Better spend management.
Most procurement organizations today inherently understand the importance of contracts for properly managing vendors, but the vast majority are not using contract data to its fullest advantage. From fixing inefficiencies at the individual supplier level to managing large scale transformations, portfolio level contract insights are the missing piece of your supplier governance program.
Capture spend leakage.
Every year, companies lose millions of dollars in value in their supply chains in small, incremental mismatches between contracted terms and supplier actions. This manifests in dozens of small ways – incorrect invoices, unrealized discounts, penalties from minimum purchase obligations – that add up to big costs. Without structured data, most companies can’t track these sources of lost value in a cost-effective way. Knowable’s structured contract data empowers you to take full advantage of the value suppliers should be providing by surfacing insights on key terms, such as:
- Volume and payment term-based discounts
- SLA credits
- Most-favored nation clauses
- Minimum purchase obligations
- Unfavorable payment terms
This insight allows you to take full advantage of your pricing entitlements, dispute incorrect invoices and supplement your supplier governance with pricing and discount reviews.
Optimize your supplier base.
Contract data is an all too often overlooked but critical piece of large-scale supply chain transformations. With all contracts in a single place, you can identify redundant suppliers across your business units and geography. Incorporating portfolio level data into your strategic supplier analysis allows organizations to look globally to unlock volume discounts or avoid minimum purchase obligation penalties.
Consolidating spend within a few strategically important suppliers and terminating redundant suppliers where possible yields huge savings, reducing non-essential costs and minimizing the overhead required for governance. By putting data at your fingertips that would have been prohibitively expensive to collect otherwise, contract data gives you control over your supply chain and helps you realize your spend reduction targets.