{"id":102138,"date":"2024-07-04T09:32:03","date_gmt":"2024-07-04T07:32:03","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=102138"},"modified":"2024-09-16T10:09:53","modified_gmt":"2024-09-16T08:09:53","slug":"why-upskilling-the-procurement-function-is-a-strategic-imperative-for-the-future","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/why-upskilling-the-procurement-function-is-a-strategic-imperative-for-the-future\/","title":{"rendered":"Why upskilling the procurement function is a strategic imperative for the future"},"content":{"rendered":"<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><p>&nbsp;<\/p>\n<p><span style=\"color: #004146;\"><strong>The procurement landscape is changing at an unprecedented pace. Technological advancements, global supply chain disruptions, and the increasing importance of sustainability are driving the need for a more skilled and adaptable procurement workforce. As organizations face these evolving challenges, upskilling procurement professionals is becoming a strategic imperative. In this article, we explore the necessity of upskilling in procurement, typical use cases that illustrate the transformation, and how organizations can effectively prepare their teams for the future.<\/strong><\/span><\/p>\n<h2>The changing landscape and necessity of upskilling in procurement<\/h2>\n<p>The procurement function has traditionally been viewed as a cost-saving center focused on negotiating better deals and managing supplier relationships. However, this view is rapidly evolving. Today, procurement is seen as a strategic function that plays a critical role in driving innovation, ensuring supply chain resilience, and achieving sustainability goals.<\/p>\n<div class=\"bp-module-info-wrapper\">\n    <div class=\"container py-3\">\n        <div class=\"row\">\n                        <ul class=\"process-list-leading-numbers\" style=\"background-color:#ffffff;\">\n                \n                                            <li class=\"animate-inview\" style=\"border-color: #879DCB;color: #000000;\">\n                            <div>\n                                <h3>Technological advancements<\/h3>\n<p>The integration of artificial intelligence (AI), machine learning, and predictive analytics into procurement processes is transforming the way organizations operate. These technologies enable more efficient data analysis, better decision-making, and improved risk management. Procurement professionals need to be adept at using these tools to stay competitive. Proficiency in digital tools and technologies is essential. This includes understanding how to leverage AI and machine learning for predictive analytics, using digital platforms for supplier management, and staying abreast of the latest technological trends.<\/p>\n\n                            <\/div>\n                        <\/li>\n                                            <li class=\"\" style=\"border-color: #879DCB;color: #000000;\">\n                            <div>\n                                <h3>Global supply chain disruptions<\/h3>\n<p>Events such as the COVID-19 pandemic, geopolitical tensions, and natural disasters have highlighted vulnerabilities in global supply chains. These disruptions have underscored the importance of having a resilient and adaptable procurement strategy. Upskilling in areas like risk management, supplier diversification, and supply chain resilience is essential. The ability to anticipate and mitigate risks is crucial. This involves learning how to identify potential disruptions, develop contingency plans, and ensure business continuity in the face of unexpected events.<\/p>\n\n                            <\/div>\n                        <\/li>\n                                            <li class=\"\" style=\"border-color: #879DCB;color: #000000;\">\n                            <div>\n                                <h3>Sustainability and ethics<\/h3>\n<p>With increasing pressure from stakeholders to operate sustainably, procurement teams must prioritize ethical sourcing, reduce carbon footprints, and ensure compliance with environmental regulations. Understanding sustainable procurement practices and integrating them into everyday operations is crucial. This includes knowledge of sustainable procurement practices, understanding how to source ethically, reduce environmental impact, and comply with sustainability regulations.<\/p>\n\n                            <\/div>\n                        <\/li>\n                                                    <\/ul>\n                    <\/div>\n    <\/div>\n\n<div>\n<h2>Typical use cases illustrating the transformation<\/h2>\n<p>To illustrate the necessity of upskilling in procurement, let&#8217;s consider some typical use cases that highlight how the role of procurement professionals is evolving.<\/p>\n<p>The main drivers of this development include:<\/p>\n<\/div>\n<\/div>\n<div class=\"tabs backgroundTwo componentPadding\" is=\"block-tabs\">\n  <div class=\"container\">\n    \n    <div class=\"tabs-thumbs\">\n              <button type=\"button\" class=\"tabs-thumbs-item trigger active\">\n          \n        <\/button>\n              <button type=\"button\" class=\"tabs-thumbs-item trigger\">\n          \n        <\/button>\n              <button type=\"button\" class=\"tabs-thumbs-item trigger\">\n          \n        <\/button>\n              <button type=\"button\" class=\"tabs-thumbs-item trigger\">\n          \n        <\/button>\n          <\/div>\n\n    <div class=\"tabs-slider swiper-container\" data-swiper>\n      <div class=\"swiper-wrapper\">\n                  <div class=\"swiper-slide\">\n            <div class=\"tabs-slider-content\">\n                              <div class=\"tabs-slider-content-text\">\n                  <p>Traditionally, procurement teams relied on historical data and manual calculations for demand forecasting. This approach often led to inaccuracies and inefficiencies. Today, advanced predictive analytics tools can analyze vast amounts of data in real-time, providing more accurate forecasts. Upskilling in data analytics allows procurement professionals to make data-driven decisions, optimize inventory levels, and reduce costs.