In many companies, procurement and finance teams operate as separate departments. Historically, they have sometimes been at odds for one key reason: Procurement spends money, while finance focuses on profitability, which sometimes means finding ways to spend less.
However, a strategic partnership between the two groups can benefit the business as a whole, among other things, because each group can provide unique insights into the business’s operations. For example, a well-managed procurement team may deeply understand how carefully procured products and services can help business groups maximize profitability. This allows the finance department to understand better the company’s spending and how it affects the bottom line. Integrated supply chain management software that can connect information from across the business, including finance, is essential to bridge the traditional divide and help teams work together to advance business goals. Supply chain management software can also help you track progress toward goals by providing the necessary information for your procurement team’s key performance indicators (KPIs) in an easy-to-understand format.