Buyers work hard negotiating terms on everything from actual price to return policies, to early payment discounts and a slew of other points as well.
Inevitably, those Buyers move to another position in the company or leave the company and their commodities are inherited by someone else who has no idea what is in the dozens of contracts for which he or she is suddenly responsible. Buyers always have good intentions of reading through contracts, but it never happens because all the day to day issues soon become overwhelming.
All the hard won points from the negotiating sessions are soon lost in a file somewhere and rightful savings amounts are lost along the way. (The same thing happens on the vendor's side as new account reps suddenly take over accounts.)
Before the auditors arrive and realize that purchase orders aren't made to the specifications in the contract or worse, the invoiced amounts don't match the contracted prices, Buyers need to devote time to contract compliance. It just may help boost their savings reports too.
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