Considering whether contract management software could be the solution for efficient, compliant, management of supplier agreements in your buying group?
You’re not alone. According to a recent survey by Oxford Economics, 49% of procurement executives said that their contract management is already automated and 68% of those surveyed predicted that in 2 years’ time contract management processes would be completely automated.
By their very nature, buying groups are set up to boost negotiating power where a number of smaller enterprises are typically all dealing with larger suppliers. But it’s not always as straight-forward as being able to agree an advantageous unit price.
Savvy contract managers on the supply side will want some form of purchase commitment in exchange for a cut in their profit margin and, if that isn’t forthcoming, a system of rebates or tiered discounts based on volume over time is usually offered instead.
Added to that, where suppliers want to encourage sales through product mixes, promote bigger volume sales of products reaching the end of their life, or launch new products they will add dimensions like time and product mix as well as volume to determine discounts and rebates.
Clearly buying groups need to be able to quickly and easily consolidate purchases made by each company in the group in order to calculate and distribute (where appropriate) the rebates achieved.
Contract management systems go some way to achieving the needs of a typical buying group, but fall short where complex rebates need to be modelled and in collecting data from multiple systems that are not necessarily owned by the buying group.
Some questions to ask, then, before you select a buying group contract management system:
Can you replicate all of the complex volume pricing and rebates in the software?
How does the software collate timely, accurate data from my multi-site / multi-company group?
What alerts can be set to help manage contract milestones?
Is there workflow for approvals and purchases that words across multiple companies within the group?
Of course, we know one that answers “yes” to all of the above (and more)!
The contract management software for buying groups: DealTrack
DealTrack Rebate Management System is fast becoming the most popular contact management software alternative for buying groups. Affiliated Distributors (AD), XLVets, Today’s Group, Landmark and DCS group are already leading the way by implementing our rebate management system and realising increased profits and improved cash flow. As a contract management software alternative, the DealTrack rebate management system for buying groups offers:
The ability to manage and model complex contracts with a range of rebates and discounts
The ability to collate and project purchasing requirements across multiple locations
Identification of the best procurement solutions
Full visibility for buyers - targets about to be reached / rebates due / imminent discount tiers
Real-time contract information and automated alerts to buyers and procurement
Instant reports against contracts and rebate claims.
So, is DealTrack the right solution for your buying group?
Find out for yourself by taking a look at this recorded webinar. Meet an existing user of the DealTrack software and hear about the benefits and ROI others have achieved.