WHAT DOES A PROCUREMENT DIRECTOR DO?

Published: Dec 02, 2024 - The Procurement Director leads and manages high-value, complex procurement operations, driving value throughout the process while ensuring compliance with EU and UK legislation. This role develops and executes sourcing strategies, negotiates with suppliers, and continuously improves procurement efficiency to achieve the best value for money. Additionally, the Procurement Director oversees the procurement team, manages key supplier relationships, and ensures the delivery of KPIs, service objectives, and customer satisfaction while reporting directly to the CEO.

A Review of Professional Skills and Functions for Procurement Director

1. Procurement Director Duties

  • Global Procurement Strategy: Establishes and drives the global Procurement strategy for $100M+ of supplier spend ensuring alignment with the BU, Operations, and the BU financial plan.
  • Strategic Program Execution: Executes on key strategic programs and projects to align with the needs of the business.
  • New Product Introduction: Responsible for the Procurement aspects of New Product Introduction, including supplier selection and bill of material costing, with the objective of launching new products with the Right Cost and Right Supply Chain from the start of production.
  • Team Development: Identification and development of high performers within a team structure.
  • Process Enhancement: Provides input to global processes, policies, and procedures to enhance the management of the BU spend.
  • Cost Reduction Leadership: Drives BU-related cost reduction objectives with responsibility to deliver on the annual cost reduction plan.
  • Sourcing Strategy: Participates and supports Make Vs. Buy decisions and sourcing strategy within a cross-functional team.
  • Total Cost of Ownership: Emphasizes the Total Cost of Ownership approach for the complete supply chain.
  • Procurement Operations Support: Supports the Procurement Operations team as they interface/direct operations of suppliers and contract manufacturers.
  • Market Analysis: Understands how to build both business and product knowledge and how to use market trends to make sourcing decisions.
  • S&OP Participation: Participates in the S&OP process for BU to maximize financial and service objectives.
  • Cross-functional collaboration: Develops and partners with Global Planning, Global Quality, and Global Operations leadership.

2. Procurement Director Details

  • Strategic Procurement Leadership: Partners with the Executive Director, FP&A, and business stakeholders across the organization to define and execute sourcing and procurement strategy to meet CRISPR’s long-term business objectives.
  • Policy and Process Optimization: Drives company-wide compliance of procurement and sourcing procedures and improves processes and policies to enable efficient processing and reporting on purchased goods and services.
  • Category Management: Executes category strategies and tracks category spend and ROI.
  • Operational Excellence: Operationalizes category management through cross-functional project execution, supplier relationship management, negotiation of supply agreements, performance measurement, and risk management.
  • Vendor and Account Advocacy: Collaborates with internal business partners and promotes strong account and vendor management capabilities within CRISPR business lines.
  • Vendor Landscape Optimization: Maps and evaluates the CRISPR vendor landscape to improve vendor performance, gain efficiencies, reduce risk, and identify cost-saving opportunities.
  • Supplier Relationship Management: Establishes and fosters effective executive relationships with key suppliers.
  • Diversity Initiatives: Enhances participation of Minority/Women-Owned Business Enterprise (MWBE) and EDGE (Encouraging Diversity, Growth, and Equity) businesses across the procurement portfolio.
  • Procurement Strategy Development: Creates and implements a strategic vision for the procurement function, ensuring policies, processes, and procedures meet business objectives and operational needs.
  • Policy Implementation: Drafts, incorporates feedback, refines, and implements changes to policies and procedures related to procurement, sustainable sourcing, travel, and reimbursement.
  • Staff Development: Supervises, develops, and mentors staff and student employees.
  • Executive Collaboration: Interfaces with remote general management and senior executives as a key member of the BU management team.

