CPOs are always looking for new ways to increase internal advocacy and improve strategic value to elevate the role of Procurement. As the lead of an organization’s financial vision, CFOs can support their counterparts in Procurement by helping them achieve this goal.
For CFOs looking to build up that relationship, we suggest starting the conversation by focusing on building a strategic procurement plan aligned with Finance’s working capital strategy.
According to The Hackett Group’s 2021 Procurement Key Issues Study, the 2020 crisis continues to shape the 2021 procurement agenda. Unprecedented business disruption forced procurement organizations to refocus on supporting critical business operations and harnessing the value from supplier relationships, resulting in a pivot toward supply assurance and spend cost control.
In 2021, spend cost reduction remains the top priority for the procurement agenda and procurement must provide stability to the enterprise through spend cost control and supply assurance.
Having a sound tail spend management strategy has never been more important than it is today. It’s a key differentiator – and competitive advantage – in a down economy in which cash is king and cutting costs is a high priority. Procurement teams can no longer rely on direct materials for savings—those costs have been negotiated to death.
Before getting into the topic, write down two things:
1) Your high-level definition of the term spend under management
2) What percentage of your company/organization’s spend would you estimate is under management?
Once you answer those questions, read on…
Compliance is a critical purchasing success factor. Aside from the tremendous amount of financial impact, compliance has other positive outcomes. When employees comply with purchasing through designated supplier programs, it significantly streamlines the supply chain, allowing your organization to be agile and flexible.
A new year and a new decade brings about the end and the beginning of many things. Hopefully the new decade brings an end to the angry woman and cat meme as well as the retirement of the man bun (sorry, it’s not my style). All kidding aside, the new decade brings hope, a chance to renew, a time to reflect and an opportunity to leave the past in the past.
As I am writing this article in late March, the full economic fallout from COVID-19 is not yet known and, in fact, will remain unknown for a while. However, two things are clear. The economic repercussions of COVID-19 will be huge and marketing spending is about to be put under the microscope in ways that we haven’t seen since the “great recession” of 2008-2009.
How did you get into this field – was it purposeful or by accident?
In this episode of the Sourcing Industry Landscape, Dawn Tiura interviews Antonio Humphreys. Antonio Humphreys is the Senior Manager, Global Procure to Pay at Adobe. His diversified career path took him into roles outside of his wheelhouse, which has allowed him to excel at Adobe within the marketing sourcing vertical.
When companies start to consider adding strategic sourcing to their regular business processes, they often overlook a number of critical considerations. Chief among these are the benefits of a third-party support and – even more crucially – the process of aligning procurement with this new methodology.