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5 reasons finance and procurement must collaborate

base post preview 5 reasons finance and procurement must collaborate

 

The finance and procurement departments have an interconnected relationship in every organisation. Whereas finance is responsible for setting the budgets and creating spend and revenue reports, it is the procurement departments’ task to adhere to these budgets as well as ensuring that the items purchased have been received and the invoices passed on. This will save the financial department from asking unpleasant questions in retrospective when they realise people within the organisation have been ordering without any approvals and budget in mind. The collaboration between the two is essential and this article highlights the five reasons that are most important. 

Common customers

Finance and procurement share certain common customers and stakeholders, whether internal customers such as cost center owners or externals like suppliers. Having a common approach makes both functions stronger, more efficient and speak with one voice.

Source to pay (S2P)

Finance and procurement are bounded by the Source to Pay process. The digitalisation of both functions is interdependent. Both can benefit from efficient, digital and customer-centric S2P solutions.

Data

Access to data puts both finance and procurement as central hub for insights and foresights to advice the business for fact-based decision making. The ability to share, interpret and provide intelligent information makes both functions an ally to the business.

Start with the budget

Although budgeting seems like a finance field, procurement can play a key role in determining accurate budget plans through access to prices development, contracts or supplier market information.

The power of team work

Both functions bring skills, knowledge and abilities that complement each other. Joining forces makes them a powerful team for business steering, both for the bottom as well as the top line.

„The whole is greater than the sum of its parts.“

Aristotles

Hivebuy is the right tool to enable seamless collaboration between the two departments, it essentially benefits the whole organisation. Employees can now order in an intuitive solution as comfortably as from home while simple approval workflows ensure compliance to budgets. Test the solution free of charge now. 

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