Feb 11, 2021

What Is Contract Management?

What Is Contract Management?

In simple terms, contract management is the process of managing contracts an organisation makes with its suppliers, customers and trading partners.

If something goes awry during the course of the agreement, the contract will become pivotal in ensuring both sides get what was agreed at the start.

Effective contract management involves managing contract creation, ensuring compliance with the terms and conditions laid out in the contract, as well as agreeing on, updating and documenting any changes or amendments to the contract during its lifecycle.

A successful contract management process will ultimately create strong, profitable relationships with trading partners. On the other hand, a poorly managed process can lead to a company losing out financially – unclear goals, expectations or technicalities can all be exploited and expose an organisation to additional expenditures, revenue leakage and huge financial risks.

The sheer volume of contracts a B2B organisation typically deals with only serves to exacerbate these risks – making the management of contracts not only business-critical, but also a time-consuming process.

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