Optimize your contracts through an effective and controlled procurement process
In the realm of procurement and supply chain management, contract compliance and utilization are pivotal metrics that directly impact the efficiency and profitability of businesses. Effectively leveraging buying channels can significantly enhance both contract compliance and utilization, ultimately driving cost savings, mitigating risks, and fostering stronger supplier relationships.
By combining effective sourcing and contract negotiations, with an integrated buying solution, such as SAP Ariba Buying, drives compliance and cost savings across the entire end-to-end process.
Sourcing Process and Contract Operationalization
Contract Operationalization Realizes the Contract Lifecycle Management Business Case
Once the hard work has been done with completing upstream activities (establishing preferred suppliers, running sourcing events, negotiating pricing and terms, securing contracts etc), many organizations then fail to maximize the key strategic benefits that these initiatives were expected to achieve.
This is where Contract Operationalization drives contract utilization, through Contract Compliance within SAP Ariba Buying.
Benefits to VELUX through Contract Operationalization
By operationalizing contracts, VELUX can ensure that procurement activities are aligned with overarching business objectives, such as cost reduction, quality improvement, and risk mitigation, as well as generating valuable data and insights that can inform strategic decision-making in procurement.
Overview of Contract Compliance in SAP Ariba Buying – How Does it Work?
Contract Compliance is a set of features and functions incorporated into SAP Ariba Buying that allows companies to enforce compliance to contracts as part of the transactional activity that occurs in the system.
When users create contracts, they decide when the contract terms are applied. They can be applied when users create orders, invoices, or receipts. Approval processes contain predefined contract-related requisition approval rules, e. g. a requisition can be auto-approved if all the items are covered by a contract; and milestones capability can be used to receive against contracts.
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