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What is the value of contract management in procurement?

We support your organisation to build stronger, strategic partnerships with suppliers and other stakeholders in your supply chain to ensure your business interests are protected.

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What is contract management in procurement?

Contract management in procurement is an overlooked process that defines a business’ success when it comes to building strategic partnerships, avoiding legal trouble over contract technicalities, and ensuring that your business’ financial interests are protected at all times. 

Contract management in procurement creates the foundation of your interactions with your suppliers, vendors, and other external partners. 

At Kronos Group, we help you ensure that your contract management process is supporting your business goals and your continued success.

Best practices for contract management in procurement

When your business interacts with a vendor, partner, or any other part of your procurement process, you open up your company to more risks.

The best ways to mitigate these risks and boost procurement resilience and security are by ensuring that the necessary steps are taken at the contract stage of these partnerships.

Ensuring that the following elements are addressed will help you enjoy effective contract management in procurement.

Establish a system of continuous improvement for contract management: regularly review your processes and ensure that your goals are being met.

Digitalise and automate your contract management system for heightened transparency and efficiency.

Establish standard contract agreements that each of your procurement partnerships will need to adhere to.

Post-COVID-19, your relationship with suppliers will define the success of your procurement operations. Prepare for the future of the business world by optimising your contract management for procurement.

Streamline your contract management in procurement with insights from Kronos Group’s team of professionals.

Learn more about our procurement consulting expertise, resources, and services.

FAQ

How does contract management work and why is it so vital for businesses?

Contract management refers to managing all phases of the contract lifecycle, including initiation, negotiation, generation, approval, execution, and renewal/termination to improve organisational performance and the reduction of operational costs.

This discipline allows businesses to manage contract terms, transaction components, and reestablishments to ensure all contracts align with their operations and add value to the procurement process.

It also helps businesses build strategic relationships with vendors and suppliers and avoid legal action over contracts.

What are the procurement methods used in contract management?

  • Open tendering
  • Restricted tendering
  • Request for proposals
  • Two-stage tendering
  • Request for quotations
  • Single source
    • Contact the professionals at Kronos Group today to leverage our experienced, targeted, and future-focussed expertise for success when it comes to contract management in procurement.
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