Month: February 2016

Business gains from efficient contract management

For achieving success in contract management, an organization not only should employ qualified and experienced contract professionals but also adapt itself to use innovative technologies and latest available knowledge in the field. Nothing is useful until the top management realizes the importance of professional contact management as essential for the survival of the organization amidst tough competition. The industry is constantly furnished with technological advances and result full software packages, the management should utilize relevant technology to employ at the right time for best of advantage thereby achieving contract management success in the organization’s benefit in many areas, viz;

  • Competitive advantage in the field of its business over competitors,
  • Achieving success in business with substantial gains in customer development,
  • Increasing financial earnings,
  • Stakeholder satisfaction including supplier goodwill,
  • Avoiding disputes leading to waste of resources and stakeholder dissatisfaction,

Increasing customer base due to enhanced service quality and customer service.

Contract Closure. After the scope of the contract is completed, the contract is closed after completion of any obligations, disputes resolved and final payment is issued.

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Various Phases of Contract Management which need best practices for achieving competitive advantage

It is being felt by the industry that Contract Management is a vital function in an organization and falls into one of the strategic requirements of an organization for sustainability, business performance and competitive advantage. Efficient contract management processes in an organization saves substantial amounts of money as well as develop stakeholder confidence and prolonged business relationships.

In the context of contract management being an essential function for sustainability of an organization, it is high-time that an insight into best practices in contract management is realized and understood for the awareness of vast majority of those organizations and contract personnel who need upgrading their knowledge in the function.

The main phases of a successful contract management practice involves;

sourcing, 

pre-qualification,

procurement planning,

solicitation,

source selection,

contract administration,

monitoring and

contract closeout.   Concerned personnel should look into best practices in each of the above listed phases by bench marking or observing other efficient organizations for their own use.

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