Outdated processes and disconnected technology have long presented obstacles to supply chain forecasting and sourcing. But sourcing and financial planning and analysis teams are increasingly embracing cloud-based tools that bring them real-time data analysis to support better business decisions and greater growth.
This disconnect among teams makes it difficult to forecast spending. Supply chain disruptions only add to the budget pressures of organizations already struggling from the effects of the pandemic, geopolitical volatility, and rising inflation. Sixty-four percent of the 536 financial planning and procurement executives surveyed in the HBR report said their organization’s procurement costs for goods and services were over budget in their latest fiscal year.
Increasing collaboration between sourcing and FP&A teams also allows for proactive budget planning that reflects their shared information. Connected and collaborative sourcing can result in better decision-making by eliminating communication silos, providing real-time access to data, and strengthening cross-functional relationships.
By migrating to a more robust strategic sourcing platform, Sharp dramatically improved its supply chain team’s ability to collaborate and share information. The updated software and processes saved the company $4.2 million after just six months in service.