Enhancing the Contracting Process with Negotiation, Technology and more – Part 1

Hope the holidays were happy! Back to work after a long break and we mean serious business and by that we mean procurement contracts, our focus area in this blog series.

Enhancing the Contracting Process – Part 1

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“Contracts do indeed play an important role, representing a source of economic value for a business. Yet, 30% to 35% of an organization’s contracts under perform. That cost translates to about 9% of annual revenue.” – Tim Cummins, President and CEO of IACCM

However, with the advancement in technology, organizations can redesign the existing contracting process, resulting in better collaboration, enhanced data and analysis and raise the over-all value derived from the contracts.

Learn More: Zycus iContract Solution;

This blog series will harp on different aspects of contracts that can be improvised by using technology. Starting with,

  • Writing contracts

Relying heavily on MS Word to write the contract and emails to collaborate with concerned stake holders often results in an extended time cycle and erroneous contract. Technology, when picked and used correctly, makes the authoring process simple and time- efficient in the one way. For instance, use of pre-approved clauses in a format that is consistent with the legal guidelines within the contract templates can lead to having standardized contracts, integration with MS Word, etc.

  • Negotiating contracts

Negotiation is a tricky art. It often is the reason for closing that profit-making deal, just like it can be the reason for the higher price we end up paying the supplier. Negotiation is a major part of procurement executive’s life. Technology has no active role in helping the executive become a better negotiator. However, tricks & tips, cases of previously successful deals can be stored in a repository which, in turn, can serve as a reference point for future negotiations.

Stay with us as we discuss few more aspects in the coming blog.

 

Roshnee

Roshnee works with the content leadership team of Zycus. She regularly writes on procurement - trends and best practices, sometimes taking the off beat path to bring in a fresh perspective. She also drives the branding activities of her company. In her free time she enjoys hot cuppa coffee with the latest fiction book. She is an MBA in Marketing and a graduate in commerce.

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