Tag: contract management

contract lifecycle management

Is Your Organization Facing These Contract Management Red Flags?

What is contract management process?

Contract management process is formulated to control, coordinate and streamline all stages in the contract lifecycle. It helps companies to enhance the performance of contracts, especially in procurement and sales. The contract lifecycle management tools also enable companies to forecast expected revenues, control procurement costs, and manage suppliers and risks.

However, contract lifecycle management (CLM) is not an easy process. There are various third-party contracts such as purchase agreements, outsourcing agreements, sales agreements, lease agreements, and licensing agreements that need to be managed. The absence of a well-defined contract lifecycle management process can have a substantial impact on the organization in the long-run.

Most companies now swear by contract lifecycle management services to avoid missing out on lucrative revenue opportunities. To avail the best contract lifecycle management services, get in touch with our experts. 

Common contract lifecycle management challenges

Inability to track contracts

It is difficult for companies to manage contracts that lack visibility.  Many companies tend to avoid contract lifecycle management process as it is time-consuming and costly. However, businesses must ensure that they have complete visibility of their legacy contracts before making enterprise-wide decisions. With relevant information, businesses can easily make amendments in contracts that will aid in contract management. Companies can even outsource contract management which helps them in contract execution and provide  detailed insights to make prudent decisions.

Delay in the approval process

Contract lifecycle management requires businesses to map out the process for different kinds of contract and identify the functional areas of the organization that need to be reviewed. This involves various departments of organizations such as operations, sales, legal, and finance. To have an efficient process, it is vital to examine the order of their approval as well. Also, it is crucial for functional areas to understand their tasks and responsibilities when a contract is assigned to them. These tasks are pertaining to editing, approving, rejecting, canceling, identifying next reviewers, and sending for signatures.

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Regulatory compliance issues

Many industries are bound to adhere to stringent compliance requirements. This becomes a major challenge for businesses in the contract management process. Moreover, it increases approval cycle times substantially and contracts expenditure for firms. Also, it creates the need for firms to automate contract lifecycle management system, conduct internal compliance audits on an annual basis, and standardize the contract management process.

SpendEdge’s advantage

At SpendEdge, we improve contact visibility and support procurement managers right from the agreement in principle to contract execution and ensure that your organization doesn’t hit to the bottom line due to lost time and revenues. Our procurement experts also provide tailor-made contract lifecycle management solutions that can address the specific needs of your business. We also make sure that our legal documentation best supports the respective needs of companies.

In case, your contract lifecycle management solutions are proving to be ineffective in managing effective contracts to ensure compliance and minimizing risks, let our procurement experts help you. Request a free demo and start your free trial now.

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vendor risk management

Procurement Intelligence Solutions for a Retail Company – A SpendEdge Success Story

Procurement Intelligence Solution Transforms Finance Operations and Enhances Supply Management

About the Client 

The client is an American multinational retail-clothing firm. With over 700 stores, the company employs around 57,000 people globally.

The Business Challenge 

With changing consumer behavior and technological innovations, retailers across the globe are uncovering new ways to sustain from the disruption. Moreover, retail brands are coping with a long-term uptrend in commodity and other raw materials input prices, and rapidly shifting global supply chain. These mounting global supply chain complexity with retail markets is forcing retail companies to be more agile and react faster than other players in the market. This is where procurement intelligence comes into play. In today’s competitive market scenario, procurement intelligence is the key to establishing long-term strategic sourcing and supply management plans.

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contract management

The Ultimate Guide to Achieve Effective Contract Management

Although the contract management process can be a time-consuming task, if properly managed, can be one of the most lucrative areas for businesses to build relationships and generate more revenue.

Contracts are essentially the foundation of all business relationships. However, the growing number of contracts consequently increases their complexity and amendments. So, it becomes challenging to manage the key information in the contracts. Contract management is the process that enables both parties to a contract to meet their obligation and deliver the objective required from the contracts.

A contract lifecycle management platform simplifies contract management processes by providing the ability to manage and avoid compliance issues and other risks through templates and approval workflows, deliver more revenue and faster with e-signatures, streamline negotiations with online redlining, and easily manage documents after they are signed. This eventually helps organizations grab opportunities that may otherwise have been missed.
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contract management

Four Best Practices to Follow in Your Contract Management Process

Procurement organizations are often responsible for the contract management process, but this seems to be one of the most non-uniformly applied mandates in the realm of purchasing. Procurement organizations who have the responsibility to build a contract management process tend to do a pretty good job with contract authoring, negotiation, and administering individual contracts to incorporate changes but are less effective in tracking and managing compliance to terms of the contract and administering an overall contracts’ database. Furthermore, even for processes where procurement organizations can bring a high degree of value, there is a chance of variability in outcomes, cycle times, and end-user satisfaction. The conventional source of this problem is a lack of process control for contract management system and administration. The end result of these problems includes inconsistent service levels to internal clients and lack of credibility for procurement data. Procurement leaders looking to get all these problems right can leverage a number of best practices in their contract management system. Here are a few to get started:

Best Practices in Contract Management System

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Follow a simple and high-level process

For each contract management process, utilize a simple and high-level process. It will help you to avoid over-engineering and shelter a large set of situations in a manner that will reduce exceptions and not be over-burdensome. You need to work towards a high-level of process compliance in order to drive organizational control and discipline.

