SarBox and Spend

While not as sexy as such areas as spend reduction or global sourcing, Sarbanes Oxley continues to be an important topic of conversation -- not to mention a major area of investment -- for public companies traded on exchanges in North America. And no one will dispute that it has visible impact on the procurement and operations functions. As further background on Sarbanes Oxley and Spend Management, check out Robert Engel's analysis on the subject in the April / May issue of Supply and Demand Chain Executive. According to Engel, "while there are clear SOX implications throughout all areas of Supply Chain Management (SCM), the law does not mandate how a company must address them. SOX also doesn't determine what is or is not material, as it leaves each individual company to identify independently what material events or actions will have an impact on the organization ... [This] means that supply chain managers, together with their CEOs, chief financial officers (CFOs) and/or chief compliance officers (CCO), must take an active, collaborative approach to implementing a corporate governance program if they want their SCM organizations to be SOX compliant." While Engel takes more of an operations perspective on SarBox than a procurement one, his analysis is still worth a detailed look. Good stuff.

Jason Busch

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