T-Shaped Procurement Professionals — The Future of Procurement

T-shaped procurement professionals are the future of procurement given the numerous changes that are currently happening in the procurement realm. 

These changes require procurement professionals to step up their game and embrace the t-shaped procurement model to deliver real value in their organization. 

Without further ado, let’s dive more into the challenges of procurement and how being a t-shaped procurement professional can address all of them and create an impact in the organization.

Procurement Challenges in 2024

Procurement professionals face multiple challenges, including the risk of supply chain disruptions, uncontrolled spending, lack of transparency, difficulties in adapting to new technology, potential fraud, and supplier-related risks. 

These problems are so complicated that they cannot be fixed overnight. To address them effectively, companies need teams with diverse expertise that approach organizations as complex, holistic systems, and recognize the value of collaboration.

However, not everyone in procurement is on the same page. In large organizations:

• Procurement faces complex supplier ecosystems with various risks such as supply chain disruptions, quality issues, and geopolitical instability. These risks contribute to additional costs in the overall spending of the procurement department, leading to a loss in revenues. 
• Maverick spending or uncontrolled purchasing outside established procurement processes can lead to inefficiencies, cost overruns, and noncompliance. 
• Procurement is increasingly under pressure to adopt sustainable procurement practices to reduce environmental impact, enhance corporate social responsibility, and mitigate reputational risks. 
• The absence of cross-departmental collaboration resulting from isolated procurement practices not only results in redundant work and missed opportunities for optimization, but also introduces inefficiencies.

Smaller organizations face problems as well such as:

• Small businesses usually lack sustainability initiatives, but integrating sustainability into procurement processes is increasingly important for enhancing brand reputation and meeting customer expectations. 
• Small businesses often grapple with limited resources, making the integration of AI into their procurement processes a significant challenge. The investment required for AI implementation, including the costs associated with acquiring AI technologies, training employees, and ensuring compatibility with existing systems, can be daunting for organizations with constrained budgets. 
• Small businesses may struggle to attract and retain skilled procurement professionals due to competition from larger corporations and resource constraints. 

Despite decades of rapid growth in procurement, organizations often struggle to leverage procurement as a strategic function that drives business impact.

How T-Shaped Procurement Professionals Can Solve These Challenges

In many cases, procurement functions suffer from isolation within the organization and even within the procurement department itself. There’s a growing need for procurement professionals who possess deep expertise in their respective procurement disciplines and can effectively collaborate across various disciplines to manage diverse projects.

This emerging breed of procurement talent is often referred to as T-shaped procurement professionals.

T-shaped procurement professionals are characterized by their vertical expertise in specific procurement domains, such as empathic negotiation, analytical and strategic thinking, soft skills, and sustainability. However, they also possess broad cross-functional skills that enable them to collaborate seamlessly with stakeholders from different departments and disciplines.

The T-shaped model is our own idea at Procurement Tactics on the competencies we believe all procurement professionals should have, regardless of their level or position, to be successful in the ever-changing procurement landscape. 

A T-shaped procurement professional masters four Core Procurement Competencies that empower them to drive and adopt change in procurement (the horizontal part of the “T”). These are:

• Empathic Negotiation Design
• Analytical Strategic Thinking
• Soft Skills
• Sustainable Procurement

The Core Competencies are supported by Functional Competencies that depend on their specific role or organizational requirements (the vertical part of the “T”).

For Procurement leaders who manage people teams, being a T-shaped Procurement professional also entails mastering Leadership Competencies.

This combination allows them to:

• Manage procurement teams effectively
• Create a functional and strategic procurement strategy
• Leverage data and communication for effective collaboration.
• Foster alignment with business stakeholders to deliver business-centric solutions.

Moreover, T-shaped procurement professionals exhibit adaptability and possess a diverse skill set, allowing them to tailor procurement solutions to meet the specific needs and context of the business. This versatility enables them to offer a wider range of potential solutions to procurement challenges, making them more impactful, relevant, and effective.

Why It’s Important to Have T-Shaped Procurement Professionals Now?

T-shaped procurement professionals benefit not only themselves but also their company and the procurement field. Here are the reasons how:

1. Solving Complex Procurement Problems

Procurement professionals possess extensive knowledge and experience within procurement, represented by the vertical part of the “T” model. In addition, they also possess a wide range of knowledge and skills across various disciplines, represented by the horizontal part of the “T”. 

