Unlocking the strategic value in contracts.
A recent McKinsey study was chock-full of surprises in terms of procurement and CLM, including this little gem:
Across industries, total procurement operating expenses are typically less than 1 percent of total spending. By underinvesting in this way, companies are overlooking a significant source of value: suboptimal contract terms and conditions combined with a lack of effective contract management can cause an erosion of value in sourcing equal to 9 percent of annual revenues. For Fortune’s 2016 Global 500 companies, this 9 percent would have equaled $2.5 trillion in value.”
Kind of makes you wonder, what’s in your contracts?