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
Procurement Savings Management We’re proud that our Savings Manager tool is one of the enablers helping to transform procurement at G4S. Powerful and flexible, the Savings Manager has been supporting organisations at all stages of their procurement journey since 2014. Let your team plan, manage and report the benefits they are delivering with confidence and clarity in our easy-to-use tool. For a discussion or a demo, please contact us today.
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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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