20 January 2009
Managing contracts in a formal way after deals have been signed is not an established practice for more than a third of buyers.
According to the latest SM poll of 100 buyers, 36 per cent said they did not have a formal process for contract management.
Many buyers said contract management was often devolved to individual departments or was only handled informally by the purchasing team. Others said they planned to introduce formal processes this year, or that processes had been forgotten or overlooked.
Those that do have procedures point to improvements in supplier performance, stronger relationships and tighter auditing. The need for a formal method was also cited as more important during tough economic times.