Revolutionizing Vendor & Contract Lifecycle Management: Insights from SuiteWorld 2024
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Picture this: You're at SuiteWorld 2024 surrounded by the buzz of innovation and excited chatter. The room is packed and there's an air of anticipation. Why? Because everyone's here to crack the code on one of business's biggest headaches: managing vendors and contracts.
Enter Gatekeeper's dynamic duo Emily Assender and Ben Parker. They took the stage to a full house of finance and procurement pros all eager to hear about "The Blueprint for Stress-free Vendor & Contract Lifecycle Management (VCLM)". And boy did they deliver!
The room was electric – you could practically see the light bulbs going off above people's heads. One lady showed us her laptop with multiple spreadsheets open, and it was obvious just how painful the day-to-day can be when you’re manually managing vendors and contracts.
Couldn't make it to SuiteWorld? No worries! We're breaking down this game-changing session just for you. Whether you're wrestling with regulations or just trying to keep your contracts from turning into a paper monster, we've got you covered.
In this post, we'll explore why VCLM is crucial for your business and introduce the VCLM Risk Scale – your personal GPS for navigating vendor and contract management.
We'll guide you through the four stages of VCLM maturity, from "drowning in paperwork" Rookie to gold-medal-winning All-Star, with practical tips for each stage. By the end, you'll see why embracing technology in your VCLM processes isn't just smart – it's essential for staying competitive.
Gatekeeper: NetSuite SuiteApps Only VCLM Solution
Before we dive into the details of VCLM, it's worth highlighting the unique position Gatekeeper holds in the NetSuite ecosystem, especially as its SuiteCloud International Partner of the Year 2024.
As the only app within NetSuite’s appstore, SuiteApp.com, that combines both vendor management and contract management, Gatekeeper offers a powerful solution for customers seeking control, visibility, and compliance over their vendors and contracts.
Gatekeeper’s NetSuite integration provides seamless connectivity between NetSuite and Gatekeeper’s vendor and contract management platform.
This integration allows users to sync key data such as vendor information, contracts, and financial details directly from NetSuite into Gatekeeper, enabling a unified view of all vendor relationships and contractual obligations.
The Critical Nature of VCLM
Vendor & Contract Lifecycle Management has become mission-critical. Contracts underpin every successful (and unsuccessful) relationship a company experiences. However, many organizations still rely on manual processes, leading to errors, compliance issues, and missed deadlines.
The cost of poor contract management is staggering. According to World Commerce and Contracting, businesses lose an equivalent of 9% of their revenues each year due to inadequate contract management.
This loss stems from various factors, including failed audits, payments to fraudulent vendors, unnecessary auto-renewals, and time wasted chasing contracts.
Understanding VCLM Risk
Gatekeeper introduced the VCLM Risk Scale, a framework for understanding an organization's risk level based on their VCLM maturity. This scale comprises four levels:
- The Rookie (Very High Risk): Organizations at this level rely on manual processes, paper-based systems, and email communication. They have limited visibility into their contracts and vendor relationships.
- The Novice (High Risk): These companies use basic digital tools like spreadsheets and shared drives. While they have a central contract repository, workflows remain manual and data often exists in silos.
- The Veteran (Manageable Risk): At this stage, organizations implement specialized software for either vendor or contract management. They benefit from automated workflows, centralized repositories, and improved reporting capabilities.
- The All-Star (Low Risk): The most mature level features fully integrated and automated VCLM systems. These organizations combine vendor management, contract management, and third-party risk management into a comprehensive solution.
The Path to VCLM Excellence
For each level of the VCLM Risk Scale, Gatekeeper outlined focus areas and strategies for improvement:
- Rookies: should prioritize visibility by implementing a central contract and vendor repository.
- Novices: need to focus on control, improving vendor onboarding, renewal tracking, and contract risk management.
- Veterans: should emphasize compliance, leveraging vendor portals, automation, and real-time monitoring.
- All-Stars: can maximize their vendor relationships to drive revenue, implement robust vendor governance programs, and gain a commercial advantage through ESG reporting.
Embracing Technology for VCLM Success
The key takeaway from the presentation was clear: the more you let technology handle your VCLM processes, the more advanced and efficient your organization becomes. But more than that, it’s actually easier for businesses to allow technology to take care of this than by manually managing it themselves.
By progressing through the VCLM Risk Scale, companies can significantly reduce their risk exposure, improve compliance, and unlock substantial value from their vendor relationships and contracts.
For the finance and procurement professionals in attendance, this session at SuiteWorld 2024 provided a clear roadmap for transforming their VCLM strategies.
As businesses continue to navigate complex regulatory environments and seek to optimize their operations, adopting a mature VCLM approach will be crucial for staying competitive and mitigating risks in the years to come.
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