Purchasing management and the area of AP in companies have developed separately, even using different indicators which are at times in conflict. In general it seems that each one is related with a different part of the business. It is something which is so accepted in business, that it forms part of the culture of the different professionals involved under the maxim "that is how thing are done in the company."
Purchase Management and Accounts Payable
Ellen Leith of AP News comments that over the past year, industry conferences and discussions have been addressing the issue of collaboration betweenpurchasing and Accounts Payable managementwithin the efficiency framework currently required by AP processes. And this is just the reflection of a trend that is consolidating in the most innovative segment of the business world.
The economic crisis, along with the advances in management technology , have given a push to the growing concept of collaboration, and while in manual and traditional processes these two areas are completely isolated, automation and big data provide a better visibility and a common space in which the intersection of strategic decisions can have a major impact on the core business of the company.
Purchasing management and technology
For this reason, a policy of progress and efficiency in the company cannot be conceived today if the Purchasing and Accounts Payable departments continue to have an independent conception of each other. It is not a simple transition, to go from isolated and well compartmentalized contexts to an interconnected environment, but once the cultural barrier is overcome, in the end it is only a question of technological implementation. And technology has been providing better tools at a lower cost to the sector.
An AP expert recently gave a very representative example of the situation in companies that keep these two areas isolated. He talked about how these two departments are linked, whether they want to be or not, by a link that serves as a typical horse's costume in which one person leads the front while the other moves the rear. The person in the rear is led by the other party, but cannot see where, nor can he contribute anything about it, while the front party can see and decide where to go, but cannot see what is happening to the rear party, nor can he prevent the rear party from stumbling and both of them from ending up on the ground.
Coordination between the purchasing and accounts payable management departments will be the key to a financial strategy that provides a more complete view and benefits the company in terms of savings and results.
