@Risk

Today’s business environment demands effective management of working capital, and that means more and more companies are turning the spotlight on their AP Departments.

It’s about time.

After all, even seemingly small AP errors can add up, becoming a constant drain on productivity, supplier relationships and the bottom-line –and complexities in today’s global supply chain only make the problems worse. In fact, new research from Sterling Commerce reveals that companies can gain significant cost benefits from updating certain routine AP practices, such as cross-border invoicing. Sterling Commerce found that by automating country-specific mandates for cross-border invoicing around processing, archiving and auditing, organizations can eliminate error associated with manual processing and reduce related penalties and fines.

According to the survey: (more…)

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 global economic crisis sent shock waves through every business organization, and understandably, over the past few years, certain executive relationships have fundamentally changed.

For example, in many organizations, CPOs and CFOs are collaborating in new ways, now that CFOs are beginning to realize how optimization of procurement function results in significant business benefits (cost containment, competitive advantage, etc.)

Aberdeen Group takes a close look at these evolving roles in a recently released white paper, titled “The CFO’s View of Procurement: Work in Progress.”

According to the report: (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…)

More than one-third (38%) of manufacturing CFOs and senior comptrollers surveyed by Grant Thornton LLP do not expect to see the U.S. economy coming out of the current recession until the second half of 2010.

Interestingly, nearly 27% expect the recession to end sooner, during the first half of 2010, and about 15% are even more bullish, predicting the recession will end by the end of 2009.

But, another one-fifth (20%) of CFOs don’t expect to see a turnaround until 2011 or beyond. All told then, about 58% of the CFOs surveyed don’t see the recession ending until the second half of 2010, or beyond.

(more…)