Tuesday, 5 May 2015

Future Visions of Contract Lifecycle Management

Authored by  Junaid Khan 

Before moving forward I have some questions from all supply chain professional, have you ever felt a sense of frustration ever the pace of progress in your organization? Have you ever take any initiative to improve operational and cost performance. If the answers are yes then you need to focus your attentions on this article where we will understand the vision of eProcurement and its benefits. 

Every procurement event cannot accomplish without signing of final contract order between both buyer and seller. So contact management always played an important role for successful completion of any procurement event. Any procurement professional always involve into agreements and contracts with suppliers from different categories. A contract cant not be finalize without legal clauses, KPIs and statutes that deal with contract. Many Organizations are managing contracts in centralized and automated ways. Therefor now a days many organizations are using Contract Lifecycle Management system to finalize contracts on the basis of different criteria.

Even if contacts would be negotiated as well as possible, contract risks might always be included. Risks related to contracts should be controlled and limited. Important factor associated to agreement documents are risks to the paper documents. In case a company has only paper archive for its valuable agreements; fire, water damage or thefts may cause a serious and irreversible damage to the documents. With the help of contract management software, paper documents are scanned into picture format (PDF etc.) and documents are filed on a server. Server is located to a different location than where the paper contract archive is located. With these precaution steps company can assure, that if outside threat, electronic contract database and the scanned contracts could be restored immediately. These way business functions of the company are now in safe side.