In procurement, the very first goal to achieve is to land a procurement contract.
There are many steps and strategies to achieve this goal. Ultimately, the beginning of the actual procurement process is when two sides (the buyer and the seller) sit down, talk and agree to the contents of the contract that will bind the two parties for a project. Without the contract, there is no assurance and safety net for each side while performing the project.
In case of two parties, both may apply contract management systems of their own. In the case of government procurement, it has its own government contract management that stores and manages all contracts given to all vendors. This system exists in the three levels and forms of government procurements – federal, state and local. As contracts are necessities in the over-all procurement activity, the government as a buyer cannot lose or misplace a contract. A contract in itself has value in its legalese languages and coordination agreement. The same can be applied to a vendor or enterprise which handles a lot of procurement contracts in public, private or even in both areas of procurements.
As said, the government has its own contract management system. As currently the largest seller and consumer of services and products in the world, the US government has to be mindful of its procurement contracts. In addition to the level of security involved, a lot of money (taxpayer’s money) is spent in these projects. A lost government contract will result in public outcry.
Unlike the government, private businesses or vendors can choose to adopt a contract management system for their own use. Some private contract management systems are available for purchase and sometimes, can be programmed based on the business’s needs. There are a lot of choices in products/services that a business can pick as the best contract management software that meets and manages their requirements.
When Tech Meets Contract Management
Today’s business process and practices are largely affected by technology. The world of business has been always keen in innovation and technology has delivered and provided solutions that many businesses enjoy.
In terms of contract management, content management programs are created to handle or help with the tasks of a company’s documentation or records department. This means that a program can be fully utilized in the whole management process. The software can create document automation, easier access and better integration with customers, partners and employees. The department and its personnel are also heavily involved in making the contract, which includes negotiating terms and conditions and enforcing compliance on the said conditions and stipulations. Any changes in the contract/s during the project implementation are also part of their tasks. From beginning to end, managing the contract is a priority.
Aside from document or contract management per se, some contract management software offer a bit more benefits. It is expected that when a contract management system or program is used by a company, the company should benefit in forming more profitable deals, getting revenue quickly, quickly assess the value of a contract for that company, ensuring compliance and shunning penalties and sanction as stipulated in the contract.
The importance of contracts and contract management emphasize that a company should employ a tool in form of software. Most of the programs in the market are online contract management programs. An online contract management software is a web-based management system or database. All important information is stored online and data manipulation is done using a computer with an online connection. Similar software is available for inventory management, supply chain management and construction management.
For businesses who are interested in seeing a list of choices for contract management software, here’s our list:
1. Contracker (PBroker AG)
This software is perfect for independent companies in any industries. It is software to go for if your company wants to have a program configured or customized for your contracts.
2. Contract Director (SciQuest)
If your company is gearing toward revenue maximization and cost savings, Contract Director is the best suited contract management program
3. Contract Manager (i-Scio)
As the name implies, Contract Manager promises to deliver a product for your contract management needs. A lot of small- to medium-sized businesses can use their program if their goal is to make gains in efficiencies without ruining the company’s budget. The company brands itself as an efficient company with expert implementors. Contract Manager can also be reconfigured with the help of its implementors, giving your company the power to make the program efficient for your own goals.
4. GettingContractsDone (GettingLegalDone)
GettingContractsDone purports itself as a simple and affordable contract management software. This program is an online-based program designed for the company’s in-house contract management group and legal department. GettingContractsDone promises simplicity, efficiency and affordability as it was created following the rules and regulation of the Association of Corporate Counsel (ACC). This program promises to streamline the process of contracting, with additional benefits of getting auto alerts form MS Word and Outlook.
5. Zycus (iContract)
If your business leans more to the financial side of contracts – generating negotiated savings and getting the highest value from your contracts, Zycus is the best program for the job. Zycus also enables you to monitor in real time and track the compliance of your contracts through its lifecycle.
6. VendorInsight (Cost Management Performance Group)
If your business is wary of risks, let VendorInsight help you flag these risks. Aside from flagging potential problems in your contracts, Vendor Insight also gives you summary reports, drill-down reporting of your contracts, and viewing each contract with a thumbnail picture in a centralized database.
With these programs, you can take your contract management up a notch. Use the current technology to lessen the burden of workload, not only on you but to your people handling the most important papers in your procurement activity. Using computer and cloud technology, you can juggle every contract you take in procurement and keep in track with your procurement progress.
