1

‘Can’t We All Just Get Along’

Building Bridges Between Procurement and AP

Spring 2017 2015

Current State

What A Dysfunctional AP and

Procurement Relationship Sounds Like:

Procurement: “AP gives us busy work.”

AP: “We don’t talk with them.”

AP: “We don’t play well together.”

AP: “Procurement doesn’t respond to our requests.”

Are You Managing the Process, Or is it Managing You?

Process

Requisition

& PO

Schedule

Supplier

Manage

Item

Master/Cont

ent

Mange

Sourcing/Ca

talog

Manage

Contract

Master

Manage

Supplier

Master

Verify and

Approve Match

Invoice Resolve

Discrepancy Pay

Supplier

Address

Customer

Inquiry

File, Store

and

Retrieve

Reconcile and

Close

Procurement

AP Typical P2P steps based on research by IOFM and Hackett Group

Manage

Contract

Conduct

Audit

Receive

Invoice

Manage

Complianc

e

Current State

Silo Management of P2P isn’t Sustainable AP and Procurement will always have inter-

dependencies

Compartmentalizing the two phases of P2P prevents

you from: • Knowing the full cost and full value of the process

• Knowing who is responsible for prioritizing and implementing changes to the

process

Why Is There Friction Between Procurement and AP?

Different leadership

leads to conflicting

priorities

Higher procurement

salaries can lead to

resentment

Success is defined

using conflicting

measures

Procurement is often

held in higher

esteem than AP

What Can You Do About It?

Your company isn't going to change the org chart,

but…

You can play a role in breaking down silo thinking.

How? • Make friends in Procurement and throughout AP

• Meet informally to discuss pain points

• Suggest job rotations or job shadowing

What Can You Do About It?

Your company isn't going to change salary

bands, but…

You can improve your resume and move up

the ladder.

How?

• Raise your profile inside your organization

• Consider adding certification/credentials

• Make your boss’ boss look good

What Can You Do About It?

Your company isn't going to change KPIs,

but…

You can help agree on KPIs that bring the

silos together.

How?

• Identify AP and Procurement measures (Venn

diagram)

• Identify the metrics that are oppositional

• Help leadership understand how conflicting

measures can sub-optimize results for the end-to-

end process

What Can You Do About It?

AP isn't going to change its culture, but…

You can help elevate the role of AP and build

bridges of cooperation by building

relationships .

How?

• ‘Rebrand’ AP

• Gain exposure for AP expertise (risk mitigation,

forecasting)

• Focus external attention to the ‘value’ AP provides

Future State Options

Option 1: Accept Limitations

Choose the ‘good enough’ practice that is right for your company.

Option 2: Work Around Known Cultural Hurdles

The more broken the relationship, the more rogue processes have been

formed to get work done. Identify those creative-workers and formalize the

best of their processes — elevate them as P2P process leaders. Turn

mavericks into innovators.

Option 3: Change the Culture

Build a grass-roots change management plan to work together. Sell your

respective leaders on why metrics, priorities, and goals need to be better

aligned.

What’s at Stake?

Status Quo:

• Broken handoff between procurement and AP

• Inefficient P2P process

• Inability to see the full picture

• Limit on progress

Improved Future State:

• Improved integration between functions

• Boost in efficiency with limited investment

• Limitless possibilities: automation, migration to a shared

service model, focus on value added contributions of AP

Wrap-Up & Next Steps

1. Continue the learning = continue the conversation

2. Take advantage of everything IOFM has to offer

• Membership: Ask the Experts and self-service resource library

• Certification: Build upon your expertise

• Events: Networking at conferences and local chapter events

3. Reach out to IOFM when you have questions

4. Keep me updated on your progress

Jess Scheer

Continuing Education Manager

JScheer@Divcom.com