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Season’s Greetings…

CIPS Australia wishes you a festive holiday season and a safe and happy new year. CIPS Australia would like to thank all of its members for their support over the past two years and we look forward to working with you again in 2007.

Austal Ships Site Visit a Huge Success!

CIPS Australia members were recently treated to an extraordinary briefing and tour of Austal Ships, the iconic Australian ship building company located in Henderson Industrial Park, on Friday 17 November 2006. Host and Chief Operating Officer Steve Murdoch, gave an excellent and intriguing presentation covering the company’s history; workforce; the value of innovation; procurement considerations and challenges; and future market directions.

Founder John Rothwell grew the business from its humble beginnings in 1988 to what it is today; a cutting edge $389 million dollar a year, world class enterprise with a workforce in excess of 1800 employees and state-of-the art R&D and manufacturing facilities both in Perth and Alabama, USA.

The Perth operation currently employs 1100 people in the manufacture of a range of aluminium vessels for both commercial and military clients.

After the presentation, Steve fielded questions from CIPS Australia members keen to hear and learn more of thecompany’s success secrets. Steve discussed Austal's strong commitment to cost and productivity improvements, fostering innovation and he emphasized the importance of the procurement function. "Clever procurement can work to our strengths and remove competitors”, he said. He also provided valuable insight into other procurement issues such as the importance and value of sustainable business relationships (including strategic alliances) and security of supply - particularly as Austal Ships competes directly with the resource sector in a booming economy for major equipment items (e.g. ship motors).

Following the presentation and discussion CIPS Australia members were taken for a mind-blowing tour of the manufacturing facilities and were able to view a completed patrol vessel, a massive near-completed commercial vessel and other vessels at various stages of production. In one shed, the size of a football field, the ship seemed to fill every inch!

CIPS Australia members all agreed that the site visit was an enjoyable, educational and worthwhile event and the WA Region would especially like to thank Austal Ships, and Steve Murdoch and his team in particular, for the opportunity and experience.

2007 Calendar of events

The WA Region Committee has completed its planning for 2007 and is pleased to announce the following calendar of events. Note that this Region calendar complements many national CIPS Australia open training and conference opportunities as well. The committee will continue to lock in speakers, sponsors and finalise event details. Our aim is to provide 6 weeks notice for each event.

• Breakfast Briefing (Industry speaker - Global Procurement) - Perth - 15 February 2007
• Knowledge sharing forum - Procurement Education and Development - Perth - 14 March 2007
• Government Procurement forum - Perth - 18 April 2007
• Breakfast Briefing (Industry speaker - Supplier Relationship Management) - Perth - 22 May 2007
• Site Visit - 27 June 2007
• Networking Event/Sundowner - Perth - 19 July 2007
• Knowledge Sharing Forum - Procurement in SME's - Perth - 9 August 2007
• Breakfast Briefing (Industry or Government speaker - eSourcing) - Perth - 12 September 2007
• Networking Event/Sundowner - Perth - 10 October 2007

Note our intention to participate in the development of a major Q4 2007 conference - in conjunction with other Supply chain member organisations.

Your feedback is always welcome. Please direct any comments or queries to the WA Committee at wa@cipsa.com.au

Message from WA Region Chair

I clearly remember when Jonathan Dutton, CEO (then acting CEO) for CIPS Australia (CIPSA), first visited our region to discuss this fledgling organisation- its objectives and aspirations. That session, held in July 2005, provided the stimulus for our Region's business plan and formation of our first CIPS Australia WA Region committee commencing October 2005.

I look back over the last 12 months or so with great satisfaction. As a region we have moved from strength to strength. Since late 2005 our Region has held seven separate functions, ranging from specific networking events, a number of fantastically well attended breakfast briefings by senior Procurement and business executives to, most recently, the remarkable site visit to Austal Ships. Some 660 attendees have participated in our program to date and I sincerely thank the efforts of the WA Region committee in ensuring high quality, smoothly run, events.

We have also enjoyed a number of national CIPS Australia activities in our region, including the highly successful Supply Market Intelligence conference in September 2006 and strong participation in the national CIPS Australia essay competition. I gratefully acknowledge the significant support provided to our Region from the CIPS Australia National Office - indeed the strong growth in member numbers and the widening interest by many organisations is a testament to CIPS Australia's rapid maturity and growth.

