Procurement & Supply Chain – Market and Hiring Trends Q3 2023
Welcome to our third newsletter for 2023 highlighting Procurement and Supply Chain hiring trends in Quarter Three of 2023.
The Summer months are normally a quieter time for hiring. Procurement and Supply Cain was anything but. It was another record month for the quarter with several permanent and interim placements in Industry and Consulting. Demand was high from our clients and there were requests to hire at a senior level from new and existing clients. Procurement continues to evolve and this is having an impact on how CPOs structure their teams.
We reported in the last newsletter that the adoption of digital technology is key and is shaping what a successful procurement executive looks like. This is still the case. Strategic sourcing and supplier management continues to focus on risk mitigation and ESG consideration. Consumer and stakeholder pressure proceeds to put more emphasis on sustainability, and social responsibility in procurement and supply chain. The positive impact that Procurement and Supply Chain has on industry cannot be overestimated. Thankfully this is being recognised by the wider business community.
Banking and Financial Services
It was yet another successful quarter for a sector where we are considered seasoned experts there were several assignments completed with retail banks, investment banks and FinTech businesses. Most of the demand was for Heads of Procurement and Sourcing Leaders in Professional Services. We also placed a number of Technology Leaders and Operational Leaders focusing on Ariba and Coupa deployment.
There has been a focus on upskilling of departments and whilst technology is reducing teams sizes in some areas, overall there is a still a healthy demand for staff. Banks are having to adapt to changing landscapes and they are taking the initiative by developing successful job requisitions. Data analytics and market intelligence are once again a key focus and this will continue well into 2024.
During Quarter 3 we placed a Head of Technology Sourcing with a global investment bank, a Procurement Director designate with a global Fintech business and a Sourcing Director with an insurance business. There were more interim placements with an investment bank where we have several contractors operating and they are now looking to add several permanent hires into the business, predominantly in the technology and professional services area. Demand will continue for the remainder of the year.
Consulting and Outsourcing
It was also another successful quarter in the Outsourcing and Consulting sectors and we have extended out geographical reach with placements in Bulgaria and Switzerland. The candidates were local and it shows how adaptable we can be with international assignments. The demand has been in broad Procurement Transformation, Senior Account Management and Procurement Technology Deployment. Consulting firms are helping to create effective procurement and supply chain partnerships with organisations to assist with the ever-changing demands of stakeholders. They are especially effective at assessing on defined projects where a permanent headcount would be unnecessary. Therefore they are making big savings for clients.
In this quarter we placed a Director of Account Manager in Switzerland with a global outsourcing. This individual will lead on a key account with a global bank and professional services client. This is primarily to work with a global pharmaceutical firm. We placed an interim Coupa Lead based in Bullgaria working with a defence firm, an interesting assignment where the client remarked we might struggle. A week later, an offer as made and two weeks later the person was in position. We continue to support a number of consulting firms where we have repeat business, placing individuals at Senior Manager and Director level. Demand is outstripping supply and we continue to exceed our clients’ (and our own!) expectations.
We have been approached by several technology firms in the period which has led to some interesting assignments in the Contracts Management and Supply Chain areas. We recently recruited a Commercial Director for an Internet Service Provider that provides full fibre to premises via their own Infrastructure. Since then we have recruited the Supply Chain team for the business which has been an excellent result for the firm as these additions will accelerate their growth plans. We have subsequently worked on additional assignments in the technology sector including IT support businesses, software companies and networks businesses. It’s a welcome return for this sector which has been historically been a major part of psd’s portfolio.
Construction and Infrastructure
There has been continued confidence in the sector with investment from organisations looking to meet their sustainability targets. There has also been consolidation in the sector creating larger businesses with impressive portfolios. Transformation projects have been plentiful, and we have assisted several organisations in identifying managers to lead these initiatives. Organisations are attracting talent from outside of the sector as more candidates are impressed by the challenges and the opportunity for career advancement. Projects continued in category management and supplier relationship management. Naturally, there will be less focus on an understanding of OJEU and PCR legislation for future roles.
In the last Quarter, we worked on a Head of Sourcing role for a major contractor and a Head of Supplier Management for a large construction firm based in the North East. The Construction/Infrastructure sector is a key area for psd with several consultants serving the sector across several disciplines and we are growing in our reputation as experts in this sector.
Energy and Utilities
There has been high demand for both interim and permanent procurement professionals across Utilities and Oil and Gas Markets within the UK. We recently completed two high profile permanent assignments for IT Category Managers for a global energy business and placed two contractors with a major oil exploration business. We have several ongoing assignments working closely with a range of utilities businesses focusing on supplier risk and vendor management. We are enthusiastic about more work coming in this sector and the results for 2023 are very encouraging so far.
Facilities Management and Real Estate
The last quarter much improved for the Facilities Management sector, with a high demand for our services. There are still challenges but businesses are riding out the storm well by looking at cost management as one of many ways to maintain operating margins. This was evident in a Procurement Director position that psd supported, where the individual will be looking at innovative technologies to assist procurement in achieving their targets. Other positions that we have worked on include an Sourcing Director for a global FM business and several category managers based in the South West. The return of time spent in the offices is helping the sector to recover, and more impressive results are to come.
If you would like to know more about current market and hiring conditions with the Procurement & Supply Chain sector, or have any questions or comments about this review, please do feel free to reach out to me.