Customer Contract Compliance

Originally Published MX November/December 2003

ADVERTISING, DISTRIBUTION, & SALES

It is important to know whether customers are sticking to purchasing commitments, for bottom-line and other reasons.

Zack Rinat and Jamie Schein

A recent survey of medical device industry companies with annual revenues of $100 million or more revealed that the greatest challenge to executing a revenue strategy well was achieving customer contract compliance (see sidebar, page 55).¹ The survey focused on revenue execution business processes—the techniques by which companies realize revenues from completed sales. It found that medical device companies are leaving millions of dollars on the table each year as a result of failing to manage contract compliance closely.