All posts in Finance

Are your Savings Reports Honest?

The procurement professional lacks universally accepted standards that define what savings are. As a result, some procurement departments have very rigid qualifications for savings while others consider many questionable methods to be valid savings definitions. This article is geared towards developing a savings strategy that is embraced by executive management. Recommendations for defining your savings in a manner that CFOs…

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Spend’s Role in Industry

The modern business environment is changing the way businesses execute their Mission Critical Functions. These pressures are not only economic in nature, but technological, political, competitive and significantly Customer Requirement Driven. There is a seismic shift in the mindset of the modern customer from Triple Constraint (wanting products cheaper, better, faster) to quadruple constraint (wanting products cheaper, better, faster and…

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Will You Have An Early Warning That Your Supplier Is Going Bye-Bye?

I hope that you have enjoyed the article “How To Spot a Poorly Managed Supplier.” Don’t miss updates on Procurement & Supply Chain, Subscribe here! Life works in strange ways when odd coincidences happen. I had the above-linked article queued up for a few months, yet just today, one of our SPSM alumni contacted me asking for some guidance about…

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Do 61% of CFO’s Lack Understanding of Procurement’s Potential?

I just read an insight-spewing article entitled “That Rising Feeling: CFOs are fretting about the prospect of inflation, but are split on how to respond.” The article includes quotes from several CFOs who share their concerns about cost increases and their strategies for combating them. While the entire article was quite revealing, the graphs – which I have included at…

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Is Now A Better Time Than Ever To Take Early Payment Discounts?

There are several things to be considered when deciding whether to take vendor discounts for paying early as opposed to paying the full amount on time. One of the major drivers of whether or not to take early payment discounts is the set of alternatives that your organization has for using the cash and whether those alternatives would provide a…

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Procurement-Finance Collaboration

I hope that you have enjoyed the article “How Procurement & Finance Can Collaborate.” Don’t miss updates on Procurement & Supply Chain, Subscribe here! One of the keys to facilitating good procurement-finance collaboration is to “speak the same language” – using the same terms to describe finance-related things. I always reference the use of “cost avoidance” as an example to…

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