Gross margin is revenue minus cost of goods sold (COGS), typically expressed as a percentage of revenue. It measures how much of every revenue dollar remains after producing what was sold, before operating expenses.
Where contract execution shapes gross margin
Rebate capture rate, threshold utilization, and pricing compliance directly affect COGS on the buy side and gross revenue on the sell side. Contract Performance Management is functionally a gross-margin lever.
The 3-7% opportunity
Research from World Commerce & Contracting and Deloitte suggests best-in-class contract management limits value leakage to 3-7%, while average organizations lose 19%. The gap is measurable and addressable through post-signature performance management.
