Procurement Processes and Finance
The basics for any improvement in procurement finance are essentially two aspects: a clear definition of its processes and the analysis of the relationships between finance and procurement. This chapter examines these two aspects. It underlines the move from the traditional supply chain with its linear nature and its limitation to inside the boundary of the organizations to the value network. This expression underlines two important aspects. The first one is the extension of the traditional supply chain outside of the organization, including the vendors, the partners, the distributors, and even the customer. The second aspect is the fact that the procurement “chain” is becoming more and more a network, in order to satisfy the request of flexibility and collaboration and to add value to the end customers. The chapter presents a model of the relationships between finance and procurement to reach the objectives of the organization.