Procurement Contracts

Purchase contracts represent all commitments, interactions, and transactions that have taken place between a buyer and its suppliers and form the backbone of effective spend management. Yet companies have been unable to bring valuable contract information and processes to the front lines of their sourcing and procurement activities due to the following challenges:

• Poor contract visibility
• Maverick contract creation
• Off-contract buying
• Inconsistent contract language
• Long approval cycles
• Preferred supplier bypass
• Inconsistencies between contract terms and Pos
• Unrealized discounts and rebates.

To compound the issues, doing business in today's uncertain economy can result in crippling supply chain risk. The net result is bottom-line erosion due to lost compliance savings and unmitigated legal exposure due to process inefficiencies and lack of operational controls.

Ariba Contract Management allows companies to unlock the value of their contracts portfolio through business process improvement and automation. By streamlining the contract management lifecycle-from creation to repository-Ariba Contract Management ensures realized savings, a standardized and more efficient contracting processes, and improved visibility into existing agreements

Spend Management Integration

As a part of the Ariba Spend Management suite, Ariba Contract Management represents the critical linchpin between strategic sourcing and the transactional processes post agreement. As the only provider with breadth and depth across this entire spectrum, Ariba offers unrivaled capabilities and integration in all areas of Spend Management including:

• Ariba Contract Management offers line-level price compliance with Ariba Procurement solutions to provide active compliance capabilities in requisitioning and invoicing processes
• Tight integration from Ariba Sourcing to Ariba Contract Management allow supplier and terms awarded to be passed to a Contract Workspace
• Since not all spend is through Ariba, the combination of Ariba Spend Visibility and Ariba Contract Management permit historical or passive compliance with all organizational spend
• The information available in Ariba Contract Management is a core element in the scorecarding available in Ariba Supplier Management

Benefits

Companies of all sizes and industries are leveraging Ariba Contract Management to manage their procurement agreements realizing the following benefits:

• Realization of negotiated cost savings
• Improved visibility into procurement agreements and terms
• Lower administrative and legal costs
• Reduced operating and regulatory risk
• Elimination of overpayments and missed discounts
• Elimination of maverick and redundant contracts
• Avoidance of missed deliverables and milestones
• Increased supplier and spend performance

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Resource Library: Contract Management

Webinars

• Contract Management Automation
  Legal's Perspective and Role
  
• Contract Management
  Challenges and Strategies for Success in the New World Economy
  
• Electronic Signature
  
• Electronic Signatures
  Completing the Contract Automation Puzzle
  
• Redefining the Scope of Contract Management Automation