Originally appeared in Supply Chain Quarterly: July 20, 2020
Companies assume that having a contract with a supplier means they will automatically receive all the benefits they negotiated. But errors, misunderstandings and inadequate oversight means contracts don’t always deliver what they should.
Given the time and resources procurement teams devote to vendor negotiations, it’s good business sense to make sure contracts deliver all that they promise.
Contract compliance can unlock the value that’s been negotiated across your supply chain. By triggering essential conversations about the future relationship, renegotiation offers a unique opportunity to start the process.