Under contract · one control signal

"How much of our spend actually uses a contract?"

Most CFOs ask it. Almost no one can answer cleanly — because the business raises the PO and the contract field gets left blank. It's one of the clearest signals of control, and one input to your Spend Control Score.

The problem

The contract register is in the system. The answer still isn't.

You can hold every contract in the ERP and still not know what share of spend sits under one — when the reference field is blank, spend and contract never join up. A data-entry and behaviour gap a system upgrade doesn't close.

The three buckets

Not binary. Three buckets you can stand behind.

More than one "on contract / off contract" number — every dollar in one of three buckets:

Where every dollar of spend sits
  • Using the contract — spend traced to a current contract.
  • Contract exists but not linked — a contract is in place, but spend wasn't tagged to it. A referencing fix, not a sourcing problem.
  • No contract on file — spend with no contract on record.

Illustrative — your first scorecard shows your own numbers.

One of several signals

Contract use is one dimension — the score tracks the rest too.

Contract use is one of the clearest control signals, but not the only one — buying process, supplier set-up and data quality all move the score. And the picture drifts: new unlinked POs every cycle. Organisations that stay in control rebuild this each period — from exports you already pull.

See how much of your spend is actually under control