Bridging the Gap – The Expanding Commodity Based Role of the Treasurer

Monday, April 3rd
Room 201
9:45am – 10:45am
Executive

Mark O’Toole, Vice President Commodities & Treasury, OpenLink Financial

Session Description

Commodities procurement and treasury have traditionally been siloed. What challenges has this posed to the treasurer and what benefits have resulted from bridging the gap between the two? With the role of treasurer continually expanding beyond traditional cash management, how has this approach reduced costs and improved margins and what do treasurers need to overcome in this new role.

In a sense it is surprising that procurement and treasury have traditionally been siloed. After all, while procurement professionals concentrate on optimizing the physical supply chain, they also negotiate payment terms and discounts, and their purchase of goods and services represents very significant financial flows at most companies. These flows entail FX and commodity exposures and create increased risks and inefficiencies as they become more fragmented. Since procurement has a direct impact on treasury’s working capital and liquidity management objectives, what does treasury need to do to better manage this complexity?