By Paul Ellis, Managing Director, Wax Digital
Procurement and finance teams have a lot in common. In fact, procurement can trace its origins in finance. However, as the process for buying goods and services has matured, the relationship between these two functions can often become strained, and this is something with the potential to affect businesses across the world.
A popular theory about the tension between the two functions stems from finance’s continued insistence that procurement should be under its control. Indeed, as procurement is there to ensure money is spent well, surely that must be finance’s jurisdiction?
In this article, we’ll be looking at ways to stop any bad blood between the two departments, using data from a recent Wax Digital survey to support our findings.
Finance and procurement spending in summary
Finance has an important role to play when considering its relationship with procurement and a healthy business. They set spending limits for departments, business units and so on, and then, procurement finds ways of saving money through cost savings and cost avoidance measures.
Procurement typically manages this by leveraging purchase-to-pay systems, to link together ERP and purchasing systems – from purchase requisition, all the way through to invoice processing. This helps to centralise and automate many elements of purchasing, delivering the spend visibility needed to spot potential efficiencies (to the adage of you can’t control what you can’t see).
Once purchasing is complete, finance pays for the contracts that procurement has negotiated using a process called three-way matching. This is used to make sure the items ordered are what they received, and what the company needs to pay for.
What do finance and procurement think of one another?
In our recent CPO Viewpoint study, we surveyed finance, procurement and marketing professionals in over 200 companies about their relationships with one another.
The survey found that 66% of finance professionals believe that procurement teams are a hindrance to the overall objectives of their business. In fact, further data from the study showed that only a third of finance respondents feel that procurement actually helps with cost-saving – the vast majority seeing it as a support function to finance-led initiatives.
Conversely, procurement thought better of finance. 46% of procurement respondents said they had a ‘very close’ relationship with finance, compared to 22% of finance personnel saying the same about procurement.
How to fix the relationship between finance and procurement
Improving the relationship between the two departments is not a quick fix, and requires time, effort and a commitment from both parties. Here, we list some of our top relationship building tips that can bring finance and procurement teams together:
#1 – Use better awareness tactics
Adopting a proactive approach to sharing the positive impact procurement is having on the business is something purchasing departments should do. Not only will this approach get procurement in the minds of employees from elsewhere in the business, but it will also help demonstrate to finance the impact procurement is having on the bottom line.
You should take advantage of the wealth of data eProcurement tools available by leveraging the wealth of metrics they provide. Tools such as e-sourcing, analytics, SRM and savings trackers can be priceless in helping to automate, illustrate and ratify achievements for comparatively small investments.
#2 – Make sure you know who owns what
To prevent procurement and finance clashing over certain matters, it’s important to set out clear guidelines on who is responsible for what. That way you will avoid employees stepping on one another’s toes and duplicating efforts.
Furthermore, greater clarity regarding the two departments’ responsibilities ensures there is less chance that something will be missed – an unfortunate by-product of poor inter-departmental communication.
#3 – Improve communications
Establishing clear lines of communication between procurement and finance is a sure-fire way to prevent any tense situations between both teams. You should arrange regular meetings between departments to ensure that any concerns are voiced, and that resolutions are discussed. It’s easy to ignore alternate viewpoints and arguments if both teams remain in their separate echo chambers, but opening both departments up to each other’s philosophies and strategies could challenge the status quo and improve performance.
In addition, getting senior stakeholders to work collaboratively and to emphasise the need for cooperation is a great strategy, ensuring that key interdepartmental changes cascade down the business.
#4 – Collaborate on tech measures
Procurement and finance teams often have a silo mentality towards technology, failing to see the bigger picture or neglecting to share the benefits of new tools and services with other departments. By ensuring finance is involved in implementing new tools alongside procurement, both teams will realise their benefits and are more likely to use them collaboratively.
Utilising the same technology will also improve the chance that results and reporting are consistent and cohesive. Not only will this make the lives of senior management and stakeholders easier, it will reduce the possibility of conflict between finance and procurement if any discrepancies occur.
Choosing and implementing technology is also an opportunity to better integrate the two departments. By electing members of the finance and procurement teams as part of a committee to select and launch new technologies for the business, this will promote greater collaboration.
#5 – Review regularly
Implementing deep-rooted change in business is one thing, but maintaining it is another thing entirely. Regular reviews of the relationship between the two departments is key to ensuring that harmony becomes a core cultural trait within the business.
