Contract administration and management

Procurement organisations cannot underestimate the importance of good contract management – it maintains the benefits created from sourcing, manages delivery risks and paves the way for future procurement activity.

In most organisations at least 50%, and in some cases up to 80% of spend is under contract, but all too often, there is little in the way of formal contract management arrangements, and contracts are filed in multiple locations with no central oversight.

Contract management process

There are a number of risks with such informal arrangements: it is estimated that up to 75% of the savings achieved by sourcing exercises are lost within the first 18 months without robust contract management arrangements, while off-contract spend goes unchallenged. It also leaves the organisation open to risks of service delivery failure and fails to generate the additional value that comes from strong supplier relationships.

We can support good contract management in a number of ways:

  • By reviewing existing arrangements, and developing best practice process to support a corporate approach to contract management
  • By assessing contracts and identifying opportunities for cost savings
  • Through supplier engagement programmes and developing performance monitoring arrangements
  • Through the provision of eProcurement technology to create central repositories of contracts and provide management information

We work with organisations to harness existing contract management activity and build on it to create governance and management processes that are tailored and effective, and through our audit and review process, put in place the foundations for continuous improvement and savings delivery. 

Mind the gap

Mind the gap

Find out more about the reality of good contract management.

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