When Finance and Procurement work together effectively, they can create a dream team to drive Source-to-Pay (S2P) excellence! Read on to learn more.
Increasing uncertainty in the global economy has led to increased pressure on the procurement function to lower costs and maximise efficiencies. At the same time, finance teams are also under pressure to maximise the bottom line whilst providing visibility and accountability at any given point.
Finance and procurement are undoubtedly two essential functions within any organisation. While they may individually have different goals and responsibilities, when they work together effectively, they can create a dream team to drive Source-to-Pay (S2P) excellence. Just like a football dream team, finance and procurement can complement each other’s strengths and work towards a common goal of achieving cost savings, improving efficiency, and mitigating risks.
One of the key areas where finance and procurement can collaborate is in strategic sourcing. Procurement teams are responsible for identifying and selecting suppliers, negotiating contracts, and managing relationships. However, finance teams can provide valuable insights into the financial health and stability of potential suppliers. By working together, they can ensure that suppliers not only offer competitive pricing but also have the financial capability to meet the organisation’s needs in the long term.
Another area where finance and procurement can make great wins together is in spend analysis. Finance teams have access to financial data and can provide insights into spending patterns, budget allocations, and cost-saving opportunities. Procurement teams can leverage this information to identify areas of potential savings, negotiate better contracts, and optimise the overall procurement process. By combining their expertise, finance and procurement can drive cost reductions and improve the organisation’s bottom line.
Risk management is another critical area where finance and procurement can work together effectively. Procurement teams are responsible for assessing supplier risks, ensuring compliance with regulations, and managing supplier relationships. Finance teams, on the other hand, can provide insights into financial risks, such as creditworthiness, liquidity, and solvency of suppliers. By collaborating, finance and procurement can identify and mitigate potential risks, ensuring the organisation’s supply chain remains robust and resilient.
Technology plays a crucial role in achieving source-to-pay excellence, and finance and procurement work well as a team in this area as well. Finance teams often have expertise in financial systems and technology, while procurement teams are well-versed in procurement software and tools. By working together, they can select and implement integrated source-to-pay solutions that streamline processes, improve data accuracy, and enhance visibility across the organisation. This collaboration can lead to increased efficiency and visibility, reduced manual work, and improved decision-making.
Communication and collaboration are the keys to success for finance and procurement teams. Regular meetings, joint planning sessions, and shared goals can foster a strong partnership between the two functions. By aligning their objectives and working towards a common vision, finance and procurement can create a synergy that drives an efficient and effective end-to-end source-to-pay process.
In conclusion, finance and procurement can work together like a football dream team to achieve source-to-pay excellence. By leveraging each other’s strengths, collaborating on strategic sourcing, spend analysis, risk management, and technology implementation, they can drive cost savings, improve efficiency, and mitigate risks. Just like a successful football team, finance and procurement can achieve remarkable results when they work together towards a common goal.
Esker’s AI-driven Source-to-Pay suite equips companies with the technology and tools for finance and procurement teams to collaborate to meet shared goals and streamline the end-to-end S2P process.