Archive: July, 2017

Not seeing eye to eye

I often work with Finance, partly because Chief Procurement Officers usually report to Finance Directors, but also because my role requires me to facilitate better ways of working between those doing the deals, those using the deals and those trying to report on them.

It came as no surprise that a recent survey found that Procurement’s “rosy” view of what the function contributes to an organisation’s bottom line is often not shared by their colleagues in finance. According to a study called Bridging the Gap between Finance and Procurement, nearly half of finance leaders claim that a fifth or less of procurement savings wind up contributing to their companies’ bottom line.

Perceived shortcomings in the way procurement functions track and communicate savings, how they collaborate with finance departments and how they work with the wider business were responsible for the disconnect.

In my opinion, too many organisation rely too heavily on spreadsheets. Effective systems drive compliance to policy. System generated reports provide accurate data which help decision making.

British Prime Minister Benjamin Disraeli said that “There are three kinds of lies: lies, damned lies, and statistics.” It’s time for more organisations to invest in the systems that properly support their business.