I am also pleased to advise of our deepening relationships with other supply chain member organisations (like the Supply Chain and Logistics Association of Australia). We hope to work more closely with them during 2007 - including the potential for joint involvement in a major conference event later in the year. We will also continue our current practice of cross-advertising region specific networking events with these organisations - and in so doing promote and encourage activities that further our profession and the individuals that practice it.

The geography of our State challenges our ability to provide direct activities for non Perth-based members. The WA Committee is investigating the feasibility of holding regional events in 2007 and any feedback in this regard would be most welcome.

Creating cost effective opportunities for information sharing and networking remain a core activity for our Region. Our Region's event calendar for 2007 is displayed in this newsletter. I urge you to diarise now - we all know how rapidly calendar's fill up these days!

On behalf of the WA Region Committee I trust you have a safe, happy and restful festive season. I look forward to catching up with you in the New Year.

Kind Regards
David Lunn
WA Region Chair

Department of Treasury and Finance experiences success in two prestigious awards

On November 8, WA DTF was awarded a commendation in the Prime Minister’s Award for Excellence in Public Sector Management. These awards provide recognition for public sector work groups, units and teams across all three levels of public administration in Australia.

DTF’s submission ‘Get the People Right and Procurement Delivers’ featured a case study on the procurement reform program and subsequent involvement in implementing initiatives to achieve better procurement outcomes across the public sector. These initiatives include the rebadging of agency-based procurement practitioners, establishing a procurement unit within DTF, and introducing professional development programs.

Along with 14 other nominations, DTF’s submission was subject to a rigorous assessment and judging process based on the Australian Business Excellence Framework.

On 22 November DTF also received a high commendation in the 2006 Premier’s Awards for Excellence in Public Sector Management. DTF’s ‘Get the People Right and Procurement Delivers’ submission was successful in the ‘Governance and Public Sector Improvement’ category.

Procurement Award Winners Announced

On the 17th November the Treasurer Eric Ripper announced the winners of the inaugural Treasurer’s Awards for Innovation in Procurement. Mr Ripper congratulated the Department of Health for its strong showing, in winning three awards.

“The Department of Health has made significant progress over the past year in reforming many of its procurement arrangements and practices,” he said.

“Advances made in achieving cost savings and process improvements, in such areas as the procurement of capital equipment for the more than 250 hospitals and health services throughout Western Australia, are making a real difference.”

The Treasurer also made special mention of Rob Tagliaferri, of the Department of Treasury and Finance’s Goldfields/Esperance Regional Buying Centre, in winning the Outstanding Procurement Practitioner Award for his outstanding contribution to procurement in regional WA. “Mr Tagliaferri has clearly had a very positive impact on his local client agencies and has helped to increase opportunities for regional business,” Mr Ripper said.

Developed as part of the Government’s Procurement Reform initiative, the awards reinforce the importance of procurement to the effective delivery of services by the State’s public sector. “These awards aim to showcase examples of procurement best practice from across the public sector,” the Treasurer said.

“They acknowledge the outstanding work being performed in this area by particular agencies, teams and individuals.”

Mr Ripper said that while the 2006 awards were run as a pilot by the Department of Treasury and Finance, it had been very successful and the program would continue next year. In total, 39 nominations were received across the six award categories.

The successful nominations in each of the award categories were as follows -

Maximising Opportunities for Procurement Reform: Department of Health, Health Corporate Network Supply

Common Use Contracting Arrangements: Department of Agriculture and Food, Optimising Benefits from Intra State Travel Reservations

High Commendation: Dental Health Services, Streamlining Distribution through Metropolitan Courier Services

Regional Buying: High Commendation: Department of Industry and Resources, Ngaanyatjarra Lands Telecommunications Project Agency Specific Contracting: Department of Health, Whole of Health Solution for the Supply of Volumetric Infusion Pumps

High Commendation: Department of Health, Establishment of the Contracting Capital Equipment Section

Outstanding Procurement Team: Medical Capital Equipment Team, Department of Health

Outstanding Procurement Practitioner: Rob Tagliaferri, Department of Treasury and Finance

DTF news re-published with permission from Department of Treasury and Finance, WA.

