Procurement is a business function that offers so much in the way of value. However, its not always easy to showcase the full spectrum of what procurement provides to other teams or get the necessary buy-in from sponsors or stakeholders to support procurement activities. In fact, one of the common pain points for procurement practitioners is the ability to align finance.
Finance is a critical business function. So much of what guides operations is based on the bottom line and therefore it is absolutely essential that procurement align with finance. Without this collaboration, procurement teams will struggle to gain credibility within an organization and will be less able to contribute to the overall success of the business. In order for procurement to truly be successful, it needs to align with finance. Here are some tips for helping achieve alignment between finance and procurement.
Develop a reporting structure that promotes collaboration
Reporting is essential for keeping different departments aligned. It’s only logical that the department in charge of managing money and the team that handles buying should coordinate. To really make the most of your collaborative efforts, try syncing on reporting structure to increase adoption. Ideally, procurement would actually fall under the purview of finance wherein the CPO reports directly to the CFO to increase that alignment. Benefits include:
Around the world, new regulations about the collection and usage of personal data are changing workflows for major organizations. Following the passage of legislation like General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA), businesses are auditing privacy practices and creating much stricter guidelines when they select partners and vendors.
With tighter regulations about the way consumer data is collected and used, organizations have to increase scrutiny for every party that has access to personal data. The entire system is only as secure as the weakest part, so it’s more important than ever to vet external parties and maintain visibility into their data practices. Here are eight vital steps organizations can take to ensure that vendors aren’t jeopardizing data privacy compliance.
Step 1: Audit Your Existing Data Privacy System
Before you do anything else, examine what’s currently in place to understand the changes that need to be made to maintain compliance with new regulations. You want to avoid reinventing the wheel and make adjustments without slowing down the business or adding risks.
After that self-examination, conduct the same check on your network of vendors. It’s imperative that you have a 360-degree understanding of vendors’ business practices and overall reliability before entering or continuing business relationships.
At the SIG Procurement Technology Summit, attendees will experience the latest procurement technology in a virtual Innovation Hall. These companies are using artificial intelligence, machine learning and robotic process automation to elevate the role of procurement, ignite innovation and impact the world.
Featured here are company overview, solution overview, and company approach and process to help you learn more about the following virtual Innovation Hall technology providers:
What’s keeping you up at night? CPOs today are under continued pressure to reduce costs and find new sources of value – and of course, manage risk.
At the same time, CPOs want to become more strategic advisors to the business. We’ve found the perfect opportunity to help you achieve those goals and more.
As a CPO, you probably manage millions of dollars’ worth of spend on services. Think of all the money your company spends on consultancies, IT services providers, marketing agencies, law firms, accounting firms, facilities management companies and more. These services providers operate across the enterprise, perform vital work and deliver enormous value.
You manage the contracts and rates for these services, but beyond that, how much attention do you pay to that spend? Do you know whether these services providers are delivering high-quality work? Do they hit deadlines? Is your business getting good value for money?
Most of us are guilty of under-managing services providers. That’s one of the key findings from a groundbreaking new research study published by SAP Fieldglass in collaboration with Oxford Economics, titled Services Procurement Insights 2019: The Big Reveal.
After a reorganization within his company, a SIG University graduate applies lessons learned in the Certified Supplier Management Professional (CSMP) program to facilitate a people- and culture-driven change management approach to bring his company into regulatory compliance.
The CSMP program exposes students to leading-edge training on contract administration, compliance, risk mitigation, performance, governance operating models, talent management support, transformation and more to help companies put effective governance programs in place.
The Certified Supplier Management Professional (CSMP) program from SIG University discussed the importance of GR&C and provides samples of governance models with roles and authorities, its relationships, and communication structures in relation to the procurement or sourcing strategies of an organization. I was glad to see these topics discussed as it confirmed the need for reorganization within my company, which now has clearly defined roles and responsibilities between governance and third party risk management and the sourcing department.
David E. Romo-Garza, Director of Business Risk and Controls
Hundreds, thousands, or even tens of thousands of third parties power your company every minute of every day, in all your markets and geographies, for every product and service. Third parties are everywhere, in virtually every part of your business. You have less control over third parties than over your internal operations, so getting this right is essential for your company’s success.
Third-party relationships are complicated. But the “right” third parties, if thoughtfully evaluated, managed and controlled, deliver what you contracted for and serve up many opportunities to be better. Better means new products, services and markets. Better means access to specialized top talent, processes and technology. Better means less risk.
Unfortunately, risk is everywhere and even though technology is advancing in leaps and bounds, operational ecosystems are growing more complex every day. Consequently, risk events, cyber attacks, fraud, data corruption and privacy breaches are becoming commonplace, and are too often the fault of a careless third party. The proliferation of third-party relationships and new technologies means that it’s hard for companies to stay on top of third-party risks, and even harder to implement effective controls, monitoring and oversight.
Management of third-party risk is a relatively new discipline – involving a new set of skills, rigorous methodologies, well-crafted tools and advanced technologies. But proactive professionals need to learn the language of risk and learn it quickly because everyone is now a risk manager and everyone is responsible for effective and efficient risk management, particularly for critical third parties.
Linda Tuck Chapman, Third Party Management advisor, author, popular speaker & President, Ontala