G4S January 2020

DELIVERING A STRATEGIC PROCUREMENT FUNCTION IN SECURITY

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DELIVERING A STRATEGIC PROCUREMENT FUNCTION IN SECURITY WRITTEN BY

SEAN GALEA-PACE PRODUCED BY

CHARLOTTE CLARKE

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G4S

Robert Copeland, Group Procurement Director at G4S, discusses the importance of embracing change management in the supply chain space

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s the world’s leading integrated security company, G4S is renowned for providing a broad range of security services in an

increasingly connected and complex world.

With 45,000 suppliers across 90 countries supporting 540,000 employees, G4S operates an 04

extensive supply chain that is truly global. Helping to ensure G4S’ supply chain runs efficiently, Robert Copeland, Group Procurement Director at the company, believes he has the right procurement strategy in place to deliver sustained value creation and supply chain performance. “It’s critical that you have a procurement function able to not only present clear solutions, but also have the willingness to lead the proposed improvements to embed effective change” explains Copeland. “In the security industry, where margins can be tight and high operating standards are a must, it’s essential to operate a supply chain that delivers the right blend of cost, quality and performance to underpin the growth.”

Over the past two years, G4S has invested in transforming procurement from being a tactical

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cost reduction function to becoming an effective supply chain advisory, able to conceptualise, develop and implement true supply chain performance betterment with a bottom-line impact. Copeland highlights the importance of procurement providing more than just a route to market. “We can’t just be a one trick pony. It’s critical we create a wideband value proposition which offers more than a way to finding suppliers and negotiations,” he affirms. “Otherwise, procurement as a function runs the serious risk of w w w.g 4 s . com

G4S

“ There is a clear appetite and need for a truly strategic procurement function in every region” — Robert Copeland Group Procurement Director, G4S

extinction, as traditional procurement tasks become increasingly automated in the coming years.”

Supply chain value is often measured through the bias lens of supplier cost vs. performance. However, Copeland believes that leadership must ensure the supply base is also fit for purpose from an ESG (Environmental, Social and Corporate Governance) angle. “A complex global security business demands a supply chain which satisfies the company’s ESG obliga-

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tions, as this can provide great comfort to a progressive customer or socially

CLICK TO WATCH : ‘G4S SECURE SOLUTIONS: SECURITY SYSTEMS’ 07 responsible investor and thus become

(EMEA) in 2019, followed by North

a competitive advantage for the busi-

America in 2020 and the Asia Pacific

ness,” he explains. “For example, of

and Latin America regions a year later.

the top 50 asset managers globally,

“There is a clear appetite and need for

90% are signatories to the United

a truly strategic procurement function

Nations Principles for Responsible

in every region,” affirms Copeland. “My

Investment. This means that investors

vision of procurement is to demon-

are increasingly looking at the ESG

strate how our experience, leadership

health of a business when making

and work ethic will drive improvement

investment decisions.”

to the company’s bottom-line. The

Having devised a three-year priori-

key to our success is ensuring that

tised plan for procurement, Copeland

we focus on three core aspects:

has a clear vision on how he sees this

Does this procurement solution make

being introduced worldwide, starting

things better for the end customer?

with Europe, the Middle East and Africa

How does the solution improve the w w w.g 4 s . com

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UK: +44 (0)20 3287 7607 USA: +1 312 957 5723

2004

Year founded

90

Countries of operation

business, I’ve scaled the procurement headcount on the pipeline of identified activities. This has yielded a 10:1 Return on Investment (ROI) over the past two years. This resourcing approach can be tough for the team; however, everyone has found the dynamic environment to be a great development opportunity and this has allowed us to attract some

540k+ Number of employees

of the best candidates in the industry to work in our procurement team.”

