline these with appropriate use case.” says Prof. Dr Michael Henke,  Head of Enterprise Logistics at TU Dortmund University.

Lack of Transparency Major Hurdle

Within the ‘Management and People’ area, four major hurdles to procurement’s Industry 4.0 journey were highlighted. They were:

  • A lack of transparency and knowledge;
  • No active attempts to explore Industry 4.0;
  • The shaping of cultural change and the involvement and qualification of staff are already a burden in the minds of those responsible;
  • A lack of willingness to take risks or to invest.

These hurdles were seen as the key reason procurement was holding back on Industry 4.0. There were also concerns that if they weren’t tackled effectively and quickly, it could hinder procurement’s strategic journey too.

However, this is not necessarily a hurdle that organisations can easily overcome. The lack of clear definition of both Industry 4.0 and Procurement 4.0 present a major problem. This has a knock-on effect in terms of building a knowledge base for organisations, and then passing this information to employees.

And in turn, it also stops organisations being fully aware of the benefits and advantages available within Industry 4.0. Improving transparency in this respect, and gathering greater levels of information can aid procurement overcoming this hurdle.

Investment in Data

One other hurdle facing procurement can be linked to both management and technology. Big Data is frequently cited as one of the key aspects of procurement’s future, particularly in line with new technology. However, organisations as a whole are yet to fully establish how to collect data effectively, and then put it to good use.

Current systems used in procurement are capable of handling certain levels of data, but nowhere near those levels needed in Industry 4.0. Procurement need to invest in new systems, but overall investment has slowed in this area.

There are three possible reasons outlined by the respondents to the survey. Firstly, many companies lack the funds to actively invest in new systems. Secondly, organisations are already unsure about the return on investment on new systems, as cost-effectiveness has yet to be proved.

Finally, there is a lack of clarity and transparency in the procurement technology supply market. The array of systems available can be confusing, and leave organisations in the dark about which supplier will best meet their needs and requirements.

Prof.  Dr Henke believes that “If procurement wants to lift its role to another level in the future, it can be characterized by agility and speed. But procurement can only do this if he is able to interpret data from different systems correctly,”

Leading Not Following

Procurement definitely needs to be a driving force, otherwise it will be forced back into its old performing role.

Overcoming these hurdles is, of course, vital to procurement playing its part in Industry 4.0. The profession cannot afford to be a follower, or risk remaining a transactional function, with little strategic influence, and probably a short shelf-life.

Within the survey, the majority of respondents stated that procurement needed to be an active influencer, and provide innovation to the organisation.

However, at the same time, it was felt that procurement wouldn’t take the lead on these strategies. Responsibility, it would seem, would lie with a management team, but with procurement acting as an enabler.

The journey to Industry 4.0 will require procurement to make changes, but also step forward and grab its opportunity. How Procurement 4.0 will come into being will be the topic of the final article in this series.

The Association Supply Chain Management, Procurement and Logistics (BME), founded in 1954, is the leading professional association for supply chain managers, buyers and logisticians in Germany and Central Europe.

Fraunhofer IML, founded in 1981, is a global expert on all fields of internal and external logistics. The Institute also currently heads up the largest logistics research centre in Europe.

To download your copy of the report, visit the Fraunhofer IML website.

The procurement function must adapt and evolve to accommodate technology changes and be ready to embrace what we’re calling Procurement 4.0. The question is: Are We There Yet?

Join the conversation on our Big Ideas Summit 2017 group to find out everything that went on at last week’s event. 

Tributes Continue To Pour In As Global Procurement Community Mourns David Noble

As procurement leaders from around the world send in their personal tributes to mark the sudden and untimely passing of CIPS CEO David Noble, the common theme is one of sadness and shock.

Through these moving tributes, a picture is beginning to emerge of the significant legacy that Mr. Noble has left behind for the profession.

Leave a tribute to David Noble on the Procurious discussion board.

In many ways, the world is divided into two hemispheres when it comes to the professional bodies representing procurement and supply management.

Whether you belong to CIPS or ISM, you can be confident that you’re a part of an organisation with an incredibly long history (85 years in CIPS’s case, over 100 years for ISM), with a network of hundreds of thousands of professional colleagues globally.

