Interactions between treasury and procurement spiked during the Covid-19 pandemic, as both departments dealt with the emergency that global lockdowns triggered for corporate supply chains. As we move into the next stage of managing the crisis, strengthening engagement between the two departments offers efficiency opportunities for team members and the wider organisation.
While they tend to operate as two separate functions, there are areas of shared interest in the treasury and procurement Venn diagram. Much of this ‘connective tissue’ comes from the different external relationships that each department specialises in – for treasurers, this is their core banking relationships. At the same time, procurement focuses on supplier relationships.
Head of Commercial Cards, Global Transaction Services, EMEA, Bank of America
David Voss, Head of Commercial Cards, Global Transaction Services, EMEA, Bank of America (BofA), comments: “There are themes that these two functions have in common, even though, on the face of it, they may look quite different. Both parts of the organisation are focused on creating efficiencies and value, and both need to raise the visibility of their activities at the board level. Where appropriate, it makes sense for them to partner because what one area does can heavily influence the other in terms of cash flow optimisation, payment terms and reducing risk. There’s definitely more that unites treasury and procurement than meets the eye.”