Procurement Contract Management is the integral part which consists of change, risk, project management, demand changes and category management. The contract management plan assists in managing the contracts and monitoring the performance of the contracts and also helps in fulfilling the requirements of both the parties.
If the contracts are not managed properly, none of the above-mentioned process works as desired. Adequate knowledge of the operations and the performance of the contracts help in enhancing the contract outcomes.
Importance of procurement contract management
It is important as the effective contract management bears dividends for both the suppliers and the purchasers and ensures a well-managed trading agreement practically. Therefore, it is a necessary condition for a better performance from the procurement and the supplier’s perspective.
A good contract Management benefits in building right relationship with the suppliers and timely deliveries and also leads to long term efficient savings.