From recent conversations with procurement management specialists and supply chain professionals, it would appear that the skills needed for success are changing, and so is the image of the profession.
Historically, procurement has been seen as a cost saving function, obsessed not with what is best for the business but what is best for the bottom line. The realisation, however, of the benefits of effective supplier relationship management and the subsequent pay offs means the focus now relies much more on mutual success, not financial rationalisation.
This form of strategic procurement is a key way to test supply chain relationships and to ensure sourcing methods are intact. It is not simply cost that rules the day when outsourcing (or smart sourcing/right sourcing as it has become known). There is movement towards centralisation; collaboration between suppliers and collaborative contracts to increase efficiency.
Another emerging trend is that of increased emotional intelligence (EI). For those still unaware of this phenomenon, put simply, EI is the ability to perceive, reason, understand or manage emotions effectively, all of which is becoming increasingly relevant.
Procurement management has become a people business where an understanding of key motivational elements, individual criteria for personal development and the emotions of the different stakeholders, is crucial. As procurement evolves to become a business-focused function, developing and maintaining personal relationships will lead to more successful outcomes, both internally and externally.
Many interim management executives find the ‘hit the ground running’ mentality required of them in a new assignment is no longer just about operational or industry knowledge. Real success depends on building strong emotional relationships, both inside the company they work for, as well as with the suppliers they deal with. Understanding on this level with all stakeholders will ensure procurement management finds tailored solutions and benefits, in turn building stronger long-term relationships, more effective negotiations and financial savings. This will also serve to further procurement management agencies as key strategic business partners.
