Webinar Wrap-Up: How to Drive Better Financial Resiliency
“Collaboration can help us to gain a competitive edge, allowing us to reduce costs to outmanoeuvre recession risks, minimise inefficiencies and improve our visibility. While we will continue to face daily challenges, the future is bright when collaboration is our secret weapon!”, said Tania Seary, founder of Procurious, as she kicked off the second part of our Collaborative Procurement series.
In partnership with SAP Business Network, our latest webinar brought together leading voices in procurement and finance, including Nate Moon, Global Head of SAP Business Network for Finance, and Rob Halsall, Chief Procurement Officer at Transport for NSW. Both speakers brought a wealth of experience as they explored the many ways procurement teams can break down silos and work together with finance, and their suppliers, to unlock new opportunities, reduce costs, and enhance visibility across the supply chain.
Common Roadblocks to Cross-Departmental Collaboration
Procurement and finance often find themselves at odds. But when these two functions align, the rewards can be substantial. Here are some of the key challenges explored throughout the webinar, and how solving them helps drive financial resilience.
Misalignment of Perceived Value
Rob Halsall opened the discussion by addressing the common roadblocks for collaboration between procurement and finance. He noted:
“Does Finance understand the Procurement operating model? Do they understand the Procurement value proposition within their own organisation, and do they even view Procurement as a peer or an equal ‘enabling’ function? If the answer is no to any of these, then perhaps Procurement needs to do a better job at communicating. This could be an immediate roadblock.”
Despite the immense potential for synergy, it’s a major challenge to ensure that finance truly understands procurement’s value proposition within the organisation. The idea that procurement is a sourcing, policy or transactional function rather than a strategic partner, continues to be shared by many other areas of the business too. As a procurement professional, you will know that this narrow view limits your teams ability to contribute meaningfully to the organisation’s broader goals.
This misalignment in perspectives can result in missed opportunities for collaboration, where procurement’s expertise in supplier relationships, risk management, and market insights go untapped. If this is the case at your organisation, the task now is to demonstrate how procurement initiatives can support both cost efficiency and long-term financial stability. As you do, take heart in knowing that the tides are changing, and procurement is, and will continue to, play a more dominant role in the C-suite as its value is recognised.
The Power of Technology as a Collaboration Facilitator
Technology emerged as another key theme, with our speakers agreeing that digital tools can facilitate better collaboration. Nate Moon emphasised how a B2B collaboration platform like SAP Business Network helps organisations increase visibility into spend, automate processes, and reduce risks.
“Collaboration technology allows procurement and finance to work hand in hand, enabling the organisation to navigate challenges like inflation and supply chain disruptions more effectively,” Nate explained.
He supported his points with real-world examples illustrating the power of SAP Business Network in providing greater supply chain visibility and responsiveness, especially during times of crisis.
“After Russia’s invasion of Ukraine, supply chains were massively disrupted. What the government needed to support its people completely changed. That’s why Medical Procurement of Ukraine turned to SAP to help. Using the SAP Business Network, we helped them to digitally connect to suppliers globally…to expedite the fulfilment of their needs.”
Nate also shared how the same platform helped a regional hospital secure 500 hospital beds in just 30 minutes, a task that typically would have taken 25 days, during the peak of the COVID-19 pandemic.
Finance and ESG Commitments in the Face of Geopolitical Uncertainty
“One of the big benefits our finance partners provide to us is their view of the macroeconomic environment, particularly the needs of investors. Currently, this entails managing geopolitical uncertainty and the need to deliver on ESG commitments.” – Tania Seary, Founder of Procurious
Indeed, the role of finance in understanding and navigating the macroeconomic environment is undeniable, but equally, this is a responsibility that falls onto procurement. Like finance, procurement must be attuned to the broader economic landscape, understanding how factors like inflation, supply chain disruptions, and geopolitical instability can impact operations. Rob explained:
“Many organisations, and their customers, care deeply about ESG. ESG often falls under the umbrella of the CFO, but executing on this topic intersects nicely with procurement.
Navigating these macroeconomic challenges is closely tied to how organisations manage their Environmental, Social, and Governance (ESG) commitments, a topic that both procurement and finance must address collaboratively. “
As highlighted in the webinar, when procurement aligns closely with finance, both departments can work together to anticipate and mitigate risks. By jointly managing these responsibilities, procurement and finance can ensure that the organisation remains resilient, agile, and well-positioned to seize opportunities even in uncertain times.
Rob provided an insightful perspective on how the public sector approaches ESG. While the public sector may not have traditional investors, they are accountable to the voting public and must navigate a complex landscape of statutory obligations, state legislation, and policy drivers:
“Whilst we don’t have external investors, we definitely have internal investors and have to regularly pitch for investment through various government channels, beyond the normal annual P&L forecasting activity. So, that in itself is an art and a science which requires a clear strategy, collaboration with internal partners and an understanding of how to navigate the investment criteria, as well as being able to demonstrate business case benefits post execution.”
As ESG becomes increasingly critical to corporate strategy, procurement’s role in driving these initiatives will serve to both enhance its standing as a strategic partner, not just within finance, but across the entire organisation.
The Focus on Building Stronger Relationships
As the webinar drew to a close, the speakers looked to the future, discussing how the relationship between procurement and finance might evolve to help address and overcome ongoing disruption and uncertainty.
“Procurement should be striving to be seen as a key partner to finance, where both functions can create mutual benefits through greater collaboration,” Rob advised. Nate echoed this sentiment, sharing a customer case study from a global insurance company in Asia where procurement’s strategic initiatives led to the CFO considering them a vital partner in all key decisions.
There’s plenty more work for procurement in this realm. After all, building these relationships requires more than just alignment on strategy. It requires regular communication, shared goals, and a mutual understanding of each function’s challenges and opportunities.
Don’t Miss Out on the Full Discussion
This article has shared just a small snippet of the enlightening conversations throughout the webinar. If you want to learn more about how to build a stronger relationship with your finance team and unlock the full potential of collaborative procurement, we invite you to watch the full recording.
You can watch Collaborative Procurement: How To Drive Better Financial Resiliency on-demand by clicking this link.
