How Much Are Outdated Procurement and Contract Management Tools Costing Your Company?

How Much Are Outdated Procurement and Contract Management Tools Costing Your Company?

How much time and money could be saved if your team was using intuitive and nimble tools for procurement and contract management?

It may surprise you but virtually every company that contacts me for help is facing the same challenges.

The size or industry isn’t a factor.

See if any of these recent quotes sound familiar.

  • “We need to ensure that every contract is thoroughly evaluated and renegotiated well in advance of the automatic renewal date.”
  • “When our VP wants an update on any common data in our contracts, we have to create the report manually.”
  • “I don’t know if our contract obligations like fees, commitments, required payments and service levels are being met in a timely manner.”
  • “It is impossible to know if a contract abstract matches with the latest amendments.”
  • “Suppliers don’t like our procurement system because it is clunky to navigate and asks for the same information each time. If we could get supplier participation to 40%, we would be ecstatic!”
  • “All of our pricing analysis is done in Excel because the pricing capability in our current tool is limited. My team cuts and pastes all the responses into Excel to analyze each event. Clearly there is a better way.”
  • “Every report on every event has to be created from scratch.”
  • “Even simple events take hours to create and launch.”
  • “We have no easy way to track savings – period.”

 

The basic message that I hear is that outdated tools are hampering your ability to compete. The cost in lost opportunities, leverage and time are enormous.

 

Compare that with the conversation I just had with a large manufacturing and distribution client who implemented our sourcing platform less than 12 months ago.

 

“I reviewed the concepts of our “Sourcing Internal Request Initiative” with our team and our President.  His word was “Fantastic” for all we have done and wants it to become a priority for all divisions – and sooner rather than later. “

 

This client has also implemented our contract management tool with similar success.

Many factors will play into your decision to move forward and implement a new system; cost, time to implement, ongoing maintenance to name a few. Fit now and in the future should also be a consideration. A quick fix will help but if the tool comes up short for more complex events you may want to pass.

One recent prospect describes the system they now have this way: “It was easy to buy, difficult to implement and costly to maintain.”

Most people that I speak with in procurement are moving toward Best of Breed for each tool and not worrying about integration.

They would love to have every system talk to each other but there are so many gains in efficiency and effectiveness to be realized by implementing a Best of Breed tool. The benefits outweigh the minor drawbacks.

Would you like to know more?

You can set up a 30-minute discovery call using the link below.

I assure you that 90% of the time it is clear after 30 minutes what the next step should be. This is a small investment of time for both of us.

I know we can’t help everyone, and I am not afraid to let you know that.

Ask better questions, make changes and 2019 will be your best year ever.

Action Step: If you are uncertain where to start the process of change, a procurement professional like myself can provide guidance and expertise to help your organization achieve the results you want.

If you want to go explore this topic in greater detail, please contact me. I invite you to request 30-minute discovery conversation. In my experience the next step will be apparent at the end of the call. I never assume that what I have to offer will be right for everyone, so don’t expect a sales pitch. You can reach me at (973) 718-7071 x875. The call will be forwarded to my mobile phone if I am not in my office which is pretty likely.

If you would like to know more ways to reduce costs without changing the way you do business, simply give me a call or send me an email with your contact information and the best time to reach you.

You Won’t Drift to Success©

Commit to taking the next step.

Until Next Time, I Wish You Great Success in Your Business and in Your Life

Mike Jeffries