ProcureCon Financial Services’ speakers give insight into the projects they’re working on, as well as the challenges facing them in 2012

Ahead of the inaugural ProcureCon Financial Services meeting, which takes place on 26^th & 27^th September in London, several of the event’s keynote procurement speakers share some of the projects they’re currently working on, as well as the challenges facing them in 2012:

Duncan Brock, Chairman, CIPS

What do you foresee as being the key challenges for procurement professionals working in the financial services sector for the next 12 months?

• All FS companies are being challenged to reduce their cost base, and so there will continue to be a high focus on the need to deliver cost reductions. In some companies the targets being set are at a higher level than they’ve had to deliver in the past.
• Supplier management gets discussed in many FS companies but more needs to be done to really embed it as a way of working to maximise the value delivered by the major suppliers – particularly where there are outsourced services
• Engaging internally with stakeholders, particularly where there is a large central procurement team, is a key to success in FS. Stakeholders are becoming more demanding and procurement leaders need to continue to improve their stakeholder management and engagement skills.

How do you think the procurement profession will have to change within the next 12 months?

• See my last point above – improved stakeholder management and engagement
• Risk management and sustainability are on the strategic agendas of businesses – procurement needs to demonstrate that it is embracing these challenges as well as continuing to deliver the required cost reductions.

Luca Guzzabocca, Director of Procurement, Logistics, HSE and Security Management, Banca Monte dei Paschi di Siena S.p.A.

Key project you are currently working on:

Cash transport and management process review, paperless bank, Real Estate associated costs

What you foresee being your key challenges for the next 12 months:

• “Ultra-efficiency” initiatives: more than in the past 3 years company is looking at extraordinary results in saving, expenses reduction and processes review.
• Environmental, social and ethical Sustainability programme: we anyway need to balance our commitment in sustainability with our economic results

How you are overcoming these challenges:

• Full day-by-day governance on compliance and a strong interfunctional team working
• Regular and constant consideration of sustainability criteria in any initiative

Alan McQuade, SVP, EMEA Supply Chain Management Executive, Bank of America Merrill Lynch

Key project(s) you are currently working on:

At Merrill Lynch, and across much of the financial sector, Vendor oversight across the lines of businesses and regions is receiving a much greater Regulatory focus than previous years. This is leading to a range of Internal programmes and related change activity to ensure the Regions and businesses have clearly evidenced controls, routines, oversight and understanding of their vendor and outsourced activity, and in terms of ensuring the correct escalation and committees are in place around such activity. The EMEA Supply Chain group are central to the implementation activity around this.

What you foresee being your key challenges for the next 12 months:

The lack of growth in the Eurozone, and the reducing revenues across wholesale and investment banking has created a more visible and significant pressure on expenses, across the Bank. This, combined with the increasing Regulatory focus around 3rd party activity is leading to an environment whereby the group have to come up with new and innovative ways to reduce our 3rd party cost base, whilst also ensuring a stronger control environment across all Regions.

How you are overcoming these challenges:

Rollout of enhanced vendor management routines, especially in our emerging markets environment, as well as close partnering with our business areas to manage down 3rd party reduction initiatives across a range of spend categories and business processes.

Please visit www.procurecon-finance.com to view the final agenda and explore some of the projects our other speakers are currently working on.