This distinct combination allows them to approach procurement challenges strategically, incorporating diverse perspectives and collaborating efficiently with stakeholders from different departments within the organization.

2. Agility and Adaptability

The business world is constantly changing, and procurement professionals with a T-shaped profile are better equipped to adapt to these changes. They have the insight to understand and predict the impact of external factors on procurement operations and the organization as a whole. This allows them to make quick adjustments to procurement strategies.

Their diverse skill set enables them to assemble cross-functional project teams that include client-facing business partners, specialists, and data experts. Together, they develop scalable and valuable procurement solutions.

Integrating procurement practices is one of the most effective ways for procurement to enhance business value. Procurement has a robust toolkit that can help organizations achieve their strategies by enhancing workforce capabilities.

However, procurement solutions often lack strategic integration. For example, initiatives aimed at fostering supplier innovation may not succeed if there are no corresponding enhancements in supplier performance management, contract terms, and supplier relationship management practices.

Achieving this integration requires a collaborative, T-shaped approach. This is particularly important in larger organizations where greater specialization offers ample opportunities for procurement expertise diversification and collaboration across departments.

Furthermore, T-shaped procurement professionals are well-positioned to integrate and leverage emerging technologies such as artificial intelligence (AI) to enhance procurement processes. Their adaptable skill set allows them to use AI-driven insights and automation to streamline procurement operations, improve decision-making, and drive efficiency across the organization.

3. Sustainability

T-shaped professionals in procurement have a unique advantage in incorporating sustainability into procurement practices. They include sustainability criteria in the supplier selection process, assess suppliers’ sustainability performance, and ensure adherence to sustainability standards. 

Moreover, T-shaped procurement professionals who lead teams must possess leadership skills to effectively drive sustainability initiatives. They motivate and empower their teams to adopt sustainability goals, provide guidance and mentorship on sustainable procurement practices, and cultivate a culture of continuous improvement and innovation in sustainability.

4. Building Stronger Relationships with Suppliers

Professionals with T-shaped skills in procurement utilize their soft skills to develop better and more robust relationships with suppliers, promoting collaboration and creating value throughout the supply chain.

T-shaped professionals are exceptional in communicating their expectations, conveying requirements, and addressing concerns with clarity and professionalism. By encouraging open and transparent communication channels, they ensure alignment on goals, priorities, and expectations, creating stronger relationships based on mutual respect and transparency.

In addition, T-shaped professionals prioritize building relationships as a crucial aspect of effective supplier management. They devote time and effort to understanding suppliers on a personal level and comprehending their business models, values, and cultures. By establishing a rapport and creating genuine connections, they promote a sense of partnership and collaboration, strengthening the foundation for long-term successful relationships. They also understand the significance of maintaining regular contact, providing feedback, and celebrating successes to nurture and maintain supplier relationships over time.

5. Negotiating Better Deals

T-shaped professionals are known for their thorough preparation before entering negotiations. They invest time in researching market trends, supplier capabilities, and pricing dynamics. This helps them to set clear objectives and develop a robust negotiation strategy.

They take an empathetic approach to negotiation, seeking to understand the needs, motivations, and constraints of both parties. By cultivating rapport and trust with suppliers, they demonstrate genuine interest and respect for their perspectives. This helps to create a collaborative atmosphere, which is conducive to finding mutually beneficial solutions.

Additionally, T-shaped professionals approach negotiations with flexibility and creativity. They explore a range of options and trade-offs to maximize value, and they are open to alternative proposals and innovative solutions. By thinking outside the box and adapting their approach to changing circumstances, they uncover hidden opportunities that lead to better deals.

Conclusion

Businesses are constantly evolving, as they adopt new strategic and technological concepts and practices. As a result, procurement professionals must also adapt and realign their skills to stay competitive and advance in their careers.

To achieve this, procurement professionals should embrace the T-shaped model, which involves a deep understanding of procurement processes, as well as a broad knowledge of related areas such as technology and finance. This will enable them to tackle new challenges and implement innovative solutions that will increase the value and revenue of their company.

To become a T-shaped professional, you must continuously improve your skills and knowledge in procurement. Especially now, with the integration of various technological advancements and tools to streamline the procurement process.

Our courses are designed to help you become a T-shaped procurement professional, unlocking your full potential and enabling you to overcome any challenges that may arise in the future. Enroll today and take the first step towards a successful career in procurement.