Original Source: Industry Week

“Companies lose nearly 3-5% of savings opportunities because of auto-renewing evergreen contracts.

Operational efficiency is imperative during a recession. Without question, it’s become critical for organizations of all sizes in the past twelve months to eliminate unnecessary costs and increase financial transparency. And over the coming year, procurement leaders will need to balance the need to further streamline their operations. For many companies, contract management will prove the key that brings together operational efficiency and savings compliance.

Organizations need to consolidate contracts across their enterprise. One of the primary goals of procurement professionals must be to close process gaps, ensuring visibility to all contractual and non-contractual spend. Best-in-class organizations achieve up to 80% more savings than others through a clearly defined contract compliance process. (Source: Aberdeen Research)

The core of an effective contract management program is a central repository for holding contracts. Yet only 48% of organizations have a central repository to manage their contracts, according to a recent Aberdeen Group report…” 

https://www.industryweek.com/companies-amp-executives/5-best-practices-toward-contract-compliance

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Compliance, Contract Development, Sourcing, Sourcing Management