CIPS Australia Booklist

For a complete list of all our current books available and to order, please download the CIPSA booklist (PDF)

CIPS Australia PMI/PSI/PCI Monthly
Service for Members

CIPSA endorse the Performance of Manufacturing Index [PMI], Performance of Services Index [PSI] and the Perfomance of Construction Index [PCI] which are compiled monthly by the AIG. Other supporters include PWC and NTC Research. As a benefit for CIPSA members, these indices are available monthly from the CIPSA newsletter.

PMI report for November (PDF) PSI report for November (PDF) PCI report - November (PDF)

Office closure times

After an amazing second year, with around 2000 members on board, many successful conferences under our belt and a challenging new year ahead, it is time to take a break and recharge our batteries. Please note, CIPS Australia head office will be closed from 12.30pm on Friday December 22, 2006 and will re-open again at 8.30am (Melbourne Time) on Monday January 8, 2007. Any queries during the closure can be emailed to info@cipsa.com.au and you will be contacted as soon as possible in the new year. Due to the end of year break please note there will be no January newsletter, the next newsletter will be issued early February.

Procurement Professional Magazine

Issue 10 of Procurement Professional (PP10) is out now! Featuring coverage of the 2nd Annual CIPS Australia Conference, essay and scholarship winners, and many other innovating and cutting edge procurement stories, this is an issue not to be missed. Also enclosed with PP10, is the latest White Paper, a research paper written by the Portland Group. Procurement Professional Issue 11, will be due out the first week in February 2007.

CPO Agenda is the global business review designed specifically for chief procurement officers and senior purchasing executives in larger organisations.

CPO Agenda is published four times a year by Redactive Media Group in conjunction with CIPS. It reaches several thousand top purchasing, sourcing and supply management professionals worldwide who collectively control hundreds of billions of pounds, dollars and euros of expenditure.

CIPS members receive a significant discount, and Australian subscription rates are available on www.cpoagenda.com/subscribe

To subscribe download the attached PDF file, or secure online at https://secure2.subscribeonline.co.uk/CPOA

CIPS Australia have mini samples of CPO Agenda to give away. If you would like to receive one, please email your request and mailing address to marketing@cipsa.com.au

Sydney Conference – 7-8 March 2007

Don’t forget to mark your 2007 diary now, for all of the CIPS Australia conferences coming your way. First up next year is the Sydney conference, Emerging Trends in Procurement, on March 7 & 8 at The Shangri-La Hotel. Based on current research, this programme will focus on the key emerging trends facing procurement professionals in Australasia, while considering the similarities and differences with emerging global trends. Any sponsors interested in participating should contact Deanne Bergsma at CIPSA Conferences on Tel. 07 5573 5632 or email: deanne@bttbonline.com at the earliest opportunity.

Conference Fees
CIPS Members - $1,195 + GST
Non Members - $1,395 + GST

Other conference dates are:

The 2nd CIPS Australia Public Sector Procurement Forum
17-18 May, Hyatt Hotel Canberra

The Inaugural CIPS New Zealand Conference
14 June, Auckland SkyCity

The SMART Supply Chain Technology Show
20-21 June, Sydney Convention & Exhibition Centre

The Queensland Supply Chain Conference
2-3 August, Brisbane Sofitel Hotel

Strategic Procurement
22-23 August, Perth Novotel Langley

The 3rd CIPS Australia Annual Conference
16-17 October, Melbourne

For more information visit www.cipsaconferences.com.au

Smart 2007 Conference

Smart Conference takes places once every two years at Sydney Convention and Exhibition Centre, Darling Harbour. The last conference, in 2005, had more than 900 delegates from six countries attend. On June 20-21, 2007, Smart Conference will once again bring together leading local and international supply chain practitioners to share their knowledge and experience of the latest supply chain technologies and implementations. For more information visit www.smartconference.com.au, registrations open in February.

The Knowledge Club 4

The next issue of The Knowledge Club, the fourth quarterly digest of briefings on hot topics for procurement practitioners, is due out in mid-December. Members with suggestions of what topics they might like to be covered, specifically in the coming issues, should email their suggestions directly to info@cipsa.com.au please.

New website timetabled for February 2007

Work is progressing on populating a new website for CIPS Australia, with many new features and benefits becoming available for members. Benefits such as online payments, purchasing, registrations and an e-learning portal are just a number of the new features on the upcoming new website. If you have any suggestions for content you would like included on the website please email marketing@cipsa.com.au with any suggestions.

