generative AI procurement

Upskilling Strategic Sourcing & Procurement: Learning from China and Elevating U.S. Competencies

By Published On: September 30, 2025

Introduction

Procurement and Sourcing talent is one of the hottest commodities in a highly disrupted supply chain environment. Emerging technologies, geopolitical volatility, and trade wars strain the limits of existing skillsets while reducing access to once vibrant trade and sourcing partners. Without adequate upskilling and long-range forecasting skills, supply chain practices can falter and lag behind competitors. Procurement and strategic sourcing professionals have long driven success in these circles. And as Cameron Johnson highlights on a recent edition of the Bloomberg Odd Lots Podcast, companies are now asking, “How do we get talent in different areas that we need to get it into?” Upskilling has become essential for keeping pace with global competitors. 

Procurement manages risk, drives value, and influences long-term outcomes.

What Modern Procurement Requires: Skills Beyond Sourcing

Johnson pointed out that companies are “upskilling” and strategically reallocating production, keeping high-margin, high-skill work in China and relocating lower-level production to places like Vietnam. Modern procurement teams can learn from this by:

  • Assessing global manufacturing ecosystems;
  • Evaluating total cost of ownership, not just price;
  • Coordinating multi-tier supplier collaboration;
  • Navigating tariffs, ESG/sustainability requirements, and supply risk.

Strategic sourcing is shifting toward holistic, data-informed decision-making.

Five Ecosystem Literacies Every Sourcing Pro Needs

Johnson described evaluating regional supply ecosystems using five categories:

  • Infrastructure (ports, 5G, electricity)
  • Talent & Education (availability and upskilling potential)
  • Government Support (policy clarity, incentives)
  • Raw Material Access or Processing Expertise
  • Technology (automation, AI readiness)

U.S. procurement pros must develop the analytical skills to compare these variables across sourcing destinations. It’s also the context, and seeing how economies that are not our own develop.

  • What forces – both public and private – influence that development?
  • How to assess where a market is and where it’s headed.

This context allows for a more comprehensive understanding of whether this new market is the right place to grow. 

This can’t be done from a desk. One needs to have been in multiple developing markets in order to apply this context. If you haven’t done that, you and your employer need to do that now because these skills will continue to be important as trade partnerships fluctuate.

Different Countries Support and Improve Their Economies in Different Ways

US and China are just two countries where we can learn how to apply these understandings.

When discussing the United States and China, there are fundamental differences in how each economy operates, given varying degrees of political pressure. China’s government is more influential in commerce than America’s. However, this has shifted course in 2025 as tariffs emerged to apply varying pressures on trade volume between Asia and the United States. 

China also boasts an advantage in technology and renewable energy. Their accelerated implementation of sustainable energy practices could allow them to allocate fossil fuel resources to other avenues, including technology and tech training. America, conversely, has reversed course on a lot of green energy projects, shifting component-level procurement activities at a time when some thought the reverse would be likely.

Also, public education infrastructures diverge greatly between the two nations. China focuses on developing pipelines for economic sectors in need using the secondary education system. There is a lot less pressure to do so in America, creating a bit more of a talent shortage and competitive disadvantage. 

AI Integration: From Reactive to Proactive Sourcing

Johnson continues by saying that “We have over 100 R&D and technical guys… talking to the entire supply chain how to use DeepSeek to do more efficient business.” AI is being embedded across raw material suppliers, packagers, and OEMs in Chinese-led ecosystems.

In the U.S., procurement must evolve from spreadsheets to:

  • Generative AI procurement for RFPs and negotiation;
  • Predictive analytics for supplier risk;
  • Collaboration platforms for real-time visibility.

According to a recent Supply Chain Xchange article, procurement executives are implementing as much AI as they can but there’s not enough readiness.

“Eighty-five percent of procurement executives say they’re piloting or using AI, with nearly three-quarters (73%) already deploying AI agents. Yet, only 49% clearly understand how agentic AI works, and just 39% report providing formal AI training across their teams.”

Sourcing is one of the key areas in the supply chain where AI is being leveraged more than in almost any other sector. So, while we did mention that context matters and some things can’t be done from a desk, generative AI and agents are providing an accelerated leg up to competitors who have made its use a higher priority.

