Procurement has certainly come a long way in the last decade. In the past, it was a necessary but seldom-celebrated function. But times have changed and, these days, a company’s procurement activities play a pivotal role in its success in ways that old-fashioned purchasing managers could never have imagined.
Why has procurement risen to such prominence in today’s highly competitive environment? And how and why has its focus shifted from tactical to strategic?
Why has procurement risen to such prominence in today’s highly competitive environment? And how and why has its focus shifted from tactical to strategic?
Many of a company’s functions now come under the umbrella of ‘procurement’, such as strategic sourcing, category management, market knowledge, supply base management, risk management and supplier selection. However, the core functions of purchasing and supplier relationship management are still very important.
Procurement adds value through helping to create strategic alliances and by the use of advanced competitive analysis. As the role has gained ground, organisations are demanding more from skilled procurement professionals.
Some of the best and brightest who are now seeking careers in the procurement field need to understand how to be effective in today’s complex supply chain environment. Companies are looking for broader experience, including relationship building and multilingual skills.
Professional associations such as the Chartered Institute of Procurement and Supply (CIPS) provide recognised qualifications to enhance employee skills. In addition, a number of universities are offering procurement and supply chain degrees.
Procurement training offers specific management proficiencies that, together, comprise an advanced-level skillset applicable to any procurement professional. Training is an important consideration for companies looking to develop their people while maximising their investment. The benefits of training include:
While the benefits certainly speak for themselves, such training does come at a cost. While the price may be merited for the benefits that result over the long term, companies need to decide if the training is worth the investment in the short term. It is also important to consider the candidates in question, whether they will continue their employment long enough to outweigh associated risks.
Factors to consider:
I think it’s safe to say that the importance of strategic procurement is greater now than ever before and that it will continue to advance further into supply chains. What’s your company’s current take on strategic procurement? Is the evolving nature of procurement affecting how you hire and train your staff? We’d love to hear your views.
Procurement adds value through helping to create strategic alliances and by the use of advanced competitive analysis. As the role has gained ground, organisations are demanding more from skilled procurement professionals.
Some of the best and brightest who are now seeking careers in the procurement field need to understand how to be effective in today’s complex supply chain environment. Companies are looking for broader experience, including relationship building and multilingual skills.
Professional associations such as the Chartered Institute of Procurement and Supply (CIPS) provide recognised qualifications to enhance employee skills. In addition, a number of universities are offering procurement and supply chain degrees.
Procurement training offers specific management proficiencies that, together, comprise an advanced-level skillset applicable to any procurement professional. Training is an important consideration for companies looking to develop their people while maximising their investment. The benefits of training include:
- a higher understanding of how procurement impacts on the finances of an organisation
- a potential reduction in the cost of materials and services from boosted efficiency
- purchasing professionals becoming confident in their ability to contribute to strategic objectives
- improved interpersonal skills that result in solid teamwork
- the ability to help other employees to hone their own leadership skills
- enhanced relationships between contractors and suppliers.
While the benefits certainly speak for themselves, such training does come at a cost. While the price may be merited for the benefits that result over the long term, companies need to decide if the training is worth the investment in the short term. It is also important to consider the candidates in question, whether they will continue their employment long enough to outweigh associated risks.
Factors to consider:
- evaluation of the existing skills of the employees already involved in procurement, to see if training really is necessary
- alternative cost-effective training methods that may help overcome areas of weakness
- researching additional funding methods, such as grants, that can help alleviate costs
- the company’s long-term goals and how training will impact on them
- employees’ willingness to be trained on the assumption that they will be long-term members of staff.
I think it’s safe to say that the importance of strategic procurement is greater now than ever before and that it will continue to advance further into supply chains. What’s your company’s current take on strategic procurement? Is the evolving nature of procurement affecting how you hire and train your staff? We’d love to hear your views.