Supply Management Leadership

Leadership Skills in Supply Management

- What They Are and How to Obtain Them

Babhui LeeDec 2008

Who’s the leader?

The leader always sets the trail for others to follow…

Leadership Skills

The business sections of bookstores and

libraries are overflowing with titles that

describe leadership skills and how to apply

them in the workplace. But what kind of

leadership is needed to develop specifically

for the supply management profession?

Simply put, what is needed is well-rounded

leadership - people who have a broad

understanding of the business, and strong

capabilities in change management.

Furthermore, leaders are needed who are

capable of taking people in their

organizations step-by-step to a position of

high performance.

Leadership Skills

It’s the kind of leadership that is based in

knowledge, character, and the ability to craft

a vision that translates into value for the

organization.

Leadership Skills

Regardless of a supply manager’s level in

an organization, he or she is tasked to do a

certain job and to achieve certain results.

Whether it’s administering a purchasing

function, negotiating a small deal, or

establishing an alliance relationship, there

are particular responsibilities to carry out.

Leadership Skills

If a supply manager defines a new result

that leads to a cost reduction or quality

improvement, then he or she has already

gone through the process of establishing a

vision, however small, and achieving it. And

getting to that vision requires leadership at

some level.

Leadership Skills

To achieve higher levels of leadership,

however, requires a more conscious,

proactive effort. Establish an agenda for

leadership that builds upon current

strengths. Use management skills to outline

a plan to further develop leadership skills,

and establish the mind-set now that you are

going to be a leader.

Leadership Skills

Once a supply manager has made this

conscious decision to pursue an education

in leadership, much of what follows will

come naturally.

Leadership Skills

The key elements of leadership may be

categorized in a variety of ways. These

elements include:

Leadership Skills

Influencing and persuading others Taking a goal-oriented approach Applying analytical and technical skills

to accomplish goals

Business acumen is key, for the highest

levels of success in the supply management

field require an understanding of every

aspect of business and an appreciation for

everyone’s role in its success.

Leadership Skills

After all, supply management doesn’t have

goals for itself so much as for the

organization, so the supply management

professional must know the organization

intimately to be a leader in serving its needs.

Leadership Skills

The world-class supply manager is an

individual who visualizes and approaches

their job from a strategic perspective in

dealing with the supplier-company-customer

linkage.

The Road to World-Class

This individual continually validates and

leverages their skills and knowledge of

critical supply chain activities in a team

environment to provide value in meeting

organizational and customer objectives.


There are eight broad skills that are

common to supply management

professionals deemed to be world-class.

All of these attributes or skills will allow

supply managers to improve their

capabilities in key areas of leadership and

position them for greater and greater

leadership opportunities.


These skills are included here as a starting

place for identifying the leadership skills that

will lead to personal and professional

success. They are the key elements of the

world-class supply manager.


1. Interpersonal communication skills. Supply management professionals must

communicate well both internally and externally.

There are many subsets and facets to interpersonal

communication, such as interacting with people

and having personal respect for others’ opinions.

The function can be described as a communication

bridge to the outside world: traffic on that bridge

must flow smoothly into and out of the organization.


2. Team and facilitation skills.

Cross- functional teams are a way of life, and

decisions are no longer unilateral. Teaming

skills build on many of the interpersonal skill

requirements. Effective supply management

professionals must learn to play different roles

on different teams, from leader to member to

advisor.


3. Analytical problem-solving skills.

With the movement to closer relationships,

supplier selection criteria must be much more

precise. The focus has shifted from buying to

contracting. Supply management professionals

must know their suppliers and the suppliers’

industries and have the ability to translate that

knowledge into total cost evaluation.


4. Technical knowledge.

A technical understanding of the organization’s

business is required. Since many supplier

relationships are extended for longer periods of

time, continuous improvements are often driven by

process improvements. To meet this goal, supply

management leaders must have the technical

background to understand supplier processes and

scheduling systems to make improvements.


5. Computer literacy.

Eliminating redundancies and non-value activities,

such as purchase orders, is accomplished through

the use of systems. Capturing data to prove savings

is where the computer can help by allowing

managers to organize and analyze data they have

never examined before. E-mail, the Internet, and

electronic commerce are but a few of the

applications.


6. Negotiation skills.

While this skill was mentioned less frequently in study

interviews, it’s very prevalent in the literature and

surveys, and also found repeatedly in organizations’

internal documents that describe purchasing skills.

Most organizations are trying to get their employees to

develop negotiation strategies that satisfy both parties

and produce lasting agreements. It’s one area in

which most supply managers receive some training.


7. Education and professionalism.

A formal education is a necessity for a supply

management position, with arguments being

made for both business and engineering

degrees. Self-improvement - attaining the

Certified Purchasing Manager (CPM) designation

or the Certified Professional in Supply

Management (CPSM) - was important at most

organizations.


8. Continual learning.

Learning is a lifelong process, which never stops.

Although it’s more of a skill builder than a skill itself,

it belongs in the world-class supply management

professional’s tool kit. It’s also imperative to keep

learning on the agenda because requirements will

always change; the standards for world-class status

are not a milestone to be achieved, but a journey

that will constantly be taking you in new directions.


The best way to learn these skills is to

actually practice them. Once a supply

manager starts looking for opportunities to

practice leadership, he or she will discover

that they are all around you. For example, as

previously stated, multi-function teams are

the essence of supply management activities

in many organizations today.


One of the best ways to learn about effective

leadership of this kind of team is to get

involved in one. Volunteer for a project, and

be proactive in seeking out ways to align

yourself with potential mentors who can

expose you to new areas of learning.


On the training front, ISM, www.ism.ws, is

an outstanding resource that offers learning

materials, seminars, and courses that

ultimately lead to the CPM or CPSM

designation. This is a goal that can be key

for all supply management professionals.

Become an ISM member today!


http://www.ism.ws/

Make sure that you read Purchasing.com

magazine, www.purchasing.com, CPO

Agenda, www.cpoagenda.com, and other

relevant publications. Find something in

each issue that you can grab onto. Go to the

organization’s Web site, which is another

excellent resource for leadership training.


http://www.purchasing.com/

http://www.cpoagenda.com/

All of these activities not only provide tools

that can hone leadership skills, but by taking

the initiative to seek out these tools and

resources, a supply management

professional is demonstrating leadership

qualities.


And don’t stop there; again, be proactive.

Reach out to those who have ideas and

information to share, including authors who

are writing on subjects that matter to you or

that you want to learn in greater detail. Many

professionals have found that colleagues who

write for professional publications are usually

very receptive to phone calls.


There are so many opportunities for supply

management professionals to be leaders

and demonstrate leadership qualities. Each

and every person can continue to seek new

ways to improve and grow as a leader.


Now, go create a vision and a

plan -- then get out front and

"lead from a forward position”!


Leadership Skills in Supply Management

Question?