Study: Finance and Procurement Departments, a strategic relationship to be strengthened

25 May 2020

Study: Finance and Procurement Departments, a strategic relationship to be strengthened

Carried out by Per Angusta, Capgemini Invent and the DFCG, this study provides a state of the art of the relationship between these two key functions and reveals possible levers for improvement to strengthen the collaboration between Procurement and Finance.

Finance and Procurement functions play a central role in the company: When Finance is managing financial information, analyzing it and is implementing strategies, Procurement is driving cost reduction plans, supporting growth and is reducing company’s risks. These two functions have to work in strong conjonction to improve global company’s Performance.

  • How to create more confidence, transparency and real synergies between Finance and Procurement departments?
  • What are the best practices, governance rules and most appropriate tools to be used?

This survey was led through a mirror questionnaire sent to each department, bringing a panel of 122 respondents (64 Finance Directors and 58 Procurement Directors).

” The French Association of Financial Directors and Management Control (DFCG) is excited about the opportunity to expose each of its members to the links that must be created to connect the different functions of the company. In this context, it seemed interesting to partner with Capgemini Invent and Per Angusta, to conduct a study on the link between the Procurement and Financial Departments. The survey looks at the nature of relationships, quality of exchanges, alignment on joint initiatives, and provides some interesting observations about how you can better understand the interactions and wishes of each other.”
Bruno de Laigue, President of the DFCG.

This survey is covering 8 key topics:

  • The main objectives of a Procurement Function as seen by both parties
  • The perception of the quality of exchanges between Finance and Procurement
  • Formalizing exchanges between Finance and Procurement
  • Sharing Procurement Performance information
  • Indicators for monitoring Procurement Performance
  • The nature of relations between Finance and Procurement
  • Valorization of joint initiatives
  • The relative expectations of these two departments

” The disagreements between Financial Departments and Procurement among our customers continue to crystallize around the relevance of the savings reported by Procurement. Most often, it’s the rules of collaboration that have simply not been defined: alignment to calculate savings, financial risk control procedures. Purchasing and Finance had, too rarely, set up the necessary steering instances for the collaboration of the two functions. ” Cyril de Reyniès, Director Capgemini Invent

” The digitalization of the Procurement function is now moving in the field of Procurement Strategy Management. Performance Management tools bring transparency and facilitate real collaboration. These solutions are a natural second step after the establishment of Performance rules shared and validated between Finance and Procurement Departments. ” Maurice Hamoir, Associate Director of Per Angusta

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Nature of the relationship between Procurement and Finance - Per Angusta
relationship-finance-procurement-per-angusta

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