Everyone is using AI right now. Some companies are sharing how they’re advancing their usage among their talent bases, while others are much more cagey. Regardless, sourcing is a spot where you can advance skills and technology in the procurement sector, whether you’re in the United States or anywhere else.

U.S. vs. China: Talent Strategy Gaps

China is producing over 100,000 graduates per year for key tech industries, such as AI, robotics, and semiconductors, with a national goal of 500,000 by the end of the decade. Meanwhile, Johnson notes, “You can call and say, ‘I need a Christmas cup in 3 months’ and they’ll figure it out. Nobody else in the world can.”

Contrast that with the U.S.:

  • Limited specialized supply chain degrees
  • Very little national workforce mobilization makes generative AI procurement a potential competitive equalizer.
  • Procurement needs to focus more on strategy and less on tactics. 
    • Transactional focus is more reactive. Needs a longer tail with deeper verticals.
      • Don’t just act for today, this season.

It’s not just about upskilling current talent, but where are you procuring your talent? Technocrats are being cranked out at a much higher level in China than they are in the United States. As an employer, how are you connecting with leading supply chain universities in America? Do you have a mentorship program that engages colleges? Your talent pipeline is your future, and now is no time to run with too thin a bench. None of you folks has time to devote to building and developing this talent pipeline. It’s wise to partner with specialized professionals who can help advise you on building out a bench with procurement and sourcing pros that can future-proof your company. 

How U.S. Companies Can Accelerate Procurement Talent

Johnson emphasized that China has “replicated and expanded” its supply chains by aligning business with education and policy. To compete, U.S. firms must:

  • Conduct internal capability gap audits;
  • Promote certifications (e.g. ISM CPSM, ASCM CSCP);
  • Fund training in AI, data literacy, risk planning
  • Partner with universities and online platforms to build custom tracks

Forward-thinking companies will treat procurement as a competitive advantage, not a back-office function.

A Strategic Imperative: Procurement as Growth Engine

“The industry of today is not going to be the industry of tomorrow. We have to upscale, train workers, automate more.” 

Procurement professionals who understand how to harness technology, evaluate ecosystems, and negotiate across functions will drive innovation and resilience.

This is a call to action for U.S. private sector leaders. Invest in the future of procurement or risk falling behind in an era where building for the future of the supply chain has been a strategic priority for other nations for a long time.

Supplier Relationship Management Skills Atrophy

Believe it or not, there was a time when American procurement executives traveled to the jungles of Southeast Asia to trade bags of money and US commodities with the locals. The early days of supplier relationship management tactics won’t be coming back. But the people skills involved in procurement and strategic sourcing will never cease to be essential. 

The age of AI has provided us with limitless data sets and reporting capabilities. No doubt about it, these numbers crunching behemoths accelerate windows into what’s working and what’s not. However, AI can’t create tactical maneuvers and develop on-the-ground knowledge of how to problem-solve with a long-time supplier. Critical thinking and communications skills, paired with cultural awareness and invaluable relationships, remain the most highly coveted skill sets in the age of AI and disrupted supply chain environments.

Creating and maintaining mutually beneficial supplier relationships requires companies to invest resources and empower their procurement staff to engage with these other markets. Being on the ground there allows staff to gain essential knowledge and know-how that will serve your organization for years to come. Your procurement and sourcing teams need to develop cultural muscle in order to better promote integrated working relationships that go beyond strictly transactional thinking.

Conclusion

The next decade of supply chain leadership will belong to those who can think systemically, adapt rapidly, and build networks that extend far beyond simple cost-cutting. The U.S. must look closely at China’s playbook and apply similar tactics to maintain a competitive edge. How do you make sure you’re building out a modern skillset that’s going to be successful? Organizations can’t just rely on developing a rainmaker. Playing off of existing talent and strategies is not the only game that can be or needs to be played.

The future of procurement will be defined by those who view it as a growth engine, not a cost center. China’s integration of policy, education, and technology can be a helpful example and point of reference. However, they are not the only game in town. Diversification of suppliers and the development and maintenance of these suppliers will play a key role in America’s future competitiveness in the sourcing and procurement realm. The mandate seems pretty clear: invest in upskilling, embed generative AI procurement into decision-making, and cultivate supplier relationships that go beyond transactions. Those who lead this transformation will not only safeguard resilience but also unlock new avenues of competitive advantage in the decade ahead.

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