Governance and procurement

There’s been a lot in the press recently about the natural resources sector, from the £57bn megamerger of commodity trader Glencore and the mining company Xstrata to the family feud over a trust fund controlled by Gina Rinehart’s, heiress of Hancock Prospecting. There are a couple of other stories that haven’t received as much attention but highlight the importance of governance in procurement. The first is about Bumi, the British based natural resources group listed on the London Stock Exchange that has the largest coal-producing assets in Indonesia. Like CHC’s current client, ENRC, Bumi is the marriage of British finance and faraway resources. Bumi’s share price is down by two-fifths from a year ago. Nat Rothschild,  co-chairman has recently called for a “cleaning up” of the “balance sheet and corporate culture”. Second, the report that four buyers have been found guilty last month of taking bungs. The men worked for companies who acted as purchasing agents for oil and gas engineering projects and conspired to take bribes from bidders in exchange for insider information about contracts worth £66m in Iran, Egypt, Russia, Singapore and Abu Dhabi. These reports demonstrate that high levels of governance are essential in procurement, particularly when the organisation is stretched over a large geographical area.

More on Supply Management – back to basics

The article in Supply Management called “Back to Basics” has received a number of “Likes” and generated some interesting comments through LinkedIn. Frank Gesoff said it was an “interesting article” and that there are “lots of opportunities, if you know where to look!” Mike Duran also found it interesting and raised some valid concerns about protecting the intellectual property right. I’m glad you found it interesting and thanks for your comments!

Supply Management – back to basics

In May last year I wrote about frugal innovation. This was picked up by Rebecca Ellinor, the Managing Editor of Supply Management. After further research this developed into a feature article which has just been published. Click on the link below and have a look.

More on CPO Agenda – how procurement can add value to a merger

The article in CPO Agenda called “How procurement can add value to a merger” has received positive feedback from readers.

Michael Caddick, Managing Director at Caddick Consultants got in touch with the editor to say how much he had enjoyed the piece.

There has been some interesting comments through LinkedIn. Yi Chi, Vendor Relations Manager at TD Bank Group in Toronto, read the article and said that she had been given a role in a newly created post-merger procurement function which cuts across sectors and borders. It requires her to advance the organisations awareness of procurement, improve people skills, increase collaboration across functions, improve understanding of value chain, compliances and regulations in different countries which are influenced by macro-economics and public sectors. I thought this role was interesting because post-merger integration (PMI) for most procurement functions focuses on objectives related to finance and process. But PMI is a subset of change management. It’s been shown time and again that successful change management projects start and finish by considering people so it follows that PMI should do the same. By looking at organisation awareness, people skills and collaboration across functions I think Yi’ focusing on areas that we drive sustainable value in the long term.

CPO Agenda – how procurement can add value to a merger

Rima Evans at CPO Agenda asked me how procurement can add value to a merger. Follow the link below and read the results.

CPO Agenda

Buying Just Like The Ancient Greeks

I was asked to review a book by Paul Snell at Supply Management.  The book is called Buying Just Like the Ancient Greeks by Bob Soames (Buy Research Publications, £12.50). If you’d like to read my review then follow the like below:

Buying Just Like the Ancient Greeks, Bob Soames, Buy Research Publications, £12.50


CHC is pleased to announce that it has been awarded a contract to work with ENRC, a leading global mining company. ENRC has grown rapidly through acquisition since it was listed on the London stock exchange in 2008. CHC will be helping ENRC develop its procurement capability and standardise processes across its businesses in Europe, Central Asia, Africa and South America.

Job done

CHC is pleased to announce that the work at Veolia has come to a successful conclusion. Over the past year Angus has transitioned 5  businesses from United Utilities, helped with the start up “Vennsys” and led the project governance and procurement for a business tranformation programme. Gary Booth, Director of Procurement said that ”he was able to hit the ground running, build excellent working relationships and deliver against a broad range of objectives. He is a versatile and knowledgeable procurement professional who is able to deliver projects in a short space of time while taking everyone with him.”

CIPS SM Awards 2011

CHC would like to congratulate all those who won awards at the CIPS Supply Management Awards on Wednesday night, particularly the Olympic Delivery Authority who were the overall winners. CHC would also like to recognise all those that entered but were unsuccessful. It take a lot of time and effort to enter and it is disappointing to not to walk off with an award. CIPS vice president David Smith provided the music, while comedian Miranda Hart provided the laughs. The Grosvenor House Hotel is a spectacular venue and it was a great evening.

One bad apple spoils the bunch

Most large companies use hundreds of suppliers located around the world. It is hard for companies to keep track of these suppliers and the damage that they might be doing. Big brands are often targeted by campaigners so Apple was in familiar straits this week when it faced accusations that some of its Chinese contractors were polluting the environment. Ironically, brands can be damaged much more quickly now than in the past due to the success of smart phones such as the iPhone. Michael Skapinker highlights the risks of suppliers not adhering to recognised standards in his article in the FT yesterday called “Time for Apple to open up its factories”.

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