Solutions for Retail contracts

The Retail industry has evolved rapidly in recent years, changing our practices and creating an expanding digital shopping experience. This phenomenon has intensified during the Covid-19 crisis: less frequent purchases, but in higher volumes and online purchases that are collected in the store became the norm. As a result, Retail has been under tremendous pressure to respond quickly to changing consumers.

Currently, companies in Retail compete in a very fluid market with tight margins. In order to be competitive, companies must have full visibility into supplier relationships and sales performance to reduce value leakage and optimize operations. The contract defines the competitiveness of the players in the Retail industry, since it allows governing relationships with suppliers, which will be key in the final results of an actor in this industry.

If left unaddressed, these challenges have the potential to lead to ineffective sales programs, purchasing budget leaks, and delayed responses to competitive pressures.

Challenges

In the retail industry, purchase contracts are very high in volume and critical to the business, and both direct and indirect acquisition contracts lack the visibility necessary to promote agile and informed negotiations, which also ensure good profit margins.

Collaboration with third parties to ensure compliance with their contractual commitments, such as reporting and claim initiation, is slow, resulting in a lack of agility in responding to market demands.

In the retail industry, suppliers, which are critical to the business, are managed in relation to budgets in financial and accounting management software (ERP). These resources are highly connected to contracts and the connection of ERP systems and those that manage contracts, will deliver key traceability for the business.