The contract management process is the interaction between the vendor
and the purchaser that ensures that both parties meet their respective
obligations in any procurement relationship.
The aim is to meet the operational, functional and business objectives required by the contract and provide a profitable interaction.
The contract management process includes:
Procurement contractural relationships are fundamental to the the ability of a company to deliver their services and/or provide products to their customers. If deliveries are late the company may be unable to service their customers.
Poor quality products reflect upon the company and their customers may go eleswhere. Problems can be expensive to solve and impact directly upon the success and profits of the purchasing company.
A thorough understanding of the contract management process and all that it entails are crucial to the success of a company. The key activities within a contract management process are:
The contract management process can be difficult but the rewards emanating from a profitably managed contract management process are potentially huge.