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Global Procurement Trends and Priorities
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Besides manual signing, another common source of contracting problems is analyzing language created by external parties. New language contains nonstandard terms that usually have to be reviewed and amended several times before they can be approved. Respondents indicated that 59% of contracts are generated in-house, compared to 41% generated externally. Until teams can find a way to streamline approvals on incoming contracts, those agreements will continue to create complexity.
Facilitating a more efficient process for internal collaboration is important for procurement teams that want to be strategic drivers at their organizations. Across the base of respondents, the teams that had the most control over spending decisions notably reported higher levels of internal collaboration than those that were simply tactical executors. More strategic teams also ran into fewer barriers and delays when completing agreements. Establishing a streamlined process for internal collaboration is critical for procurement teams to free up time and resources to devote to more strategic projects. Those initiatives can reposition procurement teams as strategic cross-functional leaders.
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