Contract management has changed, and having a better contact management plan in place means that your procurement team will be able to better manage risk and deliver more value to your organisation.
Not only do modern contract management platforms drive greater visibility, they benefit buyers and suppliers in terms of compliance.
What is the purpose of a contract management plan?
Contract management plays a huge part in the procurement cycle. For the cycle to run efficiently, it is vital that a contract management plan is put in place.
Contract managers must be able to manage contracts and monitor performance easily to ensure their organisation and the suppliers that they are using are fulfilling their commercial and contractual commitments.
Many contract managers are moving towards eProcurement solutions as these can increase efficiency throughout the process and ensure compliance with relevant policies which are part of the procurement process.
What type of contract management software should your business use?
The contract management tools that you use should help your organisation to manage multiple suppliers at once. The main thing that many buyers find difficult is the ability to identify the top suppliers and negotiate the most advantageous contracts to their organisation at the same time.
For more efficient contract management, there are several elements that should be included within the software that you use:
Contract Register
This is an important contract management tool that will allow your organisation to manage and monitor performance, key activities, reporting of contracts, the call-off from framework agreements and spend analysis.
Contract Change Control
Make sure that your organisation is not a victim of supply disruption and non-compliance fines. Use software that allows value tracking of all contracts within your Contract Register.
Not only does this type of contract management tool help buyers to comply with PCR 2015 ‘Life-Cycle Costing’, it gives users full control over the cost and time implications for their contracts.
Contract Performance
Contract management is a continuous process; therefore, it should be easy for buyers to track and review their contracts at set intervals.
With so many contracts to oversee it can be difficult to manage and monitor each contract for each supplier/contractor. Using software that allows the user to attach KPIs makes it easier for the buyer to review.
Contract Performance is an integral part of what Delta eSourcing does, and that is why we include full export functionality with our software.
How can Delta help?
All the contract management tools mentioned above can be found in Delta eSourcing software.
Our organisation has helped to connect buyers and suppliers for over 30 years. We provide an end-to-end, EU-compliant, full eSourcing web-based service that allows buying organisations to manage tenders, suppliers and contracts in a single solution.
If you would like to improve your contract management plan, request a FREE demo today. Our contract management software can help your organisation reduce costs and make efficient savings.
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