{"id":130109,"date":"2024-08-28t11:00:32","date_gmt":"2024-08-28t15:00:32","guid":{"rendered":"\/\/www.g005e.com\/?p=130109"},"modified":"2024-09-24t15:19:03","modified_gmt":"2024-09-24t19:19:03","slug":"donny-shimamoto-cas-can-play-a-critical-role-in-clients-vendor-selection","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/08\/28\/donny-shimamoto-cas-can-play-a-critical-role-in-clients-vendor-selection\/","title":{"rendered":"cas can play a critical role in clients\u2019 vendor selection"},"content":{"rendered":"

\"\"the needed skills are already part of the accountant\u2019s skill set; they just need to be applied outside of the finance function.\u00a0<\/strong><\/p>\n

by donny c. shimamoto, cpa, citp, cgma<\/i>
\ncenter for accounting transformation<\/a><\/p>\n

historically, vendor selection has been primarily driven by operations or it teams. however, recent research by the chief executive group <\/span>for the cfo leadership council <\/span>shows that finance <\/span>t<\/span>eams play a critical role in vendor selection. forward-thinking cas teams should take a cue from these <\/span>f<\/span>inance <\/span>t<\/span>eams and broaden their service offerings to help clients be more successful.<\/span><\/span>\u00a0<\/span><\/p>\n

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how finance teams support vendor selection<\/span><\/b>\u00a0<\/span><\/p>\n

as shown in figure 1 below, more than 7 of 10 finance teams are involved in the final selection of vendors and products. many people often see finance\u2019s involvement as just the final stamp of approval, but the research clearly shows that finance teams are involved throughout the purchasing process.<\/span>\u00a0<\/span><\/p>\n

<\/p>\n

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figure <\/span><\/i>1<\/span><\/i> – finance involvement in major purchases<\/span><\/i>\u00a0<\/span><\/h6>\n

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sixty-one percent of finance teams help \u201cidentify\/agree upon the need or opportunities that require solutions.\u201d this indicates involvement up-front at the initial planning stage before vendors are even involved. this reflects the increasingly strategic role of the finance function. the process often requires that finance work with the subject matter expert for the project area and help them to clearly define the business need, strategic alignment, and vendor comparison criteria and rating rubric.<\/span>\u00a0<\/span><\/p>\n

once the need is established, almost half (46%) of finance teams are involved in searching for vendors, and 51% are involved in exploring available paths. it is important for finance to be involved in this part of the process to help ensure an unbiased look at vendors or products. this is especially critical when there is an existing vendor with whom it or operations already have a relationship. while there may be comfort with an existing vendor,\u00a0 it is in an organization’s best interest to ensure the options available are the best solution and not just what is easily available. through involvement with professional associations, industry associations, or trade associations, finance professionals may also be able to tap into their peers to better understand options similar organizations are utilizing.<\/span>\u00a0<\/span><\/p>\n

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want to learn how your peers are supporting vendor selection and the technologies available to transform finance? don\u2019t miss out on the latest trends, cutting-edge technology, and unparalleled networking opportunities.\u00a0 <\/span>\u00a0<\/span><\/p>\n

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two-thirds (67%) of finance teams are involved in the evaluation\/comparison of alternative vendors\/products. looking at each proposal through an unbiased lens is important in this phase, too, but probably more important is to ensure that good \u201capples-to-apples\u201d comparisons are being done for the vendors\/products being considered.\u00a0 preparing accurate total cost of ownership (tco) and return on investment (roi) documents is critical\u2014primarily to ensure both present and future costs are considered as part of the roi analysis.<\/span>\u00a0<\/span><\/p>\n

managing vendor selection risks<\/span><\/b>
\n<\/span>the research also provided insight into the top challenges finance teams encountered with vendors during the vendor selection process. (see table 2 below.) ninety-four percent of respondents expressed some challenges with a vendor during the buying process. instead of viewing these as deficiencies of the vendors, consider what you can do to mitigate these risks. <\/span>\u00a0<\/span><\/p>\n

\"\"<\/span><\/p>\n

figure <\/span><\/i>2<\/span><\/i> – challenges experienced with vendors during the buying process<\/span><\/i>\u00a0<\/span><\/h6>\n

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i\u2019ll share some of our team\u2019s strategies for helping our clients mitigate these risks.<\/span>\u00a0<\/span><\/p>\n