August 7, 2023

Contract follow-up is vital for realizing savings

Managing your contracts and improving compliance is essential to ensure that savings are realized.

Børge Langedal
Co-Founder & CRO
Share

Managing your contracts and improving compliance is essential to ensure that savings are realized. It also drives supplier collaboration and helps avert conflicts during the contract period.

Many procurement functions spend a lot of time and resources in planning and executing measures - both critical activities in the procurement process. However, we often find that organizations don't invest sufficient resources in contract follow-up after it's been signed, leaving money on the table.

Why Is Contract Follow-up So Important?

Ensuring the appropriate follow-up of your contracts is important for several reasons, where we'd like to highlight the following examples:

  • Evaluating suppliers and their performance to ensure that products and services are delivered in accordance with the contract
  • Contributing to sustainable and long-term supplier collaboration
  • Minimizing the risk of misunderstandings and conflicts
  • Sharing contract information and details in the organization and to relevant users
  • Maximizing contract loyalty, minimizing maverick spend and ensuring contract compliance throughout the company

Unlock the Full Value From Every Contract With Our Spend Management Solution

A purchase is often linked to an underlying contract. To unlock more value from every contract, you need to link your actual spend to your contracts. This linkage enables you to see the big picture and gives you actionable insights on contract coverage in your organization.

Try with your data, free!

Our spend management solution facilitates a systematic approach to contract follow-up through a built-in contract management module. This enables you to easily:

  • Import existing contract data or simply add new ones directly
  • Record and manage all your relevant contract information – fully searchable and filterable
  • Get smart notifications for important activities like contract expirations and renewals
  • Link spend directly to your contracts data and get detailed insights on contract coverage
  • Track and analyze contract loyalty across business units, departments or categories
  • Identify, manage and mitigate risk for your suppliers
  • Evaluate suppliers and their performance
  • Analyze spend through contracts and compare it against the contract value, e.g. framework agreements

The list above isn't exhaustive, but gives you an idea of how the solution can help you take contract management to the next level.

Share
About the author
Børge Langedal
Co-Founder & CRO

Børge Langedal is a co-founder and partner at Ignite and prior BCG consultant​. ​ He has led and assisted projects for clients within oil & energy, FMCG, and construction with a focus on cost reduction and enablement​.

Ready to move away from spreadsheets and work with your suppliers in a responsible way?

Our goal is to empower responsible decision-making by giving you the insights and tools you need to unlock the potential of your supply chain.

Preferences

Privacy is important to us, so you have the option of disabling certain types of storage that may not be necessary for the basic functioning of the website. Blocking categories may impact your experience on the website. More information

Accept all cookies

These items are required to enable basic website functionality.

Always active

These items are used to deliver advertising that is more relevant to you and your interests.

These items allow the website to remember choices you make (such as your user name, language, or the region you are in) and provide enhanced, more personal features.

These items help the website operator understand how its website performs, how visitors interact with the site, and whether there may be technical issues.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.