It seems fitting, then, that after the Group CEO of CIPS passed away suddenly late last week, the CEO of ISM was one of the first to reach out with a moving tribute for his peer:

I know my personal shock and grief is shared by the global procurement community upon learning of the passing of CIPS Group CEO David Noble. David was more than a trusted ally and colleague. David had a vision of the evolution of procurement that included putting procurement, through licensure, on a footing equal to other formally recognised professions. His moral vision and leadership was also instrumental in CIPS’ crucial role in the passing of the U.K.’s Modern Slavery Act in 2015. ISM extends its deep condolences to David’s wife, his family, and our esteemed colleagues at CIPS.  Tom Derry, CEO, ISM.

Since yesterday’s sad announcement from Tim Richardson, the CIPS Chair of Global Board of Trustees, Mr Noble’s passing has been reported across industry publications including Supply Management, Spend Matters and Procurious. Yesterday’s article on Procurious included early tributes from Sam Walsh, former Rio Tinto CEO and CIPS president; Procurious Founder Tania Seary; Santos CPO David Henchliffe; and Visna Lampasi, General Manager Group Procurement for Woolworths Ltd.

Tributes continue to pour in, led by Mark Lamb, CIPS General Manager for the Asia-Pacific region.

At CIPS, we are deeply saddened to lose our leader and colleague, David Noble. Indeed, it is not simply a loss to CIPS, but also to procurement globally. David was always passionate about the role that procurement plays and how it can change people’s lives for the better. His legacy will long be remembered: CIPS is now recognised as the global professional body for procurement with an impressive global footprint and is improving procurement around the world. He was particularly vocal about ethical procurement, eradicating bribery and corruption, and ensuring that supply chains are free from modern slavery. As I reported to David, I will particularly miss his leadership which has seen CIPS go from strength to strength around the world. Mark Lamb, General Manager CIPS Asia-Pacific.

It is very shocking and sad news for all of the CIPS family and procurement professionals around the globe. David Noble was the voice of the profession in many arenas, and his visionary leadership has led to the success of the institute, its members, and the profession globally. He will be greatly missed, and I do sincerely hope that he rests in peace departing so early in life, and that his family and loved ones find solace and patience at this difficult time of their lives. Sara Abdellatif Omer FCIPS, Member, CIPS Global Board of Trustees

Like many across the global procurement community, I was shocked to hear of David Noble’s passing. Today is a very sad day for our profession, but more importantly, for David’s family, friends and colleagues. David’s legacy will touch every corner of the world. He inspired and advocated for a generation of procurement professionals while his leadership of efforts to eradicate slavery across the supply chain impacts millions of workers without their own voice. Philip Ideson, Host and Producer, The Art of Procurement

I was shocked and saddened today to hear of the passing of David Noble. I have known David as a friend since he joined CIPS in 2009 and worked closely with him on the development of the Ethical Procurement Guide with Andrew Forrest and the Walk Free Foundation. David was instrumental in getting the UK Government to introduce the Modern Slavery Act 2015, and has been a true leader to the procurement profession over the past 8 years. My condolences go out to his family and friends, and his colleagues at CIPS. He will be sadly missed by the Institute. Kevin McCafferty FCIPS, Executive General Manager – Procurement, Broadspectrum 

During my tenure as the only CIPS Trustee representing countries outside of the UK, David was always supportive in bringing a global perspective to CIPS as he worked diligently towards a global goal. Whist David and I had our differences with regards the establishment of the global governance structure, we were always able to share a pint at the bar and have great discussions around the profession. He always had a keen interest in what was happening in the Australian market and how the profession was developing. When I last met David, he was his usual vibrant self, full of energy and looking at ways to continually grow the institute and profession. David’s loss will create a void that any successor would have significant challenges to fill. My condolences to David’s family. Stephen Rowe FCIPS, CPO, Spotless. 

“David was the reason I joined the CIPS Board. He was such a strong advocate for the profession and his visionary approach for CIPS was an inspiration. He believed that the procurement profession was significantly undervalued and with steerage it could drive significant changes in the world, whether that be in eradicating modern slavery or sustainable sourcing. He was a warm-hearted Northerner who was well respected and someone who I’d known for many years. He will be sadly missed. Alison Parker FCIPS, Member, CIPS Global Board of Trustees, MD, HSBC

I was shocked to hear that our leader David sadly passed away on Friday. I first met him in the UK many years ago, before he was CEO of CIPS, and very much admired him in his Procurement roles. He has worked relentlessly for CIPS over his seven years’ tenure to bring value to our profession. David will leave a large gap and I am saddened I will not get to see him in London at our Annual Congress Meeting, just weeks away. Hannah Bodilly FCIPS, Global Congress Member for Australasia, Head of Strategic Sourcing, Bank of Queensland

