Graduates
Some of the personal qualities and skills needed to succeed in Purchasing
The purchasing and supply management profession is continuing to grow and expand its influence and there has never been a better time for Graduates to join this exciting and ever changing function.
There has always been opportunities for Buyers (for Buyers or Buying read Procurement or Purchasing and vice versa) but following the swing from a supplier controlled industry to one that is increasingly becoming more buyer controlled, employers are finding that the number of talented purchasing and supply staff is no match for the increased demand for quality individuals. There will always be great opportunities out there for good people at all levels, with the right skills, experience and attitude.
Within purchasing, more and more emphasis is being placed on buying the right products and services to fit the longer term needs of the business, with the expectation of best value, total cost solutions being achieved rather than a simple quick, price focused fit. Today, many companies are transforming their Purchasing & Supply Chain functions in order to unlock even greater added value. They recognise that Purchasing should be making more of a contribution to the bottom line profits and should also be providing a real competitive advantage. They also recognise that controlling and containing costs is a vital business imperative.
To be successful, Purchasing not only has to understand the organisation’s goals and overall strategy, they also need to understand the requirements of its own internal customers and be able to face the challenge of responding to today’s constantly changing business environment, which is often affected by a range of factors including new customer needs, changing regulatory requirements and different ways of working. There is a constant battle for buyers and suppliers to understand each other’s needs and expectations and for them to work together to ensure that they develop the best possible relationships that will deliver successful business outcomes for both parties.
Whilst the traditional purchasing skills, such as financial management, contract management, cost reduction and basic negotiation, are still key, they are largely ‘learned’ skills and can be acquired by most people these days through the right training and education programmes (click on www.cips.org in order to find out more information regarding training and qualifications). However in order to succeed in today’s more ‘strategic’ environment, good relationship management skills are essential.
The current relationship between partners (suppliers) is unlike the traditional adversarial one where the buyer pits one supplier against another, focusing entirely on unit cost in order to get the best price. In a strategic purchasing environment, both companies view each other as relatively equal in terms of the relationship and work with each other right from the start to share information, training, support, technical input and ideas etc., in order to reduce the total overall cost. At the same time the buyer is also working closely with internal customers to ensure their needs are met, sometimes having to ‘sell’ purchasing to the likes of say Marketing or IT in order to gain their buy-in to the process.
Good relationship management skills are therefore critical, yet less easily ‘learned’ in a classroom environment. Those individuals who are generally most successful within the purchasing environment understand just how important it is to develop these ‘softer’ skills that include: listening, understanding, communicating, empathy, selling not telling, and lots more.
The emergence of the purchasing specialist, largely as a result of the introduction of Category Management, now provides more opportunities for the discerning graduate to consider. Increasingly, purchasing individuals are now able to choose to specialise in areas such as Marketing, IT, Consultancy Services, Fleet, Travel, Facilities Management or Production etc.
The use of technology is also playing an increasingly important role in enabling businesses to become more competitive by incorporating new working practices. E-procurement for instance is designed to help a business gain control over, and simplify, the process of purchasing goods and services from multiple suppliers.
Consolidating supplier information within a single e-platform, providing online contract negotiation and easy access to management information for supplier analysis, gives purchasing managers and senior executives the ability to better manage their vendors and the approval and transaction processes. Keeping abreast of the changes in technology as an important purchasing and business tool is yet another skill to learn and develop.
The Purchasing and Supply Chain profession has undergone major transformation over the last few years. It provides an excellent and exciting functional area for graduates who want to have a real impact. However, you cannot expect to walk into a purchasing role and have all of the above skills in your personal toolkit - some of them will take a substantial amount of time to build up and develop. What is important however, is being aware of where your own specific skills gaps are so that you can work with your manager and team to develop them, either through formal training programmes or through a Corporate Purchasing Development route.
Also, take time to understand the organisation you work in; what’s the culture like and where does purchasing sit in the grand scheme of things? This will help you shape future opportunities and make suggestions for improvements. Understanding what makes a proficient and successful purchaser at an early stage will help you build your own successful team in the future.
For more information on a career in purchasing contact us on: 01423 520080 and speak to one of our experienced Consultants.
If you need more information about training or qualifications then visit: www.cips.org