Implement a contract intake case tracker

For a better contract management system, it is important to implement a contract intake case tracker and workflow tool. Ideally, this process should be based on a web form, which can be recorded by procurement based on a phone call or an in-person request or completed directly by the requester. This will help in creating a time-tagged record to which relevant notes and documentation can be attached.

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Incorporate legal resources in the workflow

Integrating dedicated legal resources into the workflow can help you measure activities, volumes, and cycle times. This will help you in fixing the loopholes in the contract management process.

Have a dedicated contract management team

You must invest in a single dedicated team or resource to input all contracts into the contract database and manage the database. This is one of the best practices to control and enforce consistent standards of data.


SpendEdge’s contract management services help you drive greater value from your contracts by managing them more effectively. From contract negotiation and contract authoring to contract compliance and renewal or disposition, we can help you throughout the contract lifecycle. To learn more:

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contract lifecycle management

3 Key Ways to Manage Risks in Procurement Through Contract Management

Contract management process

The contract management process involves the management of contracts between suppliers and buyers to fulfill the contractual obligations compliantly and document them appropriately. Contract management, sometimes also called as contract administration is the sum of the procedures and processes that an organization may implement to manage the execution, negotiation, performance, alteration, and termination of contracts with several parties like vendors, customers, distributors, employees, and contractors. This processrequest proposal is one of the most crucial activities for any business arrangement to succeed.

What is Contract Management in Procurement?

Contract management is an intrinsic part of the procurement cycle. The contract management process helps contract managers to manage contracts properly by addressing the management of transition and monitoring the performance. An effective contract management process also ensures that both parties fulfill their contractual and commercial commitments. This should be developed for all contracts ranging from medium to high risk. This process involves the continuous process of procurement that ensures suppliers adhere to their agreed contractual obligations. It also safeguards any negotiations from the future changes that need to take place.

Now, let’s look at three instances where the contract management process helps manage risks in procurement:


Continue reading to know more about contract management or request a free proposal.

Labor Law

5 Impacts of the Amendments to the Employment and Labor Law in Canada

After much speculations, Kathleen Wynne’s government put forth a new set of reforms titled “Bill 148” or “Fair Workplaces, Better Jobs Act, 2017” related to labor law including overtime, sick pay, and how workers join unions and employers responsibilities to contract workers. The Changing Workplaces Review suggested significant changes and upgrades to the existing labor laws including the Labor Relations Act, 1995 (LRA), Employment Standards Act, 2000 (ESA), and the Occupational Health and Safety Act (OHSA). SE_Demo2Amended largely in favor of the employees and contract workers, the amendments to the labor law is expected to increase operating costs for businesses across Canada by some $23 billion over the next two years.

Rise in Labor Costs

One of the major amendment made along this labor law is the changes to minimum wage which is about to be set at $14 per hour effective from Jan 2018 increasing up to $15 per hour by Jan 2019. This 7% increase in minimum wage will force companies to rethink their operational strategies and will urge them to optimize process inefficiencies and invest in automation. Additionally, employers will also raise the bar for their expectation for people earning more than $15 per hour which may not always be possible.

Paid Vacation

Another change coming into effect from Jan 2018 would be the provision for employees to take three weeks of paid vacation after serving five years for the same company. Such a change in the labor law will make many employees qualified for such leaves. This is expected to increase the overall costs for small businesses who run their business with a small workforce and finding a replacement can be troublesome.

Work Scheduling

The new scheduling rules in the labor law, effective from Jan 2019 gives employees the right to request schedule, location, or shift changes. It also provides employees the power to refuse shifts without the fear of reprisal. Additionally, employers should compensate three work hours worth of pay if their shift is canceled 48 hours prior to its scheduled start time. Such regulations severely limit employers ability to reschedule works and manage shifts as per business demand effectively. Since canceling shifts incurs a financial penalty, businesses would have to resort to other measures to reduce staffing to adjust for slow business.

Part-Time and Contract Employees

The proposed change to the labor law also requires companies to compensate part-time, temporary, and seasonal workers the same amount as the full-time employees when performing the same job. However, the rule only applies to basic wages. This will require businesses to define jobs rigorously to be able to differentiate between similar part-time and full-time roles. For instance, companies who increase pay for employees based on years of service may instead look to improve pay on the basis of hours worked.

Leaves

Under the current scheme of changes, the new amendment requires employers to provide a minimum of 10 days of personal emergency leaves (PEL), with the first two days being paid leaves. The changes also take into account personal leave reason to include experiences or threat of domestic or sexual violence. Additionally, the family medical leave has also been increased from 8 weeks in 26 week period to 27 weeks in a 52 week period. The biggest of all changes come in the form which limits employers from requesting a sick note from employees for taking a PEL. All such changes require a thorough examination of the current reporting processes to ensure compliance.

For more information on ongoing changes to employment and labor laws:
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