How can we manage our procurement contracts more efficiently?
Any organisation which has a procurement department will be fairly large in order to have a dedicated team responsible for all purchasing. This means that there will also be large volumes of supplier contracts to manage, including keeping track of all renewal dates to ensure that they are not missed.
If the contracts are paper based, managing them can prove to be problematic. Missing renewal dates can cost a company dearly as it is so important to have time to re-negotiate and secure better rates.
The most efficient and cost effective way to manage procurement contracts is to use an automated electronic contracts management system. All the stages involved in the procurement process are automated and therefore strictly controlled to ensure that no compliance or legal loopholes are overlooked. All the traditional paperwork is stored electronically and can be viewed on screen. All incoming post can be scanned into the system and documents created in house can be stored directly into the system without having to print and scan. One of the greatest benefits, however, of using contracts management software is that there are automated email alerts for contract renewal dates, ensuring that there is always sufficient time to review a contract and re-negotiate if necessary before the renewal is due.