SAP Contract Management
SAP Spend Management: Contract Management
Contract management is the process of managing partner agreements, from creation to execution, between the relevant parties. Contracts are legal documents that outline the terms and conditions mutually agreed upon for exchange of goods or services. Contracts are an important way of building long-term collaborative relationships resulting in valuable business synergies.
Contract Management is important to identify needs, implement a strategy, and then analyze the objectives. This allows for control of spending and helps organizations monitor financial transactions and impact.
4 Common Types of Contracts are:
- Lump sum
- Unit price contract
- Cost plus
- Time and materials
Five Stages of contract management are creating a first draft, negotiation of financial and legal terms, award signatures, execution, and close out and renewal. A strategic discipline is needed to manage ongoing expectations and relationships. Standardizing processes in contract management can help organizations find savings, discover new sources of supply, and mitigate risks.
SAP Spend Management: Contract Management
Contract management is the process of managing partner agreements, from creation to execution, between the relevant parties. Contracts are legal documents that outline the terms and conditions mutually agreed upon for exchange of goods or services. Contracts are an important way of building long-term collaborative relationships resulting in valuable business synergies.
Contract Management is important to identify needs, implement a strategy, and then analyze the objectives. This allows for control of spending and helps organizations monitor financial transactions and impact.
4 Common Types of Contracts are:
- Lump sum
- Unit price contract
- Cost plus
- Time and materials
Five Stages of contract management are creating a first draft, negotiation of financial and legal terms, award signatures, execution, and close out and renewal. A strategic discipline is needed to manage ongoing expectations and relationships. Standardizing processes in contract management can help organizations find savings, discover new sources of supply, and mitigate risks.
Key capabilities include:
- Indirect materials sourcing: Sourcing, process workflows, category management, integrated contract management, and integrated supplier management.
- Direct materials sourcing: Project management tools, materials dashboard, product lifecycle management, bill of materials, integrated contract, and integrated supplier management.
- Product sourcing: Automated project initiation, sourcing project management, automated negotiation processes, material masters, and supplier management collaboration.
- Contract management: Collaborative negotiations, centralized repository, process workflows, search and reporting, and electronic signature management.
- Spend analysis: Commodity classifications, supplier data, machine learning, analysis and reporting, and integrated services.
- Supplier discovery: Diverse suppliers for any need, supplier information, centralized access, facilitated collaboration, and access to supplier diversity.
- Free sourcing software: Two user licenses, RFx publishing, rapid communications, dashboard reporting, and broad stream collaboration.
Some vendor partners that offer contract management include Dassian, DocuSign, Icertis, and SAP.
Key Considerations for SAPinsiders:
- Contract Lifecycle Management: Comparing Ariba and SAP: Mitigate financial risk that might arise due to noncompliant
- The Case for Contract Management: Why You Should Get Started Today: Discover best practices to outsource with success via contract-management.
- SAP CRM Intellectual Property Management: Effectively Manage Intellectual Property Sales with License Contracts: Read the article to learn more about license sales contracts used to sell intellectual property rights.
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