5 Steps to Manage Contracts Efficiently –Step 2

Till now we discussed how a successful sourcing strategy can be toppled by ineffective contract management and in our endeavor to manage contracts efficiently, discussed the first step – Automating Contract Creation.

Today we move onto the next step in the series – COLLABORATION

To begin with let me cite a quote highlighting the significance of collaboration, 

“No one can whistle a symphony. It takes a whole orchestra to play it.” – H.E. Luccock, professor at Yale

A disconnect between procurement and legal team has always prevailed as their perspectives clash. For instance,if procurement wants flexible contracts to take advantage of market conditions, legal team would want contracts as standardized as possible. This inevitably affects the relationship procurement has with its suppliers. Technology can be leveraged to smoothen this disconnect.

Collaboration can be fostered by providing clause libraries and standard contract template. Standardizing contract templates ensure all the important clauses and terms & conditions are taken care of. To let procurement team leverage market conditions, customizable workflows can be permitted to insert the additional new clauses. To do so, there should be a common platform for negotiation provided to all the stakeholders involved in the contracting process. This can be done by,

  • Creating a standard work flow with set protocols and procedures
  • Defining hierarchies for approval process, and
  • Ensuring access to all necessary stakeholders during the contract authoring and amendment process

In the coming blog we will discuss the next important step in effective contract management.

For further reading, click on the download button below to access the white paper-5 Steps to Realizing Value from Contract Lifecycle Management

Download Whitepaper

 

Roshnee

Roshnee works with the content leadership team of Zycus. She regularly writes on procurement - trends and best practices, sometimes taking the off beat path to bring in a fresh perspective. She also drives the branding activities of her company. In her free time she enjoys hot cuppa coffee with the latest fiction book. She is an MBA in Marketing and a graduate in commerce.

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