From sourcing raw materials and services to managing contracts and relationship with suppliers, procurement and supply management is a complex, strategic, challenging, and ultimately rewarding sector to work in. Professionals in this space enable an organisation to operate in a profitable and ethical manner. Companies can spend more than 70% of their revenue on procurement, according to the Chartered Institute of Procurement & Supply (CIPS), so even small cost reductions can have a big impact on the bottom line.
As we progress towards further digitalisation worldwide, the role of a procurement professional will continue to change rapidly. A report by one of the 'Big Four' firms, KPMG stated: "Procurement professionals around the world stand on the threshold of a new age." The old paradigm of cost reduction and cost efficiency is drawing to a close. New and revolutionary concepts are spinning from the frenzied technological leaps of our time; especially in digital transformation. In this dynamic, complex and disruptive era, procurement leaders and experts the world over are searching for a secure, successful future.
UK-based Diego Barilla, a former McKinsey & Company partner and now Chief Customer Officer at Globality said of the impact of AI on the procurement function: "There are plenty of opportunities to reap the rewards of AI and turn procurement from a back-office activity to the heart of the business."
The Fourth Industrial revolution will create new opportunities for professionals who are willing to familiarise themselves with new technologies such as automation, artificial intelligence, and the internet of things. These tools will give companies a competitive advantage as they can continuously improve their procurement management systems to better control cost and enforce compliance. According to a recent report produced by DHL, 33% of the current procurement workforce is at or beyond retirement age, leaving many teams with an aging workforce. As the talent pool becomes increasingly tight, ambitious procurement professionals have a unique opportunity to capitalise on high demand for digital skills to advance their career further, faster.
Our Lombard Street based consultants are specialists in their markets, recruiting top procurement talent for organisations throughout the UK and Europe.