The success of strategic sourcing initiatives relies upon highly qualified, skilled CPO talents that are experts at what they do. The human element is the driving force behind any managerial movement, and in order to transform operations for the better, it is essential to have a top performing team on your side. In order to attract and retain the top CPO talent it is important to be prepared for some of the common challenges that lie ahead. These challenges (and their solutions) are outlined below.
1. Procurement Training
Undoubtedly the biggest challenge in attracting and retaining CPO talent is the lack of individuals trained in procurement. Even top ranking business schools and programs do not have an emphasis on procurement related courses. Business graduates today are well versed in areas like finance and marketing, but individuals with in depth knowledge of procurement are few and hard to come by.
Solution: Procurement functions are just as essential as marketing, operations, or IT for businesses in virtually any industry. Procurement strategy is the first step in making sure that products and services make it to the shelves for customers. By increasing awareness about this field, and its growing importance, students will automatically be more inclined to take relevant courses. At the same time, educational institutes will also be more likely to offer such courses and professional training.
2. Training a New Workforce
With fresh business graduates having little practical knowledge about the world of procurement, it can be costly and time consuming to train them up the required standard.
Solution: Offering professional training courses at the university level by setting up scholarships or special training events is one way to address this issue. Another option is to partner with professional training bodies and offer certificates that cover the basic skills for succeeding in procurement.
3. Adequate Compensation
In order to attract and retain top procurement professionals, there needs to be adequate compensation. This is especially true for procurement, where it is already hard enough to find expert professionals and the work often has to be outsourced to expensive consultants.
Solution: Since the market availability of qualified and skilled procurement professionals is already low, it is an opportune time to revisit compensation levels. By improving terms and conditions, and offering incentive based compensation, it may be possible to attract the best of the best.
4. Independent Department
In most organizations, the traditional structure places procurement firmly under the department of finance. This often results in disenfranchised and discouraged workers who are unable to put their knowledge to good use. At the end of the day, the company loses out on in house talent and ends up spending more than it bargained for.
Solution: Giving procurement teams independent status with direct access to funding can yield better results for growth. This will ensure that workers are attracted to new developments and take the lead on implementing changes beneficial for the entire organization.
5. Outsourcing Talent
Experience breeds complacency, and if your procurement team is only involved with limited types of products or services, they are likely to lose some of their dynamic skills.
Solution: One way of keeping your procurement team on their toes and up to date on the latest strategy is by outsourcing services. Companies are already taking the lead on this and getting double the return: compensation for services and invaluable learning experiences for the staff members.
Undoubtedly the biggest challenge in attracting and retaining CPO talent is the lack of individuals trained in procurement. Even top ranking business schools and programs do not have an emphasis on procurement related courses. Business graduates today are well versed in areas like finance and marketing, but individuals with in depth knowledge of procurement are few and hard to come by.
Solution: Procurement functions are just as essential as marketing, operations, or IT for businesses in virtually any industry. Procurement strategy is the first step in making sure that products and services make it to the shelves for customers. By increasing awareness about this field, and its growing importance, students will automatically be more inclined to take relevant courses. At the same time, educational institutes will also be more likely to offer such courses and professional training.
2. Training a New Workforce
With fresh business graduates having little practical knowledge about the world of procurement, it can be costly and time consuming to train them up the required standard.
Solution: Offering professional training courses at the university level by setting up scholarships or special training events is one way to address this issue. Another option is to partner with professional training bodies and offer certificates that cover the basic skills for succeeding in procurement.
3. Adequate Compensation
In order to attract and retain top procurement professionals, there needs to be adequate compensation. This is especially true for procurement, where it is already hard enough to find expert professionals and the work often has to be outsourced to expensive consultants.
Solution: Since the market availability of qualified and skilled procurement professionals is already low, it is an opportune time to revisit compensation levels. By improving terms and conditions, and offering incentive based compensation, it may be possible to attract the best of the best.
4. Independent Department
In most organizations, the traditional structure places procurement firmly under the department of finance. This often results in disenfranchised and discouraged workers who are unable to put their knowledge to good use. At the end of the day, the company loses out on in house talent and ends up spending more than it bargained for.
Solution: Giving procurement teams independent status with direct access to funding can yield better results for growth. This will ensure that workers are attracted to new developments and take the lead on implementing changes beneficial for the entire organization.
5. Outsourcing Talent
Experience breeds complacency, and if your procurement team is only involved with limited types of products or services, they are likely to lose some of their dynamic skills.
Solution: One way of keeping your procurement team on their toes and up to date on the latest strategy is by outsourcing services. Companies are already taking the lead on this and getting double the return: compensation for services and invaluable learning experiences for the staff members.
