Human talent, not technology, still the critical factor in procurement

| 0 Comments

 

Procurement_Talent.pngAccording to 1st Executive, the human element, rather than technology, is still the critical factor in the procurement process. The specialised procurement and supply chain consultancy argues that the human factor is increasingly overlooked in the procurement process, in favour of automation. 1st Executive has urged firms to review their existing e-systems, to ensure that they are maximising the potential of their suppliers’ specialist knowledge. The firm warns that, failing to do so, could mean that procurement misses out on opportunities to add value.

James Tucker, co-managing director of 1st Executive, commented that, “the vast majority of procurement professionals don’t just want to be seen as hard-edged negotiators who want to strike the best deal on price alone, they want to be recognised as relationship driven, and keen to create more visibility in the business, and develop inter-dependent relationships with their supply base. However, it’s become obvious to us that the systems and tools that many firms have in place, are actually working against them. Many e-procurement systems for hiring – for example – don’t take into account that some firms are sector specialists, and therefore have a deep - and much greater - understanding of the procurement market than the ‘generalist’ recruiter. It’s concerning that firms are relying on these systems, that clearly don’t calculate the full value that suppliers can provide.”

He maintained that “in the modern tech-led world, procurement can often hide behind a process, or piece of technology, and forget that business is essentially about relationships with people. If procurement wants to be recognised as a strategic function by stakeholders, it also needs to look at the value it adds, and communicate that effectively. We come across many procurement functions which are doing things the right way and winning the hearts and minds of key stakeholders, as well as recognising the value that their supplier base can offer, but it is by no means endemic.

To sidestep this issue, functions should solely focus on 100% value creation, and if we want to get to that stage, we need to understand how procurement truly creates value for the business. Once that proportion is clear, it’s about focusing purely on activities that support value creation, and removing those that don’t through automation. However, let’s not fall into the trap that many functions have done, and forget the importance of the human element. After all, there is only so much that can be automated. Ultimately, if you don’t get the right talent in, the vision of the 100% value creation is unlikely to ever become a reality.”

Leave a comment


 

 

Career opportunites

Planner

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Are you looking for new career opportunities as

Procurement Specialist

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing Supplier / Business Development
As a specialist Supply Chain recruiter, I am

Logistics Controller

  • <500 000 Gauteng Logistics & Warehousing Procurement Officer / Specialist
Seeking dynamic up and coming candidates looking for

Supply Chain Manager

  • >500 000 Permanent Procurement Management Supply Chain Western Cape
As a specialist Supply Chain recruiter, I am

Business Process Specialist

  • <500 000 Gauteng Procurement Consultant Procurement Officer / Specialist Supply Chain
A company within the financial services sector is

LOC Procurement Manager

  • Gauteng Permanent Procurement Management Procurement Officer / Specialist
Your Responsibilities: Job Purpose To be the interface ...More

Account Manager

  • >500 000 Procurement Officer / Specialist Supplier / Business Development Western Cape
Key Performance Areas:• To ensure that all aspects

Consultant

  • >500 000 Gauteng Procurement Consultant Strategic Sourcing Supply Chain
Key Performance Areas:• You'll be concerned primarily with

Commercial Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Technical Buyer

  • <500 000 Buyer Contracts Procurement Officer / Specialist Western Cape
A well-known Mining company is seeking the services

Business Development Executive

  • >500 000 Gauteng Supplier / Business Development
A retail solutions company is seeking a New

Financial Manager

  • >500 000 Contract Operations, Planning & Inventory Procurement Management Western Cape
Looking for an unemployed CA (SA) in Cape

Chief Financial Officer

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
An exciting opportunity exists for a CFO with

Procurement Consultant

  • >500 000 Gauteng Procurement Officer / Specialist Strategic Sourcing
Key Performance Areas: A profound knowledge of sourcing

Commodity Specialist: IT

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Effectively applies acquired technical/functional skills

Senior Consultant

  • >500 000 Gauteng Projects / Category Management Supplier / Business Development
Key Performance Areas:• Adheres to best practice processes

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Procurement Management
Key Performance Areas:• Manage warehousing and distribution 3PL's

Head of Franchise Network

  • >500 000 Contracts Operations, Planning & Inventory Western Cape
The opportunity to work for a multinational retail

National Driver Manager

  • >500 000 Analyst Contracts Logistics & Warehousing Operations, Planning & Inventory Western Cape
The opportunity for an extraordinary individual to join

Commodity Specialist: Industries

  • >500 000 Commodities Gauteng Procurement Officer / Specialist
Key Performance Areas:• Under the guidance of the