Steps to Identify and Close the Procurement Skills Gap

Procurement 

It's always a big word 

Whether you're a large company or a start-up that's still in its early days, you need to procure the best deals from the best suppliers possible.

The problem?

It's becoming more and more complicated to find the right talent capable of doing so. 

Matter of fact, a lack of certain skills among procurement professionals is considered as one of the top procurement challenges for businesses these days.

But what exact skills are a must-have? 

And what can you do about it?

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What's Happening with Procurement Talent?

Here's the simple truth

Procurement has changed, it's no longer only about buying things, it’s a complex field that requires negotiation skills, flexibility, risk management expertise, tech-awareness and a deep understanding of supply chains.

The big problem?

The industry keeps changing, so many professionals find themselves lacking the skills needed to keep up with the change.

New technologies, sustainability initiatives, and global supply chain disruptions have changed the way procurement work and expectations are higher than ever, making it a bit difficult for businesses to find someone who can be up for the challenge 

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How serious is the problem?

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Just a word: Big

In 2023, Gartner carried out a survey to address the big elephant, the outcome?

Only 14% of the procurement leaders consulted, were confident in finding the right talent for the future needs of their operations.

Think about it

Your business is growing and trying to do its best to adapt to all the new technologies and unexpected things, especially regarding geopolitical tensions and natural disasters, and while there's nothing wrong with taking the time to teaching a new procurement member the ropes of your operations-actually it's part of any onboarding process,  you'd want someone who not only has the right experience but perhaps even more importantly has the right mindset so they can adapt and learn on the go.

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What's Causing the Procurement Skills Gap?

Okay, but with so many people looking for a job, why the heck is it so hard to find a great procurement professional?

It's hard to attract and retain the right people.

One of the biggest lessons we learnt from the COVID-19 pandemic is that having a work-life balance is a priority rather than a bonus.

So offering a juicy salary is no longer sufficient to convince people to join your business. 

On top of that?

Procurement has a reputation for being demanding and somewhat chaotic, two factors that can scare top talent away.

To prevent this, you need to build a strong brand around flexibility, career growth opportunities, positive workplace culture, and competitive salaries, of course.

Technology is moving 

And there are no indications that's going to change anytime soon.

If you’ve ever struggled to learn a new procurement software or keep up with the latest AI-powered sourcing tools, you’re not alone. 

The technology used in procurement has advanced dramatically in the past few years, but many professionals haven’t been trained to use it effectively.

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One moment you are second-guessing the future, the next you can forecast what risks could hit your operations and with what consequences, which is a great advancement, but if aspiring procurement professionals can't learn how to do it, the technology is pointless.

Lack of training 

Let's keep the record straight, the problem is not whether people have a high IQ or not.

You could hire the next Einstein and still see some knowledge gaps.

The real issue happens when these professionals don't have a space to learn. 

Because when was the last time you saw a procurement-related workshop being the hottest topic of the week?

Exactly 

Unlike fields like finance or marketing, procurement doesn’t have a clear, well-known career path. There are fewer university programs focused on procurement, and many professionals end up in the field by accident rather than through formal training.

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Procurement is a strategic matter 

Yes, that's right 

Procurement has long stopped being an administrative role, where just placing orders was all that it mattered.

Nowadays?

It's the cornerstone for successful risk management, sustainability, and cost optimization.

This shift requires that procurement professionals are capable of building and managing supplier relationships, assessing business goals, and of course forecasting potential risks.

However, not everyone in procurement has been trained for this level of strategic decision-making, creating yet another layer to the skills gap.

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What Procurement Skills are in High Demand?

Okay, so we kind of know what the problem is, but what exact skills are procurement departments looking for?

If you’re in procurement or thinking about it, these are the must-have abilities that companies need with so much urgency.

Data analytics 

Because procurement is going completely digital.

Making the right business decision is all about relying on precise information, from analyzing spending matters to using procurement software to automate processes.

Procurement professionals need to be fully comfortable with all the new technologies and ready to shift their mindset towards a more automated, agile workflow.

Strategic thinking 

If you believe that procurement is only about making a purchase and calling the day done, you are sorely mistaken.

A decision made in the procurement department has the power to impact the whole company.

So it makes absolute sense that businesses are looking for professionals who can align procurement strategies with business goals, manage risks, and find opportunities for cost savings without sacrificing quality or ethical sourcing.

Supplier relationship management 

Strong supplier relationships can mean the difference between a successful supply chain and a complete disaster. 

Procurement teams need people who can negotiate fair contracts, manage partnerships instead of only business transactions , and handle supplier disruptions before they happen.

Negotiation and communication.

And speaking about positive relationships. 

What's the best way to achieve it?

Well, it certainly begins with communication.

And that's how you get the best deals, for sure.

Negotiation is fundamental for the success of any procurement strategy.

Whether you’re working with suppliers, internal stakeholders, or finance teams, strong negotiation and communication skills build the foundation for achieving what you want in the time you need.

Adaptability 

With all of these skills, you can bet that having a flexible mindset is a must-have. 

Procurement is evolving fast, and professionals who can quickly adapt to new trends and technologies will always be in demand.

‍

What Procurement Skills are in High Demand?

Okay, so we kind of know what the problem is, but what exact skills are procurement departments looking for?

If you’re in procurement or thinking about it, these are the must-have abilities that companies need with so much urgency.

Data analytics 

Because procurement is going completely digital.

Making the right business decision is all about relying on precise information, from analyzing spending matters to using procurement software to automate processes.

Procurement professionals need to be fully comfortable with all the new technologies and ready to shift their mindset towards a more automated, agile workflow.

Strategic thinking 

If you believe that procurement is only about making a purchase and calling the day done, you are sorely mistaken.

A decision made in the procurement department has the power to impact the whole company.

So it makes absolute sense that businesses are looking for professionals who can align procurement strategies with business goals, manage risks, and find opportunities for cost savings without sacrificing quality or ethical sourcing.

Supplier relationship management 

Strong supplier relationships can mean the difference between a successful supply chain and a complete disaster. 

Procurement teams need people who can negotiate fair contracts, manage partnerships instead of only business transactions , and handle supplier disruptions before they happen.

Negotiation and communication.

And speaking about positive relationships. 

What's the best way to achieve it?

Well, it certainly begins with communication.

And that's how you get the best deals, for sure.

Negotiation is fundamental for the success of any procurement strategy.

Whether you’re working with suppliers, internal stakeholders, or finance teams, strong negotiation and communication skills build the foundation for achieving what you want in the time you need.

Adaptability 

With all of these skills, you can bet that having a flexible mindset is a must-have. 

Procurement is evolving fast, and professionals who can quickly adapt to new trends and technologies will always be in demand.

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