In today’s business world, procurement has become an increasingly important function in almost any organization. According to a survey conducted by Deloitte, procurement is responsible for managing an average of 62% of an organization’s total spend, making it a crucial department for any company that wants to gain a competitive edge.

Procurement professionals are tasked with overseeing the purchasing process, from identifying needs and selecting suppliers to negotiating contracts and managing the delivery of goods and services.

But procurement is not just a necessary function to keep a business running smoothly. It is a rewarding and fulfilling career choice, offering plenty of opportunities for personal and professional development. Procurement professionals have a high degree of responsibility, as they are responsible for the total spend of their company.

They are also instrumental in driving cost savings, improving supplier relationships, and ensuring that the company’s supply chain is efficient and effective. In this article, we will explore the importance of procurement, the skills and qualifications required for procurement professionals, and the different aspects of procurement, such as supplier management and sustainable procurement.

Key Takeaways

• Procurement jobs offer a high degree of responsibility, competitive salary, and plenty of opportunities for career development.
• The role of procurement is gaining recognition as organizations realize the importance of managing their supply chains to gain a competitive edge.
• Procurement professionals must have ethical strength, analytical and commercial skills, negotiating and influencing skills, and an understanding of the supply market and appraise suppliers.
• Effective supplier management, e-procurement, managing risks, and leveraging equality, diversity, and inclusion are important aspects of procurement.

Why Choose Procurement?

Procurement offers a satisfying and rewarding career path due to its high degree of responsibility and potential for high earnings. Procurement professionals are typically in charge of managing the total spend of a company, which requires leadership and management skills to provide help and advice to both internal stakeholders and suppliers. This responsibility is not only challenging but also provides ample opportunities for career development, from purchasing assistant to procurement or supply chain director.

Furthermore, procurement is gaining recognition as organizations realize the importance of managing their supply chains to gain a competitive edge. The need to reduce costs, add value, increase quality, guarantee service, and reduce time to market requires skilled and capable professionals to achieve organizational goals, making procurement a satisfying and fulfilling career choice.

In addition to career development, procurement offers the potential for high earnings. Procurement professionals have the potential to earn upward of £100,000 a year, making it an appealing choice for those seeking a lucrative career. The importance of procurement in organizations cannot be overstated, as procurement professionals are needed to manage spend and supply to gain a competitive advantage. The role of procurement is to reduce costs, add value, increase quality, guarantee service, and reduce time to market.

This requires highly analytical and commercial skills, negotiating and influencing skills, and an understanding of the supply market and appraising suppliers. Procurement also offers the opportunity to make deals, which is one of the most satisfying parts of the job.

Overall, procurement is a profession that offers a balance of responsibility, career development, and financial rewards, making it an ideal career choice for those with the necessary skills and qualifications.

Skills and Qualifications

Professionals in the field of supply chain management must possess strong ethical values and analytical expertise to ensure effective procurement. The procurement process involves dealing with suppliers and negotiating contracts, which requires the ability to appraise suppliers, understand the supply market, and negotiate the best agreement.

In addition to analytical skills, procurement professionals must also have commercial skills to add value, reduce costs, and guarantee quality service. Furthermore, ethical strength is essential for procurement professionals, as they may encounter issues such as fraud and bribery.

They must be able to handle such situations with integrity and uphold ethical standards to ensure that their organization’s reputation is not compromised. The ability to influence and negotiate with suppliers is also important, as it can lead to better supplier relationships and improved procurement performance.

Studying for a CIPS Diploma in Procurement and Supply or taking procurement courses can help to develop these skills and qualifications.

Supplier Management

Effective supplier management is crucial for achieving better quality and lower costs in the procurement process. Procurement professionals must ensure that suppliers meet the organization’s needs and standards while maintaining a positive relationship. Key performance indicators can be used to measure supplier performance, and poor performance can be improved through communication and collaboration. Setting objectives in supplier negotiations is also important in achieving better outcomes.

E-procurement offers many benefits, such as cost savings and improved efficiency. Procurement professionals can leverage technology to automate the process of selecting, ordering, and paying for goods and services. This can reduce the time and costs associated with traditional procurement methods. However, it is essential to ensure that the technology is aligned with the organization’s needs and objectives and that the risks associated with e-procurement are effectively managed.

Overall, effective supplier management and leveraging technology can help procurement professionals achieve their goal of reducing costs, adding value, increasing quality, guaranteeing service, and reducing time to market.