I first knew David when I was on the CIPS Council (as it then was) back in the noughties. David always had a clear view on where he felt the profession needed to go. He gave strong leadership and direction in globalising CIPS to be the recognised worldwide body that it is today. Whilst being a leader at CIPS he was also a champion for the profession as a whole – his promotion of key causes, such as the Anti-slavery remit being a notable one,  which has such global resonance right now. He raised the profile and importance of procurement across public and private sectors alike, as well as with the media. He also forged links with other Institutes and bodies worldwide. His passion for the profession was without doubt and under his direction CIPS was re-branded. Like the broader profession, CIPS has flourished and grown in importance and stature.
He will be greatly missed by all who knew him and he will be a tough act to follow. Barry Ward, Procurement Brand Manager, Global Business Services, IBM

David and I worked together at Novar (formerly Caradon) for over seven years, arguably during a “golden era” of professional procurement in that organisation. Like many others who worked with him and for him during that period, I have many fond memories of David. From his absolute and authentic passion for our profession (years prior to him achieving his ambition to be part of CIPS), his relentless desire to support the technical development of his team (achieving one of the first CIPS Excellence awards when they launched the program) and his love of football (which many bruised ankles can attest to). He was an authentic, committed leader and a true gentlemen. My heartfelt condolences to his family and the CIPS organisation who have lost a fantastic champion and a great bloke. Very glad to have known him if only for a far too short period of time.  Andrew Brightmore FCIPS, Executive Director at Compass Group Australia 

David was a true advocate for our profession. Through CIPS, he led the charge with the licensing and professionalisation of procurement. His focus was on all areas of ethical practice, culminating in the 2015 Anti-Slavery Act, which was supported by the Vatican. His pragmatic and honest approach delivered the real transparency required when you lead a professional body with ethics as a pillar. Creating growth in any industry is a challenge, so his achievements in growing a membership organisation should also be highlighted as another major accomplishment. I am, and always will be, a proud Fellow of CIPS and a colleague of David. He will be missed by all. Mike Blanchard FCIPS, Deputy Chief Executive – Operations, Tertiary Education Commission, New Zealand 

A legacy of thought-leadership

A valued contributor to the Procurious Blog, Mr Noble appeared at the Big Ideas Summit in 2015. His thought-leadership published on Procurious includes:

Leave a tribute to David Noble on the Procurious discussion board.

Global Procurement Profession Mourns Passing of CIPS CEO: David Noble

Tributes are pouring in from procurement professionals around the globe in response to today’s news that David Noble FCIPS, Group Chief Executive of The Chartered Institute of Purchasing & Supply (CIPS) and one of the profession’s strongest advocates, passed away late last week.

CIPS have announced that  David Noble has unexpectedly passed away on Friday after a short illness.

Mr Noble’s legacy to the procurement profession includes his adroit leadership of the world’s largest procurement and supply chain professional body and his championing of the Modern Slavery Act.

Sam Walsh, former Rio Tinto CEO and CIPS president, commented that:

David will be sorely missed. He managed and grew CIPS into a truly global and financially successful organisation focused on improving and obtaining recognition for the Profession.

His initiatives such as training, licensing of Procurement Professionals, establishment of standards for anti-corruption, anti-bribery and anti-modern slavery have led to CIPS being highly regarded by Governments, Employers and Members.

CIPS loses an accomplished leader

Mr Noble took on the role of CIPS Group CEO in June 2009 after the previous CEO, Simon Sperryn, departed after only one year at the helm. Despite being parachuted into a difficult role as an “emergency appointment”, Mr Noble rapidly stabilised and increased CIPS’ finances and oversaw the steady growth of the member base to over 100,000 professionals internationally.

Prior to his captaincy of CIPS, Mr Noble was Group Supply Director at IMI plc, a FTSE 250 UK multinational company specialising in advanced engineering technology, where he was responsible for a £1billion spend. Mr Noble was also known for his pioneering of Category Management and Strategic Sourcing at Motorola in the mid-1980s. Although the majority of his career was in manufacturing, Mr Noble’s experience of the public sector, the distribution industry and large scale turnkey power station projects served him well when he engaged with the leadership of these sectors in his role as CIPS Group CEO.

