Most companies still manage cash flow as a finance-only function — balancing payables, forecasting liquidity and managing capital costs. But what’s often missing is a full view of what’s driving those cash flows earlier in the process: purchase requests, supplier terms, invoice exceptions and early-payment strategies. That’s where procurement comes in — or rather, should come in.

Yet procurement is frequently left out of financial decision making, despite having direct influence over working capital performance. The disconnect isn’t about intention — it’s built into the structure. It comes from fragmented metrics, disconnected systems and outdated processes that were developed in parallel, not together. Procurement manages the commitments that lead to spend; finance manages when and how that spend is paid. The opportunity lies in closing that operational gap.

At Spend Matters, we’ve seen how procurement technologies — especially AP automation and procure-to-pay (P2P) solutions — can help bridge this divide. But that only works when technology is deployed with alignment in mind. Real value comes when both teams use the same data, share priorities and collaborate on decisions that impact liquidity, cost and risk.

In our new paper, Strengthening Cash Flow Management and Liquidity: A Finance–Procurement Alignment Approach, we introduce a five-phase framework to help organizations align these two functions. The goal? Build a shared operating model supported by the right technology — one that supports accurate cash forecasting, smarter liquidity planning, better risk control and shared performance metrics that both finance and procurement can use, like payment timing, supplier reliability and working capital improvements.

This isn’t just a theory. The paper includes practical ways to:

Identify hidden misalignments that quietly impact cash flow.

Use procurement tech like AP automation and P2P platforms to generate insights, not just efficiencies.

Apply AI for better payment timing and fraud prevention, without hurting supplier relationships.

Track shared KPIs, from DPO and early-payment discounts to gains in the cash conversion cycle (CCC).

Executives today are under pressure to cut costs while improving financial stability. Procurement can — and should — play a direct role in that conversation. But only if it works in sync with finance. Aligning strategy, technology and performance tracking between CFOs and CPOs is the key.

It’s time to evolve procurement from a transactional function into a strategic driver of financial results — and it starts with shared priorities, shared systems and shared accountability.

Download the full PDF here: Strengthening Cash Flow Management and Liquidity

For wider Aligining Finance and Procurement research, visit our in-depth guide to Aligning Finance and Procurement.