3. Procurement Director Responsibilities

  • Procurement Operations Leadership: Leads, manages, and supports high-value and complex procurement operations to create opportunities and add value throughout the process.
  • Contract Management: Develops a Contract Management Policy to provide specialist support for key contracts and strategic suppliers.
  • Supplier Negotiation: Explores all procurement routes to obtain goods and services and leads supplier negotiations where appropriate.
  • Legislative Compliance: Ensures procurement activities comply with EU and UK legislation while driving a process that sets a benchmark for future global projects.
  • Sourcing Strategy: Leads sourcing processes, including planning, defining business needs, assessing supply markets, strategy execution, supplier selection, and contracting, to achieve optimal service and commercial outcomes across multi-site operations.
  • Cost Efficiency: Develops and implements saving/efficiency plans to ensure best value for money by challenging cost versus service balance and improving procurement methods.
  • KPI Management: Delivers KPIs and service level objectives to ensure continuous service improvement and monitors customer satisfaction.
  • Legal Contract Development: Collaborates with Legal to develop appropriate terms and conditions for contracts.
  • Post-Contract Review: Conducts Post Completion Reviews to inform future procurement, monitor compliance, assess value for money, and evaluate project outcomes.
  • Executive Reporting: Works directly under the CEOs to report departmental KPIs, address risks, propose solutions, and recommend continuous improvement initiatives.
  • Team Leadership: Serves as the people manager for the procurement team, supporting their development and resolving day-to-day issues while making decisions on larger matters.

4. Procurement Director Job Summary

  • Procurement Forecasting and Budgeting: Manages all aspects of procurement forecasting and budgeting activities.
  • Spend Analysis: Owns and analyzes direct and indirect procurement spending.
  • Savings Strategy: Develops and manages short- and long-term savings targets through sourcing and negotiation strategies.
  • Team Leadership: Leads an effective and energized procurement team to implement efficient procurement processes.
  • Vendor Management: Oversees vendor management activities, service level agreements, and contract negotiations.
  • Strategic Procurement Planning: Develops procurement strategies and processes aligned with organizational goals while driving change.
  • Relationship Building: Initiates and fosters relationships with vendors, internal business partners, key customers, and the IT department.
  • Market Trend Assessment: Constantly assesses market trends and conditions to guide strategic decisions.
  • Process Improvement: Creates and improves best-practice-based processes, benchmarks, and scorecards for continuous improvement.
  • Vendor Performance Metrics: Develop key metrics to measure vendor performance, provide transparent reporting, and implement vendor management guidelines.
  • Procurement Education: Educates and guides internal business partners on procurement and sourcing best practices.
  • Contract Governance: Works with legal to establish and maintain standard supplier contracts and ensures compliance with governance processes and timelines

5. Procurement Director Accountabilities

  • Supplier Management: Responsible for identifying, selecting, evaluating, and managing suppliers.
  • Contract Negotiation: Negotiates contracts and oversees transactional purchasing activities with designated suppliers, purchase categories, or programs.
  • Procurement Metrics Monitoring: Monitors results against procurement metrics such as cost savings, vendor performance, compliance, and user satisfaction, and leads corrective actions with noncompliant vendors and internal groups.
  • Sourcing Policy Development: Assists in developing and executing corporate sourcing policies and procedures.
  • Strategic Procurement Leadership: Provides strategic, tactical, and operational direction to support best-cost manufacturing strategies.
  • Talent Development: Develops high-potential and high-performing staff, implementing strategies to enhance procurement competitiveness and economic value.
  • Strategic Supply Opportunities: Seeks and capitalizes on strategic opportunities with the supply base to improve corporate profitability.
  • Continuous Improvement: Implements continuous improvement processes within the supply chain group and with suppliers.
  • Stakeholder Relationship Building: Builds strong relationships with key stakeholders to integrate strategic sourcing into business unit culture.
  • Spend Aggregation: Seeks opportunities to aggregate spend and simplify procurement processes, enhancing efficiency and effectiveness.
  • Management Interaction: Interacts with multiple management levels, providing updates on progress or procurement obstacles.
  • Vendor Performance Management: Manages, monitors, and measures the performance of programs and conducts business reviews with strategic vendors.
  • Supplier Profiling: Establishes and maintains supplier profiles.
  • Procurement Strategy Implementation: Assists management in implementing procurement strategies and procedures.
  • Supplier Capability Assessment: Assesses and validates current and future suppliers’ capabilities while ensuring adherence to performance metrics.