What is contract management? A simple question with a simple and a complex answer. Simply put contract management is the administration of contracts between a company and its vendors.
What is Contract Management – 7 Fundamental Criteria.
To really understand contract management and administration, get the "Quick Guide to Contract Management & Administration" by entering your contact details on the right. It will tell you the process from starting to the end.
What is contract management - why manage a contract?
The answer to this question is that contracts need to be methodically managed in order to ensure that financial and operational risk is minimized and vendor performance maximized.
What is contract management – 3 Distinct Areas of Vendor Relations:
You need to look at three distinct areas of vendor relationship:
What is contract management - how do you manage the contract?
Once the contract is fairly negotiated and signed by both companies you need to set up a number of Service Level Agreements that measure service performance and let the vendor know what is expected of them.
Most procurement software programs allow you to manage the financial aspects and relationship management. Contract management can be managed by your legal team when problems arise or performance dips.
So what is contract management after all?
The answer is - a suite of management activities that ensure your vendor relationships are efficient and profitable.