The Sourcing-Finance Collaboration

Why Is Collaboration Between Sourcing and Finance Essential?

Finance and strategic sourcing leaders, as guardians of a company’s resources, collaborate closely to achieve key savings goals, allocate resources effectively, and meet growth expectations. Despite their critical role, strategic sourcing leaders are often sidelined in decision-making processes. However, as companies expand and face new challenges, overlooking the sourcing and procurement team becomes untenable.

Together with finance, strategic sourcing and procurement provide crucial insights into the company’s total expenditure. They not only identify potential savings by adjusting supplier partnerships but also pinpoint irregular or unexpected spending. This partnership grants them a holistic view of operational processes, paving the way for strategic planning aimed at future growth and efficiency.

When strategic sourcing and finance unite their efforts, they adeptly navigate change and ensure business continuity. Leveraging their combined insights into upcoming projects and existing commitments, they manage budgets effectively and bolster overall financial performance. This collaborative synergy not only enhances visibility within the C-suite but also empowers them to make impactful contributions to executive decision-making.