13 December 2007
CPOs must communicate better with finance departments to redress their perception that procurement has no impact on competitiveness, research has found.
A survey of more than 170 CFOs and finance vice-presidents revealed fewer than 20 per cent felt purchasing helped their firms compete.
Alarmingly, more than a third believed procurement had either no impact or a negative effect on competition, more than twice the view of procurement itself.
The Aberdeen Group's report, The CFO's View of Procurement
, cited a lack of dialogue between procurement and finance as the main reason for the difference in opinion.
"With 37 per cent of CFOs judging procurement's impact on competitiveness to be neutral or negative, it is up to every CPO to acknowledge the likelihood of this view and set a deliberate course to change it."
Recommendations included encouraging frequent dialogue and developing a common language that is "part finance and part procurement".