Wissam El Cheikh Hassan chaired the first panel session of the day on how to make purchasing more efficient.
Kuuskler commented: “It’s up to purchasing managers to make themselves heard. You’re already doing the job so go for it!”
One of the liveliest sessions of the day revolved around the relationship between finance and procurement departments. The panel revealed that purchasing managers not only feel undervalued by general managers, but they also have strong views about the ways that purchasing and finance departments should work together.
In the session, moderated by Orsini SPI and Direct Hotel Supplies director Manesh Balani, the question was put forward about whether procurement and finance should be integrated, and if procurement needs to report to finance.
“Your knowledge about your area, even your CEO cannot compete with that,” said InterContinental Dubai Marina director of procurement, Pushpa Nair.
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“When it comes to your area, you are the CEO of your position. You know the products better than anyone else. So why do you have a channel for reporting, when you can report directly? Your area is as important as any other.”
One of the main gripes raised was the idea that finance often overshadows procurement, both in terms of taking credit for successes, and also when it comes to paying vendors on time.
“With the standard uniform accounting system, which everyone does, it [would be] nice for procurement to have our own slot and to show exactly what we contribute to the bottom line,” suggested Baloch.
However, a voice of dissent came from the audience, in the form of Jumeirah at Etihad Towers Abu Dhabi director of finance Stephanie Timsit, who argued that special credit shouldn’t be given to any BOH staff.
“It’s not a question of ego. In the P&L is there anything that says Stephanie has done a good job? No,” she said.
“Do I really think procurement should have a line saying they’ve made savings in a certain category? No. All of us in back office are doing a good job. Do I have to prove that reservations is doing a good job? Not really. Because people are coming there. Do I have to prove that sales can do their job? Yes.
“I’m just here to guide them, not do their job or take their thunder. If you are working as a team, finance and purchasing becomes one team.”
Another sore point was the lack of understanding by finance of what procurement is looking for, and especially the fact that cheaper is not always better.
“[Finance] are masters in their area but when it comes to procurement sometimes they just look at the price tag,” said Nair.
“For us as procurement guys, [it’s not about] price alone, it’s about the value added, the support you get. Finance refuse to look at that. They insist on [the cheapest].”
Baloch added: “If I’m talking to a vendor, I have the experience to read things finance don’t understand.
“But when I am trying to explain that in the same way to finance, they don’t want to listen to it. Sometimes you just give up.”
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