In Part 2 of this four part series, we explore how AI is rapidly transforming the workplace through low-cost add-ons that automate tasks and enhance software. These smaller purchases, often classified as “Tail Spend,” frequently bypass traditional risk reviews, exposing companies to hidden threats. Despite their affordability, these AI tools can access and process sensitive data, making them just as risky as high-value contracts. Since AI risk doesn’t align with spend, organizations must update their risk management processes and educate employees to ensure comprehensive AI governance.

In Part 1 of this four part series, we explore how AI is slipping into businesses through new purchases, renewals, and even midterm additions—often without proper oversight. AI is being sold as a quick fix—but the real risks are hiding in the fine print.

The first stop in our series on Supplier Governance is Risk Management. Learn about how a robust and proactive Risk Management effort has now become an absolutely mandatory requirement and a primary focus of any Supplier Governance Operating Model.

Goodbye Vendor Management, Hello Supplier Governance. This Series will introduce the four specific areas surrounding Supplier Governance and that must be addressed with your suppliers, (with a particular focus on those suppliers who are the most strategically and/or operationally important to your company’s success): Risk Management, Contract Management, Relationship Management, and Performance Management.

Vendors often introduce additional or special terms during the renewal phase. Typically, these include clauses stating that the renewal terms and conditions will be governed by the vendor's online terms and conditions, effectively superseding any prior agreements between you and the vendor. This seemingly minor change can have far-reaching consequences. Find out what those consequences could be, and how to avoid them.

How about that annual health physical that has long since passed the definition of “annual”? Just as our personal health is an important element to not put off – a health check on our software licenses is worth bringing to the forefront before we head into year-end budgeting and software renewals.

With an effective contract management system, your company can realize significant improvements in efficiency, accuracy, and profitability of contracting processes. The increased visibility and streamlined workflows can empower teams to make data-driven decisions that enhance both customer and vendor relationships.

We take a look at what it means to employ a Best Practices in renewals. But first, it makes sense to talk a bit about what it looks like when organizations do NOT employ best practices in their renewals.

We will look at a situation where a vendor imposed an unreasonable renewal price increase, but, in this case, the tide of the battle was turned by a somewhat unexpected (and very old) participant.

How do we do this? By turning our attention inward to existing contract obligations by focusing on committed spend, especially when minimum commitments are involved, and on renewals.

Have you ever had your budget blown up by an unexpected price increase imposed on a “routine” renewal?