Mismanaged Contracts Cost Businesses $153 Billion Annually, According to Aberdeen Group Research

BOSTON--()--July 27, 2004--

  Aberdeen Group's Center of Excellence Provides Free Contract Management Assessment and Strategy Advice  



Ineffective control and management of contracts costs businesses more than $153 billion per year. But, according to research conducted by Aberdeen Group, improvement of contracting operations can cut total supply costs by 7% and increase revenues by 2%, on average.

In order to demonstrate the clear link between contract operations and cost savings, Aberdeen Group has created "The Contract Management Center of Excellence," a free resource where enterprises can gauge their contract management opportunity by registering for a personal assessment of their contract management operations and performance.

Based on research stemming from Aberdeen's examination of contract management strategies, processes, and experiences at nearly 200 enterprises, the "The Contract Management Center of Excellence" provides G5000 enterprises with:

-- A personal benchmark of their contract management competency versus both industry peers and best-in-class performers

-- Quantification of the hard-dollar benefits and tradeoffs of improving contract management operations

-- Recommended actions for improvement.

"Ineffective contract management results in overcharges, performance glitches, missed savings opportunities, dissatisfied customers, and unprofitable and risky business relationships," said Tim Minahan, Aberdeen Group's senior vice president of supply chain research. "Our Value Assessment Tool allows enterprises assess their contract management competency, provides a clear case for action for action for improvement, and quantifies the potential benefits of making such improvements."

Aberdeen Group's Contract Management Center of Excellence also offers the following:

-- Strategies - a research library of actionable and proven strategies and tactics for improving contract management performance

-- Learning Module - a self-paced learning program reveals proven contract management practices and principles and includes guides for assessments and solution selection and deployment

-- Case Studies - real-world profiles of successful contract management strategies, systems implementation, and experiences

-- Benchmarks - frameworks and key performance indicators for contract management assessment

The Contract Management Center of Excellence is available at the following URL: http://www.aberdeen.com/cm-coe/default.htm

About Aberdeen Group

Founded in 1988, Aberdeen Group is the trusted advisor to the Global 5000 for value chain strategies and technology advice.

Contacts

Linden Alschuler & Kaplan, Inc. Public Relations
Hannah Arnold, 212-575-4545
harnold@lakpr.com

Contacts

Linden Alschuler & Kaplan, Inc. Public Relations
Hannah Arnold, 212-575-4545
harnold@lakpr.com