Sep 16, 2020

CIPS Global Standard for Procurement and Supply

Procurement
CIPS
benchmarking
Matilda Pilkington
2 min
lady clapping at presentation
Supply Chain Digital takes a detailed look at what is included within these global standards and what they can mean for your organisation...

The Chartered Institute of Procurement and Supply (CIPS) is the world’s largest professional body for Supply Chain and Procurement with a global network of procurement professionals. They offer a range of professional certificates and opportunities to grow within the procurement and supply industry, as well as releasing their global standard for Procurement and Supply; a comprehensive competency framework.

Primarily, CIPS has an online benchmarking tool, allowing organisations of all types to compare their professionals against the standards, providing them with skills gaps which can be worked into a development programme. This is also available as a PDF download, which details all of the different levels and options. 

The competency levels within the standard are broken down into five separate categories:

undefined

These categories are then compared against the four pillars of the CIPS standard; Infrastructure, Process, Performance and People Development. These are each further broken down into 11 segments of key knowledge which detail the capabilities required to attain that competency level. 

For example, examining the pillar of Performance Standards in the section relating to Delivering Outcomes in Procurement and Supply. The capability requirements for Tactical level involve knowledge and use of the 5 rights of procurement and supply. 

  • Pri
  • ce/cost 
  • Quality 
  • Time 
  • Quantity 
  • Place

Whereas those relating to the Advanced Professional level focus more on applying improvement methodologies and investigating issues through statistical analysis and data. 

The benefits of using a benchmarking tool such as the CIPS global standards include:

  • Companies and individuals can identify skill gaps
  • Cost effectiveness and compliance within teams
  • Justification for individuals for pay reviews or raises
  • More targeted recruitment of procurement professionals
  • More detailed performance and development reviews

Whether you are an organisation looking to benchmark your procurement team, or an individual who is hoping to evaluate your performance against industry standards, the CIPS is a good place to start. 

Click below to access the online tool or read the full report. 

Share article

Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

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.”

Share article