January 3, 2003—European companies are increasingly confronted with skills shortages in their procurement departments, according to a new pan-European survey of more than 120 procurement directors.
More than three-quarters (78%) of respondents told the business consultant Accenture that they lack highly qualified procurement personnel, and more than two-thirds said that it was either difficult or very difficult to recruit senior buyers for their procurement departments.
To complicate matters, globalization, competition and an increase in mergers and acquisitions in Europe are all putting pressure on procurement professionals to identify and exploit efficiencies in the purchasing process.
The increased complexity of the procurement managers job is mirrored in the wide range of competencies that companies now expect from their specialist personnel. For instance, when asked to rate the competencies of their senior buyers that are most critical to helping companies achieve their procurement objectives, respondents ranked communication and teamwork, integrity and ethics, and supplier negotiations as the three most important. “The fact that respondents gave these competencies the same importance demonstrates our belief that procurement professionals must be more than just skilled negotiators,” said Richard Laub, a partner in Accentures Supply Chain Management practice.
Although technology developments in areas such as e-procurement and e-sourcing have helped companies support their procurement departments, Accentures survey indicates that this one-dimensional approach to procurement cannot be expected to bring about significant positive returns. “Executives must revisit their traditional focus on one-off systems or strategic sourcing initiatives and make sure that they attract and retain the most-qualified people and develop their skills over time,” Laub added.
Procurement performance leaders also forge stronger ties between their procurement departments and senior-executive-level functions. Seventy-one percent of top-performing companies recognize the strategic importance of the procurement function, compared with only 28% of the remaining companies. Moreover, procurement directors are members of the executive leadership teams in 71% of top-performing companies, but in only 36% in the remaining companies.
“These findings underscore the strategic importance of not only the procurement function, but also of each employee who works within it,” commented Accenture partner Stephan Haupt.
—Elliott Chase
Reprinted with permission; copyright 2003 i-FM i-FM
