Finance and Supply Chain: can the circle be squared ?

Janus, one of the most important gods the Romans worshipped, had two faces…… one face looking to the future and another to the past. Thus, Janus ruled over the beginning and the end of things; an apt analogy for the purchasing and finance functions, which both deal with money and risk, but often look at them differently. One function is predominantly concerned with and focused upon “spending” money to buy goods or services and the other is concerned about efficient cost cutting and “saving” money. In addition, when senior management tells its purchasing organization to “get it done”, they sometimes hear “get it done as soon as possible even if it’s not perfect and we will fix it later”, whereas the finance function hears “get it done carefully and make sure it’s cost effective and risk-free”.

The dichotomy is perhaps well illustrated by the Rudyard Kipling’s Ballad of East and West:

Oh, East is East and West is West, and never the twain shall meet, Till Earth and Sky stand presently at God's great Judgment Seat; But there is neither East nor West, Border, nor Breed, nor Birth, When two strong men stand face to face, though they come from the ends of the earth!

This ballad is the source of the phrase “never the twain shall meet” which has come to mean that two sides have irreconcilable perspectives or differences. Can the circle be squared? (Meaning solve an impossible (or seemingly impossible) problem or situation.) While the historical perspectives are real, CFOs are in the best position to learn how the other side thinks and help achieve organizational objectives together.

For further discussion read: https://www.amazon.com/What-About-Supply-Chain-Transactions/dp/1722828277