Procurement’s Blind Spot: What Happens After the Contract?
Most Procurement teams obsess over negotiating the best deal. We benchmark, we pressure test, we push suppliers hard to land the best terms. And then? We move on.
According to a 2023 Deloitte survey, nearly 70% of procurement leaders admit that their teams spend far more time on sourcing than on managing supplier performance after contract signature. That gap is exactly where value leakage lives.
Because the truth is: there is zero point negotiating a great contract if no one follows through.
The Quiet Cost of Post-Signature Neglect
Once the ink is dry, most contracts get handed off or forgotten. Stakeholders assume someone else is “on it.” But without structure, things fall apart:
- SLAs are missed with no consequences.
- Governance meetings get cancelled or never scheduled.
- Stakeholders lose visibility.
- Suppliers start drifting back into old habits.
This isn’t just sloppy execution. It’s value left on the table.
McKinsey found that companies with mature supplier management practices see up to 30% fewer supplier-related risks and 45% more supplier-driven innovation. That doesn’t happen during contract drafting. It happens in what you do after.
What Strong Post-Contract Management Looks Like
If you’re leading vendor management post-signature, your job is to turn promises into performance. Here’s how:
1. Set Up a Governance Calendar (and Stick to It)
Create a structured cadence:
- Monthly operational reviews
- Quarterly business reviews (QBRs)
- Biannual strategic alignment sessions
Don’t just schedule them—make them count. Share agendas early, use scorecards, and capture actions.
2. Use Scorecards to Track What Matters
It’s not about tracking everything. It’s about tracking the right things:
- Operational KPIs (delivery time, incident response)
- Partnership metrics (communication, accountability)
- Innovation inputs (proposals, pilot ideas)
Visual dashboards work better than endless Excel sheets. Automate where you can.
3. Close the Feedback Loop
Most vendors want to improve. They just don’t get consistent, structured feedback. Make feedback part of your QBR rhythm:
- Share what’s working
- Be clear on what isn’t
- Agree on next steps
And yes, follow up.
4. Get Internal Alignment
Your contract can say one thing, but if internal teams aren’t aligned? It won’t stick.
- Make sure users know what the vendor is responsible for
- Assign vendor owners
- Log and escalate issues early
So… What Now?
If you’re in procurement, don’t let your hard work end with a handshake.
The real ROI comes from how you manage what happens next.
Be the person who protects the value—not just the one who negotiates it.
Because the contract is only the start of the story.
Celia Sgar is Resident Contributor at SRM Today. She is also Founder at IT VENDOR HUB LLC
