First things first: Does your organization see contracts as “value”, or just pieces of paper? Industry veteran Phil Barry shares that over decades managing supplier relationships in the retail and consumer goods industry, he never stopped to think about how much value can be driven through better contract management. Hear why he’s changed his mindset, and how you can do the same at your organization.
How many times have you looked at your credit card statement to realize you’re still paying for a subscription you thought you canceled months ago? Unfortunately, this doesn’t just happen to consumers. Recently, Phil Barry spoke with a retail CIO whose company found $5 million in contract spend with suppliers his company was no longer working with.
Retail and consumer goods organizations work hard to negotiate tiered pricing structures into their contracts. However, as Phil shares in this use case, when it comes to implementing those pricing structures, contracting teams often get overwhelmed and give everyone the best price, regardless of how much volume they delivered. As Phil explains here, that’s margin that takes an enormous amount of net new sales to make up for and can be recouped through a better approach to contract management.
In this use case, Phil shares how many retail and consumer good companies manage supplier relationships through ongoing amendments to a Master Service Agreement—amendments that can become very difficult to understand and manage over the years. Thankfully, contract intelligence can help.
Retail & consumer goods companies face rapidly changing customer expectations, behaviors, and loyalty that drive new business models. Icertis Contract Intelligence helps them maximize the value of every contract and gain a strategic advantage in the digital age.