Unlocking value: The power of Finance and Procurement alignment

For years, the relationship between Finance and Procurement has been more of a cautious collaboration than a strategic alliance. With both functions ultimately aiming to optimise costs and drive value, today’s economic pressures, rising costs and increasing demand for efficiency, mean the case for uniting Finance and Procurement around spend management has shifted from a strategic opportunity to an operational necessity.

In the current climate – with inflationary pressures, global supply chain volatility and the need to do more with less – organisations can no longer afford fragmented approaches to spend. Alignment between Finance and Procurement is now essential to save time, money and resources, while driving transparency, compliance and agility.

It’s no longer about “nice to have” alignment, it’s about resilience and growth.

A strategic partnership

In theory, Finance and Procurement should be natural allies. In practice, their interactions too often result in friction rather than synergy. Finance, focused on short-term cost containment, profitability and risk mitigation, may overlook Procurement’s strategic capabilities. Procurement, on the other hand, often prioritises long-term supplier relationships and process optimisation, tracking cost savings, but not always clearly connecting them to overall financial performance.

This disconnect can lead to missed opportunities, siloed decision-making and unrealised value. But when Finance and Procurement align their goals, linking Procurement’s tracked savings directly to Finance’s profitability measures, they unlock greater transparency, stronger collaboration and measurable impact on the bottom line.
 

Rethinking spend control

CFOs often gravitate toward cost-reduction initiatives. But the real, sustainable savings lie in addressing everyday operational spend through policy-driven automation, supplier performance management and cross-functional accountability.
 
Heads of Procurement must evolve to strategic partners, championing their impact on organisational profitability. This means integrating closely with budget holders, using data-driven insights and aligning procurement KPIs directly with financial goals. Metrics such as negotiated savings, supplier compliance and invoice cycle times should be tied to organisation-wide objectives, making procurement’s value both visible and measurable. Establishing shared KPIs between Procurement and Finance helps both teams track progress and measure success in a unified, collaborative way, breaking down silos and reinforcing a joint focus on value creation.

The business case for integration

The inefficiencies of fragmented supplier management are well known: duplicate supplier records, manual onboarding and uncontrolled spend. A single supplier portal alone can reduce the administrative burden, freeing resources and accelerating approvals.

Automation also brings visibility. Systems can expose maverick spend, contract leakage and unnecessary renewals before impact. Finance teams need real-time visibility into procurement spending to track budgets, identify potential issues and ensure compliance. By aligning procurement data with financial systems, organisations can generate more accurate financial reports and forecasts, thus strengthening decision-making at every level.

Read how Lancaster University is able to source items from the cheapest qualified suppliers, saving money and reducing maverick buying of un-needed or unauthorised goods and services.

The result? End-to-end spend control that eliminates paper-based processes, streamlines approvals and reduces total cost of ownership, while saving time and enabling leaner operations across the board.
 

Technology as the strategic enabler

Technology is no longer just a support function, it’s the critical enabler of true Finance and Procurement alignment. Yet many CFOs continue to rely on legacy ERP systems, assuming they’re “good enough.” The reality? Most of these platforms lack the agility, depth and integration needed to manage today’s complex, end-to-end spend processes.

While organisations may have a mix of tools for handling discrete parts of the supply chain or payments lifecycle, few have implemented a truly unified spend control solution. The result is often a fragmented technology landscape, with disconnected systems and processes that hinder effective collaboration between Finance and Procurement.

A modern, best-in-class solution, fully integrated with ERP and core financial systems, changes that. It delivers intelligent spend control across the entire Source-to-Pay cycle, giving both functions the visibility, automation and insight they need to act decisively.

Read how CBRE Ltd. increases value across the Source-to-Pay process with Proactis.

For Finance, it means faster, measurable ROI and tighter cost control. For Procurement, it unlocks long-term strategic value through improved supplier performance, risk mitigation and policy compliance. Together, it becomes the foundation for seamless collaboration and organisation-wide impact.

A united front

When Finance and Procurement work in true partnership – underpinned by shared goals, aligned KPIs and the right tools – they unlock an entirely new level of performance.

Together, they can:

• Cut costs while increasing operational agility.
• Replace fragmented, time-consuming processes with automation.
• Align spend with business strategy and compliance standards.
• Enable real-time decision-making and risk management.
• Free up teams to focus on value-adding activities.

And today, sustainable and purpose-driven procurement is also a board-level focus. With the right frameworks, ROI-tracking and technology in place, Finance and Procurement alignment can actively support ESG goals and broader corporate objectives, not just cost savings.

Alignment isn't just the right thing to do, it's the smart, necessary thing to do. Those who act now will be better positioned to drive competitive advantage resilience and long-term value.
 
It’s time to stop working in silos. Finance and Procurement have a shared future, which starts with aligning around smarter, more strategic spend control.