WA region raises the bar

What began as a potentially modest Region business lunch with Sam Walsh, CEO Rio Tinto Iron Ore, soon transformed into a major event for the WA region. Over 170 people networked over a gourmet three course meal held at the Hyatt Regency Perth on 22 March 2006. Sam Walsh presented “Boom and Beyond-Rio Tinto’s supply chain opportunities in a changing world”. Sam called for a FTA with China and a new ‘national interest’ test on anti-dumping laws. Sam also spoke in detail about the Rio Tinto procurement strategy. The three journalists in the room reported the speech extensively with articles appearing in WA Business News, The Age and other publications across Australia. A business card drop was completed for a one-off prize to the Perth Conference, “SUPPLY MARKET INTELLIGENCE” in September 2006.  Congratulations to Brain Henman! Special congratulations also to the WA Committee for a job well done-extremely well done!

  
  

a: Malcolm de Mamiel, CIPSA Committee, Ian Watt, CIPSA Committee, Roger Reading, CIPSA Committee ,Guy Callender, Chair-Leadership Strategic Procurement, Curtain Business School, Jonathan Dutton, Managing Director CIPSA, Sam Walsh, CEO Rio Tinto Iron Ore, David Lunn, WA Regional Chair, CIPSA, Paul Langworthy, CIPSA Committee, Wilf Heinz, CIPSA Committee

b: Jonathan Dutton, Sam Walsh, David Lunn

c: David Messer, Malcolm de Mamiel, Paul Langworthy, Roger Reading, Wilf Heinz

d: Guests over lunch

Next event

The WA region is set to host its next event on the 4th May at the Parmelia Hilton Perth. Brett Smith from Woodside Energy will be presenting over the breakfast event, which is expected to draw crowds in similar numbers to the most recent event. Stay tuned for your invite via email…

Committee Member Profile - Malcolm de Mamiel

Malcolm is a WA committee member of CIPSA, bringing a wealth of Supply chain knowledge. Previous roles have included Supply Supervisor, Warehouse Manager and Distribution Manager. Now he is General Manager and director of his own company:

Both TeeCee Transport and The Little Trucking Company now operate under the banner of Minesite Transport Solutions. The company which has 26 staff and depots in Welshpool, Kalgoorlie and Manjimup services the mining sector through transport, storage and hot shots.

Malcolm, who has 30 years of supply experience, says the basis of the company is being able to provide its customers with service “with a difference.

When a customer calls Minesite Transport Services after hours, a 24-Hour divert line puts them through to one of the four company directors, day or night. The directors, Malcolm, Max and his son Cameron and Terry, have become used to the surprise on the end of the phone when they call a client back promptly, this is because, in the transport industry people who follow through on their promises are few and far between.

Western Australia’s Smarter Buying Initiative

The Western Australian general government sector spends around $4.5 billion a year on goods, services, facilities management and major capital works. In addition to the above expenditure, Government Trading Enterprises like Western Power and the Water Corporation spend another $2 billion – although this spending is not within the scope of the State Government’s Procurement Reform program. The Government of Western Australia is committed to reducing the cost of procurement wherever possible, without compromising outcomes or services. The Government has identified opportunities where savings and improved procurement outcomes can be achieved. This plan is outlined in a report endorsed by the Government in December 2003 - Procurement Reform within the W A Government Sector:  Business Solution and Implementation Plan. As a result, a program of procurement reform across the public sector is now underway.  Known as Smarter Buying, this reform program aims to do two things:

• Save many millions each year through new strategic sourcing initiatives, while maintaining the capacity for businesses of all sizes, in all parts of the State, to bid for government work.
• Deliver better quality procurement outcomes by enhancing the professionalism of procurement activities, the skills of procurement officers, the processes and systems used by procurement specialists and streamlining procurement policy.

Smarter Buying is a whole-of-government strategy that, by 2008, is expected to achieve savings of at least $120 million a year. These savings can then be allocated to government priority areas. In developing a plan of action for reforming internal procurement practices and adopting a well coordinated savings strategy, government agencies were advised to consider each of the following smarter buying principles. Reform measures related to these eight guiding principles have been a focus of sector-wide briefings, training sessions and agency presentations during 2005.

1. Analyse spend profile and patterns, compare these to sector best practice, and look for savings opportunities;
2. Implement a strategy of whole of agency annual forward procurement planning;
3. Consistently apply whole of government policies, processes and procurement documentation;
4. Optimise the use of Common Use Arrangements (CUAs) and agency specific contracts;
5. Minimise piecemeal buying and aggregate purchasing wherever possible;
6. Standardise the range of items available for purchase and apply demand management practices;
7. Invest in raising staff awareness of better buying principles and behaviours; and
8. Tighten contract management practices, particularly in service contracts.

Further information about the WA Procurement Reform agenda is available at www.dtf.wa.gov.au/procurement.

