What is Contract Management?
Contract Management is the process of managing all types of supplier contracts, and associated purchases, to drive maximum value from every supplier contract. Purchase and delivery activity are automatically collected for analysis of supplier performance and buyer commitments, and contract dates and other criteria are continually monitored, alerting the appropriate people when reviews or actions are needed.
1
Purchasing professionals work hard to identify the best suppliers and negotiate ‘best value’ agreements.
2 Contracts ‘lock in’ those terms for use by the organisation. But those advantages are lost when contracts are not applied as purchases are made – perhaps because contracts are not available or apparent at the time of buying.