Worried about future skills gaps in your procurement team? There are several strategies for creating a reliable talent pipeline, but one that can yield the best results is to attract cross-functional talent.
What skills are we looking for?
According to a recent Gartner survey, only 14% of procurement leaders are confident they have adequate talent in their teams to meet the future needs of the function. The numbers improve when you look at CPO confidence in their team’s readiness to meet current challenges, with 46% agreeing/strongly agreeing.
The future skills gaps that are keeping CPOs awake at night, says Gartner, are technology skills, data literacy, and business acumen. So-called “traditional procurement skills” – i.e. purchasing – are not seen as a concern when it comes to skills gaps.
This tells us where we need to focus our search: functions where professionals have experience in technology, data, and business acumen.
Below, we delve into the benefits of cross-functional talent in procurement, identify functions that could be a source of new talent for procurement teams, and discuss how to best attract cross-functional talent.
Benefits of cross-functional talent
Apart from filling seats when you’re short on people, here are some of the benefits of bringing cross-functional talent into procurement:
- Diverse perspectives: Bringing in talent from different departments fosters collaboration, leading to innovative solutions and improved decision-making.
- Varied expertise: Cross-functional teams can tackle complex challenges more effectively by leveraging diverse skills and knowledge, resulting in better problem-solving.
- Stakeholder engagement: Team members from various functions can help bridge gaps between departments, ensuring that procurement aligns with organizational goals and stakeholder needs.
- Rapid response: Drawing on their varied experience, cross-functional talent can quickly adapt to changes in the market or business environment, enabling procurement to respond more effectively to emerging challenges.
- Creative solutions: Exposure to different viewpoints and experiences can spark creativity, leading to innovative approaches in sourcing, supplier management, and process improvements.
- Comprehensive understanding: Cross-functional teams provide a broader perspective on how procurement decisions impact other areas, such as finance, operations, and marketing, promoting a more integrated approach.
- Skill sharing: Working alongside colleagues from various functions allows existing procurement professionals to develop new skills and insights, enhancing their overall capabilities.
8 sources of cross-functional procurement talent
Here are the top functions that could serve as valuable sources of cross-functional talent in procurement:
1. Information Technology
IT professionals bring expertise in technology solutions, data management, and digital transformation. Their skills are critical for implementing procurement software, automating processes, enhancing cybersecurity in supplier relationships, and (increasingly) implementing AI.
2. Data Analytics
Data analysts and data scientists possess the ability to interpret and leverage complex datasets. Their insights can help procurement teams make data-driven decisions, optimize supplier performance, and forecast trends effectively.
3. Finance
Finance professionals have strong analytical skills and a deep understanding of budgeting, cost management, and financial forecasting. Their expertise can help procurement align spending with financial goals and assess the financial stability of suppliers.
4. Operations
Operations specialists understand supply chain management and process optimization. Their knowledge can enhance procurement strategies by ensuring that sourcing decisions align with production and delivery timelines.
5. Marketing
Marketing professionals bring insights into customer needs and market trends. Their perspective can help procurement understand demand dynamics and align sourcing strategies with broader business objectives.
6. Human resources
HR professionals can contribute valuable insights into talent management, employee engagement, and organizational culture. Their skills can enhance supplier relationship management and foster collaboration across teams.
7. Project Management
Project managers excel in planning, execution, and resource allocation. Their skills can help procurement manage complex sourcing projects, ensuring timely delivery and adherence to budgets.
8. Legal
Corporate legal experts provide crucial knowledge about contracts, compliance, and risk management. Their involvement ensures procurement decisions adhere to regulations and mitigate legal risks in supplier agreements.
How to attract cross-functional talent
So far, we’ve identified the skills we’re looking for and the functions where those skills exist. But how can we attract a new pipeline of professionals ranging from data analysts to lawyers to the world of procurement?
Attracting professionals from other functions to procurement starts with emphasizing the strong sense of purpose and responsibility that comes with the role. Procurement wields vast spending power and has the opportunity to shape significant financial decisions. Highlighting the direct relationships with supplier CEOs showcases the influence procurement professionals have in driving strategic partnerships and negotiations.
Obviously, offering competitive salaries and benefits can be a significant draw for talent, making procurement roles more appealing. Be sure to highlight career opportunities, along with the glamorous parts of the role such as international travel.
Emphasizing how procurement contributes to sustainability and social responsibility also resonates with many professionals who want their work to align with a greater mission. Sharing real stories about impactful sourcing decisions—like partnering with ethical suppliers or implementing sustainable practices—can help convey this message effectively.
To make procurement more appealing to other functions, we all need to work together to raise procurement’s profile, using platforms like LinkedIn to share success stories, spread awareness, and educate. We’ll also need the expert help of talent acquisition teams, recruiters and headhunters, who we can equip with the arguments they’ll need to convince professionals from other functions to take the career leap into procurement.
Still struggling to find talent?
With chronic talent shortage and looming skills gaps, there’s a strong case to be made for engaging with a group purchasing organization like Una. We operate as an extension of your procurement team that ultimately improves your bottom line.
Join now and find your true partner in procurement.