Mr Noble held an honours degree and was elected a fellow of CIPS in 1994, also serving on the fellowship selection panel, the CIPS management board, the Cabinet Office Government Procurement Reform Board and the London Olympics Supplier Arbitration Board.

A global advocate for procurement

According to Keith Bird, Managing Director at The Faculty Management Consultants, Mr Noble’s global vision for CIPS means that his passing will be felt around the world. “Personally, I will remember David for his vision and tenacity. Expanding the CIPS network globally is a remarkable legacy to leave behind.”

At the time of Mr Noble’s death, CIPS has over 115,000 members across 150 countries, with offices in Africa, the Asia-Pacific, UK, North Africa and the Middle East, with partnerships in China, Poland, Romania and Sweden.

Procurious Founder Tania Seary commented that Mr Noble’s advocacy for licensing the profession will be his greatest legacy:

I last met with David at the Institute of Company Directors in Pall Mall. He was so proud of CIPS’ membership growth and its increasing levels of online engagement. CIPS, like ISM, is an important backbone to our profession – through his advocacy, David has strengthened procurement’s posture.

Similarly, Santos CPO David Henchliffe remembers Mr Noble for the work he has done moving the profession forward in one of its key areas of growth, Australia:

I worked with David as the Chair of the CIPSA Professional Advisory Group for more than 5 years. He was a tireless advocate for advancing the profession and the Institute in Australasia and will be sadly missed. I would like to extend my condolences to his family and friends.

A modern-day abolitionist

Mr Noble was a giant figure in the crusade against modern slavery, inspired by a meeting with Andrew Forrest of the Walk Free Foundation in 2012. Since then, he aligned CIPs with the cause, partnering with Walk Free to educate the organisation’s 100,000+ members through the establishment of the Ethical and Sustainable Procurement Guide.

CIPS also provided guidance to the Home Office in the creation of the 2015 Modern Slavery Act, which led to Mr Noble journeying to Vatican City in 2015 to witness the historic signing by faith leaders of a joint declaration committed to the eradication of modern slavery by 2020. He also attended a meeting at the White House to discuss how CIPS can support the G20’s Anti-Corruption Implementation Plan.

An incredibly hard act to follow

It is believed that Mr Noble’s passing will create a significant leadership gap for CIPS, as he was personally driving many of the organisation’s key initiatives. Many of the partnerships and relationships formed at the highest level were linked to Mr Noble’s personality, and the confidence and trust he inspired in others. At present there is no clear successor for CEO within the executive team. There has been some movement recently among CIPS’ leadership, with a new Chief Operating Officer joining late last year, and the Head of Finance retiring soon.

Mr Noble’s role as advocate, spokesperson and thought-leader for the profession meant he was regularly called about to comment on the biggest issues affecting the profession, from slavery, to Brexit, to finance and the manufacturing landscape.

Visna Lampasi, General Manager Group Procurement for Woolworths Limited praised Mr Noble for his pioneering spirit:

David was a driving force.  He put his personal brand and energy behind licensing the profession, making the Modern Slavery Bill a reality and a creating a number of other firsts for CIPS.  He was a major contributor to procurement’s development and will be sadly missed.   It is a great loss, not just for the profession, but for his family and friends.

A legacy of thought-leadership

A valued contributor to the Procurious Blog, Mr Noble appeared at the Big Ideas Summit in 2015. His thought-leadership published on Procurious includes:

Hope For the Best And Plan For The Worst: Dr Linda Yueh Talks Trump and Trade

Dr Linda Yueh, a renowned economist, broadcaster and Adjunct Professor of Economics for London Business School, discusses how supply managers can react to the major shifts in globalisation, trade and protectionism under Trump.

Yueh spoke with Philip Ideson as part of Procurious Even Bigger Ideas, a 5-part podcast series sponsored by State of Flux. You can access the series exclusively on Procurious. 

As the world watches President Trump’s next move to discover which of his campaign promises he is likely to deliver on, Dr Linda Yueh hopes that the potential impacts on globalisation are being overexaggerated.

“It’s hard to see how any one country could turn back globalisation, because globalisation isn’t just about trade agreements. National borders have less meaning now than they did in the past. That being said, protectionist sentiment is certainly on the rise.”

Protectionism is costly to trade 

Donald Trump successfully tapped into the feeling that globalisation hasn’t benefited lower-income, lower-skilled people as much as those of higher income and higher skills.

