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Negotiating skills are good but risk management needs attention, says major study of procurement professionals

Report coincides with release of updated version of web-based skills assessment tool from ADR International

Procurement professionals are strong on negotiating but often lack expertise in more complex areas such as risk management, a new study by ADR International shows.

The findings are based on data provided by more than 3,000 individuals at 40 companies and public sector organisations worldwide including global oil and gas company Total, US-based packaging giant MeadWestvaco and the UK National Health Service.

Results of detailed self-assessments using ADR International’s Development Needs Analysis (ADR DNA™) tool show that essential skills including negotiating, soliciting bids and contracting are the highest-scoring on average, while risk management and supply market analysis rank lowest.

The telecoms sector emerges clearly as the highest scoring in procurement skills, while the public sector scores lowest on average.

The results are presented in a report out today, The ADR DNA™ Story, outlining the first five years of the skills assessment tool.

An upgraded version of DNA is being launched at the Institute for Supply Management conference in San Diego, California on Sunday (April 25). It will enable managers to compare their teams’ results with those of other sectors and identify skills gaps more easily.

ADR International CEO Robin Jackson said, “We are relaunching DNA now because it’s clear that procurement leaders need a fast and effective tool to assess where the skills gaps are in their teams.

“The upgraded version will mean managers and team leaders can compare their results with other sectors to make sure they are fully up to speed in today’s competitive world.

“DNA has been used successfully by many organisations worldwide and we believe it has a much bigger role to play in improving procurement effectiveness to cut costs and improve the quality of goods and services.”

ADR North America CEO Bill Michels said, “It’s clear that layoffs and buyouts have left supply management teams with fewer skills. As the recovery heats up, the new DNA is a powerful tool to identify skills gaps and set the stage for effective professional development.”