W.W. Grainger, Inc.
Author: Merrill DataSite
When companies do business with hundreds, thousands, or even tens of thousands of customers and vendors, it is often impossible to standardize contract terms. And yet, a single miss of a detail can cost a company millions of dollars in lost revenue, unnecessary expenses, or both. Worse, such losses often happen under the radar. They frequently go undetected and are usually inadvertent.
These unnecessary expenses and lost opportunities arise from internally grown practices known as 'reactive management.' The best reactively managed departments respond quickly and efficiently to the needs of the
organization as they arise and are requested, whether it is the sales organization hunting down renewal opportunities or the purchasing department working to bundle contracts.