Your procurement team is struggling with contract management. How can you help them?

Based on my experience, below are some of the points to consider: - Uncover pain points: Overloaded team? Manual tasks? Visibility issues? - Identify root causes: Outdated tools? Unclear processes? Siloed departments? - Quantify the impact: Missed deadlines, compliance errors, lost opportunities = Money - Embrace technology: Invest in a centralized contract system. - Automate tasks: Approvals, reminders, reporting to free up your team. - Standardize processes: Roles, responsibilities, workflows from cradle to grave.

To overcome the scenario of procurement issues, periodic Audits of contract will be very helpful. Not limited to this, the control department has to get proper insights from the planning department, regarding critical paths and current bottlenecks. This will help pen down the issues related with the resources, suppliers and subcontractors. Moreover the procurement department can resolve the issue related with the contracts by forecasting the requirements from the suppliers and subcontractors.

Set a standard process for all relevant parties to follow and understand. Support external departments and customers by training them about the process, so realistic timelines can be established.

In my experience I found that having weekly checkpoints with a manager always helps. 1 - helps employee to give an overview of their contracts 2- issues they are facing managing their contracts I have also learned the buddy system may be a helpful tactic. Having someone assigned to review your anything before you submit it for approval. If you’re swamped your buddy is able to assist with the contract to make any changes, put the contract in place , etc

It's important to streamline your contract processes and eliminate bottlenecks either during tendering processes, contract approvals or contract management phases.

To empower your team, it is important to let them contribute in enhancing the current processes and let them be a part of it, e.g. when implementing a new contract management software, ask one or two of your team members to be an SME so they can test the software thoroughly and apply the current protocols, or maybe optimize them.

In my experience, a well run contract management system can be worth its weight in gold, especially when there is buy-in from stakeholders across different business sectors who rely on legal & procurement teams for contract execution. Systems such as Ironclad allow a stakeholder to submit an agreement & give all pertinent details about a contract, eliminating the need for a preliminary meeting or series of back & forth emails. As an attorney, I can jump right into reviewing the contract & circle back as needed with specific, targeted questions. It also allows relevant parties to know exactly where things stand in the review & approval process.

Obtaining signatures on contracts from Contractors and Company officers has always been difficult. If electronic signature is approved by Company legal team then the use of DocuSign is essential since it reduces the burden and time contracts analysts use to print, hand-carry and have contractors also sign and return hard copies

Adopting a Contract management software, is like hitting the target at the right place. Due to such software each stake holder in the contract management will get well educated regarding the usage of technology and different aspects of contract. This will reduce human errors, along with the right solution by minimizing the time duration required for the forthcoming critical issues.

Define your ZOPA Assess your Batna and Watna Use tipping off your hand approach and power of leverage Never fall for the bait of Discounts or pre payment with new suppliers Your Should Cost is the foundation of negotiation, and understand TCO and TCA JVs are much better than mergers and acquisitions,stay in touch with tier 2 suppliers to negotiate the best deal with tier 1 suppliers

Training, templates & checklists can all be extremely valuable tools. Establishing standards allows the negotiating party to know the boundaries where they can work in & also know when they may need to move up the chain for approval of a nonstandard clause or provision.

Train the internal stake holders in procurement will be a great milestone in reducing the issues related to the Contracts. *Training related to the different critical aspects of contracts. *Training related to how to make feedback systems in Contracts management. * Training related to maintaining the relationship with the Suppliers and Subcontractors. Along with these many more things plays a vital role in reducing issues related to Contracts in Procurement team.

Establishment of clear roles and responsibilities is a key perspective in making the successful deliverables of contracts. By doing this we can elaborate on different responsibilities of different internal clients and stakeholders. Along with this giving Authority in the decision making will also boost the morale of the team members.

I think this is key point to manage the contract within the procurement team. Assume that a person must handle all steps of contract management, he/she may make mistakes, even serious mistakes. However, R&R (Role and Responsibility) of each team member may help avoid such things.

Procurement Heads seldom delegate effective powers to team when it comes to HNW contracts One can easily delegate power by using data from RACI Matrix from previous contract experience if not one can implement it to avoid in the future for effectiveness and efficiency and defining of roles and responsibilities with accountability There are times when your tail and maverick spend can deplete renewals or continuation of contracts Always remember the difference and thumb rule between FTE and Headcount, not all people will be delegated directly, constant check mechanism is need of the hour for alignment with company objective and mainly for compliance

First, one should train and empower the team. Second, establishing the clear roles and responsibilities, will help the team to succeed, in any situation.

From my experience, Procurement Team tends to struggle with timelines around the procurement stages. By helping them to understand the timelines, building in contingencies with regular reviews, slippages and maintaining up-to-date risk register will help them. Internal governance is another area that can affect the Procurement Team, especially when they cannot progress without required authorisation and approvals at various levels. So, helping them to ensure that internal governance is spelt out from the onset will help them to be organised and able to avoid those frustrations. Finally, helping them to be updated around the ever-changing rules and regulations. This can be done through regular workshops and webinars.

What I have found successful in my role is setting quarterly meetings with my vendors. Where we review and assess overall yearly goals and quarterly updates. We negotiate incentives, price breaks, and tier rewards depending on our progress for the year on our quarterly and yearly progress.

Laws are ever evolving, especially in areas like data privacy. An agreement that is only a few years old can become outdated quickly leaving you open to potential liabilities that weren’t even on the radar previously.

One thing I found very helpful was to have an assigned Contracts Analyst to selected departments (Internal Clients) to provide direct support with contract activities as follows 1 - Schedule reoccurring monthly meetings with the department Manager or Assignee 2 - During meetings discuss strategies for all contract activities This initiative enabled both the contracts team and departments to have sufficient time and tools to manage and execute contracts thus avoiding any out-of-contract work or payments

Evolution theory of Procurement contract management cycle "Change is the only constant in life. Adaptability, Agility and Resilience require constant upgradation and evolvement for survival of company in this Geopolitical Global Village " Learnt this lesson the hard way, promise of yesterday has no value in the future because conditions differs especially after automation and AI. Always keep space for amendments to decrease your lead times, increase your fill rates and order cycle and believe in JIT and JIC scenario and think critically, and never be pennywise pounds foolish. If you don't understand, have a day sitting with your demand planner who will tell you forecasts, volatility, velocity, visibility and variability in supply chain

When negotiating contracts or agreements it is important to ensure proper cross functional collaboration. Different clauses require guidelines and decisions from across the organisation and from client contracts. Effective processes, sufficient capacity and understanding of the strategic issues by all the involved parties is crucial to negotiate clauses that are both relevant and practically applicable.

Establish a comprehensive contract management procedure, beginning with tenders, tracking contract wins and losses, handling requisitions, conducting contract negotiations, and utilizing templates for agreements with subcontractors. Develop and maintain a structured database to store all executed contracts efficiently.

Standardize processes: Create standardized templates and procedures for contract creation, negotiation, and management Implement a contract management system: Utilize a dedicated software system to centralize contract data, automate workflows, and provide visibility into contract Train staff: Provide training to employees involved in the contract management process to ensure they understand best practices and compliance Monitor contract performance: Establish key performance indicators (KPIs) and regularly monitor contract performance to identify areas for improvement Conduct regular audits: Regularly review and audit contracts to identify potential risks, compliance issues, or opportunities for cost savings or revenue generation.

It is always better to have approved vendors and list made available with your team. Only throughly audited and firms abiding by all the required rules and regulations and standards are selected and included in this list with a yearly review policy. This procedure ensures hassle free desk for your team and smooth function of your department and interdepartmental functions …