6 reasons why you as a CFO should care about procurement

reduce_costsIt is often the CFO and the finance team who bear the brunt of inconsistent and sometimes ill-considered cost saving initiatives. Now a days costs cutting seem to be climbing higher and higher up the priority list, and not only for struggling companies says Omar Aguilar, principal and enterprise cost management centre of expertise global co-leader at Deloitte Consulting – “growing companies are just as interested in reducing costs as those with declining sales, if not more so”. Resulting in the pressures on CFO and finance teams being greater than ever.

Considering the economic uncertainties in today financial climate, companies are searching everywhere for places to cut costs but are they beginning to run out of places to do so? Or just not looking at all of their options?

According to studies by NelsonHall. ‘Many CFO’s express relatively low levels of satisfaction with the level of control of indirect spend in their organisation’ However it seems many CFOs often overlook indirect spend because it’s not always visible at their level, but department level instead. Is this you?

Read on to discover 6 reasons why you as a CFO should care about procurement and how Invenio’s P2P Solutions can help…

1. Offshoring

It’ not easy to find trained offshore staff who have operated complex solutions such as SAP.
With Invenio’s P2P Solutions this problem is solved immediately as its user friendly interface means offshoring becomes easier for staff involved as less training is required. Which in turn means less spend is involved in making sure these members of staff are up to date and are able to work effectively and efficiently.

2. Enforcing a NO budget NO spend policy

This policy is an inherent feature of Invenio’s P2P Solutions as it stands – already! Not an add-on. Which means once again it saves you time and money, as well as making this policy easier to enforce to your employees.

3. Single view of budgets

With Invenio’s P2P Solutions having a single view of your budgets means you can view your entire spend at one place. With single data source, there are no mismatches or discrepancies in budget vs spend figures. With real-time budget updates, Finance teams have a single version of truth at a click of a button.

4. Accurate and consistent reporting

With Invenio’s P2P Solutions you will never experience a ‘mitch match’ in reports. There will always be a single version of the truth and consistence of data- meaning you can be at ease knowing your reporting is accurate.

5. Empowering employees

As Invenio’s P2P Solutions decentralises the procurement process, it empowers employees to initiate their own purchases and select the right supplier while retaining the control through mandatory approvals. Decentralising procurement and empowering employees is many times more effective since the end user gets to choose the right product that she needs from the right suppliers. However, it will lead to chaos if there are not enough managerial controls. Mandatory workflow approvals in Invenio’s P2P Solutions ensure that compliance and control is never compromised.

6. Compliance

Invenio’s P2P Solutions improves the compliance in procurement process and provides complete audit trail, which not only prevents the chances of fraud but also saves the company money which decreases pressure on the Finance Director.

An article by CFO-insight states that “the CFOs turn procurement into power! Procurement allows CFOs to build business through more than just cost cutting measures” they go onto say:

“One common mistake that companies might make is to view procurement as an entirely separate vessel from the financial heartbeat of the business. ‘A good procurement function should have a cross-functional approach…That means procurement should be seen as a business partner, working with the different parts of the business.”

With the finance team involved in procurement – significant savings can be made in a simple way for your company.

Want to know more?

If this has sparked your interest and you would like to find out more about how Invenio can help your company save time and money, please email or call our SAP Advisory Team on +44 (0)330 440 1800.