Companies are faced with a lot of decisions and can find it difficult to gain the internal support needed to close leakage gaps. By leveraging technology, companies gain insight into known breakdowns and predict future cost savings, bringing transparency to the amount of money they would save over a long period of time. Below we explore ways technology can be applied effectively for optimal results.
Supplier Risk Scoring
When spend (the amount of money paid for a particular purpose or over a particular period of time) is assessed on its own, it is not always a good indicator of financial risk. Leveraging technology with a contract intelligence component results in a broader review as the technology works to scan supplier contracts, flag risky commercial terms, risk rank the terms and compare to spend for a comprehensive risk score.
Program Management Tools
These tools track not only the execution strategy, for example which audits are planned for Q1 vs Q2, but also visibility into the audit life cycle, the progress on each audit, what errors have been found and savings generated.
Issue Identification
Oftentimes, complex or limiting terms and conditions that don’t reflect what will occur operationally or routinely between parties outlined in the contract can result in issues leading to financial leakage.
Pre-Payment Audit
Layering the rules logic from issue identification on top of the invoices you process, technology can then be used to automate error review and breakdowns using the invoice line item details before money ever goes out the door.
Technology is changing the contract compliance landscape and allowing companies to uncover financial leakage more efficiently than before. But when it comes to future cost savings, putting controls in place to stop leakage before it happens is equally if not more important.
Want to learn more?
Check out the Technology’s Impact on Your Contract Compliance Program white paper or webinar where we identify two key concepts to leverage technology and expand contract programs for optimal results – applying technology to drive coverage and speed and key areas of technology application.