Advanced Contract Lifecycle Management
Optimising Retail Procurement
Saros Consulting partnered with a leading global retailer, on a mission to enhance their contract lifecycle management (CLM). This initiative aimed to streamline their procurement governance, improve contract efficiency, and foster better supplier relationships, ultimately driving sustainable cost savings and operational improvements.
About the Client:
Based in Ireland, our client is a significant player in the safety wear market, with revenues exceeding €500m. They specialise in providing high-quality safety wear and personal protective equipment (PPE), serving diverse industries worldwide. such as construction, manufacturing, and healthcare.
Renowned for their commitment to excellence and innovation, they are an established trusted brand in the safety apparel industry, serving sectors like construction, manufacturing and healthcare.
Client Objectives and Challenges:
The project’s aim was to revamp their CLM process, enhancing procurement efficiency. The key objectives were:
Identification of Process Inefficiencies: Our goal was to identify and address inefficiencies and bottlenecks within the current CLM process, leading to streamlined and standardised procurement practices.
Enhanced Contract Visibility and Tracking: We set out to establish a centralised contract repository and tracking system to improve visibility around key performance indicators (KPIs), service level agreements (SLAs), contract milestones, obligations, and renewal dates.
Supplier Relationship Management (SRM): We proposed implementing a structured SRM framework for strategic suppliers, with a focus on fostering improved supplier-client relationships over the duration of contracts.
Process Automation and Standardization: We advocated leveraging technology to automate manual tasks, while also introducing standardised contract templates and negotiation guidelines .
Challenges:
During the discovery phase, a workshop was conducted with key stakeholders to discuss the extent of challenges faced by the client. Several critical challenges were identified, documented, and addressed as part of the opportunity assessment.
One of the key challenges revolves around contract lifecycle visibility with key suppliers. The Procurement function tends to become reactive over time, leading to diluted effectiveness and reduced leverage in negotiating terms with suppliers. Properly managing notice periods and contract performance monitoring is crucial for maximising buying power and achieving in-year and multi-year savings targets. Moreover, the contract lifecycle significantly impacts internal resource allocation and timing for supplier engagements related to renewals, reviews, and RFP events.
Saros’s Strategic Solution:
Over a 14-week period, Saros Consulting’s team, comprising key resources, implemented a contract repository with essential data, enabling proactive procurement practices. To address the challenges and meet client objectives, the solution involved contract repository with essential data, enabling proactive procurement practices and improving visibility. Saros identified sustainable and achievable savings opportunities that were presented to the client.
In addition, Supplier Relationship Management (SRM) formed an integral part of our service delivery. This focus was on strategic suppliers in the agreed spend categories, supporting the development and continuous improvement framework necessary to strengthen supplier-client relationships throughout the contract term.
By adopting these solutions, the client could optimise their contract lifecycle management process, leading to improved procurement efficiency, enhanced supplier relationships, and substantial cost savings in the long run.