CCM Challenges & Opportunities: Moving Beyond Competitive Tenders
The Problem: A Pressured Environment with Changing Dynamics
Today’s contract and commercial management (CCM) teams face unprecedented pressure to deliver contracts faster and more competitively. Business stakeholders, frustrated by growing complexity, often demand rapid results that push traditional processes to their limits.
In talking with WorldCC members, a number of pressing issues and potential break-through solutions have emerged. I’ll be writing about each of them – and first on the list is that sacred cow of competitive bidding.
In many industries, marketplace dynamics have shifted significantly. Suppliers and contractors now operate in a heated market, with greater choice in customers and opportunities. Fears around supply security along with supplier consolidation have in turn reduced the number of potential suppliers. Many are turning down competitive tenders altogether, preferring direct negotiations or more collaborative engagements.
This dual challenge—meeting internal demands for speed while operating in a constrained supplier environment—requires CCM professionals on both sides of the fence to rethink their approach. The reliance on traditional competitive tendering to ensure value is proving increasingly ineffective.
Why This Problem Is Hard to Fix
- Competitive Tenders Are Losing Effectiveness
Competitive bidding has long been the go-to method for ensuring price competitiveness. Yet, when suppliers have greater options, tenders become less attractive, and participation rates drop. As a result, buyers struggle to create competitive tension in sourcing decisions. - Speed vs. Rigor
The demand for faster contract turnaround often leads to shortcuts in review, due diligence, and contract design. This can result in poorly structured agreements that expose the business to risk or fail to deliver long-term value. However, this demands fresh approaches – streamlined process, new thinking about risk management, simpler forms of contract. - Skills Gaps in Negotiation
The shift from competitive bidding to collaborative single-source negotiations demands a new set of skills. Traditional “win-win” negotiation approaches may fall short in fostering the deeper partnerships required to meet shared objectives. - Limited Tools to Support the Shift
Current tools and processes are built around competitive bidding models. Transitioning to a collaborative, single-sourcing environment requires rethinking how contracts are designed, negotiated, and managed.
Accelerating Change and Delivering Value
AI will play a role in enabling CCM teams to transition from outdated processes to faster, smarter, and more collaborative approaches, but that’s not immediate and is not the entire solution. Here are things we must think about changing:
- Speeding Up Contract Creation
Challenging the need for repetitive tasks like drafting, reviewing, and approving contracts, significantly reducing turnaround times. Tools equipped with natural language processing can adapt templates to specific scenarios, ensuring accuracy while maintaining speed, but we also need to simplify contract wording and structure, and question our risk positions. - Market Intelligence and Benchmarking
We must be more creative in gathering market data to provide real-time insights on pricing, supplier performance, and industry trends. This supports informed decision-making, even in single-source negotiations, by creating data-driven leverage. - Scenario Modeling for Negotiations
Advanced tools can simulate various negotiation scenarios, helping teams identify the best strategies for achieving mutually beneficial outcomes. This enables negotiators to focus on value creation rather than positional bargaining. - Predictive Analytics for Risk Management
We must work on how we assess and manage risks associated with single sourcing, such as supplier dependency or market fluctuations, and suggest appropriate strategies. This ensures that speed does not come at the cost of effective governance or due diligence; it creates a triage of contract, governance and relationship management. - Continuous Improvement and Performance Monitoring
Technology can help us track supplier performance against contract terms, flagging potential issues early and identifying areas for improvement. This fosters long-term relationships while ensuring ongoing competitiveness.
The Opportunity: Embracing Collaborative, Data-Driven Practices
As competitive tenders become less reliable, CCM professionals must adapt. Collaboration, transparency, and innovation will define the next era of contracting. Negotiation skills must evolve from transactional tactics to building partnerships that align goals and create shared value.
AI will steadily become a critical enabler in this transformation, allowing teams to:
- Work smarter, not harder.
- Deliver contracts at the speed the business demands.
- Maintain rigor and competitiveness even in constrained supply markets.
Shaping the Future of CCM
2025 will be a pivotal year for contract and commercial management. The challenge lies in balancing speed with quality, innovation with rigor, and partnership with competitiveness. By embracing collaborative single sourcing and leveraging AI-driven solutions, CCM teams can not only meet these demands but turn them into a strategic advantage.
The future isn’t about doing things faster—it’s about doing them smarter. Are we ready to make the leap?
Commitment Matters 