Uncontrolled and unchanneled spend through purchase order requests, P-Card use, or petty cash pose a major problem. Gaining control and reducing expenses starts with limiting who can authorize spending and ensuring suppliers adhere to contractual obligations. Working with the C-Suite, supply chain executives can effectively help channel almost all purchases into a single source, giving the organization greater information about and control over what is being spent, how, and why.
In this webinar, we show how to limit contractual authority for the procurement of goods, services, and capital within your organization through the development of a General Contract policy that controls and channels almost every purchase through the purchasing department. We discuss the key elements of such a policy, how to gain approval, and the ramifications of bypassing the policy itself.
- List at least two areas where spend can be significantly reduced by controlling contractual authority.
- Explain the critical importance of senior C-suite backing when implementing and enforcing the General Contract Policy.
- Identify the key points to focus on when making a presentation to senior management.
- Describe how the General Contract Policy becomes the foundation for capital equipment, services, and service contracting.
- John Strong — Principal, John Strong LLC