Procurement, Savings and Finance – Managing the Relationships

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Procurement, Savings and Finance – Managing the Relationships

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A summary of responses received for this Peer2Peer inquiry is available below.

Original Inquiry

We are curious to know if there are any companies who have incorporated “strong-form budgeting” where budgets are adjusted to incorporate changes in the savings process.

1. Is there a strong relationship between your Procurement department and Finance department?

2. Is your Procurement department involved in the Budget/Forecast/Outlook process?

3. Does a Procurement representative attend Budget/Forecast/Outlook meetings?

4. Are bottom line savings (year over year savings) removed from business area Budget/Forecast/Outlook? If so, when? (Current year, next year?)

5. Does your company’s budget/Forecast/Outlook contain undefined “stretch savings targets” e.g. savings incorporated beyond current pricing realities, does the business engage the procurement function to meet the financial targets?

6. Does your company’s budget contain a sufficient level of granularity, to enable the procurement group to work with the business to address non-volume/mix cost driver issues?

 

 

 

Summary of Responses

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