Conducting training days in which departments gather together to discuss their responsibilities and processes will give them a platform from which to demonstrate their importance and relevance within the wider business, so teams like finance and procurement can recognise one another’s value.
Finally, the actual members of the two departments should be asked about their views of their own practices and performance, and that of the other departments. By understanding the actual feelings of employees at all levels of the business, senior management will be better placed to make the improvements required to ensure a stronger relationship between finance and procurement.
With greater interdepartmental cohesion, both finance and procurement will be better placed to truly benefit the business.
How You Can Make Money From Home
There is no secret to making money online, the only secret is your persistence. Hidden away between the tips on starting a wine club, taking up a photography club or joining the wine revolution, there are smart tips that anyone could use to earn money online without having to quit their day job. We have written lots about the many ways people abroad to help finance their lives.
A good place to start with online jobs is with paid surveys. Surveys pay for your time and allow you to earn a bit of extra cash. The reason you will be able to earn more than what you are actually worth is that a survey company will pay to send you their questionnaire so that you can answer it. The more accurate and detailed your answers the more likely you are to get paid.
There are many survey companies available, you need to choose wisely and carefully as some surveys are paid better than others. For example, you may get paid well if you give an opinion on the health of wine or food. You may get paid just as well if you offer an opinion on which type of music you like.
Another great way to make money online is to write articles. You could write an article and then sell it to an affiliate. If someone likes what they read you will get a commission.
If you are unable to write or if you do not have the time, you could hire someone to write for you. This could be someone who has experience in web content writing or a freelance writer. You could also sell your own articles on an affiliate website such as Clickbank or Commission Junction.
It is easy to make money, it can take some time but it is definitely possible. All you need is determination and discipline to keep at it.
Many people overseas have chosen to live off the grid lifestyle. There are many benefits to living this way and one of them is being able to make money from home.
There are also a lot of opportunities to make money doing research online, there is a constant increase in the amount of knowledge that is available to the public. It is much easier to research and discover new ways of earning money. and you can get started in a short space of time. So, I encourage you to give it a go.
One of the easiest ways to make money online is by becoming a blogger. It really is very easy to become a blogger. Just type ‘blogging’ into Google and then fill in all the details. It is easy and it can even start to look lucrative.
Blogging is a good way to earn money if you have an understanding of the basics. You need to write about something that interests you. This could be about your family life, your interests or even a hobby that you like.
Once you have set up a good website for your blog, the next step is to get visitors to it. One way of doing this is by putting up advertisements. This is just the same as writing articles for other websites.
Some people choose to make money by selling products. You can do this in two ways, through a site such as eBay or through affiliate marketing. You could sell e-books or products related to the niche you are blogging about. The great thing about eBay is that there is always a steady flow of visitors.
These two ways are only two of the many ways to make money online. I recommend you look at all the options and find the ones that work best for you. Once you have found them, you will never stop learning about ways to make money online.
How To Avoid the Risks of Poor Credit
Security Finance is an unsecured debt collecting agency that, via a network of affiliated companies, provides “secure” personal loans to consumers who may otherwise struggle to meet their existing debts. Their loans are generally short-term, and their conditions often vary dramatically from those of traditional short term personal loans. The services they provide can be invaluable to both the consumer and the lender.
Security finance offers a wide variety of loans. These include: home equity loans, revolving credit lines, commercial and business loans, car and motorcycle loans, and other types of unsecured loans. These loans can be used for almost any purpose, and they will be more beneficial to the consumer than those offered by banks and other unsecured lenders.
Secured personal loans offer an excellent alternative to the high rate of interest paid by unsecured loans. The interest rates are often less, the terms are easier to meet, and they are often better suited to meeting a consumer’s unique financial situation. The collateral provided with the loan usually allows security that the loan will be repaid in a reasonable amount of time, with little or no difficulty.
Secured loans require the debtor to place collateral, such as his or her car, home, or other valuable asset, in order to receive the money they have been borrowing, and are therefore considered by the debt collector as an attempt to recover something that has been taken. Debt collectors will not hesitate to call a borrower who does not follow the terms of his or her loan agreement and in some cases will go as far as harassing them, calling and/or sending letters in an attempt to collect on a debt.
When applying for a secured personal loan, many borrowers are worried that the debt will affect their credit score. The fact is that there is virtually no correlation between the amount of credit available and the credit score. However, secured loans will typically have a much lower credit score than unsecured loans. This is because the borrower is putting his or her assets in a bank account where they are likely to be liquidated for payment.
