How can I stand out as a procurement manager?

    
You can stand out as a procurement manager by being an astute Systems Thinker. The science of Systems Thinking mandates that organizations are made up of individuals parts that work together as a whole.
Business Systems are made up of processes, people, skill sets, layouts, equipment, raw materials, information, and culture. Problems often arise from the interaction of these complexed parts which affect a procurement manager’s most sensitive performance measure, the Total Cost of Ownership (TCO).

With the above considerations, a procurement manager must possess the following characteristics to be a procurement superstar:
1. Ability to lead the Procurement Function with Vision and Purpose that is aligned to the strategic objectives of your organization.
2. Ensure that your team of procurement professionals are aligned with the articulated vision and are the right fit.
3. Ensure that your team has the right skills to manage spend, and support operations.
4. Ensure that your team members have the right technology, processes, and appropriate metrics are in place to measure the success of their departments.
5. Ensure that there is full accountability from direct reports and suppliers and influence the same amongst key stakeholder groups.
6. Ensure that Managerial Excellence is in place with a robust Spend and Savings Strategy
7. Ensure a culture of TCO understanding and excellence is the order of the day.
8. Master a major Scientific Problem-Solving Methodology, such as the DMAIC Model (Define, Measure, Analyze, Improve, Control) or PDCA (Plan, Do, Check, Act). Utilizing this talent to improve the procurement process and interactions with suppliers, internal and external customers is key.
9. Master the Science of Environmental Scanning. This entails understanding and influencing the socio-demographic, economic, market, technological, competitive, political, industry and ecological factors that impact the supply chain of your organizations.
10. Commit to Lifelong Learning and Continuous Improvement and influence a culture of the same from associates. Know your stuff!
11. Be a Cross Functional Mentor.
12. Become an Expert in understanding your Customer Requirements, as this will enhance your ability to make great procurement decisions and improve your organization’s value creation processes.
13. Reducing Supply Chain Risk by leveraging supply chain Risk Management methodologies such FMEA (Failure Mode and Effects Analysis) to understand, prioritize and improve existing risk, social responsibility and sustainability factors.
Check this for Procurement Manager Jobs: Who Is The Best Candidate?
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What is the best way to learn procurement?

    
Procurement is the understanding and translation of customer needs and requirements to the selection of capable suppliers, to realize the cost-effective acquisition, receipt and payment of vital inputs and raw materials. Factors impacting the Total Cost of Ownership such as quality, efficiencies, delays, stock outs, obsolescence and carrying cost are heavily emphasized in the procurement discipline.
To learn and master the above skill sets takes time and depends one’s learning style. Individuals seeking to learn the science of procurement should do some research of their learning styles.
The following are what we recommend as the best ways to learn procurement:
1. Vision: create one: Design Desired Outcomes for your procurement Career.
2. Body of Knowledge (BOK): get one, spend time reviewing it
3. Determine Knowledge Gaps to the BOK: firstly, ascertain your mental and physical aptitude to learn the Procurement BOK: Then study your knowledge gaps
4. Skills Acquisition: this can be acquired in various ways depending on your availability of time, budget and degree of knowledge gap. Some ways to do this are as follows:
- Mentor: Get a Supply Chain Expert as your mentor who can guide you through the following
BSc. or MSc. In Supply Chain Management. Remember the MS degree focuses on making one a Subject Matter Expert.
Certification: Such as the Senior Professional in Supply Management (SPSM). This program is strong on applied theory. The SPSM program delves deep into the “what and how to of procurement”
-SPSM® Certification: 3 Steps to Procurement Success,
1. LEARN (Learn the most modern procurement best practices and put them to use immediately.)
2. PROVE (Prove your advanced capabilities by passing the SPSM® Exam)
3. APPLY (Apply what you’ve learned to achieve measurable results; save more money, improve performance, and more)
5. Best Practice Mastery: understand and master the most critical best practices such as:
1 Utilizing an Annual Buying Plan
2 Utilizing Commodity Teams
3 Managing Supplier Performance
4 Optimizing Strategic Supplier Relationships
6 Qualifying Suppliers
7 Implementing Risk Management Practices & Policies
9 Systemizing Operations
10 Benchmarking
11 Embracing Technology
12 Measuring Purchasing Performance
13 Developing Staff Capabilities
14 Utilizing A Strategic Plan
6. Webinars: this is great way to enhance your procurement knowledge
7. Process Improve Projects: join a team that is conducting projects to improve procurement processes. This will give you a more dynamic understanding of procurement.
8. Blogs: participate in Procurement blogs, as this can expose you to dynamic knowledge
9. Purchasing Associations: join one, collaborate, share and learn from other procurement professionals in your network. Next Level Purchasing Association has an awesome platform and network for Procurement Professionals.


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What Are the Difference Between Public Procurement and Private Procurement?

