PROCUREMENT
Skills Development
Professional procurement requires recognised skills development, professional training and
competence. The evolution of professional procurement has led to qualifications (academic and VET
qualifications) and industry development in recent years, with further recent moves by the procurement
industries peak professional body, the Chartered Institute of Purchasing and Supply (CIPSA) to shift
the global professional standard of MCIPS to a licensed based model for their affiliated practitioners.
Historically, Local Government has entrusted large and complex procurement projects to officers that
have had little exposure and no skills development in the area of managing tenders and procurement
processes. This creates a process contract risk, in addition to resulting in outcomes that are not
predicated on best value. Procurement professionals trained in techniques to identify and assess
Total Cost of Ownership (TCO) can deliver benefits such as value for money, security of supply,
strong supplier relationships, risk and compliance benefits, and also introduce innovation and
entrepreneurship into an organisation. A strategic approach towards building procurement capabilities
into business processes elevates the purchasing role from an administrative and transactional function
into one of business development, delivering cost savings and an enhanced reputation to the Local
Government.
When assessing the professional development needs of current and future officers in procurement
related roles a range of development areas can be identified. These commonly include:
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Business research and analysis skills
Technical competence and process skills for tendering and contracting
Local Government knowledge in regulations and compliance
Commercial acumen, negotiation skills
Administrative skills relating to records and information management and time management
Service skills relating to Supplier Relationship Management (SRM)
Softskills relating to human relationships and emotional intelligence
ICT skills relating to systems and applications used to manage procurement and contracts
activity
Local Government officers can also attend workshops and non-assessed training. This assists to
supplement formalised education, and promotes cultural change, awareness of issues, tools and
techniques, and the identification of knowledge gaps
Local Government reform will bring unique challenges to the market, especially given the blend of
skills and knowledge required for Local Government purchasing (a combination of technical
procurement and Local Government operational knowledge combined with sound business acumen).
The ability of the Local Government sector to compete with other industries for procurement staff is
already limited and has created a capacity issue for Councils. Whilst procurement professionals often
develop most of their skills from within a procurement role, clear strategies for the growth and
development of purchasing staff are required. Career path identification, skills development matrices,
and measureable performance targets will assist to enhance the professional standing of Local
Government as a market place for procurement aspirants.
Procurement Skills Development notes | Page 1
WALGA is an accredited RTO and offers procurement training for Local Government. This includes
Procurement Training for Local Government (a two day workshop delivering skills development),
Contract Management for Local Government, and the nationally recognised qualification Certificate IV
in Government (Procurement and Contracting).
The Chartered Institute of Purchasing and Supply offer MCIPS which is recognised worldwide as the
global standard for top quality procurement professionals.
Curtin University Graduate School Of Management offers a specialised Master of Business
Administration (MBA) major which has been designed for those currently working in the field of
strategic procurement, or those considering a career in this growing field. It is unique major combining
strategic procurement knowledge, and supply chain management with the core requirements of an
MBA to ensure that graduates have a broad coverage of key functional disciplines of business
management, as well as specialised knowledge of strategic procurement. The MBA (Strategic
Procurement) is accredited by the Chartered Institute of Purchasing and Supply - Australia (CIPSA).
Summary:
The service providers for Local Government who negotiate and arrange contractual relationships want
to deal with professionally qualified procurement staff with astute business and commercial
awareness. By nature Local Government purchasing involves bureaucratic process requirements, but
procurement practitioners that demonstrate an understanding of their suppliers business drivers
(incorporating sustainable service structures, commercial margins, innovation and development) assist
to position a Local Government as a customer of choice. Procurement training should extend beyond
the basic administrative disciplines to focus on business disciplines that improve their ability to add
value both to their organisation and the supply chain that sits behind it.
Procurement Skills Development notes | Page 2