Contract Management Process

CONTRACT MANAGEMENT PROCESS Contract Management Process is an association between the supplier and the purchaser that assures that all the respective parties and various stakeholders involved in a contract fulfil their specific duties in any procurement/supply-chain relationship. The purpose is to improve the organizational, functional and business goals needed by the contract and to ensure a successful business relation.

The Contract Management Process includes: â–Ş

Managing Service Delivery: To check that goods are delivered as and when requested.

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Managing the Relationship: This is the interaction between the supplier and the purchaser.

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Managing the Contract: This is the continuous contract management to assure that the day-to-day business operations meet the intent and the terms of the contract.

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Improvements: Changes in the procurement environment mean higher cost savings and high profitability.

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Ongoing Assessment: All acquisition operations are reviewed regularly to monitor that the agreements are complied with and that the procurement process is followed.

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Managing Change: In a long-term procurement arrangement, there are often changes in the operations, specifications or goods available. Both of these developments need to be acknowledged and effectively addressed.

The Contract Management Process can be complicated, but the possible benefits from an effective contract management process are ultimately immense.

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