You might be surprised to discover how effective communication can truly be.

In a recent webinar hosted by Agiloft’s Prashant Dubey, Chief Strategy Officer and Spend Matters’ Pierre Mitchell, Managing Director and Chief Research Officer, the two delved into the fascinating and complex worlds of procurement and legal departments.

It was a unique opportunity to discuss how a simple shift in the way these departments communicate with each other is driving the widespread adoption and deployment of contract lifecycle management systems all over the country.

If you missed it, here are the key takeaways of our conversation:

1. The dialogue between procurement and legal is changing.

In a change from the sometimes adversarial way that procurement and legal departments used to view each other, collaboration between the two is now on the rise, and it looks like this trend will continue in the future.

The more closely procurement and legal can work together, the better they can understand each other’s priorities, identify areas for improvement, and develop more effective strategies for selecting and deploying a CLM system that both meets their needs and contributes to the organization’s overall success.

2. Procurement is getting more strategic.

In addition to working more effectively with legal teams, procurement organizations are also beginning to focus more on strategic category management rather than old-fashioned tactical vendor selection.

Being strategic allows organizations to exert more control over the indirect procurement contracting process and, by adopting a more strategic approach, organizations can improve their ability to make informed decisions with ease.

A CLM system can be a valuable tool in this process as well, helping to account for the bifurcation of strategic procurement from operational procurement and improving collaboration between different departments involved in the same process.

3. More organizations are finding room in the budget for CLM.

Implementing a CLM system is the most effective way to bridge information gaps, save time and money, and mitigate risk for your organization. And while some may balk and say that their organization cannot afford this system, many more are instead saying, “we can’t afford not to have it!”

CLM is a system that not only benefits procurement, but everyone in your organization. IT, security, regulatory compliance, strategic alliances, and risk management are all impacted by a CLM solution.

And the ROI? Unlike other business initiatives which could take years and years to bear fruit, you’ll see the returns of deploying your new contract system in mere months. After all, poor contracting could be costing you up to 9% in lost revenue, according to World Commerce & Contracting.

4. Organizations are more effectively maximizing the value of their CLM systems.

Many organizations are realizing that fully utilizing their CLM systems can help their organizations maximize the return on investment.

By integrating CLM with other procurement systems that are already in place, businesses can create a seamless end-to-end process that automates their most tedious tasks and frees up some time for procurement professionals to focus on other things.

This increased efficiency not only saves organizations time and money, but allows for a more strategic approach to procurement.

5. CLMs unlock the power of data and analytics for more informed procurement.

A CLM can give organizations the tools they need to collect and analyze huge amounts of data in order to make more informed decisions about procurement.

Spending data can identify areas where your company could be overspending or not using your budget to its maximum efficiency. It can also help you negotiate better contracts with suppliers, potentially creating cost-savings.CLMs also make it possible to track supplier performance. By monitoring these metrics, organizations can identify potential issues and quickly resolve them, preventing supplier-related risks and ensuring that suppliers are delivering the products and services they need to run their business.

6. CLMs are facilitating collaboration.

Procurement mitigates risks that involve the whole company.

What we’re seeing is that CLM is greatly benefiting organizations by providing all of their data in one location — a single source of truth.

With a CLM system in place, information silos are a thing of the past. All data is available to all parties, and everyone from finance to legal to IT can access the same information, making communication and transparency easier than ever.

Business grows when an entire team is on the same page, and a CLM system is the easiest and most efficient way to do that.

7. Technology is playing an ever-increasing role in the procurement space.

There is a lot of innovation happening in the procurement space.

Blockchain technology is beginning to emerge as well as machine learning and artificial intelligence, which can help to automate many of the routine tasks that procurement professionals deal with on a daily basis.

Procurement professionals should keep themselves up-to-date with the latest technology and tools available so that they can continue to be as efficient and effective as possible.

Here’s to the future of procurement

If there’s one thing this webinar taught us, it’s this: there is much to look forward to in the world of procurement.

Our webinar provided the perfect opportunity to share valuable insights and discuss all of these fascinating implications of the changing dialogue between procurement and legal.

Through effective communication, leveraging the latest CLM technologies, and adopting best practices, organizations can position themselves for success and stay ahead of the curve in the ever-evolving and complex world of procurement.

Be sure to join us for our next webinar and another chance at discussing innovative strategies to elevate your business.