TECHNOLOGY
( such as the red tape from Brexit ), means procurement departments have never faced a more challenging and competitive fight ,” explains Patteson .
In order to succeed in this challenging environment , “ businesses and procurement teams need to make instant decisions and utilise those decisions at all times . This means building a closer connection than ever between procurement , business stakeholders , sales and legal , and fully understanding existing commitments and obligations within contracts and the impact of new contractual conditions ,” he adds , identifying three key areas where the value is enormous :
• Speed : “ While supply is short , the value to act when opportunities arise could be the difference between maintaining production and plant closure . Organisations with CLM can achieve up to 80 % reduction in an average cycle time from bid to signed agreement .”
• Efficiency : “ Ensure your procurement team is focused on negotiating the best terms rather than working on admin heavy tasks . With advanced CLM , procurement departments are supported in negotiation with valuable insights and less time wasted searching for past agreements .”
• Align business objectives : “ Linking performance measurement systems with contract management ensures that performance can continuously be monitored against promises agreed upon in the contract which saves time . Integrating contractual conditions in P2P / finance systems can prevent an unchecked issuance of work authorisation or supply orders outside contract terms .”
Adding to Patteson ’ s comments , Saric says : “ businesses that have full visibility across their supply chain are in a better position to identify and mitigate risk that could impact availability of supply or their brand reputation . They better understand potential risks in case of events such as COVID-19 , allowing them to enact effective contingency plans .
“ Smart procurement platforms allow organisations to tap into innovation from the supply chain when developing new products and services , while also providing full visibility into risk factors . This transparency enables them to make better decisions when choosing suppliers – therefore building a more resilient , sustainable , and dependable supply chain .”
76 November 2021