What is Contract Management?
Managing contracts in a business environment is very important for growing businesses. Companies often make contracts with different parties, including vendors, customers, and other affiliated parties. It’s important to manage contracts to ensure compliance, and to document and agree on changes over time.
Contract management is a broad term that refers to the processes and procedures in place for managing contracts. Commercial contracts, such as purchase orders, sales invoices, and service contracts often have differing terms, so it’s important for both parties to abide by them.
Contract management focuses on the process of contract creation, execution, and analyzing contracts to view performance and identify points of improvement. Effective contract management can help businesses reduce costs over time and mitigate compliance risk.
Contract management is important for several reasons. Here are a few:
There are different activities that fall under the purview of contract management, such as:
SoftCo Contract Compliance is a fantastic solution that integrates tightly SoftCo Procure-to-Pay modules to manage requests, purchase, and control of contract-based spend. It offers a variety of detailed reports on surcharges, exceptions, and contract status.
It also offers a SÄHKE2 certified repository where all agreed contracts can be stored. User permissions can be granted so that only authorized individuals are able to view contracts.