The most common pain points in supply chains are found when manual processes are in place. Quite frequently, unexpected outcomes can be explained by this fundamental point. It can explain why purchased items fail to meet actual needs, how off-contract buying becomes an expensive problem, and why unwanted contracts renew automatically when they should have been cancelled or renegotiated.
In practice, when these tasks are manual and ad-hoc, the results can cost a business money and resources. However, these are often deep-rooted issues lurking within finance or procurement teams, which can be very hard to spot.
Beyond the financial savings and the management of supply chains specifically, there are also reputational and strategic benefits to radical transparency in the finance function. There is a growing expectation from consumers and shareholders to deliver profits with purpose. So being able to openly demonstrate how active financial management supports your business strategy is likely to reap rewards. Explaining why and how your profit distribution works, or what your investment strategy is, or how you are tackling your gender pay gap, are just three examples of how to bring important stakeholders with you.
Radical transparency bears the hallmarks of modern, open business. But it is much more than that: when applied within the finance function, it can open up resources, save money and modernise a business for the better. The time for CFOs to adopt its principles is now.
This article was first seen on Global Banking and Finance Review