Cips mena awards 2015 by Redactive Media Group

Winnersâ&#x20AC;&#x2122; brochure

11 May 2015 InterContinental, Abu Dhabi www.cipsmiddleeastawards.com/may2015 OďŹ&#x192;cial technology partner:

SYNDICATED

applied learning in procurement and supply

CIPS Syndicated Corporate Award... ...is a complete procurement and supply learning programme adapted to your industry sector within a specific geographic location.

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Contents 5

Welcome from CIPS, the judging panel

Overall Winner and International Procurement Project of the Year

Best Contribution to Corporate Responsibility Best Cross Functional Teamwork

Best People Development Initiative Best Supplier Development Initiative

10 Most Improved Procurement Operation â&#x20AC;&#x201C; Start Up Most Improved Procurement Operation â&#x20AC;&#x201C; Step Change 11 Best Supplier Relationship Management Procurement Team of the Year 12 CIPS Middle East Young Procurement and Supply Chain Professional of the Year CIPS Middle East Procurement and Supply Chain Professional of the Year 15 Past Winners

Congratulations to the winners

OďŹ&#x192;cial technology partner:

Welcome from CIPS Duncan Brock FCIPS Group Customer Relationships Director, CIPS and Chair of Judges

do has a major impact on not only your organisation, but on global, regional and local economies, given the region’s standing on the world stage.

May I extend very warm congratulations to all the winners in this year’s awards. I would also like to congratulate everyone who took part, showcasing the excellence and best practice you have all demonstrated so clearly.

The ripple eﬀect of this great work will continue and extend beyond this evening and will inspire others to aspire to reach the same levels of achievement you have. From these awards, we can all take away some practical examples of superb procurement and transformative supply chains. CIPS will use these best practice examples to share with other companies in other regions of the world.

CIPS is determined to continue to support this drive for change and progress throughout the region, helping all professionals to be the best they can be. The work you

You have made CIPS proud but also your own organisations and others in the profession. Enjoy your evening and celebrate. Well done.

Judging panel Duncan Brock FCIPS Group Customer Relationships Director, CIPS and Chair of Judges

Mike Anwana Onu FCIPS Head, Contract Services at RasGas

Lorraine Black MCIPS Senior Procurement Manager, MBC

Satish Kumar Head of Procurement Department, Mushrif Trading and Contracting Company

Charles McNulty FCIPS Commercial Manager – Indirect Procurement & Leasing, BAE Systems

Paul Snell Managing Editor, Supply Management and Supply Business magazines

Official technology partner Since 2012, the CIPS Middle East Awards judges have used Commerce Decisions’ AWARD™ evaluation software for the assessment of submissions. The process is entirely electronic, making it as eﬃcient for the judges and as equitable for the candidate organisations as possible. Our thanks to Commerce Decisions for its support.

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Overall winner Overall Winner and International Procurement Project of the Year â&#x20AC;&#x201C; Etihad Airways

By teaming up to work with smaller partners, the Joint Procurement Taskforce of the Etihad Airways Equity Alliance achieved $40 million of benefits in 2014 and is aiming for $80 million or more this year. The alliance comprises of eight partners â&#x20AC;&#x201C; Alitalia, Air Serbia, Air Seychelles, Air Berlin, Jet Airways, Virgin Australia, Aer Lingus and Etihad. The procurement taskforce, established in late 2012, immediately brought about some quick wins and has since then developed a joint strategy, legal framework and tender guidelines. The aim is to align demand to achieve time and money savings.

Judge’s comments: “Delivering real benefits from leveraging scale across eight different airlines is very difficult to achieve. Many collaborative sourcing projects fail due to lack of senior executive support and aligned goals. Etihad Airways is leading an excellent joint procurement programme with its equity alliance partners and have already delivered significant results with more to come.”

The equity partners are at different levels of procurement maturity – some don’t even have a professional purchasing resource – so the taskforce approach improved governance, the sharing of best practice and processes and procedures and tools. It also provides interim resources, on-the-job training, remote operational support and shared expertise. A steering committee meets quarterly to set the general strategy and working groups then define category strategies and execute strategic sourcing. A Programme Management Office (PMO) communicates with partners on a daily basis to advertise joint opportunities, collect information, share market intelligence, promote new strategies and best practice, support communications and serve as the procurement helpdesk. For top spend categories, there has been a huge effort to analyse each partner’s contracts, align expiry dates and produce joint plans. Some tenders have been led by regional centres of excellence and cover entire regions. One joint RFP is floated to the market, a virtual tender team assesses offers and defines the negotiation strategy, and a few appointed negotiators conduct physical meetings.

