The importance of the human aspect in the supply function: Strategies for developing PSM proficiency

The rising percentage of purchasing volume and growing dependence on external suppliers has significantly broadened the responsibilities of the purchasing and supply management (PSM) function in recent years. Contrary to their administrative tasks in the past, PSM professionals now need to establish and foster long-term and strategic relationships with suppliers, while simultaneously reducing costs, managing supply risks and leveraging innovation capabilities. In order to contribute to the overall performance of a firm, research has emphasized that strong professional effectiveness is a vital prerequisite for achieving success in the function. Nevertheless, previous studies have not analysed how relevant skills can be developed. Building on qualitative data from four case studies, this article therefore extends previous work and explores the underlying strategies of skills development in the PSM function. By adapting a theoretical framework from human resource development (HRD) to the supply context, we analyse how various instruments influence the advancement of relevant skills and demonstrate how purchasing proficiency can be improved on four different performance levels. The article shows that PSM organisations have to carefully assess the strengths and weaknesses within their organisations before implementing any HRD activity and provides a useful means to better understand the development of the important human aspect in the function.