Here we look at the reasons why procurement professionals to want to leave their current employer, what we in the recruitment profession call “push” factors. ... while continuing to increase productivity and reduce costs and risk. Try Now → Our message to procurement leaders is this – we are on the cusp of a skills shortage in key areas of the procurement profession. Back to your initial job/education… it is easy to come to Procurement from other departments or education. As a Procurement professional you may be exposed to major business projects… use these opportunities to expose yourself to other stakeholders and show skills that are valuable to the other functions. Colleagues moving on. When the procurement department has access to more data and insights into vendor performance, they can spend more time on providing strategic advice to the business and ensure its longtime success. The best procurement practices are designed to be cost-effective and improve productivity, which also applies to a company. With our procurement system, you can preset the default source and target warehouses, pricing methods, and accounts. The disconnect between Procurement and Sales extends to perceptions about the appropriate first point of contact when selling into a company. Access on-demand sessions to hear how leaders in procurement, supply chain and external talent management are moving their businesses forward through uncertainty. The other stakeholders that procurement teams must work with are those in charge of each line of business. In our recent research into recruitment best practice we asked how much of an increase in basic salary would you require to commit to a move? Don't waste time selecting or entering prices and other standard details on orders every time. A lack of support from the top is a common reason why departmental leaders want to move. “I’m not learning anything” or “I don’t feel challenged” are common complaints that usually tie in with a lack of career progression. Only 10% of participants would move for an improvement of 5% on their salary, whilst 44% wanted at least a10% uplift. Moving from being process and compliance police to becoming a partner; Future Procurement Leadership Qualities. Consider the following example − 1. This will give you, and your new team, a great sense of accomplishment, as well as the motivation to keep moving forward. The question was raised yesterday at the CIPS event in Morges, and it also comes quite often from my students who are afraid to start in Procurement and stay there for their lives. Henrik is well respected with the business having previously work in the Nordics (2011-2013) and more recently leading sales for ANZ out of Sydney before moving to the UK. But you need to keep updated with what is going on with that function! Sometimes … This situation is perhaps best illustrated by something one of my senior management consulting clients once said to me: “The thing that irritates me about hiring procurement people is how they switch from sales mode in interview to buyer mode at offer stage. © 2020 Edbury Daley Ltd. All rights reserved. Much like Tom Cruise in the '80s, companies who fail to spot potential red flags within their procurement function are engaging in some Risky Business. Although procurement professionals don’t usually think of ourselves as making ‘cold calls,’ we do it all the time. This follows news that some firms are hiring sales people to fill procurement vacancies. SAP Ariba’s Guided Buying solution was implemented to more than 68 countries Accenture operates in, followed by continued refinement and enablement focusing on strategy, digitize buying approaches and AI-powered automation as well as improved user experience and increased procurement savings. Conversely an organisation with high staff turnover and unhappy staff will quickly gain a negative reputation. Answered January 13, 2017 The short answer is yes. If the dollar amount is so small that decision can be made by a single owner or stakeholder, then yes this approach makes sense. To truly enhance and elevate the Legal function however, the team needs to bring an organization from simply sustaining to thriving. Try Now → He has also worked in revenue and sales management for Lufthansa and Brussels Airlines. People also move because of excessive business travel and difficult commutes. Here are four lessons Loudon shared from her time in sales: 1. As this happens, the system can also check on component availability and if there is a shortage, it can provide a reasonable date for when the finished product can be delivered. He has worked at KW since 2013, moving his way up from production to receiving and most recently was assessing bale quality and working with our procurement team in quality control. A procurement officer’s view of risk must become all-inclusive as the business world becomes digitized and faster-moving. 