Procurement Skills and Behaviours

What is it?

Skills are the abilities that are required to perform a given job successfully. Healthcare procurement requires a range of skills which can be divided into different types:

Technical skills are the procurement-specific knowledge and abilities gained through training and experience. Examples include: sourcing, supply market analysis, supplier appraisal, tendering, contract award, and contract management.

Business skills are also gained through training and experience, but they are not specific to procurement. However, there are a number of general business skills which are directly applicable. Examples include: planning & analysis, decision-making, process management, stakeholder management, project management, and problem-solving.

Technical and business skills are often referred to as hard skills.

People skills are the personal abilities which are deployed when dealing with others. Although these skills are generic, there are a number of examples which relate to the procurement role: communication, interpersonal, influencing, negotiation, collaboration, and relationship management.

Leadership skills are the personal characteristics which shape how you work on your own or with others. Examples include: strategic thinking, motivating, inspiring, team-building, coaching, mentoring, creativity, adaptability, and change management

People and leadership skills are often referred to as soft skills or behavioural skills.

The final type of skill to consider is digital skills. As business and management becomes more digital, there is a need for all functions to undertake data analysis and management, not just the IT department. The benefits are apparent, but these skills are not yet fully developed in mainstream procurement. Instead, they tend to be assigned to an internal specialist or they are outsourced. These are the new business skills for the digital age. Examples include: information and digital literacy, digital content creation, data planning, data analytics, and data visualisation.

Technical skills enable procurement practitioners to accomplish their task requirements. Business, people, leadership, and digital skills enable them to do so effectively.

Underpinning the skills that are deployed by procurement practitioners are essential behaviours. Procurement practitioners should carry out their duties with high levels of ethical behaviour, integrity and professionalism.

As procurement moves from a tactical to strategic role in the organisation, soft skills become more desirable because it is a core business function which deals with a wide range of different stakeholders. Furthermore, as procurement practitioners progress through their careers, the skills will change in terms of their relative importance. An entry-level procurement officer will primarily focus on technical and business skills, while senior procurement managers will draw more on people and leadership skills.

What does it look like?

How does it work in practice?

Procurement requires a range of different skills. For example, a recent job profile for a procurement manager sought the following skills:[1]

In the healthcare sector, the following skills, qualities and interests were advertised as entry requirements for typical procurement roles:[2]

It is interesting to note that the technical skills are not mentioned in this requirement, but are included in separate job descriptions. Lacking them would not automatically bar someone from applying for these procurement roles, as job-specific technical skills can be learned and developed for the right candidate.

A survey of 80 CPOs found the top ranked skills viewed as most critical to progression in procurement were leadership (61%), change management (48%) and influencing skills (41%).

In comparison, technical procurement skills were ranked as less important.[3]

A survey of 288 public-sector procurement personnel in Nigeria[4] found that strategic skills (decision making and leadership) and interpersonal skills (communication and team building) were ranked amongst the most important skills and also those which required the most development. Regarding methods for procurement skills development, the respondents perceived the most suitable methods to be: conferences and workshop attendance, networking and sharing ideas with other professionals, and on-the-job training.

Another survey conducted with over 1,500 leaders in procurement identified a number of skills which were deemed to be essential:[5]

STRATEGIC THINKING: This ability is more than just being able to see things as they are, but also about looking into the future for things that might change. Procurement specialists need to have an inquiring business mind. Constantly taking calculated risks, thinking creatively and having a keen interest in how the business is performing is essential, not just within their own department but in the business as a whole. Strategic thinking entails constantly questioning one’s own opinions. By seeking out other thought processes and opinions, a more balanced view of the situation will be achieved, which will help in making more strategic decisions.

ANALYSIS SKILLS: Whether undertaking total cost of ownership (TCO) analysis or a supply market analysis, being able to conduct an effective analysis is one of the most important skills needed in procurement. It is vital that procurement specialists have a solid understanding of different markets and how they operate. They should be constantly looking out for risks, key trends, competition and other factors. A keen eye for detail is always useful.

SUPPLIER RELATIONSHIP MANAGEMENT SKILLS: Companies that have strong, meaningful relationships with their suppliers are able to set themselves apart from competitors. In order to achieve effective relationships with suppliers, it is vital that the procurement specialist is aware of their exact and individual needs, are trustworthy, have a warm and positive attitude, and have the knowledge that will help them to become the ‘customer of choice’. Going the extra mile will ultimately pay off.

TECHNOLOGY SKILLS: Procurement is constantly changing and being able to stay on top of new technologies is a must. As technology becomes more intelligent and procurement becomes more automated, specialists need to adapt and become technically conversant. It is important to always stay ahead of any upcoming changes and to embrace new software and tools.

TEAMWORK SKILLS: Procurement specialists are always required to work alongside other departments, so it is essential to nurture good working relationships. New and advanced technologies mean that collaboration and sharing between different departments and their supply chains is more possible than ever. Procurement specialists should seek out opportunities to assist stakeholders in solving their supply problems in order to build credibility and add value to the organisation.

[1] https://www.prospects.ac.uk/job-profiles/procurement-manager

[2] https://www.healthcareers.nhs.uk/explore-roles/management/roles-management/general-mangement/purchasing-and-contract-management/entry-requirements

[3] https://www.cips.org/supply-management/news/2018/october/procurement-hiring-less-focused-on-functional-expertise

[4] https://uwe-repository.worktribe.com/output/874956

[5] https://spendmatters.com/uk/skills-every-procurement-specialist-needs-to-have/