“Can this be rectified? If we’re starting a new phase of globalisation, there could be a reluctance to proceed at the pace we’ve had over the past couple of decades. If globalisation is going to work, we all have a responsibility to ensure policies around trade are more equitable so it doesn’t impact on any particular group.”

According to Yueh, the increase in protectionist sentiment around the world is likely to impact the cost of doing global trade. “Business need to be wary around protectionist sentiment being translated into additional customs checks, higher tariffs on exports and imports, or taxes on where a company locates its production.

Practically, protectionism can lead to enormous supply chain disruption. Goods or farm products can get held up at the border – for fresh fruit such as tomatoes, a few days’ delay can be devastating. Protectionism would only lead to higher costs, and ultimately that’s bad for the consumer because the cost will affect them”.

What about China?

Withdrawing from the Trans-Pacific Partnership is consistent with President Trump’s focus on American jobs, American wages, and his Made in America campaign. “Trump made it clear that America First is the overriding economic principle,” says Yueh.

The TPP was going to link America with Pacific Rim countries and was part of the previous administration’s “Asia Pivot”, designed to increase their influence in Asia. The TPP didn’t include China so it was a way of asserting America’s role in the region. The big question is whether putting America first means withdrawing from international supply chains, leading to an economic impact that may not actually be so good for multi-national American companies.”

Yueh comments that there’s an indication from China that they may be willing to step into a stronger leadership position in the global economy as America withdraws.

“We’ve heard China’s views of globalisation from President Xi Jinping at the World Economic Forum in Davos. I’ve also heard from other Chinese policy-makers at various meetings around the world that China has always been reluctant to take a strong leadership position in the global economy. Their main focus has always been on domestic development.”

“If there’s a void, power will fill it. I think that’s essentially what we’re seeing. I would stress that the Chinese position is to support globalisation, because globalisation has helped its economy. It’s contributed to its remarkable growth, but they’re reluctant leaders – they’re not leaping into this space.”

In Yueh’s opinion, we’re unlikely to see a trade war despite Trump’s posturing on the topic. “I think there’s too much to lose for all counties. In reality, businesses will continue to sell to consumers all around the world. They produce overseas because that gives them a supply chain advantage. Political rhetoric won’t change this”.

How should supply managers react to uncertainty?

Yueh advises that procurement and supply management professionals should:

  • Plan ahead for supply chain and market access disruption
  • Follow closely the policies as they appear
  • Look ahead to how you would reorganise your supply chain and the location of where you would deliver your services, depending on the industry that you’re in.
  • Plan out scenarios that anticipate increases in cost and work out ways to grow the business taking into account potential disruptions.

“When we see big structural shifts in policy, it can take some time before we understand the impact on businesses. All you can do is to look at your strategy for the years ahead and be alert to policy changes, whether it’s around TPP, NAFTA or the timeline for Brexit, and plan scenarios accordingly. To quote a former British Prime Minister, “You hope for the best and plan for the worst.”

Procurious Even Bigger Ideas is a 5-part podcast series available exclusively to Big Ideas Digital Delegates. Sponsored by State of Flux, this series features interviews with five of the most intriguing power players at this year’s Big Ideas Summit in London.

Drones To Deliver Medicine, Not Missiles, To People In Disaster Areas

Autonomous flying drones will soon be drafted into disaster relief efforts to greatly improve the effectiveness of the world’s most challenging supply chains.

Establishing a supply chain in an area hit by disaster holds its own completely unique set of challenges. The speed at which the supply chain needs to be established, the unplanned nature of the event, critical safety concerns and the lack of stability in the area can all exacerbate the challenge.

Perhaps the greatest worry, though, is simply getting access to the people in need. That’s where technology can make a world of difference.

Solving the access problem

Flood events, earthquakes and other disasters can lead to an incredible amount of rubble and debris which needs to be shifted by bulldozer before aid workers can reach the people in need. It can take days before an effective path is cleared to enable trucks to begin bringing up the tonnes of supplies required to feed, house and treat those affected by disaster.

Problems with access by land are compounded when air and sea transport facilities are also damaged. We saw this in 2010, after a magnitude 7.0 earthquake (followed by over 50 aftershocks) devastated Haiti.

The disaster led to anywhere between 100,000 to 160,000 deaths and the collapse of 250,000 residential buildings. Other countries and international organisations dispatched humanitarian aid in the form of rescue teams, medical teams and engineers, but chaos at the airport caused by a damaged air traffic control tower led to some of these crucially important flights being turned away.

