BAE Systems: achieves CIPS procurement excellence
For the first time, an Australian defence company has been recognised by...
BAE Systems Australia achieves CIPS platinum award for procurement excellence.
For the first time, an Australian defence company has been recognised by the Chartered Institute of Procurement and Supply (CIPS), for procurement excellence. BAE Systems Australia has been awarded a platinum award, following an in depth assessment that measured the organisations effectiveness in procurement and supply chain management against CIPS standards.
“I am delighted to receive this award which is a first in the Australian defence industry,” says Gabby Costigan, BAE Systems Australia CEO, “It recognises the company’s focus on continuously improving our procurement standards to achieve globally recognised benchmarks that improve our competitiveness. It also acknowledges our commitment to developing and maintaining enduring relationships with our Australian supply chain and how we partner with them on some of the biggest and most complex defence and security projects undertaken.”
During its assessment, BAE Systems demonstrated procurement senior management interactions in the business as a core feature. Procurement was also a core feature within the team and helped to assist in the adoption of new commercial aspects of the business and its increasing protocols.
BAE began the platinum procurement excellence assessment in 2016, after successfully achieving the standard award.
“I’m delighted that such a prestigious organisation such as BAE Systems are developing their procurement teams to such high-levels of competence and working together with other areas of their business. This is a particularly rigorous programme, looking at people, processes and policies and to continually achieve such high standards deserves recognition and congratulations,” added Sharon Morris, General Manager of CIPS Australasia.
Did you know? Other organisations that have achieved a CIPS procurement excellence award include: Dubai’s Road and Transport Authority and The African Development Bank. CIPS has also partnered with the UK government and Italy to provide procurement and supply chain training within the regions.
Image source: CIPS
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EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”