ST. LOUIS — Schnuck Markets here is using a contract management system from Intesource, Phoenix, that it started rolling out at the end of last year.
The system gives the retailer a handle on thousands of contracts for consumer products, bags, trays, equipment, insurance, technology and other financial obligations — and a chance to discover cost-saving opportunities.
Among its contract management features, the system generates an email reminder to the appropriate executive that a contract is ending about 90 to 120 days before the termination point.
For example, the chain's IT department recently got a reminder that its corporate cell phone contract will be up for an automatic renewal at the end of the year; the department is now researching whether to allow the contract to renew, or explore other options.
"A contract we signed three years ago may have been great then, but we may not need it now," said John Scherer, director, procurement services for Schnucks. "But if we lose visibility to auto-renewals, we may get stuck paying for something we don’t need."