Copeland believes that having the capabilities to lead and manage change is critical to achieving success. “If we don’t master the change

operating cash flow and profit? Does

agenda, we’ll always be framed by

the business have the capacity and

those who see procurement as no

the capability to implement these

more than a dressed up purchasing

changes? Without fully understanding

function, ripe for outsourcing or auto-

these three elements, the chance of

mation.” Becoming a leader in its field

success is greatly reduced and can

is a difficult feat for any business to

result in a poor change outcome, as

accomplish, however, retaining that

well as weakening the business per-

position of market leadership has

ception of procurement.”

become even more challenging in

Another challenge facing G4S is

recent years. As a result of this, it

to provide high-quality procurement

is essential that G4S avoids com-

capabilities in a lean environment

placency and remains on top of the

where there isn’t the luxury of resource

latest supply market solutions to fuel

overcapacity. “To ensure we’re able

continued growth. “To achieve suc-

to meet the evolving needs of the

cess, procurement not only needs w w w.g 4 s . com

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G4S

“ It’s the ability to influence change that really sets us apart” — Robert Copeland Group Procurement Director G4S 10

commercial acumen, but to secure

he explains. “The key to embracing

the trust of the business to implement

change management is to recruit the

ideas,” says Copeland. “To highlight

right people with the correct skill sets.

the scale of the supply chain, 25% of

It’s the ability to influence change that

G4S revenues are spent with its sup-

really sets us apart. It’s vital that our

pliers and subcontractors. Supplier

procurement team is agile, curious and

performance does impact customer

mentally prepared for change because

experience and any supplier shortfall

if we aren’t, we’ll have put ourselves

would ultimately be a G4S failure in

at a huge disadvantage.”

the eyes of the customer. Businesses

With companies beginning to

are looking to drive change, but they

accelerate the digitisation of their

often don’t know the best way so it’s

business plans, technology is

a fantastic opportunity for procure-

becoming an increasingly prominent

ment to take leadership in the space,”

component to successful operation.

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E XE CU T I VE PRO FI LE

Robert Copeland Robert Copeland is the Group Procurement Director (CPO) for G4S, the global outsourcing and security company, responsible for global procurement operations across 90 countries. Joining G4S back in 2015, Copeland is based in London, United Kingdom. He was appointed to turn procurement into a business competitive advantage, through cost leadership, supplier risk management and supply chain innovation. Prior to G4S, he headed up Non-IT procurement at the Post Office and in this capacity was heavily involved in the establishment of the newly created Post Office procurement function and the divestment of Post Office from the Royal Mail.

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13 However, Copeland believes in a lean

Do I know the true value that I’m trying

business and explains that it’s impor-

to deliver? In what ways can I reduce

tant to strike a balance. “We tend to be

risk and cut costs? Can I increase prof-

patient and not rush into introducing

itability? Because more often than not,

new innovations for the sake of it.” He

projects that should be halted become

affirms that it’s vital to continuously

vanity projects, centred more around

question exactly what value technolog- technology for the sake of it rather ical innovations will bring. “You should be cautious and insightful over any

than the value they bring.”

G4S is currently rolling out a global

proposal. There are numerous systems

ERP system with Oracle to enable it to

and technologies that promise the

use a series of worldwide buying chan-

earth, but many are unlikely to deliver

nels to reduce the complexity of local

on what it says on the tin,” he explains.

supply chains. “It’s set to give buyers

“It’s important to consider and question: greater visibility and control over what, what is the problem I am trying to solve? where and when something’s been w w w.g 4 s . com

G4S

bought,” explains Copeland. “We’re technology agnostic, having formed several relationships with agile companies such as Provalido and Market Dojo, along with a newly developed inhouse supplier contract management eco-system. The adoption of Market Dojo’s eSourcing platform has empowered the G4S team to accelerate large and complex tenders, as well as run competitive on-demand eAuctions. In addition to the obvious benefit of cost savings, these tools have helped the 14

“ The key to embracing change management is to recruit the right people with the correct skill sets” — Robert Copeland Group Procurement Director, G4S

team greatly reduce the time to market.”

Copeland recognises the true value in establishing mutually beneficial business relationships across all spend categories. “We already have a number of strategic partnerships in place for telecoms, fleet and workwear and we’re in the process of developing others across a wide spectrum of goods and services. Success revolves around working with our suppliers to deliver and embed critical business change.” With the security market showing no signs of slowing down in future years, Copeland affirms the future for G4S and the wider industry is extremely bright. “We’re in a great position to benefit from the growing but rapidly changing security market,” summarises Copeland. “It’s estimated that the global security market will be worth $245bn by 2020 — it’s an exciting place to be.”

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