10 Best Practices for Procurement Manager in 2024 and Beyond

So many things are slated to change in 2025, the milestone year! But what matters most is your career; how is it going to prepare you as a procurement manager? Okay, let me clarify that there isn’t any significant difference between a Purchasing or Procurement Manager. Of course, you know it because you are in the procurement arena already.

Typically, a procurement manager’s job descriptions entail the following:

1. Partner with the category teams and leaders in developing and implementing strategies to drive significant value from the supplier base.
2. Conduct in-depth research on existing and emerging trends, identifying new technology solutions, screening potential new suppliers, and performing complex analytical studies.
3. Manage relationships with key suppliers, developing negotiation strategies, and conducting negotiations.
4. Lead critical process improvement projects and drive higher value for the operating companies.
5. Consult internal functional areas such as marketing, R&D, operations, logistics, legal, and corporate functions.

With such expectations in mind, an aspiring procurement manager must possess modern skillsets that organizations will seek in 2025 and beyond. In this article, we cover both the elementary and advanced expectations from the role of a procurement manager.

10 Procurement Best Practices for Procurement Managers in 2025 and Beyond

1. Supplier Evaluation

The ability to evaluate is a crucial skill within procurement manager duties and responsibilities. Leveraging updated market analytics tools, you should apply your analytical acumen in assessing a supplier’s performance potential before initiating any contractual agreements. Good procurement practices involve thorough due diligence on pricing, quality, delivery capacity, and supply chain transparency, as outlined in McKinsey’s insights on new-era value creation across the supply chain.

Download our whitepaper: A Quick and Effective Guide to Supplier Performance Evaluation Criteria

2. Interviewing Vendors

In your role as a procurement manager, when sharing your approach to vendor interviews with an interview panel, highlight recent trends such as the increasing importance of sustainability and technology integration in vendor operations. Personal interactions with vendors to understand their capabilities remain a key component in ensuring the maximum benefit for your company.

3. Site Visits

The importance of on-the-ground supplier assessments cannot be overstated. As procurement management trends evolve, it becomes crucial to evaluate manufacturing, storing, and shipping arrangements firsthand to ensure they meet updated industry standards and technological advancements.

4. External Outreach

Continual learning and adaptation are vital. Attending industry summits and conferences keeps procurement managers at the forefront of market trends, including new product launches and sales influencers. A proactive approach to external outreach helps in aligning procurement strategies with the latest market conditions, emphasized in the 6 key procurement trends for 2024 by Supply Chain Connect.

5. Pricing Audit

A critical task for procurement managers is leading price audits to ensure optimal cost-effectiveness without compromising quality. Regular analysis of pricing proposals and financial records positions a procurement manager as a leader in market negotiations.

6. Contract Negotiation

Enhanced negotiation skills are paramount in obtaining favorable terms without quality or quantity compromises. Effective negotiation strategies make a tangible difference in market positioning by optimizing procurement costs, a skill more necessary as markets globalize and competitive pressures increase.

Also Read: Leveraging Gen AI Enabled Contract Negotiations and Risk Management

7. Supplier Collaboration

Building collaborative relationships with suppliers ensures a smooth product shipment process. As suppliers’ roles in value chains become more integrated, the dynamics of effective management and collaborative efficiency become increasingly critical, as detailed in McKinsey’s insights into procurement’s future directions.

8. Inhouse Collaboration

Successful procurement management includes gaining the trust and cooperation of in-house teams. Training and preparing staff on expectations concerning quality and quantity are essential for harmonizing internal operations with procurement goals.

9. Periodic Review

Post-contract vigilance is vital for ensuring suppliers uphold agreed terms. Ongoing assessments and adjustments based on market conditions and contract performance enhance procurement’s contribution to business objectives, aligning with Gartner’s predictions on AI-enabled procurement contract management by 2027.

Conclusion

Finally, you are now completely aware of the procurement manager duties and responsibilities. While you can easily apply for opportunities if you have the above skills already, you may just need a few months to train yourself, ready for the next jump. What you have to keep in mind is that at all times, you should be self-motivated and enterprising. In addition to that, it is possible that next summer, you may be working with Zycus as my colleague and helping us scale our procurement strategy by implementing good procurement practices.

For those looking to delve deeper into how AI-driven transformations can craft a better procurement strategy for their enterprise, engage with our experts and schedule a demo to learn more

FAQs

1. What is one key best practice for procurement managers in 2025?

Emphasizing the importance of leveraging data analytics to gain deeper insights into procurement processes is crucial.

2. How can procurement managers ensure supplier reliability in 2025?

Building strong, transparent relationships with suppliers and regularly evaluating their performance can enhance reliability.

3. Why is sustainability a significant consideration for procurement managers?

Prioritizing sustainable and ethical sourcing helps meet increasing consumer and regulatory demands for environmentally friendly practices.

4. What role does technology play in modern procurement practices?

Integrating advanced technologies like AI and blockchain can streamline operations and enhance procurement efficiency.

5. How should procurement managers approach risk management?

Implementing comprehensive risk assessment strategies and maintaining flexible supply chains are essential for effective risk management.

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