Tagged Content: Finance

Procurement and Finance: How to Close the Budget Loop

- June 13, 2013 8:27 AM | Categories: Commentary

Budgeting is obviously one of the most effective ways to meet profit goals and avoid maverick spend. Budgeting and planning help organizations invest their resources to best benefit, based on cautious consideration rather than the urgency to make a short-term decision. They are essential to sustain your company's economic growth. But how do you close the loop between budget preparation, execution and forecast? This can be a challenge. Like William Feather said, “a budget tells us what we can't afford, but it doesn't keep us from buying it.”

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When AP Meets Common Sense: Discounting and Payment Terms (Part 1)

- April 23, 2013 6:33 PM | Categories: Procurement Financials

When I first came across “payment terms” outside of a classroom setting it was in Japan in the ‘90s. I must admit, from my vantage point in domestic (domestic Japanese, that is) sales engineering activities, I found it rather confusing. As I recall (translated of course), the terms given to us, a Tier 1 supplier to a leading Japanese manufacturer, went along these lines: “50% of the amount owed will be paid in cash two months after the end of the month following the month the invoice is presented and the balance will be paid 3 months after that.” Try telling that to a typical payables clerk in the US to have them explain to suppliers.

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When Procurement Met Finance: Hollywood Ending or Costly Divorce?

- March 18, 2013 3:06 PM | Categories: Commodities

I recently led a webinar titled When Procurement Met Finance: How to Achieve the Hollywood Ending. Our premise was straightforward in principle, though tricky in execution: what activities can procurement (including CPOs, COE leaders, source-to-pay technology leads, category managers and others) and finance (CFO, controllers, AP, treasury, etc.) do to work together to achieve the “Hollywood” outcome where everything somehow works out in the end, and hopefully in a faster period than the time it took Sally to commit to Harry. If you have some time, it’s worth watching yourself (watch the recording here). I’ll level with PRO subscribers: while we wanted […]

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When Procurement Met Finance: Hollywood Ending or Costly Divorce?

- March 18, 2013 10:38 AM | Categories: Procurement Financials

I’ll level with PRO subscribers: while we wanted an aspirational message for the general attending public, achieving the Hollywood ending is not easy – and in fact, few organizations truly succeed in joining finance and procurement at the hip. But there are some critical steps necessary that can help an arranged marriage of the two along, even if it’s not love at first site, and at the very least, to avoid a costly divorce. Note to the procurement executives reading this brief: 95% of the time, CPOs will not end up on the positive side of things when finance and procurement fail to collaborative effectively.

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Free Webinar: When Procurement Met Finance

- March 6, 2013 9:02 AM | Categories: Commentary

Join us for a free webinar tomorrow, March 7, from 10-11am Central When Procurement Met Finance: How to Achieve the Hollywood Ending Harry: There are two kinds of women: high maintenance and low maintenance. Sally: Which one am I? Harry: You're the worst kind. You're high maintenance but you think you're low maintenance.  The similarities between an age-old rom-com and getting procurement and finance into a lasting relationship once and for all aren't all that far off... Our agenda includes: Finance and Procurement Can't Be Friends - Numbers Get in the Way There are Two Kinds of Procurement Orgs: High and Low Maintenance No […]

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Intersecting Procurement and Finance: Top Trends for 2013

- February 22, 2013 7:54 AM | Categories: Commentary

Join us on March 7 for our webinar from 10-11am Central, sponsored by Hubwoo: When Procurement Met Finance: How to Achieve the Hollywood Ending. We were recently asked to share some of our thoughts based on the intersection of procurement and finance trends we expect to see emerge in 2013 (note: these trends bisect both organizations – not individual or compartmentalized focus areas). Based on informal discussions with a variety of practitioners, consultants and vendors in January, we came up with a short list (don't ask for the complete laundry list – it ain’t pretty). Here are some of the […]

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Procurement and Finance Webinar

- February 21, 2013 11:05 AM | Categories: Industry News

Join Spend Matters for a webinar on Thursday, March 7 sponsored by Hubwoo, a leading global provider of B2B buying and selling solutions in the cloud. Register here for “When Procurement Met Finance – How to Achieve the Hollywood Ending,” which will discuss the common mistakes procurement and finance departments make in aligning technology and processes - and most importantly, how to avoid them. Here are some of the points that the webinar will address: A brief history of the relationship (and future) alignment of procurement and AP Bridging the gap with technology How to "massively enable" suppliers Enabling users […]

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