Good contract management is essential to any supply chain.
Organizations need to know:
- Are their suppliers or vendors adhering to the Contracts and Service Level Agreements that they signed?
- What are the nature of the costs accrued against the benefits realized?
- Overall, what is the spend per vendor and per product or service?
And finally, can they identify poor performing suppliers and either exit them from the supply base or, better yet, help them to improve?
A robust Contract Management System will allow an organization to increase the visibility and control of its contracts, resulting in a measure of the effectiveness of those contracts. It will allow the organization to establish better contractual terms with its supply base and to negotiate with them from a position of strength.
The additional information gathered on suppliers’ performance will encourage those suppliers to improve performance reward suppliers that are already doing well. Consolidation of the supply base can also be achieved.
A strong Contract Management Systems can reduce risk and liability, while improving profitability.
Angela Thurman has over twenty (20) years of experience in Contract Management, both in large industries and for small businesses, and has realized these same results for some of the United States’ leading companies in aerospace and telecommunications. Thurman Co., LLC is prepared to help your organization today with tools to assist you with:
- Contract review and risk assessment
- Contract lifecycle management