<\/p>\n\n                <\/div>\n                            \n                              <div class=\"tabs-slider-content-image\">\n                  <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/07\/itc-vuca-analytics.png\" alt=\"\" width=\"400\" height=\"400\" class=\"img-fluid\" \/>\n                <\/div>\n                          <\/div>\n          <\/div>\n                  <div class=\"swiper-slide\">\n            <div class=\"tabs-slider-content\">\n                              <div class=\"tabs-slider-content-text\">\n                  <p>Consider a scenario where a natural disaster disrupts a key supplier&#8217;s operations. In the past, this would have caused significant delays and increased costs. A procurement team skilled in risk management can quickly identify alternative suppliers, negotiate new contracts, and implement contingency plans to minimize disruption. Upskilling in this area ensures that procurement teams are prepared for any eventuality.<\/p>\n\n                <\/div>\n                            \n                              <div class=\"tabs-slider-content-image\">\n                  <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/07\/itc-vuca-disruptions.png\" alt=\"\" width=\"400\" height=\"400\" class=\"img-fluid\" \/>\n                <\/div>\n                          <\/div>\n          <\/div>\n                  <div class=\"swiper-slide\">\n            <div class=\"tabs-slider-content\">\n                              <div class=\"tabs-slider-content-text\">\n                  <p>A company aiming to reduce its carbon footprint needs to source materials from sustainable suppliers. Procurement professionals with knowledge of sustainable sourcing can identify suppliers that meet environmental standards, negotiate favorable terms, and ensure compliance with sustainability goals. This not only improves the company&#8217;s reputation but also helps it meet regulatory requirements.<\/p>\n\n                <\/div>\n                            \n                              <div class=\"tabs-slider-content-image\">\n                  <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/07\/itc-vuca-sustainability.png\" alt=\"\" width=\"400\" height=\"400\" class=\"img-fluid\" \/>\n                <\/div>\n                          <\/div>\n          <\/div>\n                  <div class=\"swiper-slide\">\n            <div class=\"tabs-slider-content\">\n                              <div class=\"tabs-slider-content-text\">\n                  <p>In the past, managing supplier relationships involved extensive manual work and face-to-face interactions. Today, AI-powered platforms can streamline supplier management by automating routine tasks, analyzing supplier performance data, and identifying opportunities for improvement. Upskilling in AI technologies enables procurement professionals to enhance supplier relationships and drive better outcomes.<\/p>\n\n                <\/div>\n                            \n                              <div class=\"tabs-slider-content-image\">\n                  <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/07\/itc-vuca-genai.png\" alt=\"\" width=\"400\" height=\"400\" class=\"img-fluid\" \/>\n                <\/div>\n                          <\/div>\n          <\/div>\n              <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<h2>Preparing for the future: strategies for effective upskilling<\/h2>\n<p>To effectively upskill procurement teams, organizations need to adopt a strategic approach that includes the following elements:<\/p>\n<ul class=\"checklist checklist-cols-2\">\n<li><strong>Assessment of current skills and gaps:<\/strong> Begin by assessing the current skill levels of the procurement team and identifying gaps. This involves evaluating technical skills, strategic capabilities, and knowledge of sustainable practices.<\/li>\n<li><strong>Tailored training programs:<\/strong> Develop customized training programs that address the specific needs of the team. This includes workshops, online courses, and hands-on training sessions focused on key areas such as digital literacy, strategic thinking, and risk management.<\/li>\n<li><strong>Continuous learning culture:<\/strong> Foster a culture of continuous learning where employees are encouraged to update their skills regularly. Provide access to learning resources, encourage participation in industry conferences, and support professional development initiatives.<\/li>\n<li><strong>Leveraging external expertise:<\/strong> Partner with training providers and industry experts to deliver high-quality upskilling programs. External trainers can bring fresh perspectives and insights that enrich the learning experience.<\/li>\n<li><strong>Mentorship and coaching:<\/strong> Implement mentorship and coaching programs where experienced procurement professionals can guide and support less experienced team members. This helps in knowledge transfer and provides practical insights into real-world challenges.<\/li>\n<li><strong>Measurement and feedback:<\/strong> Regularly measure the effectiveness of upskilling programs through feedback and performance metrics. Adjust training programs based on this feedback to ensure continuous improvement.