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5 Challenges Facing Procurement Professionals

12/12/2017

Procurement changes seemingly daily. And if the changes aren't really coming that fast, then it certainly feels like it. Changes in business are a good thing. We celebrate them; they mean we can have a relaunch, or change branding, or generally tidy up... but when they come as thick and fast as they do in procurement, and when it can be hugely costly not to keep on top of it all, it becomes less of an exciting challenge and more of a millstone around business owners' necks.

To keep your costs down and your business healthy, we've rounded up the top five challenges facing procurement professionals - and we've explained just how to deal with them.

Spend Creep

The term 'spend creep' sounds pretty darn terrifying, and, to be honest, it really is something that business owners need to be scared of. It does what it says on the tin here - it's spending that creeps up and up without anyone really noticing until it gets to such a level that it becomes a massive burden to the business, even breaking it if things get too far. It happens when suppliers sell additional items to businesses, products or services, that aren't required. It also happens when suppliers sell those same products or services and they are required, but not forever - and no one tells the supplier that they're not needed anymore.

Spend creep. It's a very real threat.

Thankfully, with the right kind of tracking software, you can stop spend creep in its tracks, and even reverse it. You can certainly stop spending money you don't need to spend. Using intelligentcontract's software to track your complex pricing structures (ie, using it to create a list of every individual cost within each individual contract) will show you exactly what you're spending how much on. And that means you can stop it before it becomes too much of a problem.

Compliance To Contract

Another issue in procurement is ensuring that you're getting what you're paying for. When there are many different suppliers looking after all aspects of your business, it's easy to let one or two slip by without checking up on them. Are they delivering on their obligations? You just don't know. Unless, of course, you use intelligentcontract to help with key performance indicators - one of the very reasons it was created in the first place. You can use the software to record supplier performance details, and easily check - at any time - that they are meeting your expectations, and keeping to the terms of your contract.

Accurate Data

Technology is becoming a more and more important part of business every year. New innovations and clever tools mean that there are no excuses for not having the right information to hand whenever and wherever it is required; it is absolutely expected of you, as a business owner. And it's likely that you expect it of others too - knowing all the ins and outs of your business is how you keep it successful, after all. Without having the correct information to hand, wrong decisions are all too easy to make. So using intelligentcontract's customised reporting systems to make finding the information you need quick, easy, and accurate is something that will make everyone's working life a whole lot easier.

Risk Mitigation

Risk mitigation is all about working with the right kinds of business. If a supplier is unsustainable, or if they fail financially, that can impact your business in a negative way too. Fair? No. Business? Yes. It's how it all works - everyone is connected, even if you'd rather not be. Having risk mitigation information at your fingertips means that you can cut ties early if you need to, which can be essential to the longevity of your business. With intelligentcontract, you can monitor that risk and set out mitigation steps for each individual supplier.

Contact Management

Procurement isn't just about things; it's about people too. Knowing which people to contact should you need something, or if something goes wrong, is essential - getting to them fast can save you time and money. intelligentcontract offers you a place to store all of this essential contact information - you can even add notes to the supplier's file. That way, you - and everyone else in your business - will know exactly who to get in touch with to save the say (if they need to).

Conclusion

Procurement certainly has its challenges, but it doesn't have to be a nightmare department to manage. By using intelligentcontract to track and maintain your supplier relationships, it's easy to stay on top of what's what.

intelligentcontract is a highly customisable solution that provides a hub to store all your important contract paperwork plus you get loads of useful tools that make your contract management process a breeze. We don't have a limit to either the size of documents of the total amount of storage - so you don't have to worry about extra bills if your central store of documents gets big.

Pricing starts at £9 per user, per month. For more information, to get a free trial or to organise a demo give us a call on 0333 344 3905 or visit www.intelligentcontract.com

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