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Focus: Sourcing/Procurement: Feature Article from Our Sourcing and Procurement Subject Area - See All

From SCDigest's On-Target e-Magazine

- Aug. 19, 2015 -

 
Supply Chain News: The Number One Skill for Success in a Supply Management Career

Managing Data, Collaboration, Execution Important, but Not as Key as Understanding How a Company Makes Profits, Joel Sutherland Says

 

SDigest Editorial Staff 

 

Supply management - sometimes referred to in less lofty terms such as procurement or purchasing – provides substantial career opportunities within that domain alone or connected to the broader supply chain.

SCDigest Says:

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Sutherland concludes by saying that "a key reason an increasing number of supply management practitioners are being promoted to C-level positions is that they know how to improve a firm's profitability."

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To maximize one's career potential, it would certainly be good to know the skills companies are looking for in supply management professionals. Joel Sutherland, managing director for the Supply Chain Management Institute at the University of San Diego and CSCMP Distinguished Service Award winner, has some interesting insight on that.

First, Sutherland led a survey effort a couple years ago at the university across several hundred companies.

Writing in a recent issue of the Institute for Supply Management's Inside Supply Management magazine, Sutherland says the data showed companies want supply manages with skills in three distinct areas:

Being Good with Information: Successful supply management practitioners should possess analytic problem-solving capabilities and the ability to turn data into useful information, especially by leveraging big-data opportunities. That in turn requires having a clear perspective of the end-to-end supply chain and the effects decisions that are made upstream have on the supply chain downstream.

Being Good with People: Supply managers need to be able to work with people across all functions in the supply chain. They should be effective in developing collaborative relationships with all cultures, genders and personality types. They also need to be able to effectively communicate complex issues, gain buy-in from stakeholders, and drive the decision-making process with confidence.

Being Good at Execution: Supply managers also should project a proactive attitude, see what's needed and take action without being told to do so. Too often, decisions are made and then not well executed. Effective planning and project management skills are essential to drive plans forward to realize results that are both timely and cost-effective.

The Most Important Skill of All

The three skills summarized about are at one level kind of obvious, yet offer supply managers a framework for assessing their own capabilities across each one.

But interestingly, Sutherland argues that the most important skill of all is being able to well understand how a company makes a profit and the role effective supply chain management plays in contributing to the bottom line beyond just purchase price reduction.


(Sourcing and Procurement Article Continues Below)

CATEGORY SPONSOR: SOFTEON

 

"While there are still firms that focus on leveraging the supply chain functions to reduce costs, best-in-class firms understand that effective supply chain management can reduce costs and grow revenue in a way that maximizes both profit and return on investment," Sutherland says, adding "They need people who can foresee both."

Somewhat relatedly, a recent study by Procurement Leaders on using suppliers to drive innovation found that one key to that is for supply managers to better understand end customer requirements and how and why they select specific suppliers.

"Too often, procurement is largely disconnected from customers and their needs, naturally making it hard to drive and find supplier innovation that can have maximum impact on a company's product-markets," SCDigest wrote summarizing that report a few weeks ago. "In other words, procurement needs to be not only supply savvy but demand-aware as well." (See Keys to Successful Supplier-Enabled Innovation.)

Sutherland concludes his pierce by saying that "a key reason an increasing number of supply management practitioners are being promoted to C-level positions is that they know how to improve a firm's profitability."

Do you agree with Sutherland's view of the most important skill for supply managers? Let us know your thoughts at the Feedback button (email) or section (web form) below.




Recent Feedback

Yes, I agree with Mr.Sutherland's views but wish to add that Supply Managers too frequently ignore the importance of their tactical buyers' knowledge or possession of the basic skillsets of doing business including the legal aspects. There is a trend that firms choose to no longer invest in their employees' skill development, instead expecting to obtain their resources 'off the shelf' when hiring.


Eric Lotz
Procurement Consultant
Northwest Supply Management Services
Aug, 25 2015

My company - Storeroom Solutions - operates in the world of MRO / indirect materials and there is no doubt we see evidence of what Mr. Sutherland says. Clearly, companies are growing more sophisticated in understanding and controlling the indirect materials supply chain. The first step to that end is looking beyond piece price and understanding how the different departments -- finance, procurement, maintenance, operations, etc. -- interact while advancing the goal of a profitable organization. The savings potential -- in operation efficiencies, reduced downtime, transaction processing, etc. -- is enormous. 


It takes hard work, dedication and vision. 


 


Dan Brennan
Marketing
Storeroom Solutions
Aug, 31 2015
 
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