London, 5 April, 2011 – A new report from Aite Group analyzes the relationship between and increasing convergence of corporate procurement and finance functions at corporations globally. Based on an Aite Group survey of 27 European corporate executives conducted in October 2010, the report provides insight into how companies establish effective relationships with their providers.
As a direct result of the financial crisis and the pressures it placed on corporations’ bottom lines, the successful management of corporate procurement as a profit driver is more important than ever before. The most effective way for procurement and treasury departments to positively collaborate is to increase the accounts payable component of corporate working capital. To accomplish this objective, corporate procurement departments must first establish strong relationships with their suppliers. Technology, too, can play a pivotal role in supporting the daily procurement processes of a company, especially in linking performance with balance-sheet items.
“We have seen a trend toward self-run supply chain finance solutions within cash-rich companies,” says Enrico Camerinelli, senior analyst with Aite Group and author of this report. “As lenders provide less credit, treasurers of large corporations view cash less in terms of where to find available sources and more in terms of utilizing the cash available. Technology platforms that directly link cash-rich buyers with their key suppliers have become key solutions for corporations.”
The report provides a brief overview of solutions offered by Ariba, Basware, Bottomline Technologies, Corporate Linx, Lighthouse BCS, Oxygen Finance, and Taulia. A follow-up report will delve deeper into these solutions’ functionalities.
This 32-page Impact Report contains 13 figures. Clients of Aite Group's Wholesale Banking service can download the report.