Contract Management is a process of maintaining contracts with customers, vendors, partners or employees. This process involves the negotiation of the terms and conditions and ensuring its compliance. It can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis. This in turn helps or results in maximizing financial and operational performance and minimizing the risk.
Vendors play a very important role in any kind of organization. The amount of time and money spent on maintaining a vendor will help in the firm’s future success by increasing the amount of satisfied customers reduces the cost and betters the quality. Although vendor/contract management have their stories of prior failed attempts by clients they are vastly different in range and scope, they are all remarkably common in one area – they all became overly complicated.
The – start simple and stay simple approach always works best for all the organizations:
All the above steps help any organization maintain a good and healthy relation with their vendor and also help in a successful vendor /contract management process thus resulting into the success of the organization.