Its more than that bimonthly meeting calendar
Lots of talk and materials are there on collaboration with our end users. Our suppliers. Board. What about the Finance?
We scare them. We fear them. We push them. And we get pushed. But try and keep trying to integrate. Try aptitude. Try attitude. Then cooperate. Go on collaboration. Make it happen.
Many of us will say we have it in place. But industry average is less than 14% of all SCM in this best practice collaboration. And it’s not about CEO or CPO having that collaboration. They will have it by C power. What’s at the working level
There are a few ways the role of finance in procurement can lead to better success and that’s all should matter.
What are common barriers to collaboration between us and finance?
Many questions whether they can do their job correctly and successfully. Will they support. It’s their role as much ours with our end users.
Many have a fear of change and wonder why they should change the way they’ve always done things. This is no different for many of us. How about first set personal approach if required.
Lack of Communication
Better to avoid the devil, many of us keep to ourselves and wonder if it is truly necessary to talk to them, just focus on pushing and raising issues. No. Not right. Many really do, I know, but this many is just 13-15% overall industry wise.
Quality of Service
Another barrier to collaboration between we two teams is both wonder who is adding value to organization. Answer is both. Let’s throw our hats in.
Another common concern about collaboration between us is on data and information. If we share will our importance reduce. Many of us really do tell our teams “careful….”
A coffee a week. They are humans too. Not so bad.re humans too.
Source of finance. How we can add efficiency.
Finance cycle and pay cycle. How we can be effective with payment cycle. Specific advances in forex.
What’s their worries and KPI on cash flow strategies. How can we support or influence them?
Determine Balanced Inventory or Pipelime market investment by talking discussing with them. You will be surprised with their ideas. Yet you are final decision maker, they too know if you don’t realize
Consider Finance market when setting procurement KPI and the Supply markets when you sit with them. It’s about making things work what you do. Not about making it happen by pushing markets down.
Technology. We all love it. Procurement tech. Analytics. Spend. Supply ERP. Add on Software. But make sure they also can use and supplement your power of technology
Go ahead. Enable. And Succeed. Its collaboration and KPI time.
Hariharan Laxminarayan is a procurement professional with 25 years’ experience. He is the head of Professional Development at the Chartered Institute of Procurement and Supply (CIPS) MENA. He is as well a Chartered FCIPS. And a person I am happy to have as a friend and mentor for the past several years.