The importance of contract management and how it can be leveraged to gain more influence to effect positive strategic change and impact procurement at sourcing stage.

1. Contract management: The
key to unlock our influence?
Dr Jo Meehan
Senior Lecturer in Strategic Purchasing
Director of Liverpool MBA
drjomeehan@liverpool.ac.uk
@drjomeehan
uk.linkedin.com/in/drjomeehan

2. The complex world of value
- Value for Money
- Benefits minus sacrifices
- Temporal element (whole life costing)
- Perceptions of value (anchored as either low or high pricing scales)
- Value perceived by who?
- Objective measures of value
- Not everything has a £ value or can be assessed by CBA
- People, planet, profit
- Values (as opposed to value) adds further layer of complexity

3. Procurement’s value challenge
Status and relationships
- Not involved early enough
- Procurement’s position to challenge and influence
- Everyone thinks they are a buyer
Infrastructure and functional maturity
- ‘Let and forget’ approach to contracts
- Market knowledge
- Commercial transparency of cost across supply chain
- Internal transparency of cost
- Lack of data
- Deficits impact rationality

4. Are we looking in the wrong place?
Early
involvement
Strategic
positioning
CONFLICT!!

5. Another way: Start at the end…
- Contract management
- Procurement maturity

6. Questions