A CFO-CPO relationship, like any other, is not perfect and is often rooted in a lack of trust and miscommunication, which, at times, makes it seem beyond repair. The CPO promises savings and talks about adding value, but the CFO only sees costs and finds the P&L showing increased spending. This obvious gap between what procurement claims and what finance sees deepens further because the language and terminology used are not aligned. As a result, misunderstanding and communication breakdowns happen.
The webinar ‘Prove Procurement’s Contribution to Finance with Love and Hard Data’ is designed to help procurement professionals turn their CFO’s hate into love. With Johan-Peter Teppala, a seasoned procurement expert and Bruno Duréault, an experienced CFO, this relationship dynamic between finance and procurement is discussed. With more than a decade of experience in their respective fields, they address and uncover the practical ways to improve this partnership.
Before exploring how to make the relationship between procurement and finance work, it is crucial to note how procurement has evolved from having the penny pincher reputation to becoming the heart of supply chain management. Organizations are now starting to see it as a key driver for competitive advantage. With various value-adding superhero functions, it has emerged from being just a cost-cutting function to having its own voice with a newfound organizational influence and corporate visibility. Mastering its potential and knowing its strategic and critical contribution will ensure a competitive advantage in today’s dynamic global business landscape.
In any relationship, it is easy to find the blame in one another. But to make it work, there should be constant communication. Trust, recognition, having a common purpose and focus are the keys to everlasting love for procurement and finance. The clearest way for procurement to build trust is to deliver real value to the bottom line. This means procurement needs to be more precise in isolating the real drivers of performance and more concrete about the measurement of value. At the same time, for procurement to win over the hearts of people in finance, it needs to create transparency by using the same language and metrics.
Love can indeed move mountains. But so can real, hardcore data based on facts. With these two in hand, the CFO-CPO relationship can be transformed from a complicated one into an effective partnership. Procurement and Finance must work closely together in more ways than one. Keeping these functions aligned effectively enables organizations to stay ahead of the game and empowers them to deliver a more strategic performance.
Nobody says it is an easy journey. What relationship is? But there is no time for arguing. No time for hate. Just love…and data.
Ready to transform your CFO-CPO relationship? Register for this webinar with Sievo on June 19.
Ericka Pineda is a Product Marketing Specialist at Sievo. She specializes in content creation, understanding products and translating their business objectives into effective communication strategies and tactics. This includes producing high-quality content and other marketing materials from simple blog posts to social media ads and videos. Ericka holds a Bachelor of Arts in Journalism in the University of the Philippines.