Ed Cross, Executive Director - Odesma

odesma.co.uk
Brexit & Procurement
odesma.co.uk
Odesma Ltd
CPO Event - Monday 5th June 2017
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odesma.co.uk
Introducing Odesma
We offer a new type of procurement advisory and delivery business that is
focused on improving our client’s bottom line
• Applying ‘Cloud Principles’ to ensure maximum efficiency and
effectiveness of our delivery
• Combining subject matter experts & leading edge technologies
• Focusing on speed - Expertise and Technologies delivered quickly, with
efficient cost and a very strong ROI
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odesma.co.ukodesma.co.uk
➢ A highly experienced management team
who will focus on your business outcomes
➢ Your business…our expertise
➢ We provide access to the best talent that
is available to you when it is required
➢ Faster delivery, scheduled SME support
➢ A lean delivery model assuring efficient
use of resources
➢ Fewer continuous overheads
➢ Lower than market cost at c1% of spend
managed; driving a high return on
investment
➢ Industry average is between 3-5%
Governance
& Program Mgt.
Enabling Simple
to Use
Technology
Market
Insight &
Knowledge
Category &
Procurement
Solution Mgt.
Spend &
Savings
Tracking
Experienced Leadership
Our expertise and model
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Business Advisory
Our Business Advisory service will help you define your
strategy, building on the mission and vision for your
organisation as well as help you identify and implement the
strategic imperatives and goals for the organisation.
Analytics and Insight
Understanding the supply market place, having full
market insight and knowledge is critical when managing
categories, Odesma have category work books and
access to leading market business intelligence solutions
to support intelligent decision making.
Training Services
As a procurement consultancy the transfer of
knowledge and skills is a critical component of
Odesma’s model when working with your team.
Procurement Advisory
Odesma’s goal is to help you create immediate and
sustainable improvements in the performance of your
organisation through active management of your third
party spend.
Virtual Procurement
We offer on demand procurement as a service (PaaS)
designed to replicate the benefits of an in-house
procurement operation at a much lower cost.
Procurement PeopleCloud®
The Procurement PeopleCloud® is a dedicated group
drawn from a network of high calibre subject matter
experts (SMEs), directed by experienced business and
procurement leaders.
Our services
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Where we have worked
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Executive Summery
➢ Survey launched when Article 50 was triggered
➢ The intent was to understand procurement readiness
➢ Anonymous respondees number 40+, and manage significant spend and budgets globally
➢ Overall findings variable, perhaps reflecting uncertainty surrounding Brexit
➢ Companion article commissioned “What Brexit means for Buying Organisations”
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Reach of our survey
Aerospace and Defence Financial Services
FMCG
IT
ManufacturingProfessional Services
Public Sector
Retail Media Logistics Other
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Reach of our survey
Company Revenue
Third Party Spend
Markets operating in
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Risk Management
Have you/ your organisation started putting plans into place to prepare for
Brexit?
Is Brexit and its impact a significant risk within your companies risk register? ➢ Mixed response on preparedness
➢ Or a wait and see approach?
“As with so many of the issues around
Brexit, the future is uncertain and available
detail is small……..”
Christian Spence, Head of Research and policy,
Greater Manchester Chamber of Commerce
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Do you see procurement as being important part of the organisation when
preparing for Brexit?
➢ The macro economic environment will
create risk across:
➢ Domestic inflation
➢ Exchange rate volatility
➢ Cost of capital/ interest rates
➢ Government investment levels/
domestic demand
➢ Import and export tariffs
➢ Resulting in business uncertainty:
➢ Investment/ CAPEX decisions
➢ Operating expense focus
Risk Management
Has your company conducted any scenario planning around Brexit?
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Which functions of your business do you think will be effected
by Brexit?
➢ Procurement respondees feel they are most
affected!
➢ Post Brexit the Great Repeal Bill would suggest
minimal legislative change
➢ Impact uncertain on “free movement and trade”
➢ Goods
➢ Workers
➢ Citizens
➢ Establishment and services
➢ Capital
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Do you believe that Brexit will hamper your organisations growth?
Growth
Do you believe that your organisation is involving procurement
sufficiently when planning for Brexit?
➢ Positive business and procurement viewpoint on
growth
➢ Economic uncertainty would challenge this
viewpoint
➢ Longer term economic view generally suggests
that the UK will not be hindered in the long term
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Will Brexit create a need for change in the capabilities and
skills of your current and future procurement team?
People
How or will Brexit lead to a change in procurement head
count requirements going forward?
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What sort of actions will your procurement team need to take
in order to prepare for Brexit?
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Do you believe that Brexit will disrupt procurement globally or
just those functioning within Europe?
➢ Global disruption is an interesting perspective:
➢ due to trading relationships (BLOC) and
changing trading tariff implications?
➢ being lead by change in sale end-
markets?
➢ greater freedom to trade?
➢ reciprocity?
➢ OJEU implications for the public and national
infrastructure organisations
“Following our exit from the EU, the government
will have no obligation to maintain these
directives.”
Christian Spence, Head of Research and policy, Greater
Manchester Chamber of Commerce
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Does your function/ organisation expect total third party costs
to change as a result of Brexit?
➢ Greater than 50% of responses expect price
inflation
➢ Depreciation of sterling has resulted in an
increase in producer (import) prices of circa
20%
➢ Domestic inflation will reflect cost increases,
then settle.
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Other survey findings…
Some key concerns from procurement professionals surrounding Brexit..
1. Uncertainty in the fluctuation of the exchange rate as a result of exiting the EU
2. The future of British farming. The government will continue to subsidise farmers up to 2020, but after that will be based on Demand and
Supply basis. A lot of farmers throughout the UK are older and the worry is that they will quit and sell their land for housing/commercial
development
3. Corporate Social Responsibility - Government legislation on VAT, Sugar, tax, Fat, and Healthy Options for Children - all of these can be a
hindrance to restaurants, and retailers
4. Mapping potential costs of new tariffs on businesses. The government priority in this should be keeping tariffs and quotas to a minimum to
help businesses to plan
5. Looking for alternative suppliers inside the UK. Will suppliers need to be changed or more local suppliers sought as a result of exiting the EU?
6. Undertaking Risk Analysis exercise when should it be done? Who should do it? Who should be involved?
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Conclusion
“As with so many of the issues around Brexit, the future is uncertain and available detail is
small. It will likely take another 15 months before the shape of the future beyond April 2019
is known, and companies should prepare carefully for all outcomes.”
Christian Spence, Head of Research and policy, Greater Manchester Chamber of Commerce
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What Brexit means to buying organisations
Article commissioned to the Chamber of Commerce, written by Christian Spence, Head of Research and Policy to support the survey
findings
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odesma.co.uk
If you’re intrigued by our approach or just interested to
see how we could apply our thinking and understanding
to your business, please get in touch.
Office: +44 (0) 161 433 7833
contact@odesma.co.uk
odesma.co.uk

Ed Cross, Executive Director - Odesma

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Ed Cross, Executive Director - Odesma