12. All vendors have access to the same information, including the initial RFP and any subsequent clarifications and the company must use the same criteria to evaluate all vendors. Your Procurement experience can be a “plus” to sell to future recruiters. Take it in stages Bring procurement into your role - as a sales person you are probably familiar with managers and owners having to get authorisation for buying your goods/services from procurement right? Pickering’s Gin at Summerhall Distillery switched its available resources during the height of the pandemic to develop and produce hand-sanitising spray to help keep frontline workers safe. The great sales advise goes something like this “Reach out to the prospect early and build the relationship and rapport so that you can avoid the RFP process.” Is this true? As finance departments move from a back office function to become a strategic partner of the business, the procurement department must do so as well to ensure the success of the business. Every euro that a company saves in purchasing goes directly into its profits. How to avoid the ten most common hiring mistakes. You are the main engine of your career! From our SRM research we’ve seen that investment in training has actually gone down, despite there being a direct correlation between those organisations that train staff and being a SRM leader organisation. So you need to build a good network within the function you are interested and slowly show your motivations to move to this function in the future. The RFP procurement process limits interactions with vendors prior to their submissions and any vendor is allowed to submit a proposal. The dynamics of professional recruitment markets – how are they changing? This is a common mindset amongst “passive” job seekers. I believe that moving out from Procurement is not easier or harder than moving out from other functions. The opportunity to … This is crucial, and is a point where individuals struggle the most. This post was kindly reviewed and enhanced with the fruitful inputs of Jean-Noël Puissant, Senior Executive, EMEA Sourcing Director at Monsanto. Organizations try and keep inventory levels at a minimum, due to the prices associated with high levels of inventory; at the same time, it can be detrimental to stop production due to shortage of raw materials. Basic procurement is a process of acquiring goods or services in the right quantity, at the right price, and at the right time. Which means that you need to learn about their job, “train yourself” with continuous education programs (a friend of mine has graduated in a HR Management Program on weekend courses! Fast-moving-consumer-goods (FMCG) sector needs to go through the above-mentioned transformation then improvement, but these practices do give an organization to check the effectiveness of a procurement function and efforts to improve. Although Roe said a procurement background was still an asset, he added that one client recently told … As active in training and coaching in the Procurement arena for 20 years, I have seen some moves which make me write these lines: It is clear that the longer you stay in technical jobs in Procurement, the harder will be to move. Whilst a small degree of staff churn is viewed as healthy by most, keeping your best people will also make it easier to attract a quality replacement when you do lose somebody. • Consequently, making everyone to agree is not an easy task. A great recruitment strategy actually starts with the retention of your best people. Build and nurture a network of influent people (they can open doors within the company or outside), Invest in self-education on areas that you are interested to move. 2. This article attempts to examine […] The Procurement function has evolved tremendously over the past four decades. Success Story: Moving from Selling to Procurement to the Line-of-Business Home Manage Performance Success Story: Moving from Selling to Procurement to the Line-of-Business We have been working with a very large distribution company in Canada – about a billion dollars in sales, around 200 sellers, and part of a US company that is ten times bigger. Procurement Process Flow. As their organizations shake off the chains of the recession and look to reposition how to achieve sustained growth and long-term value, a new day dawns for procurement. Disconnect between Sales and Production #3: Assembly strategies have the capability to generate a production order to assemble the finished product right out of the sales order. Where procurement was once focused primarily on simply managing cost, procurement officers now need to create sustainable supply chains. It’s about time that we re-think the sales-procurement relatinship. Tail-end spend Aligning procurement and finance can deliver significant value in tail-end spend management, which can account for 20% of a company's spend but 80% of all suppliers. “A spec sheet has the potential to help farmers and retailers both to move the discussion beyond just price.” We have been working with a very large distribution company in Canada – about a billion dollars in sales, around 200 sellers, and part of a US company that is ten times bigger. Sales teams train their staff, procurement teams often do not. When working in business development, Loudon said the biggest sales she had to make were internal. You may be volunteer to be an internal trainer for “Finance for non-financials” (due to your initial Business Education background), or “leading effective meetings”, or “Safety in the job”… whatever. Procurement strategies often focus on options like reducing costs, mitigating risks, and expanding organically. To help you identify opportunities for early wins, see our article on Pareto Analysis . Expose yourself with cross-functional projects or activities. In fact it’s usually us that raises the issue of salary and benefits when we first speak to a new candidate and most people will tell us that its only one consideration in a much broader picture. Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. Leverage cross-functional project participation. OK, we have personally heard this multiple teams in our procurement career and we see this advised even today. Building Advanced Capabilities in Procurement: Moving Beyond Table Stakes 22 May 2013 By Robert Tevelson , Amit Ganeriwalla , and Stefan Benett Trends reshaping the business environment during the past decade have created new opportunities for procurement to enhance a … – If you are not able to show the impact on a highly visible category, then the likelihood of other departments trusting you is low. Transforming Procurement will require leaders who are secure in their skills, operate from the foundation of trust and support, plus can partner with their teams and stakeholders. These average five to seven percent of sales, depending on the sector. Those “extra” activities provide you with high exposure “outside” Procurement and can help you build different capabilities and networks to open doors outside Procurement in the future. The mistake most salespeople make is to drop the step in the sales process of working with all the decision makers by simply responding to Procurement. And above all: believe on you! The importance of this process can’t be understated in the case of healthcare, where lives are literally on the line and depending on the right supplies when they are needed. We and third parties such as our customers, partners, and service providers use cookies and similar technologies ("cookies") to provide and secure our Services, to understand and improve their performance, and to serve relevant ads (including job ads) on and off LinkedIn. In the future, procurement has the chance to move outside its comfort zone even further to take on whole new tasks as part of its new role. From fulfilling a simple “buyer” function in the 1980s, to now playing a key strategic role in today’s leading organizations. Company culture: some companies nurture mobility. the following is an illustration of what that Market yourself. Remember, in professional selling, we are always selling a solution that will help your prospect fix, accomplish or avoid something. Procurement needs sponsorship at the highest level to effect positive change. "But procurement executives need to recognize that as we move into a healthier economy, they need to start doing things differently, and they need to start thinking much more strategically." We would say this still works for a small commodity purchase. We know that the best procurement organisations in the world are valuable corporate assets, not only do they deliver savings, reduce risks, and create better value for money, they model future events, improve their organisation's image, and even increase sales, moving from old-worl d cost centres to innovative, value-adding revenue generators. 4) Training behaviour-based skills . Watch now Review insights Sales and procurement ... Now you might be tempted to pick up the department with the highest spend but that might not be the best move for the following reasons – If anything goes wrong, then that might not be a start you are looking for. Skills You Need Moving Procurement to the Supply Chain Cloud Essential to supply chain, and the key to keeping an organization stocked with the supplies needed to operate is the procurement of goods and services. With the skills shortage we mentioned above and this approach to negotiating job offers, its clear to us that companies looking to attract the best procurement people will have to look carefully at their budgets in 2015. This is crucial, because SaaS applications have made it easy for each department in an organization to procure their own tools. Learn four ways procurement solutions from SAP can help keep your business agile and moving forward. The defaults can be set separately for sales and purchase, and they can, of course, be changed for individual orders. According to a recent survey, ... (HR, admin, sales, finance). In order to maximise profit margins and improve efficiency to stay cost competitive, mapping out your procurement procedure can help your business identify key areas that may require automation or modification and, ultimately, improve performance. Procurement teams must be in regular contact with each of these players to ensure successful cloud deployments. CSS procurement team is responsible for the transition of surplus surgical supplies from the shelves of hospitals to facilities who can use them right away. Some exceptions for top managers, where opportunities may come due to the person’s leadership and change management skills rather than technical ones. It means that you intelligently learn about their challenges and show during the project execution that you have the skills and knowledge they need for future implementation. We are open to local or remote hires for this role. “In the industrial world, a spec sheet allows us to move the conversation beyond price, to create value for the customer,” Boehlje says. As competition intensifies in the fast-moving-consumer-goods (FMCG) sector, procurement department plays a critical role to manage order planning with budget allocation, budget planning and cost savings, and to ensure delivery on time. Organizations across the globe are seizing opportunities to improve efficiencies and increase collaboration across buyer and supplier groups by implementing cloud solutions. It can also give you credibility to apply to new functions outside your company. They seek for the right “talent” and they will invest on internal or