Evisort Whitepaper: Changing Approaches To Contract Management For Procurement
A good procurement team streamlines the processes of vendor management and contract negotiation while ensuring that the business spends no more than it should on products and services. Conversely, a poor procurement process can lead to a shortage of necessary supplies, expenditures for supplies exceeding the market value of those goods, or even the renewal of unwanted contracts. Getting the formula right requires balancing rapidly evolving technology with an ever shifting global marketplace.
Contract management is a key part of this puzzle. Given the scale at which global businesses operate, manually drafting and managing an entire portfolio of supplier agreements can be a Sisyphean task. On top of the general terms of each contract, the procurement team needs to track renewal and expiration dates, rebates, and early payment discounts. Furthermore, given the time required to manage a portfolio manually, many teams simply do not have time to prepare for renegotiations. Manual processes and outdated tools can cause a company to leave millions of dollars on the table.
As a result, a state-of-the-art contract management and workflow platform is an essential asset for every procurement team. Here are some of the key pain points that procurement teams face today, and an overview of the solution.