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Whether you are an employer hiring new talent to fill a skills gap or a hiring manager looking to plan your hiring strategy for the next 12 months, it has never been more important to understand which competencies and attributes are the most sought-after in Indirect Procurement. In uncertain times, innovative solutions are increasingly needed to solve complex problems.
With this in mind, we have collated a list of some of the top skills which are set to shape 2021 in Indirect Procurement . These are the skills which teams will need to thrive and succeed this year. For team leaders, they illustrate areas that may require focus and may highlight skills gaps.
However, this should not be viewed as an issue but also as an opportunity to upskill teams and individuals to take advantage of the trends which will define the years ahead. The other articles in this eBook will help you hire with skills in mind, and help you understand why upskilling and reskilling are so important in a modern organisation.
With market conditions dictating that companies evolve their offering faster than ever, procurement faces a key challenge in keeping up with the pace of change. According to Gartner, the procurement function needs to reinvent itself in 2021, moving from a focus on simply achieving cost savings and mitigating risk, to being disciplined sourcing agents with a true seat at the decision-making table.
Category management
Talented category managers are in high demand and this is only expected to increase.
In-depth category knowledge and experience ensures that key categories are managed most efficiently. Effective skills in this area benefit organisations through lowering the cost of buying goods and services, reducing risk in the supply chain and increasing overall value from the supply base. This is why procurement teams must include individuals who are experienced in purchasing essential services, such as external marketing or professional services. In addition to this, as IT is a specialist area, those with experience working in IT are highly valuable.
Team development
Working with individuals to build learning and development plans is key.
In addition to the core skill sets required for a role in indirect procurement, leaders today must be great at effectively managing the talent in their teams. This means acquiring the right mix of skills, being able to quickly identify gaps, and working with individuals to build learning and development plans. Whether or not there are areas for improvement, to ensure top talent is constantly engaged and improving, regular conversations around personal development and interests need to occur.
Supplier risk management
Working collaboratively with key suppliers can drive more value from the vendor’s supply chain.
Ensuring that contractual terms are being adhered to, and service level agreements are being met, the effective management of supplier risks can enhance the value they are achieving. Historically an overlooked method of driving value, organisations are now increasingly investing in better management of relationships with strategic vendors. Further to this, working collaboratively with key suppliers to look for opportunities to drive more value from the vendor’s supply chain can mean savings for the customer.
Sales and influencing
The ability to sell the procurement agenda to stakeholders is crucial.
The procurement function is often undervalued and misunderstood by other functions within a business. Those that can adopt a sales approach when working with other functions can be pivotal in influencing key stakeholders to allow the procurement function to drive value across other areas of the business. This can be particularly pertinent at the senior level and it is imperative that leaders are able to educate and influence board members on an organisation’s procurement agenda.
Governance management
This is pivotal in ensuring procurement has a greater voice across the business.
In order to strengthen the capabilities of procurement, strategically designed and managed processes, and governance are key. This not only ensures that the benefits of these policies are maximised across the business, but also helps drive the procurement agenda. Professionals skilled in managing procurement strategies and governance are pivotal in ensuring procurement has a greater voice across the business and can influence decision making on a strategic level. For this reason, people with these skills will continue to be in high demand this year.
Commercial intellect
Aligning objectives to organisational goals and boosting the profile of procurement remains key.
A deeper understanding of how a business operates and how the procurement function can improve the bottom line is crucial in supporting conversations with senior executives within a business. This can be a complex process and requires knowledge of multiple areas of a commercial operation. Being able to understand the needs of key stakeholders and align objectives to organisational goals can help boost the profile of procurement – and thus skills in this area are always sought after.
Empathetic people skills
Being able to empathise with and read other people is fundamental to building strong relationships.
Professionals in procurement that possess well-rounded people skills and a high level of emotional intelligence (EI) are increasingly coveted by top employers. EI has been a hot topic on the broader business agenda and organisations around the globe are waking up to its commercial importance. Being able to empathise with and read other people is fundamental to building strong relationships. As influencing and negotiating are core aspects of a procurement professional’s role, EI is a useful skill to possess when working with a variety of stakeholders on a day-to-day basis.
Personable & likeable
Key to better negotiations, but a skill that is hard to define.
Personable and likeable procurement professionals can be the key to better negotiations. This is a skill that is hard to define, but one that can set the best apart from the competition. Someone who is personable will make eye contact when having a conversation, smile often and give a firm handshake, all traits that instil trust and confidence in others. They also tend to be quite enthusiastic, use people’s names throughout a conversation, and are inclusive of everyone in a discussion.
