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Where is your procurement function housed?

Is your sourcing organization part of the Finance department or is it housed in Operations?

Answers

Topic Expert
Scott MacDonald
Title: President/Owner
Company: AlphaMac Resources, Inc.
(President/Owner, AlphaMac Resources, Inc.) |

Current ours is housed in Operations. However, the Accounting Department and the Operations Dept need to have a very close working relationship and the Accounting Dept. needs to set spending limits for each purchaser.

In a public company, the operations dept needs to understand that portions of their operations will probably be subject to SOX.

Topic Expert
Linda Wright
Title: Consultant
Company: Wright Consulting
(Consultant, Wright Consulting) |

Expenditure authorities were also administered by my group, both for invoiced and Pcard purchases. All of these efforts resulted in reduced spend. Absolutely spot on regarding SOX, although I would submit that the same efforts produce great results in private companies too.

Alan Goldberg
Title: Principal
Company: Triplet Advisory Services
(Principal, Triplet Advisory Services) |

Depends on the needs of the business.....e.g. for mfg, it's common to have it under Operations......for service companies, it may make more sense to exist within the Finance organization for management and reporting purposes.

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