Apparently, 75% of US companies can’t find 90% of their contracts. Gone. Missing. Lost. This is one of the more sensational stats to be found in a recent article on post-contract management at SupplyManagement.com. It’s an interesting look at who’s doing what when it comes to managing contracts once the ink is dry.
A common theme seems to be the disconnect between procurement experts who negotiate the contract, and the technical people who manage its performance. Contracts are signed, put in the bottom drawer, and never looked at again. The article cites one example where a London based financial services company was overcharged £15 million over 12 months because it failed to reconcile invoices against the negotiated terms of the contract.
With quotes and examples from o2, British Airways, Novell, Eli Lilly, Adecco, HM Prison Service and University College London, there’s an interesting mix of ideas for improving contract management best practices.