I hope that you have enjoyed the article “How Procurement & Finance Can Collaborate.”
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?
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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