During trying times, good relationships will get stronger. Global trade issues and geopolitical uncertainty offer plenty of trials right now. In response, procurement leaders are joining forces with treasury to navigate risk and deliver measurable, concrete value to the business. In our webinar with Procurement Leaders, Erik Meader, the Vice President Procurement at Pfizer, shares how to get the most from this strategic partnership.
The session, entitled “How to achieve mutually beneficial cross-business collaboration,” Meader covers keys to successful relationships for procurement:
- A seat at the leadership table
At Pfizer, Meader has worked to ensure procurement has a place at the table in the leadership team. Given the current state of elevated risk, procurement’s role ensures everyone understands the total costs — and total value — at stake with when an organization is making strategic shifts.
- Win-win is not just for supplier relationships
Organizations are beginning to focus on total cost over acquisition cost. The focal point change makes long-term, mutually beneficial relationships a goal rather than a byproduct. The other focus shift is inward. A win-win approach for supply chains works for internal collaborations, starting with an understanding of one another’s objectives and creating shared value.
- Procurement’s role in working capital
Meader explained that his team meets with treasury regularly to set cash flow strategies and forecast balances. It sounds like a finance role, but the pharma VP explains, the communication has “given us a better understanding of our cash situation, including where cash might be trapped, and our cost of capital. This helps us align our procurement strategies with treasury to deliver better products and services to our patients.”
Solutions like supply chain finance and dynamic discounting are great examples of a third-party player that procurement and treasury can use to achieve shared working capital goals. “It’s a form of cross-collaboration partnership that didn’t exist years ago,” explains Meader.
The partnership can have measurable success as well, explained Matt Kerr, Vice President Account Management, C2FO. But, how that success is measured matters. “You have to define the metrics you want to achieve through collaboration, versus just picking cost-savings or another metric one team is primarily responsible for delivering,” says Kerr. “The right metrics should align with the shared goals for the partnership.”
Learn more about Pfizer’s success in the on-demand webinar with Procurement Leaders
How to achieve mutually beneficial cross-business collaboration
Presented by: Erik Meader, Vice President Procurement, Pfizer and Matt Kerr, Vice President Account Management, C2FO
You will learn:
- Why procurement’s role is evolving through strategic partnerships
- How to apply a win-win approach to your internal relationships
- When to use data, facts, and the stakeholder’s language in internal communications
- Why procurement has a crucial role in managing working capital
- Third-party initiatives to consider for unlocking shared value with treasury and shared services
- How to choose the right set of metrics to measure outcomes for collaborative efforts