Deloitte’s Take: A Talent Shocker – Who Actually Does Procurement?

Spend Matters is featuring continuing excerpts and analysis from Deloitte’s recently published paper: Procurement Talent Management: Exceptional Outcomes Require Exceptional People. Today we explore Deloitte’s view on a few of the common challenges with procurement and talent management.

"The perception that talent identification and management is more art than science continues to hang over talent decisions in some organizations. Human capital may
be seen as a weak link in achieving and improving business outcomes, with several factors contributing to this perception.

One of the first of these is: who actually “does” procurement? Hint: it’s not just about the procurement department anymore. Procurement remains a far-flung, decentralized activity in some organizations, with business units handling much of their own purchasing. Deloitte experience suggests that the number of procurement, supply chain, and accounts payable resources involved directly in purchasing can be multiplied by a factor of 10 to arrive at the actual number of
 people with a role in the process. Companies can find it difficult to establish a talent management capability that encompasses everyone [including those not specifically within procurement]!"

The excerpt above represents views based on Deloitte research and experience. What immediately jumps out at us after reading the observations is simply how far flung procurement is. This has huge ramifications not only on how to manage in an environment that will inherently be decentralized whether it is designed this way (or not) but also on how one things about making investments to support such a “structure that goes beyond the org chart.”

For example, how does one thing about how to define and recruit for right skill sets for managing externally in this environment? And how does one think about deploying technologies that procurement will provide oversight for but, generally, others will use?

It’s a massive shift in thinking about procurement talent and how we support the business.

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