Aurizon on building a high-performing procurement team

The constantly-evolving nature of procurement means procurement leads need to stay on top of their game. Experts are predicting 2024 to be a groundbreaking year for procurement with the rapid widespread adoption of AI and Machine Learning to optimise spend and manage risk. Combined with the urgency for sustainable procurement (low-carbon energy),  the role of procurement leaders are more valuable than ever. 

The question remains at large, how can you create and maintain a procurement team that's able to withstand and counter the changing landscape of procurement?  As the current Strategic Projects & Growth Manager at Aurizon with more than 16 years of experience in strategic sourcing, Caeser Abdalla comes packing in this exclusive Q&A with insights such as crucial skills procurement professionals need for enhanced agility to remain relevant in the industry and the importance of continuous learning and collaboration to create a workplace of innovation and adaptability.

Complete the sentence…. "In today's interconnected global landscape, the optimal procurement strategy”...

Is a blend of optimised global supply chains, strategic and intimate collaboration with internal and external partners, and the use of technology to bolster efficiency and facilitate informed data-based decision-making.

Achieving this requires a concerted effort to align procurement practices with overarching organisational objectives, embracing sustainability principles, and maintaining a nimble approach in response to market and stakeholder dynamics.

How can a procurement team align its strategies with broader organizational goals?

This is crucial for ensuring that the procurement function contributes to the overall success and objectives of the company.

Firstly, it's imperative to maintain a realistic approach. While many organisations have meticulously crafted mission statements, strategies, and values, these may not always align with the actual culture of the organisation. Rather than aligning strategies with an idealised version of the organisation, it's essential to understand its operational needs and tailor strategies accordingly.

Secondly, agility is paramount. Throughout a business's lifecycle, there will inevitably be occasions demanding swift changes in strategy at various levels - organisational, project, or operational. Procurement teams must be prepared to respond promptly to such shifts by ensuring that strategies and processes remain adaptable to evolving business needs, without compromising on governance. Achieving this delicate balance requires embedding agility into the team's capabilities and culture, rather than relying on rigid templates.

Thirdly, fostering strong connections with business functions is essential. If procurement isn't perceived as valuable, is viewed as a challenging function, or suffers from misconceptions regarding its role within the organisation, it will encounter resistance. Therefore, it's crucial to proactively cultivate relationships, positioning the procurement function as a value-driven partner that supports and aligns with the goals of other functions.

Finally, commitment to deliverables, regular communication, and accountability is paramount. By consistently delivering on commitments, maintaining open lines of communication, and holding ourselves accountable, procurement teams can enhance their reputation and credibility within the company.

In your opinion, what skills should procurement professionals develop to stay relevant in the future? How can you bridge the gap between traditional procurement practices and the skills required for future leaders?

Critical Application - It is vital to critically apply our subject matter expertise to each initiative rather than falling back on the reliance standard processes and “passing the buck” to other functions, for example relying on Legal or Engineering to find the solution or drive the recommendation. This may necessitate a streamlined RFP process for enhanced agility or a reimagined market approach to ascertain the optimal path to achieving desired outcomes.

Commercial Acumen - To be seen as a genuine business partner, we need to rewire our thinking and apply commercial drivers, financial intricacies, industry nuances, and underlying business models relevant to the task at hand. This goes beyond cost savings by delving into the minutiae of agreements, supply chain dynamics, and process reengineering. We need to demonstrate capability to augment commercial value beyond traditional cost savings.

Negotiation – Often overlooked, professional negotiation is an indispensable skill that procurement professionals in Australia must prioritise. it holds the key to not only advancing our positions but also resolving conflicts and fostering value creation within the agreement and contracts we execute.

How do you encourage your procurement team towards continuous learning and skill development?

Leaders need to foster a culture and environment of continuous improvement, learning and a hunger for knowledge.

There is a plethora of free online tools available. We should encourage team members to engage in self-directed learning by recommending reputable online platforms such as Coursera, LinkedIn Learning, and industry specific forums. Implement regular knowledge sharing sessions where team members can showcase new insights and learnings.

By embracing these cost-effective approaches and empowering team members to take ownership of their professional development, leaders can cultivate a dynamic and skilled procurement team poised to drive strategic value for their organisation.

How is technology being leveraged to future-proof a procurement team?

Technology serves as a cornerstone for all organisations in any function. Empowering your team to adapt and excel in an ever-evolving landscape by leveraging cutting-edge tools such as AI-powered analytics, blockchain for supply chain transparency, and cloud based procurement platforms streamlines processes, enhances efficiency and mitigates risk.

Leaders need to emphasise the integration of predictive analytics to forecast demand and optimise inventory levels, ensuring agility in responding to market fluctuations. Additionally, invest in digital procurement solutions that offer real time insights into supplier performance, enabling proactive risk management and strategic decision making.

Collaborate with IT departments to explore and identify technologies that foster a joint culture of innovation and adaptability. By harnessing technologies transformative potential, procurement teams can not only meet current demands but also proactively prepare for future challenges, ensuring long-term relevance and success.

You are speaking at this year’s ProcureCon Australia event. Can you share what the audience can expect to hear from you and what excites you about this event?

I am excited to delve into a thought-provoking exploration of innovative, yet basic ideas that push the boundaries of traditional strategic procurement. I will be challenging established norms and rethinking conventional approaches to procurement in todays dynamic business landscape. I will be keen to share ideas and discuss how we can navigate the future of procurement with creativity and practicality.