Procurement 101

5 Ways to Free Yourself from Purchasing Chains

Reading time:

5 minute read

Written by

Majdi Sleimen

5 Ways to Free Yourself from Purchasing Chains

Procurement's three-way relationship with Negotiations and Contracts can use these words as its mantra:

"Only free men can negotiate. A prisoner cannot enter into contracts."

Does purchasing really want to disagree with Nelson Mandela?

5 Ways To Free Yourself From Purchasing Chains

Avoid being a captive of contract leakage, or even worse, pre-contract maverick spending. Let Tradogram demonstrate how negotiated savings can become realized savings through the strategic use of contracts. In keeping with Mandela's style, here are 5 revolutionary benefits of optimal Contract Lifecycle Management (CLM) - otherwise known as freedom:

  1. The terms and conditions of an order can be established in advance. The time required to complete single or multiple transactions will be greatly reduced, therefore increasing day-to-day business efficiency (time is money!). As an added bonus, non-purchasing employees are in the clear to focus on their core competencies without having to hunt down a manager in procurement.
  2. Preferred suppliers are easier to identify. The ability to access all your previous contracted data and measure vendor performance can only lead to noticeable frontrunners. These are the suppliers that will continue to secure contracts, while you gain the advantage of their proven reliability. The systematic negotiations that result from higher supplier capability mean faster and better quality shipments and a greater likelihood that the desired terms will be achieved. Additionally, these negotiations typically come with a lower price, which leads us to....
  3. Purchasing power can be consolidated. Any company leveraging the power of volume orders will experience savings, and contracts facilitate this process. How? Ordering items in bulk is a more organized process internally that happens to create a domino-effect of financial advantages from external sources: vendors have more incentive for offering the best possible price when they receive a healthy portion of your business. Use contracts as a tool to set these savings in motion.
  4. Real-time snapshots and graphics provide visual data. Changes made to a contract are immediate - no delay while you wait days for your supplier to receive the document. If this isn't useful enough, Tradogram also provides all necessary contract details in a "snapshot" within the application: creation and expiration dates, currency, buyer & supplier info, and more are all instantaneously visible. Effortless and unrestricted purchasing, savings included.
  5. Automation helps you manage. This is short and sweet: automatically create POs from contracts and send them to suppliers in no time at all! With Tradogram, once a contract expiration date has been set, the system will automatically remind you to renew it with just a click. Your freedom, that is. ;)
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