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Allison Caggia

Procurement CLM: Navigating Regulatory Changes & Compliance

In the rapidly evolving landscape of procurement, the ability to stay abreast of regulatory changes is a critical component of successful contract management. Regulatory compliance is not only a legal requirement but also a strategic necessity for organizations seeking to mitigate risks and ensure the smooth functioning of their procurement contract management processes.

This article delves into the importance of keeping up with regulatory changes and due diligence in procurement contract lifecycle management (CLM) and explores the myriad benefits of implementing a robust CLM system. For a comprehensive solution tailored to the evolving needs of procurement professionals, organizations may consider leveraging advanced procurement CLM software

Keeping Up with Regulatory Changes in Procurement Contract Lifecycle Management 

As businesses expand globally and regulations become more intricate, the procurement environment has become increasingly complex. This complexity is compounded by the fact that regulatory frameworks are subject to frequent changes. In navigating a labyrinth of legal requirements, procurement teams must address various challenges, ranging from data protection laws to industry-specific regulations, underscoring the importance of contract management in procurement. This complexity highlights the need for robust systems that not only ensure compliance but also emphasize the strategic significance of effective contract management within the procurement lifecycle. 

In the quest for effective CLM procurement management, organizations should also consider the “Procurement Contracting Must-Haves” in this insightful blog post from Malbek. The article provides valuable insights into essential elements that can fortify procurement processes and enhance compliance within the ever-changing legal landscape, including considerations related to artificial intelligence in procurement contract management. 

Benefits of Using CLM for Procurement Contract Management 

Reduced Risks 

Smoother Contract Lifecycle 

Improved Negotiation 

Cost Savings 

Tackling Regulatory Changes with CLM 

The dynamic nature of regulatory environments requires procurement teams to be agile and adaptive. CLM plays a pivotal role in helping organizations stay ahead of the curve and effectively address regulatory changes. 

Real-time Updates 

Policy Adherence 

Industry Standards 

Examples and Use Cases of How CLM Can Help with Procurement Contract Process 

Gett 
Gett, a prominent ride-hailing app and Ground Transportation Management platform, transformed its contract management by adopting Malbek’s contract lifecycle management (CLM) platform. Before the shift, manual processes led to frustration, time inefficiencies, missed renewals, and failed audits. Malbek’s solution streamlined the entire process, providing visibility, time savings, audit readiness, seamless integration with existing tools, and customization tailored to Gett’s unique needs. 

The outcomes of implementing Malbek were remarkable. Gett experienced significant reductions in risk, optimized cost management, effortless audit compliance, and increased responsiveness to business needs. The return on investment (ROI) was evident in time savings, enhanced visibility, and improved contract management. The company now recommends understanding business flows, setting priorities, and choosing a flexible tool for successful implementation. 

SurveyMonkey 

SurveyMonkey faced a challenging issue – a lack of visibility in their procurement process. Jeanette Milano, Head of Procurement, described their issues with managing an increasing supplier agreement volume across a globally expanding organization. With no centralized repository, finding the status of a contract was like navigating a complex maze. SurveyMonkey sought a solution to eliminate inconsistencies and enhance their procurement process. 

Enter Malbek, a powerful ally in the form of a CLM solution. SurveyMonkey, guided by strategic decisions, implemented various features and processes to transform their procurement. They created standardized contract templates for different domains, developed a legal workflow with quick negotiations and stronger relationships, and established a clause library for pre-approved language without constant legal consultation. By standardizing processes, they reduced contract cycle times significantly. 

The integration of Malbek with Coupa brought contracts within reach, allowing seamless access to supplier and purchase requisition data. SurveyMonkey achieved true efficiency in contract management, enhancing collaboration between Legal and Procurement. With a centralized repository, they eliminated hidden contracts, gaining visibility into real-time status and approvals. Malbek’s scalability united the enterprise, with both Procurement and Legal Operations recognizing its power to meet unique business unit needs. The transformation extended beyond adopting a tool, emphasizing the development of new processes facilitated within Malbek. 

Helping Procurement Teams with CLM 

Enhanced Reporting and Analytics 

Time-saving Features 

Better Collaboration 

Summary 

In conclusion, the procurement landscape is continually evolving, with regulatory changes demanding adaptability and agility. Utilizing a robust CLM system is not just a best practice; it is a necessity in today’s dynamic business environment. The benefits of CLM extend beyond risk mitigation and compliance to include smoother contract lifecycles, cost savings, and improved overall efficiency. 

As demonstrated by various industries, CLM is the key to navigating the complex web of regulatory requirements. Organizations that leverage CLM effectively position themselves for success in the face of regulatory challenges, making CLM an indispensable tool in the modern procurement toolkit. The combination of automated compliance monitoring, customizable rules, and advanced analytics empowers procurement teams to not only keep up with regulatory changes but also proactively address them. 

In the relentless pursuit of operational excellence, organizations must recognize CLM as a strategic asset that contributes to their resilience and competitiveness. By investing in a comprehensive CLM solution, organizations can fortify their procurement processes, ensure regulatory compliance, and pave the way for sustained success in an ever-changing regulatory landscape.