Top Tips on Managing Contracts Effectively During Covid-19

With the recent challenges faced by supply chains there has never been a better time to introduce an effective contract management process. Using such a resource can have a dramatic effect on your organisations ability to ensure contractual parties adhere to their obligations, and there are some key considerations.

So, what do you need to think about to ensure effective contract management at times of uncertainty, like this?

People and Skills

An organisations important asset is its people, gaining added value via transforming other resources and achieving the objectives of the organisation. Developing skill sets is key to business and using best practice guides on subjects such as, Financial Analysis and Reporting for Purchases, Emotional Intelligence, and Influencing Skills can aid their development.

Strategy and policy

A successful strategy will most certainly satisfy compliance and analytical needs. However, in order to achieve this, an increase in formal and structured contract management procedures should be the approach. Expected business benefits, efficiencies and value for money must be delivered; don’t forget that it’s important to consider the management of the life cycle.

Contractual Terms and Risk

Developing the contract terms and outlining the services or goods required, should reflect the actual performance requirements rather than a one size fits all approach. Ensuring that there is time for a full risk assessment is key. Use a risk toolkit in order to choose and make use of appropriate risk assessment tools. This will mitigate failure during the contact duration.

Sustainability

At no other time has sustainability within our supply chains been more important than it is today.  It considers social, economic, and environmental factors alongside those of price and quality. Many organisations are front runners in their Corporate Social Responsibility and maintaining that in a time of crisis can be challenging.

A contract must reflect this, and allow for a suitable implementation of a sustainable approach to supply. This will ensure the elimination of waste, with higher levels of energy efficiency along with reduced overall cost.

Procurement Systems and technology

The fast-changing pace of technology has meant that how we interact with our stakeholders, and in turn deliver results for an organisation that has been shaped differently to those of the past.  It has become important to keep on top of digital transformation, supplier synergies, and cost savings. At the time of writing it could be said that the risk of cyber-attacks could be much greater as we see our working environments changing at a rapid pace and remote working has mushroomed overnight.

What about you? 

Current challenges in the supply markets at home and abroad has meant that additional assistance from available tools and techniques, has never been more important in solving some of those problems that we are now facing. You may feel uncertain about the future, or have concerns about a fast regulation amendment. Having a well thought out contract management approach can help to conquer instability in a time of crisis.

Do you have your own tips on how to make contract management effective? Or thoughts about ways to help you and your team improve the process? Tweet us using @UModernGov