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Managing your contracts and improving compliance is essential to ensure that savings are realized. It also drives supplier collaboration and helps avert conflicts during the contract period.
Many procurement functions spend a lot of time and resources in planning and executing measures - both critical activities in the procurement process. However, we often find that organizations don't invest sufficient resources in contract follow-up after it's been signed, leaving money on the table.
Why Is Contract Follow-up So Important?
Ensuring the appropriate follow-up of your contracts is important for several reasons, where we'd like to highlight the following examples;
- Evaluating suppliers and their performance to ensure that products and services are delivered in accordance with the contract
- Contributing to sustainable and long-term supplier collaboration
- Minimizing the risk of misunderstandings and conflicts
- Sharing contract information and details in the organization and to relevant users
- Maximizing contract loyalty, minimizing maverick spend and ensuring contract compliance throughout the company
Unlock the Full Value From Every Contract With Our Spend Management Solution
A purchase is often linked to an underlying contract. To unlock more value from every contract, you need to link your actual spend to your contracts. This linkage enables you to see the big picture and gives you actionable insights on contract coverage in your organization.
Our spend management solution facilitates a systematic approach to contract follow-up through a built-in contract management module. This enables you to easily;
- Import existing contract data or simply add new ones directly
- Record and manage all your relevant contract information – fully searchable and filterable
- Get smart notifications for important activities like contract expirations and renewals
- Link spend directly to your contracts data and get detailed insights on contract coverage
- Track and analyze contract loyalty across business units, departments or categories
- Identify, manage and mitigate risk for your suppliers
- Evaluate suppliers and their performance
- Analyze spend through contracts and compare it against the contract value, e.g. framework agreements
The list above isn't exhaustive, but gives you an idea of how the solution can help you take contract management to the next level.