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Articles in category: Contract Management
Contract managers are the unsung heroes of the source-to-settle process. They create, process, and manage contracts across the procurement system to bind agreements between enterprise buyers and commodity suppliers. Without them (contracts and contract managers), buyers would need to take suppliers’ words and offers at face value and expose the enterprise to dangerous levels of financial, legal, and other forms of risk.(Read Full Article)
It is surprising how often contracts between companies are not signed or executed properly. Case law is full of examples of disputes occurring between organisations who are both working to an unsigned contract. These usually centre on ‘contract by performance’ issues, i.e. there was a contract sort of agreed but it was never actually signed. One company is claiming that its version of the contract is the correct one and the other is relying on a different version. This unfortunately can end up in the infamous ‘money for lawyers’ scenario.(Read Full Article)
Contracts are an age-old method to organise the framework for transactions between parties. Usually a contract is about the exchange of goods and services and the remuneration thereof. This contract is usually in writing, signed and acknowledge by the parties.(Read Full Article)
There is growing evidence that the form and design of a contract has substantial impact on the results achieved. The evidence ranges from studies on major projects, which often suffer from use of the wrong contract model, to more focused investigation of the behavioural impact of specific terms, such as the liability or indemnity provisions.(Read Full Article)
The upcoming contract management event – organised by Bespoke and the International Association of Contract and Commercial Management (IACCM) – promises to deliver international leading practice knowledge on contract management and supplier relationship management, with two experienced international speakers presenting at the event.(Read Full Article)
Do you negotiate in the same way at work as you do at home? Many of us often forget the tactics and strategies we employ in our personal lives when we get to the office. This was the view put forward by Susanna Mason, director general (commercial) at the Ministry of Defence, who spoke at a CIPS Fellows event in London last week on the topic of ‘Are women more effective at negotiation?’. Mason was cautious on whether women are more effective.(Read Full Article)
Not everyone has a knack for strong communication. We live in a technology-driven world where instant messages, emails, and text messages drive most of our conversations
Without contract lifecycle management (CLM) in the modern business world, numerous things can go wrong, including missed savings opportunities, heavy fines, costly litigation and broken relationships. Generally, CLM is the ability to ensure contractual obligations are met.(Read Full Article)
Welcome to the first article in a five-part series that will focus on how procurement, finance, and other professionals effectively build a “compliance management” checklist that addresses multiple avenues of spend management and the compliance ramifications behind strategic spend categories. The first four articles will highlight the dozen items that should be included in an [...](Read Full Article)
IASTA, a leading global provider of strategic sourcing and spend-management solutions, has entered into a partnership with Bespoke Sourcing Solutions, a South African-based procurement and supply chain management advisory and knowledge development provider.(Read Full Article)
During the last year, the approach to negotiation has visibly started to change, with a growing number of executives pushing a more collaborative or partnering approach to their supply relationships. This is beginning to edge out the tendency to practice negotiation as a zero sum game, with success for one party happening at the expense of the other.(Read Full Article)
The National Treasury is set to roll out electronic procurement in July this year as part of efforts to automate and streamline Government financial management processes and procedures.(Read Full Article)
“Negotiation has, for decades, been viewed as a zero-sum game, with the success for one party being at the expense of the other.”
Tim states in the article that the market trends are changing towards more collaborative and sustainable supplier relationships. Bottom line preassure, a shift in the purchase of direct materials and products moving towards a growing volume of services and solutions as well as the need for greater efficiency, speed and improved business judgment. Getting the lowest price although not ...(Read Full Article)
Contract lifecycle management looks so easy when you see the solution provider’s demo. Meanwhile back in the corporate jungle, your contracts are negotiated and executed on other companies’ paper, amended in emails, with final versions left sitting as hard copies in file cabinets, and then you probably have acquired a plethora of group companies with dubious contracting histories. Technically speaking, you should also be concerned with sell-side contracts. What is the risk exposure?(Read Full Article)
The majority of the businesses were based in Asia, with two in the Americas region, and one in EMEA.
“We work closely with our suppliers to help them improve their performance. However, where we face situations of severe or repeat non-compliance we can and do terminate business relationship with suppliers,” the report said. “In 2013, we terminated agreements with nine suppliers for compliance reasons."(Read Full Article)
Have your supplier relationships gone flat? Has the initial excitement fizzled out? 10 experts share their top tips to put the spark back into your partnerships.
Picture the scene: With the ink not yet dry on the contract, the enthusiastic purchaser and eager, hungry supplier get ready to celebrate the start of a burgeoning relationship. What could possibly go wrong? But leap forward a few years, and all is not well. Targets have been missed, innovation has stalled, and there’s an atmosphere of distrust between the two parties.
Sometimes, relationships with suppliers simply need freshening up, often as a ...(Read Full Article)
Managing expectations, focusing on outcomes, a proactive approach, and getting the key information from suppliers can help achieve better outcomes in contract management.
At the Procurex South conference in London yesterday, Paul Mallory, vice president of professional development at IACCM, the International Association for Contract and Commercial Management outlined his top tips.
• Expectation management. “We need realism in the process,” said Mallory. “No one wants to talk about the nasty stuff like what if something goes wrong, but you need to consider these things in order to put mechanisms in place.”(Read Full Article)
Procurement is not officially in charge of quality control in most manufacturing companies. Still, when a supplier - whether a contractor or a parts supplier - falls down on the job, that’s certainly something for procurement to address
In the last several months, there have been numerous reports in the media about problems with parts or workmanship on products ranging from aircraft to electronic components to public infrastructure.
Despite having formal procurement processes, some organizations have staff members who engage in maverick purchasing—circumventing standard procedures to procure items individually. According to APQC’s Open Standards Benchmarking in procurement, bottom-performing organizations have maverick purchasing worth 10 percent or more of their total annual procurement value. For top-performing organizations, maverick purchasing represents only 0.24 percent of their total annual procurement value.(Read Full Article)
In 89% of major corporations, contract and commercial management are gaining increased focus and importance as strategic enablers of the business. This was the topic that Rigard Geyser, Southern Africa Representative of The International Association for Contract & Commercial Management (IACCM), expanded on in his Keynote Address at the recent 3rd Annual Contract Management Seminar + Workshop 2013 held in Johannesburg.(Read Full Article)
An average of 30 to 35 per cent of a firm’s contracts are “not fit for purpose” because of a lack of correct goals and responsibility from the parties. That’s the finding from new joint research by the International Association for Contract & Commercial Management (IACCM) and the National Audit Office. The results were revealed at the Scottish Government’s ninth National Public Procurement Conference in Glasgow on Tuesday.
However, respondents to the survey were clear on what they wanted from a contract. They noted that it is very important for a contract to define “clear mutually understood objectives ...(Read Full Article)
Contract management sometimes gets short shrift in discussions of where procurement adds value. It’s assumed by many in an organization - including, unfortunately, some in the procurement function - that reducing to writing the results of a negotiation on pricing, terms, conditions, product or service delivery, and other details is enough, that once officially encapsulated in a formal contract document all details are settled and things will proceed from there smoothly.
In a 2012 survey of its members, the International Association for Contract & Commercial Management (IACCM) identified that the average cost of poor contracting is 9.2% of a firm’s annual revenue. For large, capital project industries such as oil and gas it is even higher – almost 15%.(Read Full Article)
-->What is success in contracting? To answer that question, we need to remember that not all relationships are alike, or of equal importance, and we should treat each in a way that is appropriate to its degree of criticality to our business and organisation.(Read Full Article)