An Indian subsidiary of a global industrial manufacturing firm drastically reduced its MRO spend through an integrated solution.
Strategic Sourcing in Travel Management
Supplier Contract Management helped procurement team save significant amount of time in creating, storing, and retrieving contracts as well as prevent contract delays, and keep the stakeholders informed through the contract lifecycle.
Overview
A mid-sized global software product company with large number of supplier contracts was looking to implement a Contract Lifecycle Management (CLM) tool & process in order to streamline its procurement & supplier management process.
Challenges
- Large and fragmented global supplier base and corresponding contracts to manage.
- Lack of a robust process & tool to manage the contract life cycle.
- Contract compliance and delays in execution & renewals.
Solutions
Facilitated in developing a global process (from intake to contract completion) and implementing the tool (from design to testing and go-live). Also helped in establishing a dedicated offshore contract management team that would drive the overall contract management program through the life cycle.
Various work streams included –
- Developed a detailed process flow from intake to contract signatures including approvals workflow and supplier collaboration.
- Conducted internal stakeholder interviews to assess current state and developed future process with least amount of bottlenecks.
- Assisted in designing, testing and implementing the external tool including overall project management.
- Assisted in training procurement team on the tool & process.
Results
Company streamlined its contract lifecycle management process, increased contract visibility across the stakeholders and reduced overall cycle time.
Key outcome of this exercise included –
- Significantly reduced contract execution cycle time – from months to days.
- Increased visibility into the contract stages including approvals and renewals.
- Robust monitoring and management reporting – improved compliance and performance.
Successful implementation of CLM depends not only on the technology, but also on building consensus across stakeholders
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