Procurement Leader — Everything a Procurement Professional Should Know
Behind every successful procurement process is a good procurement leader. Procurement’s success is dependent on how effective procurement leaders lead their procurement team to success.
For this article, we will discuss how to be a procurement leader. We will explore the needed skills that a procurement leader must possess. Additionally, we will check the ways to consistently achieve high levels of procure-to-pay performance.
Once you finish this article, you can now call yourself a procurement leader too. Being able to know this knowledge will allow you to apply it in your profession or your business. This will enable your business to develop further as you lead your people in the right direction.
Becoming a ProcurementLeader
It takes a lot of time, determination, skills, and experience to be a procurement leader. Many people call themselves a leader but what does it take to be one?
A good procurement leader is welcoming toward individuals who are new in the field of procurement. It encourages and leads the employees by giving feedback and empowerment.
Procurement leaders create an environment where procurement teams and employees can innovate and can voice their suggestions to succeed.
Leaders need to demonstrate the real value of procurement to individuals to show its importance. This is to let your employees know that procurement is a core strategic function to raise its profile in the organization.
To become a procurement leader, there are steps that you need to do to qualify. Below are the steps to being a leader in the field of procurement:
1. Use data to your advantage
Procurement leaders know how to use data to their advantage. It is essential for procurement leaders to use data because it can affect their procurement strategy.
Using data in their procurement strategy can ensure that the organization uses its time and resources effectively.
In this modern age, procurement leaders must gather data to deliver valuable insights to their team members. This will enable the team members to support the growth and profitability of the business.
2. Keep track of the records
If anyone needs information to do their tasks effectively, you must be able to provide it immediately. Procurement leaders keep track of the records that are valuable for the company’s growth
Keeping records of the purchases of the company helps streamline processes like invoicing. Additionally, it builds a purchasing history that is valuable for decision-makers.
3. Measure your performance
Procurement leaders know that in order for procurement to be successful, they must also improve themselves.
Procurement leaders know that there are aspects that they still need to improve. They know that learning is crucial not just for them but for the success of their team members and the organization.
In order to grow, procurement leaders must identify and improve metrics to measure their contribution to the organization.
Procurement leaders must also consider targeting certain areas that remain unmanaged. This will give value and reduce unmanaged spending to maximize the resources of the organization.
RELATED COURSES
Negotiation Course for Procurement
Learn from industry experts who negotiated billion $ deals
Procurement Strategy Course
Take the lead with our proven 5-step procurement strategy
Sustainable Procurement Course
Maintain profitability while moving toward sustainability
ChatGPT & AI in Procurement Course
Unleash the power of ChatGPT & AI within procurement
Junior Procurement Management Course
Learn how to execute the perfect procurement process
Mini-MBA for Procurement Managers
Enhance your expertise to make valuable strategic contributions
Top 3 SkillsNeeded to be a Procurement Leader
1. Leadership skills
Of course, a good leader possesses this skill. Strong leadership skills for procurement allow team collaboration to work effectively.
Additionally, having leadership skills can improve the profile of procurement within the organization which is greatly needed to streamline it.
2. Skill to influence others
Every great leader knows how to influence their team. A procurement leader must know how to influence colleagues and suppliers to improve the processes.
Influencing others can create relationships that will greatly benefit procurement in the organization. Influencing senior-level positions will allow you to gain buy-in and raise the status of procurement in your organization.
3. Communication skills
Leaders know how to communicate well with their team and suppliers. Being able to communicate effectively can immediately resolve the problems that may arise in procurement.
Good communication skills can create good relationships with your supplier that makes it easier to negotiate prices.
How do Procurement LeadersStand Out?
1. Aligning procurement strategy to business objectives
Procurement leaders stand out because they align their procurement strategy with the business goals.
Procurement leaders engage more with other business functions than the other departments in technology. Additionally, they take advantage of supply chain opportunities.
2. Contributing to the top and bottom lines
Procurement leaders contribute to the top lines by innovation and engage suppliers in new product development processes.
It also affects the bottom by increasing the total value of the purchased goods, collaborating with other business units, and enhancing the organization’s working capital.
3. Managing risks
The COVID-19 pandemic highlighted the importance of procurement in an organization. Additionally, it has shown how effective procurement leaders manage risks due to the disruption of the pandemic to the supply chain.
Procurement leaders stand out as they usually use risk-impact analysis, financial risk management, and disaster planning to counter uncertain events.
4. Frequent use of supplier relationship management (SRM)
Procurement leaders attract attention in the organization as they use supplier relationship management. SRM helps them know what to improve in the supply chain.
Those who lead procurement are also forward-thinkers. They identify opportunities with their suppliers, detail implementation plans, and create incentives.
5. Utilize technology
Leaders have more control over their expenses through the use of technology. Technology allows more visibility of the purchases and transparency of the transactions when integrated into the procurement processes.
Additionally, they have access to real-time data which is crucial when deciding and creating plans for the procurement.
Top 10 Procurement Leaders to Follow in 2023
1. Matthias Gutzmann
Matthias Gutzmann founded the Digital Procurement World in 2019 after being frustrated by how existing conferences at that time were expensive for a limited startup budget.
