Tag: contract negotiation solutions

IR7

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.

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supply management

Five Terrible Mistakes you are Making with Contract Management

All business deals and projects are closed with complex contracts. The company enters into a contract with their partners, suppliers, vendors, customers, or employees. There may also be a time where multiple contracts exist with each party. With so many contracts in the table, it is necessary that a firm has deployed efficient contract management practices. Missing a small detail in the contract or overlooking a single clause in it can have devastating effects. Although the consequence of inefficient contract management can beSE_Demo2 damaging, organizations still make mistakes when it comes to contract management.

Mistakes You Make with Contract Management

#1 – Overreliance on Paper-Based System

Its already 2017, and there must be something wrong if any organization is relying primarily on papers for record keeping and carrying out transactions. In an era dominated by digital signatures, the blockchain, e-procurement, and electronic data interchange, relying on a paper-based system for contract seems outdated. Depending on the paper-based system could bring out problems such as discrepancies in two copies, risk of tampering, damage, theft, and forgery. By using contract management software, the process of drafting contract can be hastened with the availability of pre-approved templates. Additionally, contract automation can accelerate negotiation cycle, reduce erroneous payments, and cut operating and processing costs.

#2- Neglecting Document Access

Documents containing sensitive information is of critical importance to an organization. Granting full access to documents for all stakeholders may not be the wisest of ideas. It is important to limit the access to critical documents to only those who needs it. Additionally, contract management systems can grant different level of authority as required which can be restricted, read-only, or editing permissions. Also, giving write permissions to all stakeholders may bring out the classic case of “too many chefs spoil the broth” with numerous revisions. Some companies are looking at blockchain technology to implement contract management as it can ensure both privacy and transparency as required.

#3 – Failure to Engage all Related Stakeholders

Failure to engage all related stakeholders in the contract management process can be detrimental to the company. It usually happens in public sector contracts as numerous parties are affected by the contract. It might happen that once some parties are left out, it may later develop a conflict of interest, and hinder the smooth flow of operations. Modern-day contract management solutions allow the drafter to include all related parties in the drafting process. Simplified contact lists enable the drafter to double check if any concerned parties have been left out.

#4 – Storing Contract Documents on Multiple Shared Drives

Although companies are using digital packages to draft their contract, they can always make a blunder of sending out copies which will be saved on multiple drives. It not much of a problem if it is the finalized contract, but if revisions are to be made, then the person revising will have a different version compared to others whose drive has not been updated. This way, whenever a correction is made, each party can have modified version of the contract. The best way to avoid this pitfall is to opt for cloud-based online contract management software and allow central collaboration to edit the document.

#5 – Neglecting Auto-Renewed Contracts

It is not good to be too comfortable and neglect auto-renewed contracts. Although digital contracts can be auto-renewed with the use of contract automation, there might be some adjustments that can be missed. It can be possible that the company may allow outdated conditions to continue or continue longer than either party would like to without their knowledge.

For more information on contract management, contract lifecycle management, contract management tools, contract automation, and cloud contract management:

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IR34

Why it’s Already Time to Shift Contract Management from Paper-based Processes to Software

Long gone are the days when deals used to get finalized over a phone approval or firm handshakes. Today, the procurement process is initiated only when the contract is awarded. The problem with traditional paperwork is with the amount of time it takes to prepare and execute, and then there’s always this fear of disputes arising out of the contract, which could hamper the supplier relationship. Constant pleas from organizations for a better contract management solution has given rise to the contract management software, which can replace traditional paperwork and increase procurement efficiency. Here are some of the reasons signaling why your organization needs a contract management software.SE_Demo2

Reduce Contract Cycle Times
Contract management software uses templates with pre-approved clauses and pre-defined approval work-flow, facilitating easy editing of contracts as per stakeholder inputs without compromising on accuracy. The software also provides full visibility into contracting processes and orchestrating the contracting process across its life cycle; thus, avoiding the chance of contract mismanagement.

Decrease Overall Risk Quotient
Organizations are constantly battling with multiple factors to reduce their overall risks. But many a time, risks arise out of poor contract management practices. Companies might fail to comply with the contract clause, miss a contract opportunity for discounts, spot errors in the contract, or fail to enforce negotiated supplier terms – all of which are financial, time, or compliance risks. A good contract management software can mitigate such risks by sending timely notifications to track contract expiry, allowing effective collaboration between stakeholders to reduce errors, and identifying profitable opportunities by providing dynamic reporting and configurable dashboards.

Improve Cost-Savings
For many organizations, maverick spends are managed outside the jurisdiction of contracts. The contract management software increases savings by bringing such maverick spends under contracts and increasing compliance. It also helps save costs by identifying revenue opportunities, decreasing administrative and operational costs, and improving client satisfaction.

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IR15

Spend Analysis Study – Leading Automaker Reduces Procurement Costs and Drives Process Efficiencies

SpendEdge’s spend analysis study on the automotive industry for a leading automaker helped identify key suppliers, improve process efficiencies, analyze  spend patterns, and reduce procurement costs in APAC.

Procurement in automotive industry

The automotive industry is constantly evolving due to increasing need for automation, digitization, and improved business models. One of the world’s most prominent sectors, the automotive industry, includes companies that are involved in designing as well as selling the motor vehicles. The largest markets for the automotive industry are the European and North American regions; however, emerging markets such as the APAC have recorded phenomenal increase in automotive sales. The emerging markets offer a plethora of opportunities to the manufacturers to succeed and expand their market share. The automotive industry is expected to be swamped by technological trends such as connected cars, autonomous or self-driving vehicles, and electricity powered automobiles. SpendEdge helped a leading automaker to reduce the current spend, identify the key suppliers and vendors, thereby, devise contract negotiation and management strategies with their existing and potential suppliers. Spend analysis and benchmarking enables businesses to improve process efficiencies, drive cost savings opportunities, thereby positively impacting the organizations bottom line.

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Connected cars in the automotive industry

The concept of connected cars has recently gained momentum in the automotive industry and holds the potential of disrupting the traditional channels for transportation. A connected car is an automotive vehicle that leverages mobile technology and the internet to operate. The motor vehicle is web enabled and connected to a smartphone, mobile device, watch, or a desktop and has the potential to transform the driver-vehicle relationship.

Solutions SpendEdge offers to businesses

SpendEdge’s spend analysis and benchmarking study for a leading automaker provides insights into the spend patterns, supplier identification, and contract negotiation strategies. The solutions offered include:

  • Identifying key suppliers in the market and analyzing their spend pattern
  • Gaining insights of the global supply capabilities of available suppliers in the APAC region
  • Obtaining request for quotation (RFQ) package from prominent suppliers that includes volumes, projections, and partnerships
  • Developing supplier and contract negotiation strategies with existing vendors and suppliers

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Read our complete case study on Spend Analysis Study Helps a Leading Automaker Reduce Procurement Costs in APAC

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