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It’s hard to deliver when you aren’t sure exactly what you need. Contracts that don’t clearly spell out procurement requirements are doomed to fail. Procurement teams and their suppliers must have a clearly defined, written contract that all parties agree on before moving forward.
Procurement teams and their suppliers need to trust each other. That means sharing time-sensitive and crucial information with each other and company stakeholders. The communication line needs to remain open to address any challenges or issues immediately, preventing more problems down the road.
Often, those in charge of indirect procurement functions do not have the level of influence needed to get the higher level of technology they feel is necessary to do their jobs effectively. Bringing in the legal team can help indirect procurement leaders articulate their needs and demonstrate how upgrading technology will positively impact the organization.
Disorganized contracts and indirect procurement paperwork can lead to fragmented spending across different categories, business units, and locations. This fragmentation makes it challenging for indirect procurement teams to identify savings opportunities on an enterprise level.
The contract review process between procurement teams and suppliers can take months, from the initial RFI to the final redlined contract. In the process of contract negotiations, revisions can get lost or overlooked, making it difficult and time-consuming for procurement teams to finalize a redlined contract.
