Future Procurement Leaders: Developing Skillset

Future Procurement Leaders:
Developing the Skill Set
Webinar
1/23/2020
David Millington, M.Sc.QSM, NPDP, CL6σBB, SPP℠, SPSM3®, CM®
Director of Education and Product Development
and
Ron Crabtree, CPIM, CIRM, CSCP, MLSSBB, SCOR-P, CSCTA
Executive / Organizational Transformation Coach
1Copyright by Next Level Purchasing Association, 2020

You Will Learn:
 Understand the critical importance of operations models such as the SCOR
Framework plays in Effective Supply Chain Leadership
Understand the importance of Supply Chain Maturity Models in leading high impact
Procurement Operations
Explore the correlation between Supply Chain Operational Excellence, NLPA's Body
of Knowledge and the must have Skill Sets of Procurement Leaders of the Future

Poling Question 1
Rate yourself – how would you rate your personal expertise in
Leading Procurement Operations. Which number best
describes you?
1 – Novice; my first exposure to this subject
2 – Aware of it, but no training or experience
3 – Have been partly trained
4 – Have been fully trained in leading procurement operations;
implementing concepts now
5 – I’m an expert in this topic with 20+ years experience in leading
procurement operations

Polling Question 2
Which of these is most difficult to facilitate?
• Realizing Cost Reduction beyond Price
• Selecting the right Procurement Metrics
• Improving Procurement/Supply Chain Processes and Technology
• Managing Supply Risks
• Creating a Culture of Innovation and Collaboration

Final Polling Question
Which of these are the most interesting competencies you will like
to learn more about?
• Leading the Corporate the strategic planning process
• Lead Product Strategy and Design for Strategic Procurement
• Design Procurement Function Strategy to realize Corporate Strategy
• Executing a Procurement Function Strategy with SCOR
• Transforming the Procurement Function
• Ability to Sustain Procurement Function Transformation
• Big Picture View, Tying it Together

Overall Goals of Procurement Leadership
• Management of Spend
• Support of Operations
• Managing the Source to Pay Process
• Engagement of Stakeholders
• Development and implementation of Sourcing Strategies
• Development and Management of the Supply Base
• Risk Management
• Developing and Managing Procurement Talent

Key Procurement Leader Skill Dimensions
Procurement/Technical Skills
Interpersonal Skills
Problem Solving Skills
Which of these
Skill Dimensions
do you master?
Strategic Procurement Acumen
Sitting at the Executive Table
Tactical Acumen
Day to day Operational Acumen

Which of these
are Strategic vs
Tactical / Day to
Day Focused?
Key Procurement Leader Skill Levels

Procurement Leaders of the Future must be able to:
• Look beyond a focus on price
• Drive and implement Change in Procurement and Supply Chain Functions
• Evaluate their Business Landscapes and Customer Needs
• Sit at the Key Decision-making Table
• Provide Product and Process Leadership for the Procurement Function
• Evaluate and adapt to Technologies that Drive Competitive Advantage
• Leverage the Metrics that drive Stakeholder Value

This requires a
comprehensive
awareness of
Customer, Market, and
Business Requirements

Procurement Leadership Competency 1

12
E1.13 SWOT
Copyright by Next Level Purchasing Association, 2020

E1.25 Value Engineering

16
E1.35 Designing a Total Cost to Serve Matrix (unlocking cost reduction opportunities)

E1.41 Leveraging SCOR Processes
Attributes of Performance Operational Definitions Level-1 Strategic Metrics
Responsiveness The speed at which tasks are performed (RS.1.1) Order Fulfillment Cycle Time
Reliability The ability to perform tasks as required (RL.1.1) Perfect Order Fulfillment
(AG.1.1) Upside Supply Chain Flexibility
(AG.1.2) Upside Supply Chain Adaptability
(AG.1.3) Downside Supply Chain Adaptability
(AG.1.4) Overall Value at Risk
Cost-Effectiveness The cost of operating the process (CO.1.1) Total Cost to Serve
(AM.1.1) Cash-to-Cash Cycle Time
(AM.1.2) Return on Supply Chain Fixed Assets
(AM.1.3) Return on Working Capital
(EI. 1.1) Miles traveled in Supply Chain Activities
(EI. 1.2) Eco-friendly raw materials
(EI. 1.3) Index of Supplier Environmental Sustainability
* (EI. 1.31) Energy Consumption
* (EI. 1.32) Carbon Footprint
* (EI. 1.33) Water Footprint
* (EI. 1.34) Savings Levels resulting from Conservation & Improvement Efforts
* (EI1.35) Rate of Waste Reduction
* (EI1.36) Rate of Waste Recycling
* (EI1.37) Rate of Product Recycling
OperationsFinancialEnvironmental
Asset Management Efficiency The ability to efficiently utilize assets.
The ability to perform operations with the
least possible impact to the environment
Environmental Impact
Agility The ability to respond to external influences

20
E1.51 Leverage Systems Thinking SPOT (Change Management)

22
E1.63 Purchasing’s Assessment of Skills for Success (PASS)
The PASS Program will give you a roadmap for greater success. After
each of your team members answers 63 multiple-choice questions online,
you will get these valuable reports:
•A color-coded assessment report showing you your department’s and
each of your team members’ strengths and areas for improvement in 9
competencies
•A written performance improvement plan customized to your needs and
limitations.

Final Polling Question
Which of these are the most interesting competencies you will like
to learn more about?
• Leading the Corporate the strategic planning process
• Lead Product Strategy and Design for Strategic Procurement
• Design Procurement Function Strategy to realize Corporate Strategy
• Executing a Procurement Function Strategy with SCOR
• Transforming the Procurement Function
• Ability to Sustain Procurement Function Transformation
• Big Picture View, Tying it Together

26

Future Procurement Leaders: Developing Skillset

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