29/12/2025
The Misunderstanding of the Procurement Role vs. the Finance Role
One of the most persistent challenges facing the procurement profession particularly in developing procurement systems is the widespread misunderstanding of procurement as merely an extension of the finance function. While procurement and finance are closely linked and must work collaboratively, they are distinct disciplines with different mandates, competencies and value propositions.
Procurement is not about paying bills. Procurement is about strategic sourcing, value for money, risk management, ethics, compliance and sustainable development across the entire supply chain.
Understanding the Difference
• Finance is primarily concerned with budgeting, financial control, accounting and payments.
• Procurement focuses on needs assessment, market analysis, supplier selection, contract management, negotiation, compliance with procurement laws, and achieving value for money before any payment is ever made.
When procurement is wrongly placed under finance without professional independence, organizations risk reduced competition, weak compliance, poor supplier performance and ultimately loss of public trust.
Practical Scenarios from Procurement Practitioners Sierra Leone (PPSL)
At Procurement Practitioners Sierra Leone (PPSL), we have encountered this misconception repeatedly in both public and private sector engagements.
Scenario 1: Procurement Reduced to “Processing Payments”
In one public institution, procurement officers were instructed to “just raise LPOs” after finance had already selected suppliers. This practice completely bypassed competitive bidding and market analysis. Through PPSL-led capacity-building sessions, we clarified that procurement must lead supplier selection based on transparency, fairness, and value for money. As a result, the institution restructured its procurement process, restored bid evaluation committees and achieved measurable cost savings within one fiscal year.
Scenario 2: Emergency Procurement Misunderstood as Financial Urgency
During a humanitarian response, finance teams pushed for direct payments to preferred suppliers under the guise of urgency. PPSL intervened by guiding the procurement unit on emergency procurement procedures that are lawful, documented and auditable not shortcuts. This ensured timely delivery of goods while maintaining accountability and donor confidence.
Scenario 3: Contract Management Ignored After Payment
Another common misconception we addressed was the belief that procurement ends once payment is made. Through PPSL mentoring, procurement officers were trained on post-award contract management monitoring supplier performance, enforcing contract terms, and managing variations. This shift reduced disputes and improved service delivery outcomes.
The Impact on the Profession
Through advocacy, training, mentorship, and professional dialogue, Procurement Practitioners Sierra Leone has helped reposition procurement as a strategic function, not a clerical or finance-driven activity. We continue to:
• Strengthen professional identity and ethics
• Promote compliance with procurement laws and international best practices
• Build confidence among procurement professionals to assert their mandate
• Educate stakeholders, especially finance colleagues on collaboration without role confusion
Conclusion
Procurement and finance must work together, but they must not be confused. When procurement is properly understood and empowered, organizations achieve better value, reduced risk, stronger governance and sustainable development outcomes.
As procurement professionals, it is our responsibility to continually educate, advocate and demonstrate value and that is the mission we proudly pursue at Procurement Practitioners Sierra Leone.
Procurement is strategic. Procurement is professional. Procurement is indispensable.