Sergey Dovgalenko, senior manager, global procurement, for the equity partners at Etihad, said: “The efficiencies are not only monetary savings, but huge manpower and process gains, when instead of individual tenders for one or few locations, a group of airlines covers regions with one coordinated effort. “These tenders result in contracts available for other equity partners to join at a later stage, thus enabling the smooth launch of new destinations, and smaller airlines benefiting from commercial terms of their bigger peers.” President and CEO of Etihad Airways, James Hogan, said: “Our equity investments allow us to build integrated networks and schedules, develop common products and services, and most importantly identify business and cost synergies. Our new model gives benefits on both sides of the equation – revenue and costs.”

Also on the shortlist: • Drydocks World, Dubai • Jumeirah International LLC

Winner Best Contribution to Corporate Responsibility TNT Express UAE In June 2014 TNT in UAE commenced its initiative to reduce its ﬂeet’s diesel emissions by using biodiesel B5 – cooking oil blended with petroleum diesel – instead of petroleum diesel for its Dubai ﬂeet. By January this year over 90 per cent of the diesel used in its vehicles was B5, clinching it the CIPS Best Contribution to Corporate Responsibility award. The B5 Biofuel produces 10 times fewer harmful

Judge’s comments: “TNT’s objectives in support of the National Green Agenda included safer working practices and reducing harmful fuel emissions. By having clear goals and good planning they were able to introduce enhanced driver training and alternative fuels which has been held up as best practice.”

greenhouse emissions than regular diesel, reduces emissions of particulate matter, carbon dioxide and hydrocarbon and is expected to reduce carbon emissions by about 32 tones per year. Side beneﬁts include cutting costs, using the savings to retrain their drivers and boosting national and global environmental goals. To enable the project, TNT negotiated a biodiesel rate at 13.5 per cent less than petroleum diesel, invested in a mobile biodiesel dispensing vehicle and ensured the biodiesel ﬁlling stations were situated near the depots. Mark Pell, managing director Middle East and Africa, said the company was “incredibly proud of the initiative”. Also on the shortlist: • Drydocks World, Dubai • Etihad Airways • Jumeirah International LLC

Winner Best Cross Functional Teamwork Jumeirah International LLC The Jumeirah Beach Hotel is the hotel chain’s flagship resort, and the company aimed to cement this status by winning a Dubai Quality Award. This accolade, handed out by the government of the emirate, recognises role models of organisational excellence, and acts as a tool to benchmark performance. The aim was to demonstrate how the hotel improved its operation in Dubai, boosting trade. The supply chain and logistics team co-ordinated the project, steering other departments including housekeeping and human resources to identify action plans and also established a committee of senior executives, to oversee the project and ensure the criteria for the award were fulfilled and provide feedback. Additional benefits included increasing the capability and knowledge of those on the team, improving the morale 8

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of employees, and improving guest feedback. The hotel was presented with its Dubai Quality Award by Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, in June 2014. Also on the shortlist: • Etihad Airways • Gasal Q.S.C.

Judge’s comments: “This project was an example of procurement and supply chain showing leadership and taking responsibility for a corporate programme that enhanced the brand of the business. Also the ‘One Jumeirah’ approach was a great demonstration of an organisation pulling together to achieve a common goal.”

Winner Best People Development Initiative Etihad Airways Etihad Airways won in this category for designing and implementing a new two-year procurement and graduate programme that is practical, academic and helps to identify future leaders for the department. Previous schemes had invested in graduates who then moved on from purchasing and supply. So time was spent assessing why the programme failed and how to improve it. The aim now is to hire 10 top graduates every year

Judge’s comments: “This is a very well executed graduate programme designed to attract, select, train and retain the best graduates to become future procurement and supply management leaders. It shows Etihad Airways has a clear long-term vision and continually works to develop its employees.”

who can become future leaders in the department. Procurement manager Louise Mitchell said “Previous programmes did not speciﬁcally target individuals with appropriate skills and the desire to become top procurement professionals. The organisation now saves in learning and development costs per graduate (more than £100,000 a year) and also in the time invested by line managers in training, coaching and supporting them.” After induction, graduates spend 100 weeks carrying out all aspects of procurement and also get access to a toolkit of best practice procurement practices learned through CIPS and elsewhere. Also on the shortlist: • Abu Dhabi Company for Onshore Petroleum Operations (ADCO) • Jumeirah International LLC

Winner Best Supplier Development Initiative Dragon Oil Holding LLC Headquartered in Dubai, UAE, Dragon Oil is an independent international oil and gas exploration, development and production company, part-owned (54 per cent) by the Emirates National Oil Company (ENOC).

The team carried out assessments including 40 vendor audits to evaluate supplier performance and share notes for improvement. It also worked to develop all its suppliers with 75 organisations beneﬁtting.

