You're managing a supply chain in Contract Management. What are the most important things to consider?

True. Without identifying or understanding our suppliers, we cannot perform contract management to the fullest. Understand what we are trying to reach for long term relationship vs one off deal only. All the expectations come from understanding the other party / the suppliers better.

Conducting a reference check for the past performance related to delivery of equipment or service, timelines like for instalation, after sales service and availability of maintnlenance team or replacement of equipment...

Having a reliable and pre-verified chain of suppliers is crucial. Every company should have a pre-verified and carefully selected supplier list based on criteria such as reliability, success in previous supplies, financial reliability as measured by available instruments, and any known ethical and legal problems. With a pre-selection of suppliers to negotiate with, contract management is better.

No matter how many times we talk about negotiation it will never be enough to cover how important negotiation is in daily life tasks generally and in contract management specifically. Getting what you want does not always mean winning, sometimes you go too aggressive in your negotiations and manage to win what you want but lose the supplier/client/second part. You should negotiate strategically keeping in mind future interests. Try to achieve what you want without being aggressive. Sometimes sacrificing some small losses can reflect beneficially by high future returns/winnings. Keep that in mind

Build partnerships with your contract manufacturers. Have a holistic view of the business and be fair to them. You can still make data based decisions that can be beneficial for both businesses without being too tough. I believe toughness in supply chain belongings to the past! Create a culture and environment, understating and consequences of product failure, delays, use and win win situations to both parties! You will always win

Negotiation should always be based on win-win approach. It is more collaborating to achieve mutual targets rather than squeezing the other party for own benefits.

Alignment of objectives of supply chain players must be reflected in the contract. Alignment in term of contract/s key deliverables and respective times and communication eg digitalization, type of technology/ software where current information could be shared and also confidentially. Another consideration is agreement of governing laws if the supply chain is global

KPI key items shall be drafted even before contract signing to get both parties on same expectations what to achieve by performing the contract.

Technical interference from specialists who can support on assessing the work being implemented is necessary. This action willl also help in straightening any deviation, and/or providing strong material for any after contract negotiations

Identify potential risks across the supply chain, such as supplier reliability, quality control, and delivery delays. Develop contingency plans to mitigate these risks and ensure business continuity. Conduct thorough due diligence when selecting suppliers, considering factors like financial stability and reputation. Implement clear contract terms and performance metrics to hold suppliers accountable and minimize contractual disputes. Regularly monitor and assess supply chain performance, addressing any emerging risks promptly. Collaborate closely with stakeholders to proactively identify and address potential challenges. By effectively managing risks, you can safeguard operations and optimize outcomes in contract management.

Adopting advanced procedures and tools can boost productivity, cut expenses, and provide businesses with?a competitive edge. Organizations can find new opportunities for process improvement, product creation, and strategic alliances inside the supply chain by creating an atmosphere that fosters innovation and cooperation. Organizations may fulfill changing client wants, adjust to shifting market conditions, and outperform rivals by embracing innovation. By offering cutting-edge features and capabilities that expedite supply chain procedures and foster stakeholder collaboration, platforms such as Revnue may foster innovation.

It's all about adding value to the process... whether that is contract management or other process. Innovation is always welcome as it introduces changes into current process and most of the time it will increase productivity in how both parties perform under the contract.

Long term relationship is important to establish if we want to pursue greatness together with other party. On some partnership, strategic alliance can also be used as tool to compete better with the other organization. By collaborating ideas better, the parties can deliver further than expected.

Effective supply chain contract management entails clear contract terms, proactive risk mitigation, strong supplier relationships, compliance with regulations, robust performance monitoring, technology integration, and flexibility to adapt to market changes. By addressing these aspects diligently, organizations can optimize operations and drive value across the supply chain.