Clarity, Accountability, Sustainability
It is easier to get absorbed in the glory of successful negotiations; however, it is important that one does not lose track of the long term effects of these negotiations and to ensure that they are indeed giving benefits in the desired magnitude. Dataction provides various views and reports of the contracts, expenses and savings so that the procurement team is always in control of these benefits.
The following table highlights the time involvement by each team:
A well-negotiated, all encompassing contract is just one part of the success story. Once the contracts are in place it is important that these are administered regularly and efficiently, in order to harness their full potential. We work closely with the legal teams and stakeholders to ensure that the latest contracts and associated documents such as amendments, annexure, entity enrollments etc. are always available on the contract management portal. We also assist legal team to review vendor contract templates to ensure that company preferred terms and conditions are included. We work closely with the stakeholders and the vendors to ensure that appropriate service levels, quality and security standards, performance metrics and financial penalties or incentives are tracked, enforced and reported. Also, we help stakeholders review the contracts periodically and facilitate renewals, amendments or terminations as required.
We also provide contract support-desk services for group or company-wide contracts, including administration of any contract benefits such as free services, reward points etc.
Without a robust compliance tracking and reporting process, the organizations carry a risk of losing the hard-earned savings from the procurement efforts, by the time goods and services are actually purchased. Our services are designed to provide compliance visibility to the CPOs, CFOs, Category leads and Finance Controllers so that they can track the critical compliance metrics and take appropriate actions to control and fix the root causes for non-compliance.
The wide spectrum of reports include contract compliance reports to track maverick buying, PO compliance reports to track spend under procurement management, supplier compliance reports to track buying from non-preferred suppliers, catalogue compliance reports to track off-catalogue buying and to provide insights into new cataloguing opportunities, payment terms compliance report to track early or late payments and its estimated financial impact, vendor performance reports to track key contract SLAs.
An accurate measure of Procurement performance, Savings Reporting captures the key metrics that showcase the impact of procurement involvement such that top management can understand procurement department’s contribution to the business performance indicators such as top line, bottom line, ROI, etc.
Our services include designing savings reporting policy, procedures and templates for periodic reports, defining benefit types and classification methodology, documenting the benefit measurement technique, managing the reporting process and guiding the team members on nuances of benefit calculations, facilitating benefit sign-off from stakeholders and assisting procurement heads in preparation of Annual Procurement Performance Reports for the Top management.