Regional Chairs reappointed

The CIPSA Steering Group met for the tenth time on the 21st of March 2006 at the CIPSA offices in Melbourne. The wide ranging agenda covered the recent membership survey, CIPSA business plans for 2006, several ongoing current CIPSA projects, the ACT regional business plan and crucially, the tenure of the Regional Chairs and the Regional Committees for each CIPSA region which is due to expire 31st October 2006.

The Steering Group unhesitatingly recommended that in view of the fact such a positive start had been made in all of six regions, that the Regional Chairs and current regional committees should be invited to remain in tenure until the 31st of December 2007. Before then, the Steering Group would consider and suggest how best to appoint new Regional Chairs and committees in the future. Congratulations to all the regional committees for a great start to the CIPSA regional network.

The Public Sector Procurement Forum

The PSPF event will be held at the Hyatt Hotel, Canberra on 17-18 May 2006. The agenda will include many of the primary issues facing Government buyers today. Confirmed speakers include the top UK civil servant from the Office of Government and Commerce (OGC) responsible for the attainment of a £7 billion savings target from professional procurement efforts set by UK Chancellor of the Exchequer, Gordon Brown. Several other top speakers from around the public sector procurement community in Australia are also confirmed. Full details are available on www.cipsaconferences.com.au.

The Knowledge Club

CIPSA members now have a new benefit of membership – The Knowledge Club. Circulated quarterly, The Knowledge Club is a digest of brief articles on current aspects of procurement, which are relevant, topical and interesting. The first issue was circulated on email in html format recently. Further reading on many of the topics included in The Knowledge Club are available in the members-only area of the main CIPSA website www.cipsa.com.au. Of course, members can print The Knowledge Club articles individually and circulate them to colleagues where relevant. The Knowledge Club email circular is next due out in early July.

CIPSA membership survey results

The CIPSA Member Satisfaction Survey was completed by almost 360 CIPSA members during November 2005 – over 20% of the membership at that time with some very positive results. The detailed results from the membership survey are published in the edition of Procurement Professional magazine published in late May. The results will also be published on the CIPSA website at www.cipsa.com.au soon afterwards.

University of Melbourne Survey-Supply Chain Uncertainty

CIPSA members are invited to participate in the new University of Melbourne survey of supply chain uncertainty. Click here to download and print the PDF survey, complete and send it to University of Melbourne – it should take no more than 15 minutes of your time.

The BRW Client Choice Awards 2006

The 2006 BRW Client Choice Awards held on the 8th of March 2006 in Sydney are profiled in the latest edition (March 9 – April 5) of BRW magazine. These annual awards are presented to the best professional services firms across a range of criteria. Professional services firms including accountants, lawyers, consulting engineers, actuaries, specialist consulting firms and management consultancy firms compete for the awards. All firms participating in the awards scheme have their clients independently surveyed by research firm Beaton Consulting. CIPSA was one of 20 top professional bodies and institutes endorsing the research methodologies and supporting the awards.

PP6

The sixth issue of Procurement Professional magazine is out now. Published on the 3rd of April 2006, PP6 focuses on the management of indirect expenditure and is timed to coincide with the “Managing the Tail” conference event in Sydney on 6th of April which addresses the different ways in which organisations can manage their indirect expenditure lines. Specific topics include buying marketing services, supplier management, doing business in China and the basics of travel buying. Look out for your copy now. All the key articles published in PP magazine are subsequently made available on the CIPSA website www.cipsa.com.au.

CIPSA membership fees are tax deductible

April is a good time to start planning ahead to maximise your tax allowances before the end of the tax year – 30 June 2006. Last year, CIPSA had an extraordinary amount of membership renewal forms received on the 30th of June itself - since membership fees are tax deductible and many members needed a tax receipt inside the financial year to qualify! Membership fees are deductible at your marginal rate of tax. So, for example, a member paying a marginal rate of tax of 42% could save $84 in tax deduction against the standard membership renewal fee of $200. A saving of 42%. However, this example is for illustrative purposes only and does not constitute formal tax advice or financial advice in any way. CIPSA advise that you contact your accountant or financial advisor regarding your tax affairs on your personal financial situation prior to taking any action with the aim of reducing your tax liability.

CIPSA Executive Open Training Programme for 2006

The CIPSA Executive Open Training Programme has been filling up fast, with Strategic Price Management already sold out. These courses have been specifically designed to help procurement practitioners achieve their objectives, build professional knowledge, learn core skills and change behaviors towards better practices-but at an executive level.
Visit www.cipsa.com.au and look under ‘training’ to book yourself into one of the courses best suited to you. Don’t wait, these courses will be sold out soon!

CIPSA office opening times for Easter break

CIPSA will close the office at 3pm on 13th April for Easter and re-open 8.30am as normal on 18th April.

CIPS Australia Level 10, 520 Collins Street, Melbourne VIC 3000, Australia
Tel: 1300 765 142, Fax: 1300 765 143, Email: info@cipsa.com.au, www.cipsa.com.au

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