What procurement can do when finance offers the "Gen Z stare" to clearly communicate goals, priorities, and achievements to stay aligned.
TikTok, at present, is overrun with videos about the “Gen Z stare” - a blank, expressionless gaze instead of a verbal response.
If you work in procurement, it’s possible that you’ve received this stare from a member of the finance team (Gen Z or not!) when you were trying to communicate your priorities and achievements. The problem is that you’re speaking a different language. Either finance doesn’t understand your inward-facing “procurement lingo,” or your goals and targets are sadly misaligned.
Here’s the good news: group purchasing organizations (GPOs) can help by providing a bridge, translating complex procurement strategies into a savings language that finance can recognize and appreciate.
Why Procurement and Finance Need to be in Lock Step
Procurement and finance need to team up for a company to thrive. When these two departments sync up, magic happens. They can unlock major cost savings, streamline operations, and boost the overall financial health of the company.
Procurement folks have their fingers on the pulse of market trends and supplier relationships, while finance is all about keeping the budget in check. When they align their goals, the business becomes more adaptable and ready to tackle whatever comes its way.
Plus, when procurement and finance are on the same wavelength, projects are more likely to get the green light and the funding they need. This teamwork cuts down on misunderstandings and opens the door to fresh ideas and innovation. There’s plenty of common ground between the two functions, yet communication gaps are common, leading to missed opportunities.
The Communication Gap
CFOs and their teams are focused on the numbers: the financial metrics, risk management, and the big-picture strategy for the company. They’re tuned into what affects the bottom line. On the flip side, procurement pros are deep in the weeds, dealing with supply chains, vendor relationships, and all the details of purchasing.
When procurement teams share their plans, they often dive into industry jargon that can leave finance teams scratching their heads. This can create confusion and misalignment, making it tough for both sides to see eye to eye.
Common Misunderstandings
- Terminology overload: Terms like "contract leverage," "total cost of ownership," and "just-in-time inventory" may be important to procurement, but probably don’t resonate with finance. How exactly do they impact the organization’s financial goals?
- Focus on savings vs. value: While procurement aims to reduce costs, CFOs are more concerned with overall value and return on investment (ROI). If procurement teams can't articulate how their strategies align with broader financial goals, CFOs may become skeptical.
- Long-term vs. short-term thinking: Strategic procurement initiatives often require a long-term commitment, while finance may focus on immediate financial outcomes. This difference in perspective can lead to friction in decision-making.
Avoid the "Gen Z Stare" by Speaking the Same Language
To close the gap between procurement and finance, both teams need to find some common ground. Understanding each other’s priorities is key. Procurement folks should try to talk in terms that make sense to CFOs, highlighting the financial impact of their initiatives. Instead of just focusing on cost savings, they can show how their efforts boost ROI, improve cash flow, or reduce risks.
Regular catch-ups between the two departments can really help, too. By sharing insights and aligning on goals, both teams can collaborate more smoothly and drive success together. Clear communication is essential for making it work.
How Your GPO Can Help
Group purchasing organizations simplify the procurement process, making it easier for teams to communicate their needs and goals effectively. GPOs like Una save time, money, and effort by leveraging collective buying power, allowing businesses to achieve an average of 18-22% savings each year on various goods and services. These significant savings are music to the finance team’s ears, going straight to the bottom line.
GPO members can present clear, quantifiable benefits to CFOs, making it easier to justify budgets and initiatives. GPOs provide the tools, resources, and data needed to create compelling business cases that resonate with finance, ensuring that both departments can work together toward shared objectives.
Working with a GPO can help bridge the communication gap, reducing that blank "Gen Z stare" from finance and fostering collaboration that drives value for the organization.
Ready to align procurement and finance? Contact our team of sourcing advisors to get started today.
