Contract lifecycle management

Are you being foxed by your suppliers?

Today’s organisations are increasingly more reliant on global, multi-tiered supply chains and, while they create a lot of opportunities and greater competitive advantage, it also contributes to a higher supply chain risk. Can Contract Lifecycle Management tools offer a solution?

Contract lifecycle management (CLM) has become increasingly more important businesses in order to track supplier and contractor agreements. According to the analyst group Gartner no company is immune to the complications of contract lifecycle management.

The complexity of the supply chain can restrict visibility and companies may not know if all of their suppliers have been checked and approved. However, having unvetted suppliers can potentially cause a number of high-risk issues, including damaged brand image and financial losses.

Supplier risks can take many different forms regardless of whether goods or services are supplied. Every business should make sure all of their suppliers have all the necessary certificates or accreditations required and that they meet the required work standards.

Keeping up to date with each suppliers’ certificates and their expiry dates can be difficult especially when businesses are dealing with dozens of suppliers and contractors.

New sentencing guidelines that came into effect in February 2016 have been introduced in order to establish a proportionate approach to sentencing for those individuals or businesses convicted of health and safety, food hygiene offences or corporate manslaughter. These guidelines have been designed to ensure that all businesses are maintaining standards at all times by assessing risk internally and externally. Legal compliance with legislations and ISO standards can easily be monitored in contract management software, providing users with alerts, audit trails and online copies of certification.

Contract lifecycle management systems are fast becoming a critical component in supplier management and risk avoidance, allowing businesses to keep up to date with contract renewals and complete visibility of supplier performance and compliance. It also allows the business to store all of their contracts electronically in one place, helping to identify all of the crucial suppliers and provides a clear visibility of what certificates the suppliers currently have, renewal dates, and accreditations.

Sorting all suppliers’ contract in a secure, manageable database, that is quick and easy to access, provides the visibility every business needs and should aim for.

Read the full article here: Procurious