|By Business Wire||
|August 7, 2013 05:00 AM EDT||
There are hidden benefits of contract management beyond mitigating supplier risk. Leading procurement teams are now using contract management to uncover new opportunities for cost reductions and avoidance, efficiency and effectiveness.
The second report in BravoSolution’s series on contract management outlines these often-overlooked benefits, and explains how to build them into a business case for contract management.
“Explaining how an investment would improve the organisation is the most important element of any business case,” said Peter Smith, Managing Director of Spend Matters UK/Europe and the author of this series. “Procurement usually focuses on the various risks that contract management can prevent; however, decision makers want to know what additional value the technology will create.”
The report details five opportunities that procurement gains from contract management, including:
- Improved internal and supplier compliance by ensuring that stakeholders actually use the contracted supplier, and that the supplier adheres to the negotiated terms and conditions.
- Additional cost reductions by addressing future variables including increased volumes, inflation and changes in market prices that can fluctuate during the length of a contract.
- New ways to add value by allowing suppliers to rethink how they deliver goods and services to the buying organisation. Examples include process improvements and streamlined logistics.
“Integrated, robust contract management is a hallmark of some of the most successful procurement departments because it ensures that savings are realised and creates an ongoing opportunity to assess supplier performance,” said Richard Hogg, General Manager of BravoSolution UK and Ireland.
Read the complete report that outlines additional benefits of contract management.
Supply management executives are now under more pressure than ever to deliver savings, develop and manage strategic supplier relationships, accelerate procurement cycles and maintain process excellence. Confronted with these diverse yet consistent challenges, CPOs and sourcing professionals must seek tailored solutions that deliver rapid ROI to their business.
BravoSolution offers leading software and services to fit the needs of today’s sophisticated Supply Management organisations. Our services organisation, one of the world’s largest teams of professionals dedicated exclusively to sourcing and procurement consulting, delivers lean, targeted services to support strategic sourcing and procurement initiatives. Our industry leading software toolkit supports the full supply management lifecycle across a multitude of industries, geographies and business models.
As of today, over 50,000 procurement professionals in 60 different countries are benefiting from BravoSolution’s technology and services – unlocking tangible benefits such as increased process efficiency, decision support, cost reduction, improved process governance, greater quality relationships with vendors, and the ability to share, understand and act upon the wealth of sourcing-related data held within their organisation.