Helicopters would seem to be the obvious solution when planes cannot land and bulldozers haven’t yet done their work, but that’s where aid agencies come up against funding issues – even the largest of the international organisations simply can’t afford the fleet of helicopters that would be required to deliver effective immediate disaster relief on any scale.

How flying drones can save the day

Imagine an international aid agency ship mooring off the coast of a disaster-affected area, such as Peru or Japan, and acting as an aircraft carrier to deliver immediate relief to people in need. Instead of having jets or helicopters taking off from its flight deck, however, it is packed with small, autonomous robot drones.

The first drones to go out would be for the purpose of mapping and observation – they’d stay up at altitude and monitor the area, assess damage, and help direct the delivery efforts with real-time information. Soon, the sky between the ship and the disaster area would be thick with a swarm of buzzing drones; carrying food, water, clothing and medicine to victims and then flying back to the ship, resupplying, and taking off again.

A helicopter, of course, could carry human passengers and vastly more weight, but for the scale required to be effective, a fleet of autonomous drones is significantly less expensive than a fleet of helicopters. Drones are currently severely limited in the amount of weight they can carry, but capacity is expected to improve. At present they’re ideal for light-weight, high value items such as medicines or blood. They could also be used to fetch medical samples and bring them back to base for analysis. Other applications may include:

  • Deliveries into conflict zones where a helicopter may be shot down
  • Coordination of search and rescue activities from above
  • The provision of internet to disaster zones.

Problems to be solved

There are some challenges to be overcome before drones can go into action when the next disaster inevitably hits. For example, if drones are to work in conjunction with helicopters and other aircraft, air traffic safety must be a priority to avoid mid-air collisions.

There are also some extremely negative perceptions of drones in war-torn areas, such as Afghanistan and Iraq. There, drones are either regarded as spy-craft, or as dangerous, weaponised systems capable of delivering a missile to any point on the ground. A humanitarian aid drone would therefore be met with suspicion and fear by people in need.

Similarly, a report from the Swiss Foundation for Mine Action found that humanitarian aid workers are concerned that drones are “too distant from people and inhumane”. This raises an important point about the role of aid workers, who are not only there to assist people and deliver much-needed supplies, but provide human comfort; something that a faceless drone cannot do.

Drones will soon be a common sight in disaster zones, if only in an observational or mapping role at first. While drones are unlikely to completely replace helicopters and trucks, they can play an essential role in supporting and complementing other means of delivery, particularly when access by land has not yet been established. Supply chain managers working in humanitarian aid can look forward to incorporating drones into their means of delivering assistance and, ultimately, saving lives.

In other news this week 

A milestone week for Procurious

  • Procurious delivered its signature event, the Big Ideas Summit, in London on Thursday last week, with speaker highlights including Oxford University’s Linda Yueh, CAPS Research Managing Director Deb Stanton, Barclay’s Chairman John McFarlane and Futurist Mark Stevenson.
  • On the eve of the event, Procurious also announced that its community has grown to 20,000 supply management professionals worldwide.
  • Procurious has also launched its new Corporate Site, with the first major client being the UK-based Society of Procurement Officers (SOPO).

Read more via Yahoo Finance

UC Berkeley recycles 3D printers’ plastic waste

  • In response to a surge in plastic waste generated by over 100 3D printers on campus at UC Berkeley, PhD students have launched a 3D Printer Filament Reclamation Project.
  • The campus-wide system takes used 3D printer plastic, grinds it up, melts it down and produces a spool of recycled plastic that can be used again in the campus’s 3D printers.
  • The recycling system is expected to be replicated in businesses using 3D printers on an industrial scale to minimise, or even eliminate, waste products from the printing process.

Watch UC Berkeley’s video here

Toyota and General Motors hold top number of renewable energy patents in the US

  • Research company CB Insights has analysed over 50,000 US renewable energy patent grants between 2009 and 2017 to identify the number of patents, the top patent holders, and trends in renewable energy patents.
  • Over 26,000 U.S. patents related to renewable energy have been granted in the 8-year period to date, with the number peaking in 2014 at 4268. The top four areas are solar, wind, fuel cell and bio-energy.
  • LG has emerged as the top patent holder in solar, GE for wind, GM and Toyota for fuel cell patents, and Xyleco and Shell for bio-energy.

Read the full report here.

[Image credit: Pixar]