16 Procurement Skills That Will Make You Unbeatable In Your Career
Join a few of these together to reach your procurement potential
The procurement landscape constantly evolves, driven by globalisation, technological advancements, and a shift towards sustainable practices.
The procurement dinosaurs will try to fight this. But don’t waste your time with them…they’ll find their way out of this incredible profession in due course.
You may not agree with the focus on ESG either, but we cannot deny the permeation of it throughout all that we do.
Whether you are kickstarting your career in procurement or are a seasoned professional, upskilling is indispensable. And I focus on this every Tuesday to try and get just one of you thinking about your capability as a procurement pro.
This article elucidates 16 vital skills, weighed against criteria such as ease of learning, durability, and cost to acquire, to help you navigate the modern procurement profession to beat everyone else who you are up against in an interview or for a promotion.
Seriously, it’s a battle. I want to help you win this.
Here’s the table of what we’re covering.
1. Strategic Sourcing
Mastering strategic sourcing is akin to having a sharp arrow in your procurement quiver. It's about identifying, evaluating, and capitalising on the optimal mix of supplier relationships.
Ease of Learning: It demands a blend of theoretical and practical exposure, making it a moderate learning curve.
Durability: This skill is a procurement cornerstone and won’t be overshadowed by AI advancements. If anything, you’ll take the conn with AI to deploy this widely.
Cost: A moderate investment in certifications or courses is usually required to ratify you know Strategic Sourcing…if you care about this (I won’t repeat this point throughout, but I don’t believe a certificate is going to show you know your stuff here).
Career Leap: As you ascend the career ladder, strategic sourcing morphs from a task to a philosophy, making you a valuable asset for senior roles.
2. Supplier Relationship Management (SRM)
Navigating the waters of supplier relationships proficiently can significantly buoy your procurement career. I’ve worked in fledgling supplier management teams, and the focus on relationships versus cost made a huge difference.
Ease of Learning: With a balanced approach to theoretical learning and real-world interaction, the learning curve is moderate. Caveat - very few in the procurement space have deployed this successfully.
Durability: The essence of human interaction in SRM keeps AI from usurping it. I don’t see this changing.
Cost: A spectrum of courses and workshops, ranging from low to moderate cost, can bolster your SRM acumen.
Career Leap: As you transition to senior roles, the depth of your supplier relationships can significantly impact the strategic procurement decisions, making SRM a linchpin skill.
3. Data Analysis
In a data-driven world, the ability to decipher data trends can set you apart in the procurement domain.
Ease of Learning: The learning curve could range from moderate to steep depending on your aptitude for numbers and tools.
Durability: While tools may evolve, human insight in data analysis holds its ground. However, AI can analyse data far better and faster than you. However, the secrets it unlocks will take your creativity to apply it properly.
Cost: Various software tools and courses necessitate a moderate investment.
Career Leap: Senior roles often demand data-driven decision-making, making this skill a key to unlocking higher managerial positions.
4. Contract Management
Contractual intricacies often dictate the procurement narrative. Mastering them can significantly elevate your procurement game. And guess what? Too many procurement pros suck at contract management.
Ease of Learning: A blend of legal understanding and experience defines the moderate learning curve.
Durability: The legal acumen and human judgement involved are irreplaceable by AI. There is not one piece of generative AI I’ve seen that comes close to human knowledge. However, Harvey.AI might be a contender.
Cost: Various certifications and courses are available at a moderate cost. A law degree would put this at an extreme cost.
Career Leap: Senior positions require adept contract management to mitigate risks and ensure smooth supplier relationships. Not to mention ensuring you get what you paid for whilst remaining compliant.
5. Project Management
Steering the procurement ship amidst turbulent project waters requires a solid grip on project management.
Ease of Learning: Organisational and people skills define a moderate learning curve.
Durability: The essence of ensuring successful project delivery remains unaffected by AI. AI will vastly improve it.
Cost: Various certifications are available at a low-moderate cost.
Career Leap: Your ability to manage projects efficiently can propel you into senior roles where overseeing multiple projects becomes the norm. If you suck at project management, you’ll likely struggle to get beyond a manager role.
6. Negotiation Skills
Negotiation is the art and science of procurement that can significantly impact an organisation's bottom line.
Ease of Learning: With practice and training, honing negotiation skills has a moderate learning curve.
Durability: Despite AI advancements like Pactum.ai, the human touch in high-stake negotiations remains irreplaceable. As AI negotiation improves, this skill might not be as high on this list.
Cost: Workshops and courses available at a low to moderate cost.
Career Leap: Senior roles often demand the finesse to negotiate favourable terms, making this skill indispensable.
7. Tech-savviness (ERP, e-Sourcing Tools, Digital Procurement)
Being tech-savvy in a digital procurement is akin to speaking its native language. I only view procurement pros now as a “Digital Procurement Pro”.
Ease of Learning: Prior tech exposure can smoothen the moderate learning curve. Caveat: you need to be hands-on with procurement tech to truly understand it.
Durability: Although tech tools evolve, the knack for adapting to them is enduring.
Cost: Training programs and licenses necessitate a moderate investment.
Career Leap: Embracing technology can significantly enhance efficiency, preparing you for senior roles in modern procurement setups.