Another 29 MCIPS for CIPS Australia

The 29 graduates of the first two Corporate Award programmes got together on November 29 for a graduation luncheon in Melbourne. Attended by the graduates and their workplace mentors (from workplaces such as Australia Post, Coles Myer, Telstra and BHP), a good time was had by all as the graduates and their employers celebrated the achievement of MCIPS.

Sophie Jarvis from Australia Post won the CIPS Award for Excellence, in recognition of her outstanding contribution to this Corporate Award Programme, namely through her commitment to the course, enthusiasm in her learning in the workshops and in achieving a consistent standard of excellence in her work and her assessments and project.

For those members not familiar with Corporate Award, it is an 'applied learning' fast track route to MCIPS (Member of the Chartered Institute of Purchasing & Supply) and runs for up to 15 months. The programme not only provides successful delegates with the globally recognised industry accreditation of MCIPS, it also directly benefits employers through better skilled and qualified employees, and also through a work-based project which delivers significant return to the business on the training investment.

Good year end result for CIPS

The CIPS Board of Management is due to meet in London on December 5 to review the institute’s performance for 2005/06 and is likely to be very satisfied by the results. Figures for the year end on October 31 show that CIPS revenue is up on budget and has grown by almost 11% on last year. Membership is also up – having ended the year with just under 42,000 members around the globe, of whom around 2,000 are in Australia and New Zealand. This represents overall growth of 5.4% (last year 4.4%), an encouraging upward trend when some other professional bodies are struggling to retain members.

Elsewhere in the world

CIPS has just signed an MoU with PISM, the Philippines procurement institute, to deliver CIPS qualification programmes on the same model that is already working very successfully in Thailand, where the second graduation ceremony for Certificate students has been held at the British Embassy. In Singapore, negotiations are progressing with the Workforce Development Agency and Economic Development Board to offer CIPS training in Singapore and Malaysia.

In China, Beijing University of International Education is launching a new procurement degree in January which includes CIPS syllabus content and will be accredited to CIPS Foundation Diploma level. CIPS are also in discussion with the Chinese National Education & Exams Authority, which is responsible for 30 million students, who are interested in offering a similar programme.

Following a very successful second annual conference in Dubai, increasing interest in CIPS among the procurement community in the Middle East has led to an agreement to set up two new member groups, one in Dubai and one in Abu Dhabi. It is early days, but these groups could in time mature into a branch network to support members throughout the Gulf States.

Membership Grades Update

The green light had been given from the Privy Council to introduce the two new membership grades, Certificate Member and Diploma Member, from March 1 next year. The Privy Council, which regulates CIPS as a chartered body in the UK, has confirmed that the necessary changes to the bye-laws will be finalised by the end of the year. This gives CIPS time to put all the new systems and processes in place to manage the change to the new grades ladder. An article will be published in the next issue of Procurement Professional which explains the changes and what they mean for existing and new members. Look out too for Q&As about the new grades on the website from January.

CIPS Supply Management Awards Evening

Australia was represented at a ‘Purchasing Superstars’ dinner held at the Royal Opera House, Covent Garden, London in November. Craig Lardner, whose presentation was one of the highlights of this year’s CIPS Australia conference, was one of a select group of procurement star performers honoured at the dinner, hosted by our UK publishers.

Almost 1000 people attended the CIPS-SM Awards ceremony at a gala evening on London’s Park Lane in October. This event is growing from strength to strength and was voted by attendees the best awards ceremony yet. This year’s entries were agreed by the judges to be stronger than ever. Details of the winning entries from all categories can be found on the SM website, www.supplymanagement.com. CIPS Australia will be running its own awards next year. The Procurement Professional Awards will be held in Melbourne at the 3rd Annual Conference dinner in October. Any sponsors wishing to participate in these awards should contact Deanne Bergmsa, Sales Manager, CISPA Conferences, email Deanne@bttbonline.com or phone (07) 5573 5632.

CISPA JOB SEARCH

Visit the Jobs area of www.cipsa.com.au to view the latest jobs in procurement. If you would like to advertise a position on the website, jobs are $49 + GST per month, download the attached flyer to find out more.

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