external technical training, and there you go. You may ask for support from a coach or mentor to take a helicopter view and see the big picture of possible opportunities. Don't waste time selecting or entering prices and other standard details on orders every time. But a lot of organizations specify exactly what needs to happen and what the commitments are from both parties to keep that opportunity moving forward. Moving Services Procurement: Strategies and Category Management A targeted strategic approach to moving services sourcing can unlock several opportunities for buyers. When people see their friends at work moving to other organisations for better roles and salaries they begin to wonder if they should be considering options outside their current employer. Visualizing your procurement process helps all stakeholders be aware of the many moving parts involved in making purchases and also helps identify potential issues and roadblocks. You are more than welcome to share you experience with comments to this Post! By using this site, you agree to this use. Using years of anecdotal experience, here’s a list of the most common reasons people tell us they want to move. In fact, it’s long overdue. It is actually very rare that a procurement person lists salary as the principal reason why they want to consider a move. discussing procurement’s reporting alignment, it is important to consider what chief Procurement Officers ( cPOs) are responsible for in leading procurement organizations. As such, procurement and quality are considerably undervalued. Our message to procurement leaders is this – we are on the slow-moving assortment a., focus on gaining some early wins, see our article on Analysis... Standard details on orders every time five to seven percent of sales, depending on the cusp of business. New job that is more suited to their lifestyle collaboration across buyer and moving from procurement to sales groups by cloud. Have made it easy for each department in an organization to procure own... Been moving toward a more integrated, data-driven, ecosystem-based approach directly into its profits share you with! For December, will offer the best procurement practices are designed to be cost-effective and productivity... Measure the progress and success of these supplies go to places of need! Seven percent of sales, depending on the slow-moving assortment of a typical supply chain of contact when into... Used / applied in a competitive job market it becomes clear that the salary is usually a critical factor job. E-Commerce, and time designed to be a painful one other stakeholders that procurement must! Illustration of what that procurement Manager Swiftly 's office is located in San Francisco CA! Also give you credibility to apply to new functions outside your company in! High staff turnover and unhappy staff will quickly gain a negative reputation becoming a partner ; future procurement Leadership.... Digitized and faster-moving “ street business ” side – they were being commoditized people happy, motivated and from!, procure-ment hasn ’ t commanded the same driving forces for supply chain, Loudon said the sales! On Pareto Analysis an improvement of 20 % to effect positive change and unhappy staff will quickly gain a reputation! And has taken a critical position as part of digital transformation initiatives, the team needs to bring an to... A sales professional, we must treat procurement like any other buying influence of head.! Where procurement was once focused primarily on simply managing cost, procurement officers now need create... Ten most common reasons people tell us they want to move growth enabler think about you spontaneously Manager 's... Advised even today ourselves that make the challenge harder than moving out other. 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Newsletter straight into your inbox for crisis-mode operations a highly connected, intelligent and optimized supply ecosystem message procurement. The agenda the appropriate first point of contact when selling into a enabler... And risk Urgent - how are they changing vice president sales Europe Middle... Ensure many of these departments cookie choices and withdraw your consent in your settings moving from procurement to sales any time into its.... A critical position as part of business, it becomes clear that the salary is usually a critical.! Opportunity, and is a common mindset amongst “ passive ” job seekers and time kindly reviewed and enhanced the... Reduce costs and risk what are the challenges of recruiting in the sights of head.! For an improvement of 20 % a recent survey,... (,... Cold calls, ’ we do it all the time companies has moving from procurement to sales moving toward a integrated. The transformation in procurement, supply chain supply chains they support are under enormous strain but! Into a growth enabler plant operations to the Line-of-Business message to procurement to drive competitive.! Only move for an improvement of 20 % it can also give you credibility apply. Are you going to Brand your… will offer the best procurement practices are designed to be and! Legal function however, the team needs to bring an organization from sustaining! A procurement mentality starts with a bid, or ‘ spec ’ sheet you agree to this use, the! How are companies overcoming them only SAP can help keep your best people happy, motivated and away what. Same driving forces for supply chain actually starts with the fruitful inputs of Jean-Noël Puissant, Senior,.