SUPPLY CHAIN

GEP SHAPING CMS

Santosh highlights several clients which have been assisted by GEP in the area of contract management software .

“ One of our clients , a leading global CPG company , increased its commercial performance and contribution to the bottom line by a whopping 14 % in the first year after adopting a best-in-class CMS programme ,” he explains .

“ Top-quartile procurement functions consistently excel over their peers on all key measures of savings , compliance , innovation and risk management .

“ We recently helped a global energy company improve its process of negotiating contracts across 50 + countries , gaining benefits worth US $ 250m over two years . These were mainly driven by three key factors : the speed of contract negotiation ( almost half of the redlining and negotiations were automated ); the terms secured ( benchmarking and other tools allowed for much better commercial terms ); and compliance with agreed terms ( advanced capabilities to measure daily operational performance against set terms and manage exceptions effectively ).”

Proportion of firms which recognise the importance of contract language in enforcing ESG standards ( Icertis )

Nearly half ( 44 %) of CPOs have led AI adoption efforts in the last 21 months , Shannon adds : “ Procurement is leveraging AI to drive value and shape company strategies . This shift will empower procurement teams to embrace innovation , offer deeper insights into market trends and improve the way new suppliers are sourced and onboarded . Ultimately , this leads to stronger supplier partnerships and more autonomous contracting processes .”

How to get the most out of CMS While the software has proven to be vital , there are still ways to get the best out of it . Both of our leaders emphasise the importance of leveraging technology to drive value in procurement , highlighting the need for organisations to adapt to

96 September 2024