IACCM Contract Management Forum

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Bombardier Transportation Austria GmbH
2016-08-22 17:24:56

Value of Contract Management

I studied the result of the ROI Survey Results, however I am not sure how to interpret the 9,15% scale of loss. Shall it be read as 9% loss of additional sales, or rather 9% add. costs? Question is what is the reference basis? Is there a more detailed report available giving some background to the figures as presented?
 •  New Zealand Defence Industry Association (NZDIA)  •   2016-08-22 23:02:26

The original ROI report led to further work captured in the Ten Pitfalls report.The 9.2% was an average bottom line loss made up of procurement and sales leakages; analysis shows significant variations by industry . Members who have used the data to support internal analysis have validated the study findings and showed many had even higher losses. You can use the Ten Pitfalls as a checklist of a sample of your contracts to see the extent to which such issues are occurring and the scale of impact.
Using the IACCM Maturity Model will also reveal which process weaknesses are adding to the losses.
 •   2016-08-26 07:40:08
Picking up on Jennie's reply, we used the ten pitfalls in the way indicated and have been able to generate substantial revenue improvements as a result. Our work looked at just sales contracts and is for capital projects and support services in the oil and gas sector. The approach we took was to explore how many of our agreements delivered below forecast revenues and / or margins And focus initial analysis on those
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