Although an essential facet of running a business, managing contracts without a contract database can be a time-consuming headache. With so many different contracts with vendors and service companies, it can be challenging to keep track of them all without reliable contract software. The right solution can help you reduce the amount of time you spend searching through spreadsheets or shared drives so that you can work on growing your business. Here are just a few of the ways that a formal contract database can help your team maximize productivity:
There’s a lot of buzz when it comes to digital innovation in just about any part of an organization. When it comes down to it, what exactly does that entail?
It is very rare when an organization is so on point that others use them as a standard (we’re looking at you, Amazon). The ability to have most, or all, of your business processes fine-tuned and in sync is something that most organizations are often trying to accomplish. These types of changes could take years before they truly take effect. Unfortunately, business happens quick and organizations can’t afford to wait that long. Many areas of the organization including marketing, sales, and service departments have already eradicated outdated ways of operating.
The topic of digital innovation in the procurement process, however, seems to be the one area that tends to get overlooked. Why?
Effectively managing tail spend now can save your organization headaches in the long run.
What is Tail Spend?
In an organization where there are outlined procurement procedures, roughly 80% of that organization’s total spend will be strategically managed through those guidelines. Those purchases are usually lead by an experienced purchasing professional who will thoroughly vet the potential vendors. They will ensure that the purchase is in compliance with company and industry guidelines, and, once work is awarded, the purchasing professional will continue to audit that relationship. They will make sure that the terms are being met as agreed upon and will continue to rate the vendors work to justify renewing the contract.