Contract management in regards to procurement refers to the process of managing any and all contracts that have been drawn up as legal documents while forging working relationships with the likes of customers, partners and vendors.
Contract management consists of the negotiations of terms and conditions in addition to the documentation and agreement on any alterations to the contract by all parties concerned, making it a process of management, execution and analysis of the efficient management of business contracts.
What is procurement software?
Procurement software refers to a computer program or suite that assists organisations with automating purchasing materials and the maintenance of an inventory of goods. The software is able to help with the generation of purchase orders, the execution of online ordering processes, match invoices to the materials that have been received from vendors and ensure that all bills are paid electronically.
Visibility & tracking
Having increased visibility in regards to complex supply chains means that there will be much less disruption, lower costs and a greater degree of customer satisfaction. The use of procurement software is an excellent method of creating better visibility which in turn can empower a business to be able to identify and correct any weaknesses within their supply chain including order fulfilment issues and inventory shortfalls before they turn into serious problems.
Procurement software increases visibility by allowing the tracking of orders, purchases, the arrival of inventory and payments and having all of these factors featured in the same place, making them much more accessible and easy to keep an eye on to ensure that all of these facets are being handled in the correct manner and in a timely fashion.
The acceleration of process times and approvals
The higher efficiency that is created by the use of procurement software means that the time it takes for processing and for approvals to be given will also be accelerated rapidly.
Procurement software manages the whole process of procurement within the one place, which means that processing is streamlined and orders can be made and approved very quickly everything is handled in the same place.
The management of suppliers and procurement compliance management
Supplier management refers to the process that is in place to make sure that an organisation is receiving maximum value from the money that it is paying to its suppliers. As these supplies are vital for the smooth running of an organisation, it is crucial for both that organisation and its suppliers to engage in a professional and effective manner that ensures compliance on both sides and can identify and mitigate any risks, such as if a supplier fails to deliver on time.
Procurement software is able to automate all the ins and outs of supplier management as well as enacting procurement compliance management to ensure all protocols for the company spend share that is supposed to be controlled by procurement are adhered to.
The advantages of contract management in procurement software are just another reason why businesses should contract Vendor Panel to adopt their services immediately.