By 2019, he launched the conference which boasted a record-breaking attendance of over 400 industry leaders from 33 countries and was dubbed “the best procurement event in years”.
Prior to this, he was the VP of marketing and business development at Vizibl and led the market entry of procurement leaders in North America.
2. Philip Ideson
Philip Ideson has spent more than 20 years in procurement. He is the founder of Art of Procurement which is a procurement media and advisory business.
Prior to the Art of Procurement, he was a procurement leader at Accenture, Pfizer, Visteon Corporation, and Chiquita.
The Art of Procurement Podcast is the number one weekly procurement podcast with a community of over 10,000 procurement executives.
3. Stephany Lapierre
Stephany Lapierre, the founder of Tealbook, has been recognized as one of the top 100 most influential women in the supply chain.
She has spent 10 years creating successful strategic sourcing and procurement consulting firms prior to her establishment of Tealbook. She has made it her mission to provide a trusted source of supplier data to the growing e-procurement space.
Currently, Tealbook is the only big data company that offers a self-maintaining and self-enriching mechanism to fix supplier data.
4. Lance Younger
Lance Younger, the founder of ProcureTech, has worked with major companies across the industry like Vodafone, Nissan, Nokia, Goldman Sachs, Roche, Jaguar Land Rover, etc.
ProcureTech, a digital platform, is focused on building the digital future of procurement. In 2021, ProcureTech curates the Annual ProcureTech100 with Kearney which listed down the digital procurement solutions supercharging the procurement industry.
5. Sheri Hinish
Sheri Hinish is certified in leading corporate sustainability and innovation by Harvard University and Organizational Leadership by Cornell University.
She is a senior executive leading IBM’s Global Sustainability services practice. Recognized as the 2022 top supply chain leader by Supply Chain Digital, she is known by her colleagues and clients as the “Supply Chain Queen”.
Sheri Hinish is also the People’s Choice 2020 Global Women in Supply Chain Leader and a recipient of the Corporate Vision Excellence award for the 2020s Most Influential Leader in Supply Chain & Technology.
6. Mark Perera
Mark Perera is the founder and CEO of Vizibl. His mission is to help companies collaborate with their supplier ecosystem to drive sustainable growth. He founded Vizibl to put collaboration & innovation at the core of supplier relationships.
Mark Perera also founded the Procurement Leaders which he exited in 2019. He co-authored the book “Procurement with Purpose” to inspire people to act and is a practical guide to implementing real change in procurement.
7. Sebastian Chua
Sebastian Chua started at Hewlett Packard/Agilent Technologies as their country manager for Singapore, India, Thailand, and the Philippines before he took on the job as the regional procurement manager.
In 2022, he was awarded the Special Mentioned Individual Award by Supply Chain Asia for his contribution to the national emergency procurement for the Covid-19 operation.
He was also awarded the 2021 Asia Procurement Leader Award at the China Procurement Success Summit, the 2019 APAC Procurement Leader Award by the Procurement Leaders, the Public Service Innovation Champion Award by the Prime Minister’s office of Singapore, the 2017 Asia Supply Management awards by CIPS, and the 2017 Supply Chain Professional of the Years by the Supply Chain Asia.
8. David Rae
David Rae has been the Chief Product Officer at Procurement Leaders. He is also a Sustainable Procurement Ambassador for “The Sustainable Procurement Pledge” since 2019.
With over 12 years of experience in advising and connecting people in the procurement industry, he uses first-hand market knowledge to create products aligned with the needs of his clients.
9. Amanda Prochaska
Amanda Prochaska is the founder of Wonder Services, a consulting firm for procurement organizations, that helps procurement leaders change their business operations and achieve business results through the right application of technology solutions.
Additionally, she is the founder of Global Women Procurement Professionals and the operations partner at ProChain Ventures. She speaks at a variety of procurement conferences and has held procurement executive roles in various international companies.
10. Marijn Overvest
Marijn Overvest, The founder of Procurement Tactics, has more than 20 years of experience in procurement and negotiations.
He has founded Procurement Tactics to help procurement professionals in their profession and achieve their dreams in closing every deal that they will make.
Throughout his journey as a procurement and negotiation professional, he has closed over €200 million in deals with suppliers like Unilever, Heinz, and Pepsico.
Additionally, he has been working with both large and small companies e.g. Shell, and Walmart; he also is a popular keynote speaker at global procurement events.
Currently, he is focused on developing procurement tactics to share his knowledge with procurement professionals through the online course he has created. The courses that he formulated cover the entire procurement and negotiation processes while giving tips and strategies on how to be an effective procurement professional.
Frequentlyasked questions
+ What is a procurement leader?
A procurement leader is someone that leads the procurement department or team to help support the organization’s daily operations.
+ Does procurement need a leader?
Yes. Without someone leading procurement, the organization will spend more on the procurement process which will affect its development.
+ What skills do procurement leaders need to have?
Some of the skills that procurement leaders must possess are communication skills, negotiation skills, influencing skills, and leadership skills.
Negotiation Course For Procurement Professionals
You'll get a certificate after completing the course
Rated 9.2/10 ★★★★★
