Successful supplier selection and contract negotiation is not the end point for Procurement. Effective Implementation and Category Management throughout the life of the contract is crucial for ensuring the expected cost and value benefits are delivered and sustained. Bareki has evidence that 50% or more of the expected benefits in the first year of a new contract are either lost, or never materialise at all, without a formalised implementation process in place.
Reasons for losses include:
- A lack of compliance on supplier and client sides
- Milestones and decision points forgotten as key personnel move on
- Short-term deviations from contract becoming permanent features
- Missed opportunities to adjust contract performance in light of new situations
- Limited resources focusing on new negotiations rather than maintaining existing contracts
- Skillset and tools required for ongoing Implementation and Category Management lacking
Bareki’s Implementation and Category Management can be enlisted as a standalone service, as a continuation of a Strategic Sourcing project, or as part of a Managed Service.