It develops two oil and gas ﬁelds in the Cheleken Contract Area in oﬀshore Turkmenistan, and has assets in Tunisia, Iraq, Afghanistan, Egypt, Algeria and the Philippines.

Also on the shortlist: • Emirates Global Aluminium Company Ltd • Jumeirah International LLC

The company won the gong for assessing, auditing and developing some of its key vendors and bringing about improvements, including ﬁnancial beneﬁts. Umapathy Jeevarathinam, team leader, strategic group purchasing department, said of its Vendor Assessment Programme: “It’s vital stakeholders – including suppliers – understand business process and customer requirements. We value collaborative relationships and took steps to improve supplier performance.”

Judge’s comments: “Dragon Oil established a comprehensive vendor development programme. These initiatives raised awareness and brought about big improvements. It helped the organisation achieve category management, by identifying the vendor’s potential, which improved the ﬁnancials of the company.”

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Winner Most Improved Procurement Operation – Start Up FGB (First Gulf Bank) In July 2013 First Gulf Bank established a professional procurement department and began a journey to take the function to its optimum operating model by mid 2015 using governance, technology and people and innovative, progressive procurement technologies. Claiming to be the ﬁrst bank in the region to accept advanced procurement as an ethos, it worked towards the adoption of the integrated Oracle Advanced

Judge’s comments: “A professional procurement department was set up by the bank in the year 2013. In the past two years FGB has demonstrated improvement in process and governance, technology and people and the innovation component by embracing progressive procurement technologies.”

Procurement suite, using technology as the key to its strategy and transforming its procure-to-pay process. Tahir Rafiq, head of procurement, said: “Through technology we’ve strengthened corporate governance and improved our reporting and analytics capability. We’ve invested in people and 65 per cent of our staff are on a CIPS certification course, we’ve developed policies in line with automation and engaged our stakeholders.” Tangible benefits include a saving of AED 17 million during the first year. Spend under contract increased from 20 per cent to 60 per cent and the bank’s supplier base was rationalised from 2,700 to 1,800 vendors. Its travel policy was also automated, which was welcomed by staff. Also on the shortlist • Atkins • The Dow Chemical Company

Winner Most improved Procurement Operation – Step Change Dubai Municipality The contracts and purchasing department within the Dubai Municipality is proudly committed to eco-friendly and innovative practices, becoming the ﬁrst government department to introduce web-based automation to its full end-to-end procurement cycle. It launched integrated electronic systems including E-supplier, I-supplier and E-committee, resulting in no paper usage. The department thereby fell into line with the government’s move towards becoming a ‘Smart City’ of full automation. During the past 12 months the department transformed to full automation, with 0 per cent use of paper. All of its activities including issuing requirements, collecting and evaluating supplier proposals and the awarding of contracts are managed wholly online and it is an example of best practice for other departments. 10

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“Converting all our tender projects online, will not only reduce time, but increase corporate governance as well as reducing manual errors since more than 4,000 requests are sent out per year,” the entry said. Also on the shortlist: • Etihad Airways • The Dow Chemical Company

Judge’s comments: “Dubai Municipality had a massive achievement in transforming purchase workﬂow from paper to automated systems. It launched several integrated electronic systems including E-supplier, I-supplier and E-committee. It is the ﬁrst government department to introduce web-based automation to their end-to-end procurement life cycle.”

Winner Best Supplier Relationship Management Transguard Group LLC Transguard Group is made up of six businesses providing services such as cash management, security and aviation support. As a result, the company – part of the Emirates Group – had 57 diﬀerent uniforms and no brand standard. Senior management wanted a consistent approach, and procurement recognised the value of unity, fast availability and interchangeable products, which would unlock big cash savings and make supplier management

Judge’s comments: “Transguard’s partnership with Dream Uniforms brought real benefit to the company, with a direct impact on the company’s overall brand. It has resulted in an improved experience for end users, both in buying and with the new uniforms themselves.”

easier. Dream Uniforms was appointed and reduced the number of uniforms to six. Fabrics now carry a warranty from the supplier and both parties created uniform catalogues – enabling users to order at the click of a button. Grooming standards were established and just in time manufacturing introduced. The contract saved 23 per cent on baseline costs and cut lead times by 75 per cent. The ﬁrm could implement self service for end users, allowing each business to place orders against negotiated terms and conditions. The vendor-managed inventory saved it AED 1 million, as it no longer had to hold stock, and consolidate and close an unused facility. Also the uniform looked smart and made staﬀ feel proud as a result. Also on the shortlist: • Jumeirah International LLC