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<div class=\"icon-boxes  \" data-moduleID=\"102141\" is=\"summary-box\">\n    <div class=\"summary-box-padding overflow-visible\">\n        <div class=\"icon-box has-icon  fadeIn\" style=\"border-color: rgb(243, 145, 0);\" data-animated-icon=\"true\">\n            \n                <div class=\"icon\">\n                    <div class=\"inner\">\n\n                                                                                    <svg id=\"animatedIcon-6883205bef110519e91d171209514df2\" data-id=\"6883205bef110519e91d171209514df2\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" x=\"0px\" y=\"0px\" viewBox=\"0 0 64 64\" xml:space=\"preserve\" width=\"75\" height=\"75\">\n                                    <path fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" d=\"M43,16.4c-3.2-3.1-7.4-4.6-11.8-4.4C23,12.4,16.3,19.2,16,27.4c-0.2,5.1,2.1,10,6.1,13.2C24,42,25,44.1,25,46.2V47h6V34.5l-5.5-3.7c-0.5-0.3-0.6-0.9-0.3-1.4c0.3-0.5,0.9-0.6,1.4-0.3l5.4,3.6l5.5-3.6c0.5-0.3,1.1-0.2,1.4,0.3c0.3,0.5,0.2,1.1-0.3,1.4L33,34.5V47h6v-0.8c0-2.2,1-4.2,2.9-5.7C45.8,37.5,48,32.9,48,28C48,23.6,46.2,19.5,43,16.4z\"\/>\n                                    <path d=\"M27,49h-2v5c0,0.5,0.5,1,1,1h1.1h9.8H38c0.5,0,1-0.5,1-1v-5h-2H27z\" fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\"\/>\n                                    <path d=\"M32,60c3,0,4-2,4-3h-8C28,58,29,60,32,60z\" fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" \/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"9.9\" y1=\"10.5\" x2=\"16.4\" y2=\"15.6\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"47.9\" y1=\"36.6\" x2=\"54.4\" y2=\"41.7\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"9.5\" y1=\"41.4\" x2=\"15.8\" y2=\"36.1\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"48.2\" y1=\"15.7\" x2=\"54.5\" y2=\"10.4\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"32\" y1=\"1.8\" x2=\"31.9\" y2=\"10\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"14.1\" y1=\"26\" x2=\"5.8\" y2=\"26\"\/>\n                                    <line fill=\"none\" stroke-width=\"2\" stroke=\"#a0d60a\" stroke-miterlimit=\"10\" class=\"st0\" x1=\"58.1\" y1=\"26\" x2=\"49.9\" y2=\"26\"\/>\n                                <\/svg>\n                            \n                        \n                    <\/div>\n                <\/div>\n\n            \n            \n                <h3 class=\"title\" style=\"color: rgb(243, 145, 0)\">\n                    Conclusion: Embracing the future of procurement\n                <\/h3>\n\n                <div class=\"content\">\n                    <p>The future of procurement is dynamic and full of opportunities. By investing in upskilling, organizations can ensure that their procurement teams are equipped to navigate this changing landscape with confidence and expertise. As we look ahead, the importance of a skilled and adaptable procurement workforce cannot be overstated. By embracing upskilling, companies can unlock new potential, drive strategic initiatives, and achieve sustained success in an increasingly complex and competitive environment. The journey towards procurement excellence starts with the right investment in people\u2014empower your team today for a successful tomorrow.<\/p>\n\n                <\/div>\n\n            \n        <\/div>\n    <\/div>\n<\/div>\n\n\n<h2>Get in contact with our experts<\/h2>\n\n    <div class=\"container authors-section fadeIn \" is=\"authors-and-partners\">\n        <div class=\"description row\">\n            <h2>\n                                    Get in contact with our experts\n                            <\/h2>\n        <\/div>\n\n        <div class=\"row\">\n                            <div class=\"mb-5 col-md-6 mb-md-0\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/Associate-Director_Thorsten_Kraft_350x440-250x250.jpg\" class=\"img-fluid\" alt=\"\" \/>\n                            <\/figure>\n                        \n                        <h3>Thorsten Kr\u00e4ft<\/h3>\n                        <p class=\"person-position\">Associate Director <\/p>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:thorsten.kraeft@kgmstrategy.com\" class=\"mail-link\">thorsten.kraeft@kgmstrategy.com<\/a>\n                                                                                                                                                <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/why-upskilling-the-procurement-function-is-a-strategic-imperative-for-the-future\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                            <div class=\"mb-5 col-md-6 mb-md-0\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/06\/anna-kollenbrandt-250x250.png\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/06\/anna-kollenbrandt-250x250.png 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/06\/anna-kollenbrandt-75x75.png 75w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Anna-Maria Kollenbrandt<\/h3>\n                        <p class=\"person-position\">Senior Project Manager<\/p>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:anna.kollenbrand@kgmstrategy.com\" class=\"mail-link\">anna.kollenbrand@kgmstrategy.com<\/a>\n                                                                                    <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/why-upskilling-the-procurement-function-is-a-strategic-imperative-for-the-future\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                    <\/div>\n    <\/div>\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In this article, we explore the necessity of upskilling in procurement, typical use cases that illustrate the transformation, and how organizations can effectively prepare their teams for the 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