Recently, I attended two procurement conferences, both of which had multiple sessions for the CFO on improving spend visibility and spend control within their organizations. Those sessions made me stop and wonder, how many CFOs are truly concentrating on enterprise spend?
Finance, like procurement, is a service function. Both groups must serve the business and serve each other. Finance offers services in treasury, tax, and risk management. And in some cases, Finance actually runs “spend management” in terms of “spend planning” (i.e., financial planning and analysis), spend control, and even the actual execution of payments (A/P) for that spend.
Procurement, for its part, helps safely tap supply markets to meet business objectives. Since “spend” is the opposite side of the coin to “supply,” you would think that procurement’s spend management services fit hand in glove within finance’s processes – at least for indirect spend in G&A (or operating expenditures) and capital expenditures.
Unfortunately, procurement and finance are misaligned in numerous ways, and this misalignment is costing entities money and control. Here lies the irony, because no two functions are more “value-focused” than procurement and finance!
eProcurement solutions start to align these two functions (finance and purchasing). Your business will transform itself from tactical to strategic with focus on automation, visibility, auditability, reporting and controls. In other words, CFOs should care about this critical piece of the business!
-Dan Corazzi, CEO of ESM Solutions