What is speed costing you, Procurement? Risk management. Which means money. But it doesn’t have to be that way. Move fast without creating risk. Here’s how.
The map has folded. The world is becoming exponentially smaller as technology increases, taking with it the pace of business. Modern Procurement teams are expected to be able to adapt and change course quickly. But how does Procurement move fast without creating risk? Simple. Contracts.
Procurement has been “managing” risk for a long time. Organizations have developed a slew of departments and programs—performance management programs, risk management programs, compliance programs, corporate social responsibility programs, and so on. Unfortunately, these efforts are often siloed and ineffective, resulting in counterproductive objectives and sub-optimal outcomes, including:
- High costs
- Lack of visibility into risks
- Inability to address third party risks
- Inability or difficulty measuring risk-adjusted performance
- Negative surprises
No one likes surprises—you don’t, your suppliers don’t, your bosses don’t.
The top three ways Procurement can manage increasing demands are 1) increasing the use of technology; 2) re-engineering work processes; and 3) commoditization or automation of routine tasks. All of these involve enhancements to process and technology. And while procurement technologies such as eProcurement have been taking the stage over the past couple years, they’re missing a big piece of the pie—contract management. You see, the best way to manage and mitigate risk isn’t to do it after the fact. It’s to do it preventatively. And the best way to do that is through contracts and contract processes.
Contracts already hold all your data—the entire history, and future, of an organization can be read in its contracts. Future deals, supplier contracts, ongoing purchase orders, SLAs, NDAs, they’re all right there. Every penny, every relationship is managed in those documents.
The key words here become comprehensive and integration. Integrating contract processes into Procurement processes through the use of modern tools such as templates, approval workflows, online negotiation/redlining, and deadline alerts do something more than help you manage risk. They automate it.
Packed with information, The Essential Guide to Using Contracts to Manage Risk and Maintain Compliance for Procurement provides a complete view of how Procurement can use contract management to deliver greater value to the overall organization—flawless compliance and automated risk management that makes sure nothing is left to chance.
Find out what leading Procurement teams already know. Download your free copy now.