What’s your team’s bench strength?
Given that uncertainty in market conditions will remain in place for the foreseeable future, the increased demand for procurement professionals is growing. Organizational leadership is facing pressures on all fronts. From the supply chain side, having the procurement resources capable of pivoting in response to the market conditions and competitive pressures is at an all time high. Instability in supply chains, in part, is contributed to by the inability of procurement to successfully navigate the turbulence. Old tools and tactics need a refresh to stay in the game.
While market chaos is beyond a single organization’s ability to effectively alleviate, this requires a strategy to get through the next few quarters. Government can announce new monetary, fiscal, environmental and social policies but the execution in the market is the individual organization’s responsibility to adapt. The players on the bench need to be able to pull their weight. There are going to be winners and losers.
In Canada, the sourcing strategies are moving faster in response to the geopolitical and technology advancements disrupting the market. The 2025 tariffs followed by the 2026 mid East conflicts is testing the limits of supply and demand. The ink is still wet on the Federal Buy Canadian Policy. This changes the purpose of all Canadian government agencies on the demand side through their strategic sourcing strategies. In turn, this results in more Canadian companies being encouraged to step up from the supply side.
Related to the Buy Canadian Policy is the opening of the Major Projects Office. The MPO model is a shift in procurement practices away from the lowest bidder, regardless of locale, being awarded a contract. The purpose of the MPO is to drive Canadian economic interests concurrent with industrial diversification and engagement with Indigenous partnerships. The focus on energy, critical materials, and transportation projects are the MPO priorities. These were not on the radar only a couple of short years ago.
The skills required for success do not change dramatically, yet the level of competencies to deliver value, now have higher expectations. For public sectors, taxpayers expect better value; and for the private sector, acceptable returns on investments against the inherent risks. Accountability means you take the job and accept the responsibility. Accountability for procurement professionals implies that you must be able to balance the risks against the benefits and consistently deliver on the value proposition as defined by the organizational leadership. No excuses.
How do you keep the procurement professional roster fresh?
The skill sets which leadership looks for in their supply team, is truly a team effort. There is a need for specialization along with the fundamental business acumen required. Procurement professionals must demonstrate their capabilities on a 24/7/365 basis.
Fundamental skills:
- Competitive bid laws – a complex and evolving arena based on legal obligations
- Contract management – includes the negotiation of the details and monitoring the performance of contractors and suppliers
- Data analysis – taking a constant scan on information which may affect any decisions
- Finance – using budgeting to direct operational and capital outcomes and measuring the comparative results
- Green skills – reducing the impact of human activity on the environment
- Market research – includes the PESTEL and high-level type of tools which may affect supply chain performance
- Purpose, policies and procedures – ensuring the procurement team is on target with its mission, its policy remains relevant to core KPIs, and procedures are meeting best practices
- Risk assessment and mitigation – ongoing scan of market research to identify potential market problems which threaten supplies and or costs
- Systems thinking – a holistic approach which recognizes that all supply decisions and activities are connected at some point in time
Interpersonal skills:
- Business ethics and professional conduct – reiterates that accountability includes how decisions are made are as important as those decisions. Winning at any cost should not be acceptable.
- Change management – procurement professionals are on the forefront of change when adapting to market conditions and organizational redesign. The model for change management was developed by Harvard’s John Kotter in 1996 and is still relevant today
- Conflict resolution – a skill which is applicable to address problems with internal departments and with critical suppliers to defuse tension and improve relationships
- Cooperation and collaboration – a skill aimed at maximizing the returns between business colleagues and partners. Making the pie bigger and avoid fighting over the smaller pieces
- Emotional intelligence – the ability to remain focused on outcomes between partners and not letting emotions negatively affect relationships
- Negotiations – this is one of the most important communication skills for procurement professionals to be successful. Negotiations include all of the interpersonal skills and business acumen in order to deliver best value for your organization in the long-term
- Team building – all supply decisions are based on a collective input. Defining individual roles and responsibility is part of a procurement leadership to maximize the return on resources
- Thinking strategically – keeping in mind how decisions today may also be affected by future conditions. Strategies require the vision and as much market research as possible to make projections. Perfect decisions are unrealistic but best prepared plans are an expectation.
Meeting market expectations
Ongoing training is vital for experienced and new entrants into the supply chain field. With the pace of change there is a need for external advisors to meet the demands and complement internal staffing resources.
AI is growing in its applications for procurement professionals. The ability of AI to support the fundamental and interpersonal skills referenced above, is an important tool for procurement professionals to master. AI can deliver in all areas of business services but still requires the experiential knowledge of people to ensure it is on target.
Closing the procurement skills gap is mission critical for all organizations to address. Training may be seen as a cost or an investment. What if we train them and they leave; what if we don’t train them and they stay?
Public Procurement In Canada:
Procurement professionals play a pivotal role in the public procurement world. These experts are well-equipped with the knowledge and skills needed to navigate the intricacies of procurement processes. Whether you’re looking to enhance your procurement acumen through procurement management courses or seeking valuable insights through procurement webinars, the landscape for public procurement offers many opportunities to explore.
The Procurement School encompasses a wide range of activities aimed at achieving the best value for taxpayer money. Procurement service providers work closely with public sector procurement consultants to streamline processes, maintain transparency, and uphold ethical standards. This collaborative effort ensures that the procurement landscape remains fair, competitive, and cost-effective.
Obtaining a procurement certification or a purchasing certificate can be a wise decision for those aspiring to excel in public procurement. These certifications validate your expertise and demonstrate your commitment to professionalism in the procurement arena. Procurement professionals are highly regarded for their ability to make informed decisions that benefit both the public and the government agencies they serve.
Public procurement is not just about acquiring goods and services; it’s about contributing to the well-being of communities and the country. The individuals in this field understand the significance of their roles and strive to uphold the highest standards of ethics and accountability.
Whether you’re a seasoned procurement professional or just starting your journey, the public procurement landscape offers a wealth of opportunities for growth and development. From procurement management courses to ongoing procurement webinars, resources are available to help you stay informed and up-to-date with the ever-evolving world of procurement.
Written by: Larry Berglund