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Contract Mangement

Before beginning your "assessment", let's outline the scope of what is being covered in this area. For the purposes of this exercise, we are defining the contract management process as follows:
The process of storing supplier contracts, utilising contract terms on orders, making payments against contracts, monitoring supplier compliance, and recognising when to renew or re-negotiate contracts.

Business process:
  • Registration and storage of contracts.
  • Making the existence of contracts known to purchasers, so orders are placed against them using the agreed pricing and terms.
  • For contracts with a payment schedule not related to purchase orders or call-offs: scheduling and execution of payments (e.g. progress payments).
  • Planning and execution of contract reviews and supplier compliance checks.
  • Recognition of pending contract expiration with decision to renew, re-negotiate, or cancel.
  • Search and analysis of contracts as part of the spend analysis process.
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