FLYING START AS A PROCUREMENT PROFESSIONAL
Who ever dreamed of starting a career in Procurement? The term Procurement probably didn't even mean anything to you. Yet, here you are, a budding procurement professional, without even knowing exactly how you got here, and it seems like a golden opportunity. This is what we often hear when it comes to "the next step" in conversations with young procurement professionals.
It's true that there's a lot of movement and challenges in the field of Procurement. More and more developments are happening on the supplier side, and organizations are realizing the increasing impact of the supply side on the delivered customer value of the organization. Sustainability and digitalization are hot topics that you'll encounter extensively within Procurement. In short, Procurement puts you in pole position to make a significant contribution to the future themes of organizations and society.
It sounds like a fairy tale, and in many cases, it turns out to be just that. Procurement is a broad term that encompasses many forms. It's important for you to make conscious choices in your Procurement career to continue benefiting from the tailwind that the developments within Procurement can bring you and to stay true to yourself. Nobody wants to end up in a career trap within the Procurement pillar.
The position of Procurement within an organization is an important factor for your long-term development. Traditionally, Procurement is an operational/tactical discipline that often supports the business within a pillar structure. Within such a pillar, you can develop fundamental Procurement skills such as negotiation, contracting, contract management, stakeholder management, and collaboration. Unfortunately, many aspiring Procurement professionals eventually find that their enthusiasm gets lost in initiatives that have little impact on the business in practice. To achieve that impact, along with its development potential, it's essential for Procurement to connect with the business, transcend the Procurement pillar, and become a broad part of the organizational process. We all understand that, but it's easier said than done. However, there are a number of factors that directly influence the position of Procurement. It starts with the existing leadership within Procurement as a prerequisite to being a "peer" of the business. Additionally, the industry and type of commodity are also determining factors in the extent to which there is a natural connection with the business. In general, you can say that within the "trade" sector, Procurement is naturally part of the business, whereas in the "service" sector, it is less so. When you purchase "raw materials" for a production process, it has a greater direct impact on the business than purchasing non-product-related items within, for example, "construction." Of course, this varies for each organization, but there is a clear difference in your professional development when you operate in alignment with the business and "in the heat of the kitchen" versus experiencing minimal alignment on the periphery of the organization. Within these two extremes, you will naturally encounter various shades of gray.
Another choice you can make as a starting procurement professional is between "process" or "front" roles. Are you involved in optimizing the procurement process or are you at the front, often facing more commercial challenges? The Procurement process is in the midst of, or at least on the eve of, an intensive professionalization drive. You can contribute to this when you focus on the procurement process, where alignment with organization-wide dynamics is essential. This is especially true if you aspire to a future in process development. Many professionals start their procurement careers as analysts or process developers, which is an excellent foundation for gaining broad insights. However, it's not necessarily something to pursue for a long time if you want to develop and establish yourself as a procurement professional. In that case, you'll also need to gain experience at the "front," where commercial experience counts. This is also important for starting procurement professionals who work as consultants. Having a broad general understanding helps determine where you can excel, but to take the next step as a procurement professional, you'll also need to delve into the depth of an organization to score commercial experience. Sometimes, this works better by working for an organization for an extended period of time.
Of course, every situation is specific, and you know which path suits you best, which is always a good thing. However, being aware of the possible consequences of your choices can help you make decisions regarding your career steps. In general, the position of Procurement is an important factor in the impact you can have on the entire organization and in keeping your development opportunities open across a broad spectrum. The longer and deeper you are involved in the Procurement pillar, the more challenging it becomes to make a potential transition to other disciplines within an organization. Di-Mens has deep insights into the characteristics of procurement organizations and their impact on your career possibilities. Feel free to contact us if you'd like to discuss your specific position.