I hope that you have enjoyed the article “How Procurement & Finance Can Collaborate.”

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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 illustrate the differences in terminology used by procurement folks and finance folks.

In procurement, the term “cost avoidance” is used all the time. But I’ve never heard a CFO say “cost avoidance” on an earnings call with investors.

Do you think that there is a clue in that?

I do.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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