Contracts are the foundation of commerce, and they support the entire automotive value chain, including Engineering & Technology, Supply Chain & Procurement, Production & Operations, Human Resource Management, Partner Management, and Sales & Marketing.
Contracts have a direct impact on an organization's revenue and spending. But have you ever measured how well your contracts are performing for your enterprise? If you haven't here are the potential risks:
- Suboptimal contract terms combined with suboptimal fulfillment can cause an erosion of value equal to 9% of a business’s annual revenues. (World Commerce & Contracting Association).
- A massive digital transformation is happening across all facets of the Automotive industry: electric drivetrains, connected vehicles, on-demand features, and direct-to-consumer sales.
- OEMs and their Suppliers are under pressure to continue to drive product innovation while reducing costs, improving safety, and increasing top-line and bottom-line revenues.
- With contracts touching virtually every dimension of the Automotive supply chain, how can companies ensure the intent of every agreement is fully realized as part of ongoing operations?
