Utilizing an Intelligent Filtering Platform to Enhance Contract Performance (A Procurement Insights Knowledge Leadership Publication)

Posted on April 21, 2009

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Contract Misalignment and Non-Compliance

“A 2004 automotive study by the Power Transmission Distributors Association (PTDA) found that of the 45 percent of their membership’s U.S.-based customers who have contracted vendors, 33 percent of all purchases were from non-contract suppliers. In Canada, the number of off-contract purchasing reached a staggering 79 percent.

If results such as the one referenced above were the exception to the rule, then one might not be sufficiently alarmed to question the viability of current contracting methodology. However, and as demonstrated by the continually high rate of supply chain/e-procurement initiative failures of which contract creation and compliance management is a core element, the PTDA result is not an exception but the rule.”

Excerpt from “Utilizing an Intelligent Filtering Platform to Enhance Contract Performance” White Paper (April 2009).

If as industry experts claim, effective contract management which includes the entire contract life-cycle, “from identification of a need, through negotiation, agreement, monitoring, and close-out,” is so critical, then why do the majority of programs struggle with non-compliance and stakeholder resistance?

The purpose of this paper is to delve into the core elements of how effective contract performance is realized through the utilization of emerging process-centric technologies developed by organizations such as Strategic Relationships Solutions Inc. (SRS Inc.) and in particular their SourceX contract life-cycle management solution.

In essence, what SRS Inc. has successfully achieved with SourceX is not making the mistake of focusing on building a better mousetrap, but instead building a more intuitive one that is based on easily adapting to what is becoming an increasingly complex, globalized supply chain practice.

Use the following link to obtain your free copy of the Utilizing an Intelligent Filtering Platform to Enhance Contract Performance white paper.

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Introducing the New “Principles of Effective Contract Management” Group

To coincide with the release of the Utilizing an Intelligent Filtering Platform to Enhance Contract Performance white paper, we have launched the new Principles of Effective Contract Management group on LinkedIn.

Hosted by SRS Inc., the primary objective of this forum is to address the collective issues of all stakeholders involved in the contract life-cycle process, in an effort to identify, understand and ultimately remove the barriers to adoption.

Use the following link now to join the Principles of Effective Contract Management Group.

NOTE: If you are not already a LinkedIn member, use the easy to follow on-line screen prompts to join. There are of course no fees associated with the basic LinkedIn membership package.

 

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