How do you track vendor agreements?

1 Create a central repository

Creating a central repository is the first step to track vendor agreements, whether it be a physical or digital location like a filing cabinet, shared drive, or cloud-based platform. The advantages of having a central repository are that you can organize contracts by category, vendor, date, or status; search and retrieve contracts quickly; share and collaborate with relevant stakeholders; monitor and update contracts as needed; and archive and delete expired or terminated contracts.

2 Establish a tracking system

The second step to track vendor agreements is to establish a tracking system that allows you to keep track of the key information and milestones of each contract. This could be a spreadsheet, a database, or a software tool that helps you record the essential details of each contract (e.g., vendor name, contact information, contract number, start and end date, value, and renewal options). Additionally, it allows you to track the progress and performance of each contract (e.g., deliverables, quality standards, payment schedules, and feedback) as well as identify and manage the risks and issues (e.g., delays, disputes, breaches, and changes). Finally, it can be used to set and receive alerts and reminders for important events and deadlines (e.g., contract reviews, renewals, terminations, and audits).

3 Implement a reporting process

The third step to track vendor agreements is to implement a reporting process that enables you to measure and evaluate the results and outcomes of each contract. This regular or ad hoc activity should involve collecting and analyzing data and metrics from various sources, such as invoices, reports, surveys, and audits. It's important to compare the actual performance and value of each contract against the expected goals and standards. Additionally, you should identify and report the strengths and weaknesses of each contract, as well as any opportunities or threats for improvement or optimization. Finally, you should communicate and discuss your findings and recommendations with relevant stakeholders, such as vendors, managers, and executives.

4 Review and renegotiate contracts

The fourth step to track vendor agreements is to review and renegotiate contracts periodically or when needed. This can be a proactive or reactive action to assess the current and future needs and expectations of your organization and your vendors, explore and propose new or revised terms and conditions, negotiate the best possible deal that balances the benefits and costs for both parties, and document and execute the new or amended contract with the proper signatures and approvals.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?