Cultural Sensitivity in Procurement — What You Should Know?

Cultural sensitivity in procurement is one of the key factors in building a strong relationship and getting better deals in the realm of various cultural backgrounds.

So, how can you still navigate your way to having successful deals in the sight of these varying viewpoints? 

In this article, we will discuss what cultural sensitivity is and its importance in the context of procurement.

We are going to tackle the key aspects that will help you understand how to navigate the varying cultural backgrounds of procurement professionals. 

Additionally, we will share our template with you, including some tips and an example for you to learn more about how you can foster strong relationships without conflicting with the varying cultures of the people with whom you will transact. 

Once you are finished reading this article, you will be able to adapt and create a strategy that is effective in cross-cultural settings to foster a stronger relationship with suppliers and other third parties that can contribute to the success of your company. So, without further ado, let’s start!

I have created a free-to-download editable culture and negotiations — North America template. It’s a PowerPoint file that can help with your sourcing approach with different cultures. I even made a video where I’ll explain how you can use this template.

What is Cultural Sensitivity in Procurement And Why is it Important?

Cultural sensitivity in procurement is about respecting different cultural differences and integrating cross-cultural values and ideas within procurement. 

Think of this as a way for procurement professionals to work effectively with other professionals or suppliers who have different cultural backgrounds.

Not being sensitive to their culture may cost you your deal and worse, strain your relationship with them. 

In this article, we will focus more on cultural sensitivity when dealing with suppliers of different backgrounds. 

Going back to the topic, cultural sensitivity is the foundation of building a strong relationship with your preferred suppliers. 

It lets you understand and respect your supplier’s nuances, gestures, and views allowing you to gain their trust and have healthy and meaningful conversations.

In today’s diverse workplaces, it’s important to be mindful of what might be seen as disrespectful by individuals from different cultural backgrounds during negotiations.

Being aware of these sensitivities can prevent conflicts and promote inclusivity in procurement practices.

Key Aspects of Cultural Sensitivity

In situations where different cultures clash, conflicts can arise due to diverse perspectives. Managing these requires skill, as it involves understanding and dealing with different viewpoints to promote cultural sensitivity in procurement.

To help you in handling these situations, we’ll highlight important aspects to enhance your awareness of the diverse cultural backgrounds involved, especially in the field of procurement.

1. Business Adaptability and Flexibility

Being open to different ways and accommodating cultural differences is important in procurement. 

It’s not about using the same strategy for everyone, but about adjusting your plans to fit each supplier’s unique style.

This approach helps to understand, builds trust, and makes collaboration smoother. 

For example, instead of assuming that all your suppliers prefer emails, you can try to ask them and adapt to their preferred way of communication, like phone calls or face-to-face meetings, to strengthen relationships.

2. Active Listening and Understanding

In the world of cross-cultural conflicts, tensions may surface when different viewpoints clash.

Dealing with these situations requires skill, as it entails maneuvering through different perspectives and cultural backgrounds.

When this happens, the second key aspect comes in which is active listening and understanding.

Embracing diverse cultural viewpoints involves genuinely understanding the other party’s position and respecting their values and beliefs.

For example, when negotiating with suppliers from various cultural backgrounds, it’s important to actively listen to their concerns and understand their perspectives.

By respecting their values and beliefs, you can build stronger relationships and achieve better outcomes in your procurement process.

3. Communicating Well

Selecting words carefully and emphasizing clear communication over conflict is vital in resolving disputes.

It’s about discovering shared understanding without disregarding the distinctiveness of each perspective. 

Progressing towards solutions entails working together to generate ideas.

Integrating aspects from various cultural viewpoints is like blending ingredients, utilizing the strengths of each tradition to devise a resolution that recognizes and values these distinctions.

For instance, when collaborating with suppliers from diverse cultural backgrounds, it’s crucial to communicate clearly and respectfully to prevent misunderstandings. 

By doing this, you can integrate various viewpoints that will help you develop strategies or solutions that can benefit you and your suppliers. 

Cultural Sensitivity Template

Now that you know the key aspects, we will share with you our template to help you assess the cultural sensitivity of your procurement methods.

These questions can help you check how well you understand different cultures in your procurement process.

Additionally, you can see where they’re good and where they can do better. 

By reflecting on past experiences and considering hypothetical scenarios, you can get better at understanding and dealing with cultural differences when working with your suppliers.

This helps you to become more inclusive and effective in your procurement operations.

Tips For Cultural Intelligence

Now that you have assessed the cultural sensitivity in your procurement, we will now share with you some tips that you can do to foster cultural intelligence that will help you interact with diverse suppliers with different cultural backgrounds:

1. Learn about different cultures

To understand your suppliers better, try learning about their customs, traditions, and language.

You can do this by reading books, and magazines, or watching movies and TV shows about their country. 

For instance, if you’re getting products from Japan, knowing about “omotenashi” (hospitality) can help you during business talks and connect better with your Japanese suppliers.

2. Observe body language

When talking with your suppliers, check how they use non-verbal cues like gestures and facial expressions during interactions.

For example, some cultures nod to show they’re listening, not necessarily agreeing. Recognizing these small differences helps avoid confusion and makes communication easier.

3. Reflect on your own behavior

Take a moment to think about how your own cultural beliefs and way of communicating could affect how you talk with suppliers. 

If you’re used to being straightforward in your communication, you might need to change your approach when dealing with suppliers who prefer more indirect communication styles. 

4. Avoid stereotypes

You should try not to rely on stereotypes or presume things about your suppliers because of their culture. Treat each supplier as a person with their own likes and dislikes. 

For instance, don’t assume all suppliers from a specific country have the same decision-making process. Instead, take the time to understand each supplier’s working style and communication preferences.

5. Ask questions

Feel free to ask your suppliers about their cultural customs, likes, and what they expect. For instance, when discussing contracts with suppliers from different cultures, make sure to understand any cultural details that might affect the agreement. 

Talking openly about cultural differences can help build stronger relationships with suppliers.

Example of Cultural Sensitivity

One good example of being culturally sensitive at work comes from the global tech giant, Google. 

Google changed its translation tool because people said it was biased towards certain genders. For instance, in languages like Turkish, it would translate into English using gender-specific pronouns.

Google acted quickly by fixing its translation algorithms and working with language experts to make translations less biased. 

This showed that Google cares about cultural sensitivity and understands the impact of technology on language and gender. 

It also showed the importance of always trying to do better and listening to different cultural views in a global workplace.

Conclusion

Cultural sensitivity in procurement is important as it enables you to develop strong relationships and facilitates better deals with suppliers from diverse cultural backgrounds. 

Understanding and respecting their culture is key to navigating negotiations successfully and averting conflicts.

Disregarding their cultural context can impede relationship building and hinder business growth, particularly in global markets. 

Embracing cultural sensitivity in procurement allows for consideration of diverse perspectives, fostering innovation within the procurement process and yielding positive outcomes.