It is important to remember that the loan does not negatively affect the credit history. The only time it can result in damage to a credit report is if it is reported incorrectly. If a borrower were to try to pay off a loan on a credit card that was reported as being “lost”, he or she would then be making the error a second time.
Security finance offers consumers an exceptional opportunity for personal development through the use of online applications, and the ability to make several payments on the same day to avoid late fees and penalties. This service also makes it easy to avoid late fees when paying loans off at the end of the month.
The ability to apply for secured loans online provides a tremendous opportunity for the consumer to improve his or her credit score. Security loans can provide a large number of benefits to people who are in financial difficulty, including: low cost, low rate loans, low credit, and the flexibility of being able to make multiple payments.
If you are considering applying for a secured loan but have never applied online, you should take advantage of the opportunity to make several purchases in a short period of time, rather than waiting until the last minute to apply for an unsecured loan. By using the secured finance website, you can save yourself the time and stress associated with filling out an application and can ensure that your credit report shows your financial progress accurately.
Once you have applied for a secured loan, you should also make sure that you understand the terms and conditions of your loan, including any interest rate that may apply to the loan. Be sure that you understand the term of the loan in full and fully. Do not hesitate to ask any questions that may arise. You should always contact the company directly when you feel that you are not fully clear on a matter regarding a loan.
Secured finance loans are a great way to increase your credit score while avoiding the hassle and expense of filling out and paying off an application by mail. Because the borrower is making a direct deposit of money into an account, the credit report that shows up on credit reports is often inaccurate.
How To Find Free Rates On Money Exchange
Money is a common item that can be bought, traded, exchanged or sold. This usually includes the value of the currency as well as gold and silver. Money is commonly accepted as payment of certain obligations, including taxes, and payment of certain goods and services in a specific country or socioeconomic context.
There are three money systems in the world. The first is the use of coins or other units of currency, which are available in fixed denominations. The second is barter. It involves exchanging items of utility with other items of utility. In the third system, known as fiat money, there is no central authority that decides what the money supply is, and the monetary base is determined by political will.
The most common monetary system is the gold standard, which was used as far back as ancient Greece and Rome. In this system, coins were designed to be redeemable for gold bars. Gold, however, had a relatively high price at the time, and most individuals had no access to it. Barter is much more popular today, and most people live their lives in barter, trading items with one another.
In some nations, the second money system is called paper money. Most countries have national currencies, and each government issues money in the name of their country. This type of money is not backed by anything of physical value. It is not held by the government or bank. It is simply made from paper. Since most countries use this kind of money, it is known as the official “money” of the country.
Electronic cash was introduced in 1970. This system is very similar to barter. Instead of bartering for items, electronic money is created electronically. It is created electronically to represent actual objects that can be used as payment, and then is transferred to the buyer. The process is very similar to barter, except that there are no actual goods to be bartered for. It is considered a virtual currency.
There are many different types of money, and each one has its own characteristics. Money in the U.S. has a backing and is created by the federal reserve. Money in England is backed by the pound sterling, while the European Central Bank in Germany uses the euro. has a currency known as the Deutschmark.
Each form of money has its own advantages and disadvantages. People who use different forms of money have their own reasons for doing so. Many people choose to exchange one form of money for the other, to get the best rate on an item they need or want. Some choose the same form of money for more than one transaction.
Money exchange services offer different services to help people get the best rates on money exchange. They include a variety of methods that can help someone get a better rate. Rates vary depending on the length of time you wish to get money, the size of your order, and the current value of the item you are exchanging. Some of these services can also provide you with a credit card or other form of online payment to transfer your money through.
These services are available almost everywhere. You may call around to various companies for rates, or you can check out the Internet. There are several places on the Web that will give you free quotes, and compare rates among companies. It is important that you understand the rules and regulations that govern the rates you receive from these companies before you agree to any deal.
There are several different online providers. You will often find them listed under the names of a variety of different names, such as Money Exchange, Moneygram and eCash. If you are interested in getting quotes from multiple companies, make sure to ask around for quotes from at least three. so that you have a clear picture of how much the rates will vary and from which company to go with.
Many places will offer you a variety of free quotes if you fill out a form. Others will charge a fee for this service. To get an estimate, you should send out several free quotes. and then make sure to follow up with the companies.
To be able to get the best rates, it is very important that you get as many quotes as possible from different companies on the Internet. There are many sites that you can go to. Some will charge a fee to get these quotes.
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