Aberdeen Group Procurement Contract Lifecycle Management
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Abstract
As the bridge between strategic sourcing and procurement, contract lifecycle management is becoming a primary means for organizations to improve process standardization, contract compliance, and transparency in procurement. This research report examines the crucial set of processes and technologies that encompass contract management, by exploring the pressures, actions, capabilities and enablers of over 130 organizations.
Best-in-Class organizations leverage contract lifecycle management solutions to identify opportunities for savings and prevent inefficiencies. Three key performance criteria used to distinguish top performers in this benchmark were:
- 79% of spend under management (compared to 45% for Laggards)
- 17% average contract savings realized (compared to 4% for Laggards)
- 8 days average cycle time for contract review and approval (compared to 47 days for Laggards)