What Is Contract Management System?
As business becomes more and more complex, so do the contracts agreed to between purchaser and provider. Contracts work to legally protect both parties, laying out responsibilities, duties and time frames agreed upon. When a purchaser is dealing with multiple suppliers, a means of managing these contracts systematically becomes imperative.
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Contract Management Systems
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Contract management systems are software applications that provide purchasing professionals with the means to automate the paperwork associated with multiple contracts. They may be used to produce initial contracts, store templates, track compliance with (and performance against) contracts and provide reminders for time sensitive contracts to be renewed.
Types of Contract Management Systems
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Contract management systems are available in various forms, from simple stand-alone web based applications to larger complex Enterprise Resource Planning (ERP) modules designed to slot into pre-existing business systems, according to the Local e-Gov website. Generally, the more customized, complex and integrated the system, the more costly it will be.
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Why use Contract Management Systems
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Contracts are becoming complex and time consuming to ensure legal compliance as the laws that govern businesses also become more complex. With each contract subject to different life cycles, clauses and rules, it is difficult to ensure that they are complied with and maintained correctly. Contract management systems allow a way to check timings and actions against a company's written contract. This can save time and money and free up purchasing professionals to broker more and better deals.
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References
- Photo Credit contract 20309 image by pablo from Fotolia.com
