Author: Tim Cummins
The 2019 IACCM Benchmark Report will soon be issued, providing a wealth of data and insight to the current state of contract and commercial management. One of the many areas we have researched is to understand what major initiatives contracts and commercial teams are currently undertaking. The list (which appears below) is interesting - and the differences between buy-side and sell-side priorities even more so! Our report explains the implications and the reasons - along with a myriad of data regarding performance measurements, headcount levels, the state of automation, skills and knowledge management and a host of other topics.
Is Procurement under greater pressure?
The study shows that a much higher percentage are driving key initiatives on the buy-side. This certainly supports the idea that Procurement groups are feeling the heat when it comes to the need for change. We examine the reasons for that and suggest the implications for the future. But we also explore whether the relatively lower level of activity going on within sell-side groups is an indication that they may be sleep-walking into disaster. So do they need a wake-up call?
One thing is clear. Contract and Commercial competency is a growing priority and in order to respond, we need more and better data to support our planning and implementation. Many IACCM members are under pressure to provide benchmark information, or need analysis to support the case for investment. With input from 760 organizations, this latest report is without question the authoritative guide to all things contract and commercial – once again demonstrating the many benefits that come from having an IACCM membership!
|Buy-side: Major Initiatives for 2019||Sell-side: Major Initiatives for 2019|
|1. Relationship segmentation (59%)||1. Reporting line change (32%)|
|2. Revised measurements (54%)||2. Expansion of current role (30%)|
|3. External benchmarks and research (49%)||3. Skills development (29%)|
|4. Contract analytics (48%)||4. Contract management tools/systems (28%)|
|5. Reporting line change (44%)||5. Contract standards/new terms (27%)|
|6. Contract simplification (43%)||6. 'Self-service' support (27%)|
|7. Reduced role (42%)||7. Knowledge management systems (27%)|
|8. Contract standards/new terms (42%)||8. Revised measurements (25%)|
|9. Improve risk management/governance (41%)||9. Contract simplification (25%)|
|10. Knowledge management systems (39%)||10. Improve risk management/ governance (23%)|