However, Procurement spend a lot of time negotiating and relationship building (and they’re proud of the savings they have achieved), only for savings to be lost as staff circumvent processes and buy “off-contract”.
In this webinar recording
, we detail how Procurement, Finance and the rest of the organisation can be aligned in P2P: turning sourcing events into an awarded contract and catalogue that can be purchased against, and also tracking spend against contracts – in other words, ensuring visibility of current compliance and a method for measuring improvements.
But it goes further than that. Organisations should also be managing contracts in central repository that automatically notifies relevant staff when a contractual renewal is due. This ensures they have sufficient time to review existing terms, evaluate supplier performance and pricing and prepare for further negotiations.
Having a solid and well-implemented Purchase-to-Pay system
, fully integrated with Contract Management
is essential to ensure the savings promised by procurement are fully ‘captured’ by the rest of the organisation.