8. Risk Management
Procurement often treads along a razor’s edge of risks. Mastering risk management can ensure a balanced stride. This is another area where too many procurement pros suck, and you can leapfrog many by improving your skills here.
Ease of Learning: A solid understanding of potential risks defines a moderate to steep learning curve.
Durability: Risk assessment and mitigation are human-centric tasks, keeping them relevant despite AI advancements. However, AI will likely pick up much of the doing part of risk management with you setting the strategy.
Cost: Moderate, with various training and certifications available.
Career Leap: Senior roles demand a robust approach to risk management, making this skill a cornerstone for career advancement.
9. Ethical Procurement
Ethical procurement is the hallmark of modern, responsible organisations, and mastering it can significantly bolster your professional image.
Ease of Learning: A moral compass and understanding of ethical principles define a moderate learning curve.
Durability: The human-driven ethical considerations are irreplaceable by AI. We’ll be in the realms of AGI if this is ever reached by what we call AI currently.
Cost: Low, mostly about self-education and staying updated on laws and standards. The Sustainable Procurement Pledge could be a good place to start.
Career Leap: Being an ethical procurement leader can significantly enhance your candidacy for senior roles, showcasing your holistic approach to procurement.
10. Change Management
In a field as dynamic as procurement, managing change is crucial. As you introduce digital procurement, this skill might be the number 1 required skill that many do not have.
Ease of Learning: The balance between people skills and process understanding defines a moderate to steep learning curve. Hands-on experience is needed, too.
Durability: Change is a constant in business, making this skill highly durable.
Cost: Moderate, with courses and certifications available.
Career Leap: Change management is pivotal in senior roles where leading teams through evolving procurement landscapes is the norm. You’ll never become a modern CPO if you don't have this.
11. Sustainability and Circular Economy Knowledge
In a world veering towards sustainability, having a firm grasp on sustainable procurement practices is invaluable.
Ease of Learning: This skill requires a moderate learning curve, blending theoretical knowledge with practical applications.
Durability: With sustainability being a core focus in modern procurement, this skill's relevance is high.
Cost: A low to moderate investment in online courses or certifications can be beneficial. Practical experience is free; many are not doing much with this yet. You could become a pioneer in this space.
Career Leap: Leading sustainability initiatives can significantly bolster your profile for senior roles, showcasing your forward-thinking approach.
12. Innovation and Creativity
Innovation is the fuel for the engine of modern procurement, driving efficiencies and fostering competitive advantage.
Ease of Learning: This skill varies among individuals, but techniques to foster innovation can be learned. I’m of the view that you’re born creative, and we lose it as we age. Think like a kid - seriously. Play. Have fun. You’ll learn faster than ever.
Durability: The human-centric nature of innovation and creativity keeps them relevant despite AI advancements.
Cost: Low, as it's primarily about fostering a mindset, though workshops can be helpful.
Career Leap: Innovative thinking is a prized asset in senior roles, driving strategic procurement initiatives.
13. Global Sourcing
The global nature of modern supply chains makes the skill of global sourcing a significant asset.
Ease of Learning: The learning curve is moderate to steep, requiring an understanding of international trade, laws, and cultures. Another one that requires hands-on experience. I suck here - I’ve not sourced from China. I’ve sourced from the EU, US, Israel and other places. This might be enough in some areas, but you’ll want to have bought many things worldwide to cement this.
Durability: The global nature of business keeps this skill highly relevant.
Cost: Moderate, as it may require formal education and exposure to global markets.
Career Leap: Global sourcing expertise can open doors to senior roles in organisations with international supply chains.
14. Cost Management and Reduction
Cost efficiency remains a perennial goal in procurement, making cost management and reduction skills crucial.
Ease of Learning: The learning curve is moderate, requiring analytical skills and understanding cost structures.
Durability: The focus on cost efficiency is unchanging, rendering this skill highly durable.
Cost: Low to moderate, with effective online courses and on-the-job training.
Career Leap: Proficiency in cost management is key for senior roles, directly impacting the organisation’s bottom line.
15. Communication Skills
Effective communication is the bridge between procurement objectives and their successful execution.
Ease of Learning: This skill varies among individuals but can be honed over time.
Durability: The human interaction central to procurement makes communication skills irreplaceable by AI.
Cost: Low, with many resources available online for free or at a low cost.
Career Leap: As you ascend to senior roles, your ability to communicate effectively across various stakeholders becomes pivotal.
16. Regulatory and Compliance Knowledge
Procurement is a field entwined with regulatory frameworks. Being adept at navigating these legal, regulatory, and contractual mazes is crucial.
Ease of Learning: Continuous learning and possibly formal education make this a moderate to high learning curve.
Durability: Its relevance is undying, given the ever-evolving legal landscape.
Cost: Moderate due to the need for continuous education and training.
Career Leap: A strong grasp of compliance will ensure that procurement strategies are legally sound as you aim for senior roles.
Closing Thoughts
These 16 skills could power a more successful, fulfilling, and, more importantly, far more fun career for you. There’s a low barrier to entry for many, and I still come across procurement pros who are weak in every area. You don’t need all of these. But as you join several of them together, your procurement skill stack will start to become unbeatable in the jobs market.