    

Private Procurement is the process of understanding customer needs and requirements, selecting suppliers to deliver inputs and raw materials to support business operations, and ensuring the timely payment of invoices.
To clarify further, it is the process of translating customer requirements into the selection of highly capable suppliers, to timely, accurately, cost-effectively deliver high quality, mission-critical inputs, and raw materials to internal customers. As well as assuring the accurate receipt and timely payment of all accrued invoices.
A procurement department is mandated to execute 3 Main Functions:
  1. Manage the organization’s spending. A good procurement function is pivotal in deploying an effective Annual Buying Plan, leveraging robust forecasting, market analysis, purchasing processes, and cost reduction methodologies.
  2. Support operations by ensuring the timely acquisition of high quality, low cost, inputs and raw materials to be converted into products and services purchased by an organizations’ internal customers. An organization exists to create value for its customers. The procurement function is pivotal in supporting value creation processes.
  3. Protect the organization from risk by deploying risk management methodologies such as Failure Mode and Effects Analysis (FMEA). Contract management, and price shock mitigation and avoidance provide huge benefits to an organization, stakeholders and customers.
The public procurement process has its own peculiarities. The process is triggered by explicit needs and requirements which are followed by the following steps:
  1. Deployment of a procurement or buying plan and strategy
  2. Selection of suppliers and service providers to deliver the established needs and requirements
  3. Receipt of requisitions
  4. Pre-bid talks
  5. The issue of RFIs, RFQs, RFPs as required
  6. Receipt of bids
  7. Evaluation of bids and issue of recommendations
  8. Negotiations
  9. Award of Contracts
Get More info about Essential Procurement Skills
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What are the best practices to increase my supply chain knowledge?

    
Supply Chain Management: The Management of the Procurement, Purchasing, Production, and Logistics Functions. In other words, it is the total set of activities ranging from the translation of customer requirements, selection of suppliers, acquisition of raw materials to conversion to finished products and services that are delivered to customers.
Factors impacting the Total Cost of Ownership such as quality, efficiencies, delays, stock outs, obsolescence and carrying cost are heavily emphasized in the Supply Chain discipline.
To learn and master the above skill sets takes time and depends one’s learning style. Individuals seeking to learn the science of Supply Chain Management should do some research of their learning styles.
The following are what we recommend as the best ways to learn procurement:
1. Vision: create one: Design Desired Outcomes for your procurement Career.
2. Body of Knowledge (BOK): get one, spend time reviewing it
3. Determine Knowledge Gaps to the BOK: firstly, ascertain your mental and physical aptitude to learn the Procurement BOK: Then study your knowledge gaps
4. Skills Acquisition: this can be acquired in various ways depending on your availability of time, budget and degree of knowledge gap. Some ways to do this are as follows:
  • Mentor: Get a Supply Chain Expert as your mentor who can guide you through the following:
  • BSc. or MSc. In Supply Chain Management. Remember the MS degree focuses on making one a Subject Matter Expert.
  • Certification: Such as the Senior Professional in Supply Management (SPSM). This program is strong on applied theory. The SPSM program delves deep into the “what and how to of procurement”
  • SPSM® Certification: 3 Steps to Supply Chain Success,
  • LEARN (Learn the most modern procurement best practices and put them to use immediately.)
  • PROVE (Prove your advanced capabilities by passing the SPSM® Exam)
  • APPLY (Apply what you’ve learned to achieve measurable results; save more money, improve performance, and more)
5. Attend Supply Chain Webinars and Blogs: these mediums can yield great benefit, especially if are done by industry experts. NLPA offers excellent blogs and webinars on a wide range of supply chain topics.
6. Make your own Blog and Write Articles: this will push you learn through collaboration and dialog that an interactive blog can provide
7. Teach: this will enhance collaboration on supply chain topics and will force you to expand your knowledge base. Students will naturally challenge you to provide cutting edge leadership.
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How Do I Become a Supply Chain Management Expert?

    
Of course, one will have to be a Supply Chain Subject Matter Expert. This can only be honed after years of Experience, Education, Practical or Applied Theory, and perhaps Certification to attest one’s Mastery of the Supply Chain Body of Knowledge.

To become a Supply Chain Expert, one must be very proficient in the following categories:
  1. Strategic Clarity and Alignment –supply chain SMEs master the art of formulating and executing effective strategies in response to the pressing demands of the Modern Business Landscape.
  2. Talent Management – learn how to help their organizations build cultures that attract and retain top tier talent to innovate, bring new products to market and effectively solve organizational issues.
  3. Selection of effective Metrics – learn to guide their organizations in selecting the right amount of metrics and the correct metrics. Failure to do this can lead to focusing on erroneous initiatives.
  4. Portfolio Management – learn how to enable the selection and prioritization of the right initiatives at the right time and executing these initiatives accurately and cost effectively.
  5. Development of Robust Technology and Processes – failure to effectively guide their organizations in these areas can lead to disaster and loss of market share. SMEs learn the art of this critical dimension of supply chain operations.
  6. Accountability – Supply Chain SMEs learn how to enable their organizations to establish accountability amongst their key stake holders, including suppliers.
  7. Collaboration – to enable their organizations to build strong systems for collaboration and the dismantling of operational silos
  8. Lifelong Learning – Supply Chain SME commit to continuous professional development to effectively help their clients solve supply chain issues.
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