Winner Procurement Team of the Year Atlantis, The Palm, Dubai Atlantis is a five-star hotel on man-made island the Palm in Dubai. In 2013, owner the Investment Corporation of Dubai, unveiled plans for a $1.4 billion Royal Atlantis Resort and Residences, an additional 800-room resort to be situated next to Atlantis, The Palm resort, which is scheduled to be finished by 2017. Procurement’s role was identified as critical to its success. The 15-strong team, responsible for $146 million of annual spend, was tasked with making the most of the investment, improving goods and services and delighting stakeholders in the four business areas – the resort, waterpark, Dolphin Bay, and retail leasing and retailing. The team deliberately hired innovative individuals and adopted a consensus-building approach, working with stakeholders. Strategic sourcing delivered $8 million savings in three years. Risks were mitigated with no

disputes; the performance of 102 major suppliers was evaluated; eﬃciencies delivered and analytics in place. Tim Wise, EVP global ﬁnance at Kerzner, which manages the Atlantis, said: “This is an excellent achievement.” Also on the shortlist: • Jumeirah International LLC • Saudi Arabian Mining Company (Ma’aden)

Judge’s comments: “The team’s activities demonstrate just how important procurement is to a project of this size and scale. It also shows how a measured approach can mitigate risks and deliver excellent results, including boosting revenue.”

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Winner CIPS Middle East Young Procurement and Supply Chain Professional of the Year Mohammed Zakir, The Petroleum Institute “Amazing work” is how Mohammed Zakir’s managers describe his contribution to The Petroleum Institute, which he joined in July 2011. His achievements included making average savings of 16 per cent per annum over the past three years, against an expected saving of 5 per cent. And the judges were impressed by the way he convinced the organisation to invest in CIPS training and motivated his fellow team members to do it. He completed the full automation of the procurement process, implementing Tejari, which led to a 30 per cent improvement in eﬃciency and played a critical role in the implementation of an ERP system. He also developed a new vendor registration process and acted as a

Judge’s comments: “Mohammed Zakir has been involved in a number of initiatives. This was recognised by his senior management where he gained their support to initiate CIPS training programmes. His hard work and support of the profession is an example to all other young procurement professionals.” representative for the department to help end users. Ali Al Hammadi, head of procurement, and Hala Al Suwaidi, supply chain manager, said: “The professionalism that he portrayed impressed the entire team.” Also on the shortlist: • Abdul Aziz Mujeb, Tejari • Deepak Ramaway, Emirates Global Aluminium Company • Gaurav Malhotra, Jumeirah International LLC

Winner CIPS Middle East Procurement and Supply Chain Professional of the Year Hariharan Laxminarayan, Emirates Global Aluminium Company Hariharan Laxminarayan summarised his approach in five words: enable; educate; elevate; enlighten; and empower. He joined Emirates Aluminium Global Company in 2009 on the first day of the procurement department and introduced concepts including vendor management warehouses and long-term fixed price contracts. He has encouraged local SMEs, with 35 established over the past five years and his skills across the supply chain led to savings of more than $40 million. He inspires young professionals to win awards, and motivated the team to attain ISO 9000, 14000 and 18000 accreditation. A CIPS UAE Dubai branch committee member and a Fellow, he mentors professionals from Bangladesh to Kenya. 12

Celebrating excellence in procurement and supply

Also on the shortlist: • Bhanu Pratap Singh, Atlantis, The Palm, Dubai • Lalit Dhamija, Abu Dhabi Company for Onshore Petroleum Operations (ADCO) • Pamela Muthukrishna, Anantara Dubai The Palm Resort & Spa • Yousif Mohammad Al Ali, Emirates Airlines

Judge’s comments: “Hariharan combines being a successful procurement leader with a real passion to raise the proﬁle of procurement for young people. His focus to enable, educate, elevate, enlighten, and empower individuals is impressive and the fact that he does this in UAE, Bangladesh, India, Mauritius and Kenya shows his real commitment to the cause.”

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We’ve changed our name… For over 35 years PMMS has been at the leading edge of our profession, helping to shape the role of Procurement, develop the people who work within it and the processes they use. We are proud of the models and concepts we have introduced, many of which are now embedded into everyday best practice. Our business continues to develop and we now have a presence in 15 countries. Our new brand reﬂects this global reach and our ethos of applying and adapting global best practice and know-how to local circumstances. ArcBlue, the new global brand name of PMMS Consulting Group.

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Past winners We would like to oﬀer our congratulations to all of this year’s shortlisted entrants, and, of course, our winners. The winning entries featured in this brochure are joining the illustrious list of past winners, see below. If you were not successful this year, please do try again and continue to ensure the CIPS Middle East Awards are recognised as the most prestigious accolade in the procurement industry.