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Survey Says: Only One in Five CFOs See Procurement Contributing to Competitiveness
CPOs and CFOs are on the same page, but speak a different language, Aberdeen Group reports; call for open communication, visibility and goal alignment
Princeton, NJ — December 21, 2007 — Fewer than 20 percent of chief financial officers consider the work of chief procurement officers and their staff as having a very positive impact on competitiveness, according to a new benchmark report by technology consultancy Aberdeen Group.
The report, underwritten in part by spend analysis specialist Zycus, also revealed that of the 11.9 percent of average annual identified savings, only 3.2 percent actually gets booked, indicating a fall of 73 percent from identification to realization of potential savings.
The communication gap between the procurement and finance departments has emerged as a significant challenge in procurement's ability to deliver savings to the enterprise, according to the report, which was based on a survey of more than 500 finance professionals.
Zycus believes that the findings in the survey underline its own contention that the finance department and top management should be stakeholders in every spend management initiative. The spend management approach also should be aligned with overall company objectives in order to establish executive support.
"Finance and procurement are natural allies in the battle for bottom-line growth," noted Andrew Bartolini, vice president of global supply management research at Aberdeen. "Neither department can stake [a] claim to operational excellence without a relationship that promotes open communication, visibility and precise alignment on goals and objectives."
The report, underwritten in part by spend analysis specialist Zycus, also revealed that of the 11.9 percent of average annual identified savings, only 3.2 percent actually gets booked, indicating a fall of 73 percent from identification to realization of potential savings.
The communication gap between the procurement and finance departments has emerged as a significant challenge in procurement's ability to deliver savings to the enterprise, according to the report, which was based on a survey of more than 500 finance professionals.
Zycus believes that the findings in the survey underline its own contention that the finance department and top management should be stakeholders in every spend management initiative. The spend management approach also should be aligned with overall company objectives in order to establish executive support.
"Finance and procurement are natural allies in the battle for bottom-line growth," noted Andrew Bartolini, vice president of global supply management research at Aberdeen. "Neither department can stake [a] claim to operational excellence without a relationship that promotes open communication, visibility and precise alignment on goals and objectives."
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