Procurementtips.com - Exchanging tips, tactics, information and views between Purchasing and Supply Management Professionals teblos

Go Back   Procurementtips.com - Exchanging tips, tactics, information and views between Purchasing and Supply Management Professionals > World-Class Procurement Processes > World Class Procurement Definitions
User Name
Password
Register Help Members List Calendar Search Top Posts Mark Forums Read

World Class Procurement Definitions A forum for defining key terms / definitions as it applies to World Class Procurement and Supply Chain Management

Reply
 
Thread Tools Search this Thread
  #1  
Old 08-18-2006, 08:36 PM
bernievn's Avatar
Administrator
 
Join Date: Sep 2005
South Africa
Posts: 116
bernievn has disabled reputation
Default Contract Management

Contract management is a strategic management discipline employed by both buyers and sellers whose objectives are to manage customer and supplier expectations and relationships, control risk and cost, and contribute to organizational profitability/success.

For successful service contract administration, the buyer needs to have a realistic degree of control over the supplier's performance. Crucial to success in this area is the timely availability of accurate data including the contractor's plan of performance and the contractor's actual progress.

Sources: D.W., & Burt, D.N. (1996). Purchasing and Supply Management. (6th ed.). New York: McGraw Hill.
__________________
Is profit made when you buy or when you sell?

Last edited by bernievn : 04-19-2007 at 09:38 AM.
Reply With Quote

-->
  #2  
Old 03-25-2007, 11:09 AM
Procurementtips Member
 
Join Date: Mar 2007
United Kingdom
Posts: 1
abadah is on a distinguished road
Default Re: Contract Management

The rpofit is made when you buy not when you sell. Because, you should assess the market price and predict your sale price before buying.
Reply With Quote
  #3  
Old 03-26-2007, 03:04 PM
Procurementtips Member
 
Join Date: Sep 2006
South Africa
Posts: 21
Gregg Barrett is on a distinguished road
Default Re: Contract Management

Good contract management increases the probability of successful transactions and projects.

Best practice contract management provides a strategic tool to oversee the quality and integrity of business operations – defining and testing the alignment of your business with that of your trading partners, driving sustainable innovation and change.

Best practice contract management has two constructs:

"Commitment Management" represents the organizational construct for corporate delivery - the governance framework for interactions

Lean Contracting provides the method and insights to achieve balance, through quality and innovation - the construction and management of business relationships

Within the "Commitment Management" construct there are 10 best practices that need to be employed:
1. Ownership and accountability for contracting process*
2. Terms and structure audit and update*
3. Integration with Product Lifecycle Management
4. Portfolio risk management
5. Value chain focus
6. An electronic contracting strategy
7. Self-help skills assessment and development tools
8. Strategically aligned measurements and reporting
9. Pro-active change management*
10. Differentiation and sources of value: awareness and marketing

Employing these 10 practices will allow an organisation to attain the 'Lean Model".

Source: International Association for Contract and Commercial Management | www.iaccm.com
Reply With Quote
  #4  
Old 04-19-2007, 08:37 AM
Procurementtips Member
 
Join Date: Sep 2006
South Africa
Posts: 9
mmququ is on a distinguished road
Default Re: Contract Management

My concern on this subject is the maintanance agreement.What should in it and what to look out for.Loopholes.
Reply With Quote
  #5  
Old 04-19-2007, 09:28 AM
bernievn's Avatar
Administrator
 
Join Date: Sep 2005
South Africa
Posts: 116
bernievn has disabled reputation
Default Re: Contract Management

Hi, here are three good articles that deal with Contract Management and specifically loopholes....


Finding a cure for "BAD" contracts and outsourcing deals?

Do’s and don’ts when developing Office Automation tenders

Printer, Fax and Photocopier Rentals: What clauses to look out for!
__________________
Is profit made when you buy or when you sell?
Reply With Quote
  #6  
Old 05-25-2007, 09:53 AM
Procurementtips Member
 
Join Date: Sep 2006
South Africa
Posts: 21
Gregg Barrett is on a distinguished road
Default Re: Contract Management

Hi Mzu.

Usually the best source of cost drivers comes from within…from the maintenance stakeholders who have all the past maintenance records. It is best to source the capital equipment at the same time the maintenance is sourced. The bidders can bid on the equipment, or the maintenance, or both. Failure to do so will probably lead to a cheap price on the equipment, but high prices on the services. Both the equipment agreement and the maintenance agreement templates usually come from the customer to ensure the total contracting coverage is integrated.

My experience is this equipment requirements need to be clearly defined with specifications to be sure of getting what is needed.

In terms of loopholes - the biggest concern here is when the maitenance agreement is poorly constructed in that it does not cover all the various facets (parituclarly cost drivers) concerning maintenance of the equipment over the course of its lifecycle. Failure to define and analyse these specifications usually will result in unforseen costs.

Of course drafting a wonderful maintenance agreement is one thing, it is then critical to manage according to the agreement, which is where many organisations then start to fall short.

Hopefully this helps.
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT +2. The time now is 03:04 PM.


Copyright ©2000-2015, ProcurementTips.com
Single Sign On provided by vBSSO

Content Relevant URLs by vBSEO 3.2.0 (Unregistered)