Procurement risk and contract management are crucial aspects of any business operation. In order to ensure smooth and successful procurement processes, it is important to implement best practices that mitigate risks and optimize contract management. By following these best practices, businesses can minimize potential losses, improve efficiency, and enhance overall performance.
Statistic | Value |
---|---|
Percentage of contracts that experience disputes | 40% |
Average cost of contract disputes | $91 million |
Percentage of procurement professionals who cite risk management as a top priority | 75% |
As seen from the statistics above, contract disputes can be costly and common, highlighting the importance of effective procurement risk and contract management practices. By implementing the following best practices, businesses can minimize the likelihood of disputes and optimize their procurement processes:
By following these best practices, businesses can enhance their procurement risk and contract management processes, leading to improved outcomes and reduced risks. It is essential for organizations to prioritize these practices in order to achieve success in their procurement operations.