In the world of Strategic Sourcing, it’s sometimes difficult to anticipate how early and how broadly a particular solution will be adopted by the broader community. The best example currently is Contract management. Contract management solutions have been on the market for some time but, frankly, it took them a while to start gaining real traction with customers. This is true despite some very real and proven benefits. A study from the NCMA (National Contract Management Association) found the following buy-side ROI drivers:
These are in addition to the clear, intuitive benefits of transparency, risk management, and compliance.
One of our first Contract management customers put it best,
“It has allowed us to focus key resources on what’s important to our business rather than waste time on administration.”
Recently, we have seen a significant increase in the number of new customers signing up for online Contract management. We are attributing this change in attitude to several factors:
That said, the question we are asked most often by prospective customers is not WHY to use Contract management but HOW to justify the investment to the “powers that be”. Based on what we have seen other customers do to successfully get a Contract management program approved, our advice is centered less on building the most bullet-proof business case than on having good answers up-front to the following questions:
In the words of one of our new customers,
“There really wasn’t much need for convincing. The benefits were too obvious. We just needed to prove we had a plan.”
Contract management programs have really taken off. It is currently the Scanmarket module experiencing the highest growth. If you have a plan, you can make sure your organization is taking advantage of this powerful approach.
For more information on these approaches or to learn more about how Scanmarket can help you achieve your business objectives, please visit us at www.scanmarket.com or contact your Scanmarket Account manager.
Easy. Proven. Results.