Many procurement leaders find themselves navigating uncharted territory as procurement’s role and influence evolves within the business. For decades, procurement’s priorities have been defined by savings, risk reduction and supplier relationships. While these remain fundamental to procurement’s mission, there are new priorities to consider.
How can procurement deliver more strategic value to the business in terms of profitability, innovation and competitiveness? Is it up to the task of being a trusted business advisor to internal stakeholders?
Procurement as a discipline is experiencing some growing pains as its scope of responsibility and influence grows. Often, there are significant gaps between the strategic value potential of the organization and the resources committed to reaching that potential. Furthermore, today’s procurement professionals are being bombarded by a host of new procurement-enablement tools and best practices – many of which are highly disruptive, can negatively impact supplier relationships and deliver too little ROI.
In this PrimeRevenue Perspective, we discuss how supply chain finance can deliver large-scale, strategic improvements to overall business performance in the following areas:
- Working capital optimization and cash flow acceleration
- Supplier relationships
- Strategic business initiatives and corporate mandate success rates
- Alignment between finance and procurement