Contract Management For Procurement In Franklin
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A: The role of a contract manager in procurement is to oversee and manage the contractual agreements between the organisation and its suppliers. They ensure compliance, mitigate risks and monitor the performance and fulfilment of contractual obligations.
It is also commonly referred to as Contract Lifecycle Management (CLM). Examples of contract lifecycle management processes include generating contract terms, redlining, approval of any modifications to the contract terms, and e-signature capabilities.
To recap, procurement is the process of acquiring the supplies you need to run your business operations. On the other hand, supply chain management encompasses how those supplies are transformed into finished products and delivered to the end-users.
Procurement acquires the resources your organization needs, while contract management builds and sustains a healthy and collaborative relationship with your supplier throughout the term of your contract.
A: The role of a contract manager in procurement is to oversee and manage the contractual agreements between the organisation and its suppliers. They ensure compliance, mitigate risks and monitor the performance and fulfilment of contractual obligations.
How to implement contract management activities Step 1: Transition activities, if any. Step 2: Review the draft contract management plan. Step 3: Review the contract's budget. Step 4: Resources to support contract management. Step 5: Finalise and implement the contract management plan.
However, these two critical departments may not always be on the same page due to their unique goals. While contract managers are concerned with making sure contracts are approved by their legal team, procurement specialists are more concerned with acquiring products/services efficiently.
The elements in a successful (and functional) procurement contract include: Full consideration of all sourcing processes. Robust and comprehensive negotiations. Detailed project management requirements. Precise definitions of key contract terms. Essential KPIs with specific contractual aspects included.
There are four types of procurement in supply chain management: direct procurement, indirect procurement, goods procurement, and services procurement.
With this context and background we will understand on leveraging 4Ds — The Depth, The Data, The Direction and The Design to establish a clear strategic intent behind the large scale contract freight procurement.
