riskmethods is pleased to announce that Kelly Barner, Owner and Managing Director of Buyers Meeting Point, has agreed to lend her expertise to riskmethods’ supply chain risk management blog as a guest editor. Kelly will bring her unique perspective through a dedicated column covering issues facing procurement and supply chain professionals. Focusing on the intersection of current events and modern supply chain risk management, Kelly brings an unbiased approach that is both authentic and engaging.
There are a few things that procurement professionals know without hesitation:
- Savings are an unavoidable measure of our performance.
- Suppliers are key contributors to sustained competitive advantage.
- The system requirements of procurement technology ‘power users’ are at odds with the needs and preferences of everyone else in the organization.
Well, two out of three isn’t bad.
When you think about business agility, especially when software and analytics are to be applied, one of the last areas you’d probably think to focus on is contract management. Although today’s contracts are more electronic and automated than their paper-based predecessors, they are still managed as a relatively static component of the end-to-end P2P process.
In fact, some procurement organizations consider contracts the ‘finish line’ in terms of their active involvement with a category or supplier. We push to reach that point – getting the necessary signatures on time and with all the right terms in place – and then hand off to budget owners or business managers until the contract is up for renewal.
This limited approach to contracts presupposes that the name of the supplier organization and the agreement expiration date are the two most important components of the contract. This assertion might even be true if procurement only established a small number of contracts on behalf of their organization annually. But many procurement teams are involved with dozens or even hundreds of contracts over the course of the year. In the context of contracts, therefore, agility has less to do with the sustained activity level associated with one contract over its term and more to do with repeatability and risk minimization.
This is the third in a series of articles about procurement automation – a project I’ve been driving using the hashtag #AutoProcure to facilitate open discussion. In Part 1, we looked at the rise of automation, and in Part 2, we took the advice of a Wall Street Journalist and considered the possibility of the ‘bite back’ that seems to inevitably accompany advances in all technology (automation being no exception).
More Articles ...
- Supplier Information Management: The Backbone of Effective Supplier Management
- Preparing for the Procurement Automation ‘Bite-Back’
- The Evolution of Procurement Reaches the Age of Automation
- The Moveable Feast of Spend Management
- Resolving the Technology Clash Between Procurement and IT
- ISM-New York Appoints Kelly Barner as the New Business Survey Chair for the Monthly Report on Business
- Data Analytics as a Matter of Pace, Not Speed
- Three Steps Towards Optimized Buying Decisions
- Three critical procurement best practices for electric utilities: Are you doing these?
- Making the Case for Balanced Benchmarking of Services Spend