Seven Points of Engagement for Procurement and Finance to Improve Collaboration
When procurement and finance organizations work in tandem, it's usually to target a discrete issue - often at finance's behest. Perhaps finance has particular interest in engaging procurement to extend payment terms with suppliers as part of a broader - yet basic - working capital improvement program. Or perhaps a finance executive, in many cases a CFO, makes the decision to engage procurement and the business to make sure identified savings drop to the bottom line versus getting lost or "Re-spent," as so often is the case. Aside from the reason, it's usually a single need that leads to a targeted collaboration between finance and procurement, regardless of whether procurement reports to the CFO or another company leader.