I hope that you have enjoyed the article “Is Contract Management A Critical Process?

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Let me share with you what inspired me to write this article…

Regular readers of this blog know that I recently spoke at the AFLA Annual Conference. At this conference, there were buyers (i.e., fleet managers) and sellers alike. Mention “strategic sourcing best practices” in a room full of sellers and one begins to see steam billowing from ears!

During the Q&A session, several sellers stood up and asked questions about the accountability for apparent savings generated through strategic sourcing. They said things like “After the contract has been signed and the winning bidder has made all of its promises of savings, who goes back and makes sure that all of those savings are achieved?”

These folks implied that they felt that no one ever did confirm that savings estimates were achieved and that their competitors’ empty promises unfairly beat them out. They wanted me to confirm their suspicions.

I had to be honest…sometimes actual savings are tracked, sometimes only the initial estimates. But, the point is clear: contract management is necessary! Not to pacify losing suppliers. But to ensure that no savings fall through the cracks.

Respectfully,
Charles Dominick, SPSM
President
Next Level Purchasing, Inc.
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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