8 Skills of Successful Procurement Managers at Manufacturing Companies

A good procurement manager in a manufacturing company should have strong negotiation, project management, communication, analytical, risk management, strategic thinking, and continuous improvement skills. FactWise offers a self-serve Source-to-Pay platform with an intuitive interface to automate low-value-add tasks and enable procurement managers to focus on strategic concerns.

Being a good procurement manager at a manufacturing company requires a combination of knowledge, skills, and experience. Here are a few key attributes that ensure success for procurement managers in manufacturing:

Strong negotiation skills: A good procurement manager should be able to negotiate effectively with suppliers to secure the best possible prices and terms for the company. For example, a procurement manager at a manufacturing company like GE Appliances was able to negotiate with suppliers to reduce the cost of raw materials by 15% through effective negotiation and supplier management.
Knowledge of the manufacturing process: A good procurement manager should have a deep understanding of the manufacturing process and the materials and equipment that are required to produce a finished product. This knowledge is critical for identifying and selecting the best suppliers and for managing the supply chain. For example, a procurement manager at a manufacturing company like Boeing has a deep understanding of the aerospace manufacturing process and the materials and equipment that are required to produce planes.
Strong project management skills: A good procurement manager should be able to manage multiple projects and suppliers simultaneously, and should have the ability to plan, organize and execute projects effectively. For example, a procurement manager at a manufacturing company like Tesla is able to manage multiple projects and suppliers simultaneously, ensuring that the company's production lines are running smoothly and that the company is able to meet its production targets.
Strong communication and interpersonal skills: A good procurement manager should be able to communicate effectively with suppliers, internal stakeholders, and other members of the procurement team. The ability to build strong relationships with suppliers is critical for managing the supply chain and for resolving any issues that may arise. For example, a procurement manager at a manufacturing company like Ford has strong communication and interpersonal skills and has built strong relationships with its suppliers, which helps the company to manage its supply chain effectively.
Strong analytical skills: A good procurement manager should have the ability to analyze data, identify trends, and make informed decisions. This includes the ability to analyze supplier performance, market trends, and other data to identify opportunities for cost savings and process improvements. For example, a procurement manager at a manufacturing company like Procter & Gamble has strong analytical skills and is able to analyze supplier performance data to identify opportunities for cost savings and process improvements.
Risk Management: A good procurement manager should also be able to identify, assess and manage risks associated with procurement activities. This includes understanding the risks associated with different suppliers, different products and different countries. For example, a procurement manager at a manufacturing company like Siemens is able to identify and mitigate the risks associated with procurement activities by implementing robust risk management processes and procedures.
Strategic thinking: A good procurement manager should be able to think strategically and align procurement activities with the overall business objectives of the company. For example, a procurement manager at a manufacturing company like Dow Chemicals is able to align procurement activities with the overall business objectives of the company by identifying cost savings opportunities and implementing strategic sourcing initiatives.
Continuous improvement: A good procurement manager should be able to continuously improve procurement processes and procedures to ensure that the company is always getting the best value from its suppliers. For example, a procurement manager at a manufacturing company like 3M is able to continuously improve procurement processes and procedures by implementing lean principles and using data analysis to identify areas for improvement.

These are some of the key attributes of a good procurement manager in a manufacturing company. However, it's also important to note that the specific requirements will vary depending on the company, the industry and the specific role.

At FactWise, we are committed to building truly distinctive procurement products that delight users and facilitate their success. We strive to improve the lives of procurement personnel by leveraging automation and holistic analytics to minimize their time spent on low-value-add tasks such as repetitive document creation, internal and external communications, manual, Excel-based analyses, tracking complex workflows and so on, so that they can focus on more strategic concerns.

Our end-to-end Source-to-Pay platform has been built for self-serve and features an extremely intuitive interface that does not require lengthy training, so procurement managers can start using it for free, onboard their teams quickly, and avail of its instant time to value before seeking approvals and requests from enterprise leaders.

Stawan is the founder and CEO of FactWise. Before founding FactWise, Stawan was the NA TMT-Procurement Leader at McKinsey. Passionate about procurement, Stawan has 15 years’ experience in enabling clients of all sizes to achieve business impact via procurement.