Procurement specialists are skilled professionals who have a focused understanding of the goods and services their organization needs, as well as the cost that comes with them. Their skills typically fall into two categories: ensuring goods and services are delivered on-time while keeping costs low. These changes will not mean that these teams will cease to exist, but they will need to take on new responsibilities as the company evolves.

As the world of business continues to evolve over time, procurement professionals have the unique opportunity to become much more than just a simple buyer. With the advent of new and innovative technologies, advancements in their field are changing what it means to be a procurement professional.

The modern-day procurement professional has an opportunity to become an adaptable and strategic expert with a whole new set of skills in their toolbox as they embark on this exciting journey.

Here are the ten procurement essential skills that will be most valuable in the coming years as a procurement professional.

1. Strategic Management

There are various best practices that you can use to manage your procurement processes and work with internal stakeholders, but perhaps one of the most important is strategic management.

Strategic management is the process of managing an organization's resources to achieve its goals and objectives. This involves taking a long-term vision of where you want to see your company and deciding which steps are necessary to achieving those goals. It also involves making short-term plans that allow you to take one step at a time on the journey towards long-term success, as well as finding opportunities for growth and change.

While strategy in procurement doesn’t mean coming up with new products or improving upon what you have, it does mean being aware of how your company interacts with and uses these products, as well as how those interactions affect any other processes within your company.

A keen awareness of your current business model is key to making informed decisions about product usage—whether they be changes or additions—and working closely with cross-functional partners. But how do you take a step back and look at everything? Once again, strategic management comes into play.

2. Category Management

The focus of category management is to improve efficiency, lower costs and increase revenues. This can be done through procurement from within a specific category (such as with software), or by leveraging vendors across categories.

For example, if your organization procures marketing materials from multiple vendors, why not leverage one vendor to procure everything? In many cases, you’ll achieve better pricing and a higher level of service than if you have individual contracts with each vendor.

This is where category management proves its worth in reducing costs without compromising service levels. Category management can also help an organization achieve savings in terms of administration costs; it is possible to reduce administrative effort as well as personnel numbers.

3. Project Management

In any industry, procurement is a constant challenge. There are hundreds of vendors selling dozens of products and services. Negotiating pricing, evaluating products, and keeping track of paperwork—all take time.

To keep up with your busy schedule, you need to be as organized as possible so that you can spend more time on actual negotiating and lesson organization. Project management software can help make sure everything gets done when it needs to get done. Try to find a program that’s easy to use and integrates with your email or calendar program.

4. Relationship Management

The procurement department is an integral part of many organizations. The size and scope of your relationship depend on where you sit within procurement. Regardless, no matter what kind of vendor relationship you are in charge of managing, it’s important to know how to build those relationships effectively.

You’ll need to be a good communicator and have strong organizational skills as well as proven negotiation skills. It’s also important that you understand how to work with people from different backgrounds and cultures.

5. Negotiation Skills

We live in a world of negotiation. In fact, it’s hard to get anything done without negotiating at some point. As a procurement professional, you are often involved in negotiations on behalf of your company—whether you realize it or not.

The challenge is that negotiations can be stressful and many business people don’t enjoy them; however, great procurement professionals understand that good negotiations lead to more successful outcomes for everyone involved. The key is to make sure you are prepared for all outcomes so that stress doesn’t overtake common sense and you come out ahead in any negotiation situation.

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6. Financial Acumen

This is a must-have skill for every professional in procurement. Whether you’re working to add value to an organization through strategic sourcing or putting in place best practices that cut costs, financial acumen is key. An understanding of basic finance concepts (such as the impact of cash flow on operations) is important, but it’s critical to know when and how to implement them effectively.

If you need help getting started, consider reaching out to local associations such as ASM International (American Society of Mechanical Engineers) or ASAE (Association for Suppliers to Agribusiness). They offer a wealth of resources and opportunities, including training programs and vendor events focused on saving money.

7. Analytical Skills

No matter how creative, talented or well-connected you are, if you aren’t an analyzer and problem solver at heart, procurement is probably not your ideal career path. Data analysis and financial forecasting—and, more specifically, being able to accurately forecast supply chain costs—are two skills that should not be underestimated by someone looking to make a lasting impression in any organization.

The ability to build and refine a cost model (or create one from scratch) is invaluable for anyone in procurement. It’s up to you to find ways of reducing spending without lowering quality.

8. Technology Aptitude

In order to be a successful technology-driven procurement professional, you must be comfortable with, and not afraid of technology. You must also have at least a working knowledge of various technologies—including mobile technology, big data analytics, and emerging technologies such as augmented reality and 3D printing.

Even if you’re not ready to become an expert in any of these areas, at least becoming familiar with them will enable you to create informed opinions about how they could benefit your organization.

9. Result Oriented

As a procurement professional, you need to be able to identify and define performance requirements for your business. And then you need to evaluate solutions based on those needs. In many cases, your companies are going to choose a supplier that can meet those objectives most efficiently, not necessarily ones that offer lower prices.

An ability to effectively prioritize projects and make an effort toward achieving desired results is one of ten essential skills procurement professionals should have in order to succeed in their field.

10. Professionalism

Be on time, maintain eye contact, and have a good attitude. Above all: never try to be something you’re not. It will always come back to haunt you. Just be yourself and work as hard as you can at doing what comes naturally to you. You will find success in ways you never imagined possible.

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Conclusion

Procurement professionals, like any function in a company, need to be able to manage or support numerous types of projects that can involve everything from managing suppliers and contracts to anticipating and preventing risks. To be successful, a procurement professional must have the ability to execute well by engaging with stakeholders and suppliers and consistently meeting their objectives. In order to achieve these goals, they will have to have the right talent in the right roles which will allow them to do so.

Collectively, this means planning and executing project procurements that run on time and within budget and deliver the results that were asked for in the very first place. With these essential qualities, an efficient procurement manager can execute this role well, and be a valuable asset to their company.

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