Procurement Skills Required in a Changing Market

Procurement is rapidly changing with the introduction of innovative technologies and procurement trends that will revolutionize the way organizations operate. In the coming decade, procurement teams will need to reorient their skillsets to adapt to this ever-changing landscape.

Recently, ProcureAbility published our Insights series “Five Bold Procurement Predictions for 2030”, in which we extrapolate on the future of procurement trends including advanced crowdsourcing, procurement technology acceleration, cognitive computing, hyper cybersecurity, and virtual organization design. As these trends continue to take hold, the role of procurement will evolve, requiring a comprehensive reskilling and upskilling effort to keep up with these sophisticated procurement predictions.

In this article, we explore what evolution may look like over the next several years. But first, we will make the case for adopting approaches that capture technology’s promise in a way that puts humans at the center, as the key enablers of success.

Maintaining a Human-Centered Approach

The rapid advancement of technology is reshaping how procurement teams operate. While automation will handle more tasks, navigating complex business environments will still require human intuition and judgment.

Procurement can be divided into strategic leadership functions, guided by technology, and tactical or administrative roles, performed by technology but managed by humans. To adapt, teams must retool both hard and soft skills. Upskilling is essential for strategic leaders using insights from new technologies and for employees managing tasks now automated. Digital upskilling—learning new technologies to modernize processes—is especially critical.

However, traditional procurement skills remain vital. Relationship management, empathy, patience, conflict resolution, and creativity help teams navigate complex organizational networks. Inclusive procurement strategies strengthen supplier relationships and build long-term partnerships that can withstand market uncertainty. Internally, managing cross-functional and intra-team relationships ensures cohesion and helps achieve shared goals.

Key procurement and sourcing soft skills include:

Supplier and stakeholder collaboration and management
Sustainable sourcing focus
Communication and interpersonal skills
Negotiation and relationship management
Process standardization and cost optimization
Analytical and presentation skills
Results-oriented mindset and best-practice implementation

Five Human-Centered Procurement Trends

ProcureAbility recommends that procurement organizations concentrate their reskilling and upskilling efforts on five bold procurement trends that are likely to become prevalent within this decade. Their ability to harness these trends for competitive advantage, while also managing the associated risks, will assuredly depend on the humans at the controls, specifically their ability to improve technical expertise, solve problems, and engage in strategic thinking. A human-centered approach to procurement is more important than ever to create value for the organizations in which procurement serves.

hands

Advanced crowdsourcing

People and organizations are now more connected than ever before, and this has enabled the growth of crowdsourcing for individual and social causes. In the future, procurement organizations will leverage this to receive bids or proposals from a rapidly evolving body of web-savvy suppliers.

Procurement professionals can prepare for inevitable changes in the field by:

Reviewing current sourcing practices
Keeping up with developments in mainstream sourcing
Considering what adjustments can be implemented in their practice
Make updates when they make sense

Procurement technology acceleration

The majority of mid- to large-size organizations report using e-procurement and e-sourcing software, and we predict use will grow exponentially in the coming years. Artificial intelligence (AI), machine learning (ML), and predictive analytics will impact human efforts for most administrative tasks. These seismic shifts in procurement technology stack will significantly impact how teams conduct business. IT executives must quickly begin investing in the technologies and systems that will educate their staff for the new standards anticipated to be widespread within ten years or less. They will need to test and evaluate the innovative technologies so procurement experts may become familiar with them and how they will fit into an organization, while creating an internal culture that encourages testing and adopting innovation.

Cognitive computing

With cognitive systems at work, procurement teams can see significant workflow improvements. More specifically, we can expect most administrative tasks to be automated (intake, strategy recommendations, RFP development and administration, evaluation and scoring, and scenario analysis). Procurement leaders will need to focus their training shift towards providing teams with the tools to build strategic skill sets, such as relationship Procurement organizations will also need to conduct assessments of their sourcing processes and develop comprehensive training plans that utilize next-gen technology systems and explore areas to apply AI and ML technologies.

shield

Hyper cybersecurity

As more business activities become digitized and automated, companies will need to focus on cyber security to protect an increasingly target-rich environment from sophisticated hackers, through finding optimal talent, products, and services. ProcureAbility predicts that cyber security spend will increase by 30 percent in 2030. It is critical that procurement leaders train their teams to implement procurement practices with a focus on cybersecurity-related category expertise.

Virtual organizational design

By 2030, core procurement organizations will be expected to centralize processes, manage data analytics, and drive business strategy. Procurement firms will first need to assess their organizations’ current designs and determine what changes will be required to build more responsive, adaptable sourcing teams. To maximize optimization, they will need to develop a plan to restructure, reskill, and upskill their staff, seeding contracted generalists in the department, as necessary. Ultimately, procurement organizations will be smaller and more agile, with a heavy focus on relationship building and business strategy.

The fast pace of technological progress is changing how procurement teams operate now and over the next several years. To take advantage of these advancements and remain innovative and competitive, companies must adjust and improve their skill sets. They should focus on developing technical proficiency, problem-solving abilities, and strategic thinking while upholding a human-centered approach as their North Star. By doing so, procurement teams can adapt to the evolving environment and generate greater value for their organizations.

Procurement Organizations
of the Future:

Adapt or Fall Behind: How to Reskill and Upskill Your Procurement Team Amid Rapid Change

Maintaining a Human-Centered Approach