Why is contract and supplier management important?
- Ensuring contractual commitments are fulfilled.
- Improving supplier performance and collaboration.
- Managing risks and dependencies.
- Maximising value throughout the contract lifecycle.
Performance, risk and collaboration
Contract and supplier management form the foundation for delivering value after agreements have been made. While sourcing and negotiation focus on setting terms, this area focuses on managing performance, collaboration and risk throughout the contract lifecycle.
Contract and supplier management includes all activities aimed at managing contracts and monitoring supplier performance. This ranges from tracking contractual obligations and KPIs to developing strategic supplier relationships, combining contract lifecycle management with supplier relationship management (SRM)
Applying contract and supplier management requires a structured approach in which contracts are actively managed throughout their lifecycle and supplier performance is continuously monitored and evaluated. By using clear KPIs and SLAs, conducting regular performance reviews and segmenting suppliers based on their strategic importance, organisations can gain insight into performance and risk. Combined with active collaboration and communication, this enables continuous improvement, innovation and the achievement of shared objectives.
Improve performance and collaboration with contract and supplier management from Nevi.
This theme is relevant for professionals responsible for supplier performance and contract execution, including: