According to Forbes, top global companies are relying on their procurement leaders more and more to seek out innovative ways of doing business with suppliers. It’s no longer simply about cutting costs – procurement is more involved in mitigating supply chain risk and making strategic decisions in collaboration with top management. With better information and processes to tracking every company contract, procurement leaders can unlock the value in those contracts and see opportunities for cost savings that would have been nearly impossible to find on a global scale without a good CLM solution.
Because contracts are central to supplier management, procurement departments are well positioned to initiate Enterprise Contract Lifecycle Management (ECLM) strategies for their organization. With the increasing demands placed on them to reduce cost and risk while increasing overall value, the use of CLM software should be a given. Implementing the software with a mind to the overall business will allow them to think more strategically about their supplier relationships worldwide.
Using data and analytics from CLM software is the foundation for any sound ECLM strategy. A good start would be to partner with the leaders of other departments to create a simple overview of existing contracts: how many are on the buy side of the ledger? How many on the sell side? With that information as a baseline, procurement can begin to analyze the contracts to identify areas of opportunity from a global perspective, providing more control in supply chain solutions and insights into the overall health of the business.
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