With experience of leading teams in both Sales and Procurement, Esther Sanchez has gained invaluable experience of looking at procurement from both sides of the table. Having worked in many different countries across pharma, chemicals, and now insurance industry, Esther has led successful programs promoting, circular economy, social procurement, and supplier diversity.
Well versed in the digitalisation of procurement processes and the need to leverage technology to drive efficiency and innovation, Esther is a great example of an executive who sees no boundaries to what procurement can achieve. So we were appreciative of her time and thoughts during our chat.
Esther, how did you get into Procurement? Was your perception of procurement different to the reality?
I initially started my career in a different area that was indirectly related to procurement. However, I was always fascinated by the strategic aspects and art of negotiations within the procurement field. Fortunately, I had the opportunity to transition into procurement when my former boss recognised not only my past accomplishments but also my potential to develop in a different area. It highlights the importance of having individuals within the organisation who are willing to take risks and provide opportunities for talent to thrive in various roles.
Throughout my experience, these years in procurement, particularly in the chemical industry focusing on directs and now in in-directs in the insurance industry, my perception of the field has evolved significantly. I’ve come to realise that each industry approaches it differently, and the key priorities and considerations can vary significantly. This transition has allowed me to adapt and broaden my understanding, making me more versatile and adaptable in my role as Procurement Director.
What I find particularly fascinating about my function is its blend of strategic decision-making and problem-solving. In procurement, we are responsible for identifying and sourcing the best products or services for the organisation, considering factors such as quality, cost, sustainability, and social responsibility. This requires analysing market trends, negotiating with suppliers, and carefully assessing the potential risks and benefits of different options.
Moreover, procurement offers ample opportunities for collaboration and relationship-building. We work closely with various stakeholders, both internally and externally. Internally, we collaborate with different departments to understand their needs and ensure the procurement process aligns with the organisation’s overall goals and regulatory requirements. Externally, we establish and cultivate relationships with suppliers, fostering partnerships that can lead to improved quality, cost savings, and innovation.
Additionally, the impact of procurement on the bottom line cannot be understated. By finding cost-effective solutions and optimising the supply chain, we play a crucial role in reducing expenses and increasing profitability for the organisation.
In summary, it attracts professionals like me and many others with a passion for strategic thinking, problem-solving, negotiation, and driving organisational success.
How has Procurement and the expectations placed upon it changed over time?
In the past, procurement was primarily viewed as a cost-centric function, solely focused on securing goods and services at the lowest possible price. However, as businesses have recognized the potential for the function to drive strategic value, expectations have evolved.
One crucial expectation placed on Procurement is the integration of sustainability considerations into supplier selection and sourcing strategies. Organizations are increasingly concerned about the environmental impact of their supply chains, as well as ethical sourcing practices and social impact. Procurement actively searches for sustainable suppliers, promote responsible sourcing, and align practices with broader corporate social responsibility goals.
By considering social impact in supplier selection, we can create economic opportunities, foster community development, and promote inclusion and diversity. This not only aligns procurement practices with broader social goals but also contributes to sustainable and inclusive economic growth.
Another essential expectation is to foster innovation through collaboration with suppliers. Procurement actively seeks out innovative suppliers and encourage creativity. By fostering innovation, we can drive competitive advantage and meet evolving customer needs.
In summary, procurement has shifted from a cost-focused function to a strategic partner that adds value to the organization. The expectations placed on us are related to various areas, including cost management, quality assurance, regulatory compliance, innovation, risk management, sustainability, social responsibility, and effective internal and external communication and collaboration.
Do you need to be a qualified procurement practitioner to be a successful member of a procurement team?
In my opinion, based on my own experience, while having formal qualifications in procurement can be beneficial, it is not always necessary to be a successful member.
Procurement is a field that requires a diverse range of skills and expertise, and a successful team often consists of individuals with various backgrounds and experiences. For instance, having professionals with engineering or chemistry backgrounds can be particularly valuable if the category they manage requires technical expertise.
Throughout my career, I have had the opportunity to work in both procurement and sales roles in different countries and industries. It may seem unconventional, but I highly recommend switching sides of the table to gain a better understanding of what matters to the other function. This cross-functional experience can provide valuable insights and enhance collaboration between both teams.
There are many transferable skills that can be useful in both procurement and sales, such as negotiation, analytical thinking, relationship management, and communication. The ability to effectively communicate, build relationships, and analyse market trends is crucial in both procurement and sales roles.
However, it is worth noting that having formal qualifications in procurement can certainly be an advantage. It demonstrates a commitment to the profession and provides a solid foundation of knowledge in procurement principles, practices, and standards. Formal qualifications can also provide a deeper understanding of procurement strategies, risk management, and legal aspects.
In conclusion, in my opinion while formal qualifications in procurement can be advantageous, they are not the sole determinants of success in a team. The ability to adapt, learn, and leverage transferable skills is crucial for success in procurement as well as in other areas of the organisation.