The meeting covered nine core procurement skills considered essential and future-proof despite advances in AI and automation.
Each skill was discussed with practical examples and observations about its ongoing relevance for procurement professionals in 2024 and beyond.
The session concluded with an emphasis on continuous learning and upcoming resources on digital procurement skills and trends.
Action Items
No specific action items were assigned during this meeting.
Nine Essential Procurement Skills
1. Strategic Sourcing
Focuses on finding the best supplier at the best total cost, emphasizing total cost of ownership and market intelligence.
Differentiates from basic purchasing by adopting a more holistic and analytical approach.
While technology can do much of the work, human understanding and oversight remain crucial.
2. Supplier Relationship Management (SRM)
Involves segmenting suppliers to prioritize attention and resources, ideally focusing most efforts on the top 10% of suppliers.
Encourages developing close, collaborative partnerships with key suppliers to foster innovation and better outcomes.
Contract terms should reflect a balanced relationship, not just transactional or punitive measures.
3. Data Analysis
Recognized as increasingly accessible due to generative AI.
Essential for uncovering trends, risks, and insights related to suppliers and procurement performance.
Effective prompting and interpretation of data are key parts of leveraging this skill.
4. Contract Management
Seen as a foundational skill, covering both pre-signature and signature-phase contract management.
Only a small proportion of professionals are considered proficient in this area.
Emphasized as critical for handling procurement agreements effectively.
5. Proactive Risk Management
Distinguishes between active issues and true risks (potential future issues).
Recommends a proactive, rather than reactive, approach to identifying and mitigating risks, leveraging technology for early warning.
6. Negotiation
Remains vital for optimizing total cost of ownership and terms with suppliers.
Best developed through hands-on experience rather than solely through formal education.
Involves knowing when to push, compromise, or walk away.
7. Technical Proficiency in Digital Procurement
Understanding the impact and use of digital tools is now a baseline requirement.
Encourages seeking experience in organizations with robust digital procurement systems in place.
Technical skills are seen as essential for career longevity in procurement.
8. Change Management
Necessary for driving and navigating change within procurement and the broader business.
Involves engaging stakeholders at all levels and orchestrating tech-enabled process improvements.
Procurement professionals must be adept at leading transformation efforts.
9. Communication Skills
Interconnected with change management, crucial for conveying value, needs, and requests across all channels and cultures.
Effective communication, both written and verbal, across multiple formats (e.g., in person, video calls, messaging platforms) is essential for success, especially in remote and global contexts.
Decisions
No formal decisions were made during this meeting.
Open Questions / Follow-Ups
Upcoming: A future session will provide a list of digital procurement skills and discuss procurement trends for 2024.
Community engagement and further resource links were mentioned but not detailed.