@Risk

Good news: Financial professionals are becoming more aware of procurement’s impact on both profitability and risk, according to the annual The Cost of Control report, released last week by Basware.

The Cost of Control 2010 is the second annual global study of its kind by Basware, and it offers some fascinating insights into the opinions and priorities of 550 finance executives around the world.

For example, I was especially intrigued by how the CFOs’ views of procurement has changed over the past year. Among those polled, nearly half (48 percent) now said that procurement has a positive effect on profitability –and that’s a considerable increase from the 29 percent who thought so back in 2009. I was also pleased to see that finance is becoming more aware of procurement’s impact on risk.  This year, 39 percent of respondents cite procurement as a financial risk exposure –up from 28 percent last year.

The report says these findings indicate that lessons have been learned in the last 12 months, probably as finance departments were rocked by unprecedented turbulence within supply chains. I agree, and I think we are going to see the trend towards enhanced CFO-CPO collaboration continue as companies begin to realize that in today’s volatile, ultra-competitive economy, success depends on a coordinated and collaborative response between finance and procurement.

Here are a few other key findings from the study: (more…)

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: (more…)