finance and procurement Content

Aligning procurement and payables — The why and the how

payables

For decades business has been talking about how procurement and finance must work closer together and the benefits of doing so, like improved decision making, better demand planning, a greater understanding of the vendor landscape, and faster, more efficient workflows. That’s because they both touch all areas of the business; they both see across all regions and business units; they both focus on the ROI of every item of spend. So their mutual sharing of information and the combined visibility of the ‘where,’ the ‘who’ and the ‘when’ of spend, is beneficial to the whole organization.

While technology and digital transformation have developed over the decades to help bring the two closer together, the events of 2020 have been the real pivotal moment behind this need and have accelerated its urgency. We recently discussed not just the ‘why’ but the ‘how’ of procurement/finance collaboration with a solution provider that has a foot firmly planted in both camps. Medius is a leading player in cloud-based spend management field, but has a strong heritage in the payables sector.

Five Specialist Vendors You Must Talk to in 2013: Sievo [Plus+]

Contrary to what systems-driven IT leaders have you believe, the missing link between finance and procurement is not a better transactional procurement system – it’s a common language, understanding and framework to implement and manage savings and overall purchasing performance. Yes, P2P tools matter. But they matter far less in the scheme of bottom-line impact compared to this larger opportunity. While the gap between finance and procurement coordination and agreement around savings, budgeting and planning in far too many organizations is significant, it is not insurmountable.