Contract Management

Contract management delivers a great amount of data and intelligence that support the smooth running of a business (Aberdeen Group, 2007).

Information about Contract Management

Historically, the purpose of a contract as a legal document was to protect the parties from negative consequences of its breaches. Today, when companies are facing increasing pressures to reduce costs and improve financial and operational performance, forming and managing new trading relationships is critical for success. How well an organisation manages its relationships with partners defines the two core elements of bottom line performance: increasing revenues and decreasing costs. Contract management plays an important role by ensuring the smooth running of operations, protecting the organisation from risks and shaping the buyer-supplier relationships (Aberdeen Group, 2007; Saxena, 2008).

Return to Developing and Managing Contracts topic.

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