Procurement's Growing Control Exposes $15B+ in Missed Contractual Value
Event summary
- 82% of procurement teams now fully own or lead supplier contract lifecycle, up from 19% two years ago
- 52% of enterprises missed contractual remedies in past year due to tracking failures
- Procurement leaders estimate at least 15% of supplier spend flows off-contract
- 81% of organizations experience invoice-contract price discrepancies at least occasionally
- 82% of procurement teams are evaluating or implementing procurement orchestration tools
The big picture
This research reveals a significant power shift in enterprise contracting, with procurement teams assuming greater control from legal departments. The findings highlight a critical execution gap where negotiated contract value often fails to materialize due to systemic disconnects between contracting and procurement systems. As procurement teams take ownership of more contracts, the ability to track and trigger contractual remedies becomes increasingly important for protecting enterprise value. The $15B+ in missed contractual value represents a significant opportunity for technology providers like Agiloft to address this execution gap.
What we're watching
- Execution Quality
- How procurement teams will address the 52% failure rate in collecting contractual remedies through better tracking and automation
- System Integration
- The pace at which organizations will connect contract data with procurement execution systems to reduce off-contract spend
- AI Adoption
- Whether Agiloft's AI-driven approach to CLM will gain traction as procurement teams seek to close the gap between negotiated and realized value