The authors of Basware’s new research report, “Cost of Control: The Real Price of Cost Cutting,” describe it as “a true call to arms” for CFOs and CPOs. I agree. This study explores the fundamental relationships between finance and procurement professionals and concludes –rightfully so –that success in today’s volatile, ultra-competitive economy depends on a coordinated and collaborative response between CFO (purse string) controllers and CPO (supply chain) gatekeepers.
Here are a few key insights from the report:
- Businesses are being forced into thinking more strategically about systemic cost savings as the opportunity for negotiated supplier savings decreases.
- Commercial risk is linked to supplier instability, but the full picture of supplier risk is not understood.
- Businesses are keen to explore routes to finance and purchasing process automation in order to realize tangible savings.
- Current concerns surrounding the strategic response to legislation and governance pressures as well as the ‘great recession’ may lead to increased openness and transparency within internal and external finance and purchasing stakeholders.
The full 19-page report is available here. (Registration required.)
Basware’s research confirms what most/all of us in the field had predicted: Companies that had a focus on supply chain excellence were best positioned during the recession.
In order to move forward from here, though, CPOs and CFOs must work together. Effective communication and efficient information sharing between finance and procurement lays the foundation for your company to meet the challenges of today’s complex, and often unpredictable, business environment. Plus, if your CPOs and CFOs are collaborating , you’ll be better able to take advantage of new opportunities as the economy rebounds.