Third-party relationship success depends on two core components: the foundation developed between parties pre-signature; and the execution of the contract management design post-signature. By taking a practical approach to contract management, organizations are better equipped to receive goods and services within their time and cost expectations.
Effective contract management relationships rely on both parties keeping the contract “alive” and “evolving” to enable new capabilities that deliver integral organizational value. However, this is easier said than done — the persistent challenge is that many contracts are unfit and remain dormant, leading to a lack of relevance and diminishing value year after year. Often, they improperly measure the wrong criteria and fail to evolve as the relationship, services, and capabilities progress. So, what can be done to tackle this?
Read our latest article to see how organizations can reduce value leakage in the early stages of the contract lifecycle and develop contracts that accelerate the procurement process.
Buying Channel Strategy: The secret to ending procurement value leakage
Know your buying channels – how they are defined, prioritized, what they impact and how to make efficient.