How Do Procurement People Do Contract Management Today

1. How Do Procurement People Do Contract Management Today By ​DocuCollab             © 2019-2020 All Rights Reserved, No part of this document should be modified / used without prior consent. DocuCollab​​- 1604 Spring Hill Road, Suite 216, Tysons, Virginia, 22182, USA Contact Number:​ +1-571-228-7037 | ​Email:​ sales@docucollab.com

2.   Contracts being at the heart of every business relationship are instruments through               which commitments and essential elements of business transactions are defined and         governed. They are key assets to build competitive advantage to organizations in today’s               fast paced and multilateral business landscape.    Organizations today are redesigning the entire business process workflows to improve           productivity in front line functions like procurement or sales deal cycles (buy-side and             sell-side).    In contrast to its tactical past, procurement today is on a journey to becoming a long             term strategic function. The modern procurement organization, by embracing ​contract           management and adhering to best practices, is an important force in creating and           sustaining value to the businesses today.                                                                                                              Buy Side Contract Management   On the buy-side contract management, procurement professionals are empowered to           take control of their supplier management processes. It is imperative for an organization             to have a well managed supply chain which is integral to profitability and also a               streamlined contract process.    Contract lifecycle management (CLM) has been well-established on the buy-side which           deals with procurement and supplier contracts due to the increasing need for monitoring           off-contract purchasing, managing compliance and costs.    Aberdeen Group Report states that many organizations have not yet realized the           strategic competitive advantage coming from a mature contracting process despite the         increasing significance of contract lifecycle management (CLM), and thus their contract           management for the most part involves fragmented, labor intensive and ad hoc             processes.    In this article, the objective is to explore how procurement professionals today are able                 to bring in efficiency and enhance productivity by following a well structured and             effective procurement process.                                                                                                                                                    7 Steps in Procurement Process   To streamline the supply chain, an effective procurement process is crucial for an             organization to procure the best products or services at the best price. This involves             supplier selection, screening, negotiating payment terms, setting up contracts, and         purchasing the required goods at the best possible rates.                                              © 2019-2020 All Rights Reserved, No part of this document should be modified / used without prior consent. DocuCollab​​- 1604 Spring Hill Road, Suite 216, Tysons, Virginia, 22182, USA Contact Number:​ +1-571-228-7037 | ​Email:​ sales@docucollab.com

3. A multi-faceted process like procurement helps an organization achieve cost savings           objectives and also enhances supplier performance, compliance, risk management,           sourcing cycle time and, contract utilization.                      Identify Goods and Services to Procure   When a business has a need for goods or services, the onset of the procurement process                   begins. The procurement department must identify the products that are needed in order           to purchase it. Selecting the right product is critical for the business. This stage also               includes setting a budget.                                                Explore & Select Vendors   The next stage is very important to sourcing potential suppliers and determining their               ability to provide best value and high quality for the goods and services, getting them at               the right price. This process to evaluate relevant suppliers involves issuing RFQs, RFIs,               and RFPs.    This best practice is called strategic sourcing. During this stage, procurement             professionals should short list the different vendors that provide the goods and services             they require. Evaluation metrics such as cost, quality, reputation, speed of service,             warranty, guarantee provisions, and customer service would be assessed and only the         supplier who offers the best value will be selected based on the factors.                                                                                                Negotiation of Contracts with Preferred Suppliers   In this stage after the supplier is selected, the contract process begins. For maximum                 value creation and establishing buyer- supplier collaboration, contracting is a crucial step           for any organization. Critical factors like price structure, timelines for delivery, terms and             conditions are assessed in this process. Businesses get insights into cost saving             opportunities such as dynamic discounting through detailed analysis and negotiation of           contracts.                                                                  Submit Purchase Requisition & Create Purchase Order   Once the contract is finalized with a supplier, the next step involves submitting a               purchase requisition (PR) that has a description of the good/service, pricing and quantity,             supplier information, and the approval workflow.    After this is approved, the finance team releases the purchase order (PO) to the supplier.               A purchase order is a formal contract between the buyer and seller to buy goods or                                                   © 2019-2020 All Rights Reserved, No part of this document should be modified / used without prior consent. DocuCollab​​- 1604 Spring Hill Road, Suite 216, Tysons, Virginia, 22182, USA Contact Number:​ +1-571-228-7037 | ​Email:​ sales@docucollab.com

4.   services which has information like the price, specifications, terms and conditions of the             product or service and other obligations.                Payment Process upon Receiving an Invoice   Once the vendor receives a PO, he sends an invoice mentioning the price for requested                 goods or services. The procurement team matches the PO and the invoice to ensure             quality and quantity. Then the respective departments validate the invoice and send it to             the finance team for payment.    Within the payment terms defined in the agreement, the payment has to be made. In the               accounts payable process, there is a best practice followed by matching the invoice               against an approved PO and the delivery details for the order called three-way matching.    If everything matches up the accounts team sends payment to the vendor within the             specified timeframe. The payment is released pre or post delivery depending on the           payment terms established between the organization and its suppliers.                                                                                                              Receive and Audit Delivery of Requested Goods or Services   Based on payment and contractual terms, suppliers deliver the goods or services. Upon             receipt, audit must be done by the companies to ensure that the suppliers have met               expectations of their quality standards.                                Maintenance of Proper Records of Invoices   As a best practice, it is important to effectively store all documents from purchase                 requisition through invoice in one central location in order to track spend and other             various expenditure categories within the organization.    Harnessing the Power of Digital Procurement with the Right Tools  If using traditional, non-automated processes, it just isn’t possible to obtain visibility of         the whole procurement process where businesses have to align SLA`s with the contract           terms.    Streamlining procurement processes by utilizing procurement software can help         enhance decision making by increasing the visibility of critical information such as RFQs,             emails and communication, contracts and reports.    Using the right Contract Management Procurement Software will enable stakeholders to           obtain actionable data from their contract portfolio. Efficient procurement software helps             streamline virtually every stage in the procurement cycle.                                                                                                              © 2019-2020 All Rights Reserved, No part of this document should be modified / used without prior consent. DocuCollab​​- 1604 Spring Hill Road, Suite 216, Tysons, Virginia, 22182, USA Contact Number:​ +1-571-228-7037 | ​Email:​ sales@docucollab.com

5.   Vendor Catalogues   In the stage of searching for vendors, automated vendor catalogues makes it very easy               than searching the web for vendors. This automatically helps the purchasers get linked               to all vendors who have been selected previously company-wide.                            Purchase Requisitions, Purchase Orders, Invoices   They can be generated, delivered and approved all in one place using procurement             solutions without any manual intervention. Storing them in a central repository enables           communication easier and quicker between parties.                              Vendor Management   When vendor management is done manually with fragmented approach resulting in lack           of coordination and unstructured communication, it can cause delays in delivery,         substandard quality, cost, conflicts and disputes.    Using procurement software solutions helps organizations to pre-qualify and shortlist         preferred vendors to mitigate risks. They also deliver real-time overview and visibility of             key vendor performance metrics.                                                        Audit Trail   With procurement software, a full audit trail can be kept for every order from requisition               through invoice and keep track of every detail related to an order – without the problem               of manual paperwork.    Procurement professionals following these procurement steps help control spending.       Instead of relying on Excel and email to manage their procurement process, they by using                 procurement software can make purchases faster, require less time, and save more         money.                                                                              What Docucollab`S Procurement Contract Management Solution Can Do For Your Business   DocuCollab was built and designed so that businesses can benefit from its offering.             DocuCollab contract management targets many organizations, providing solutions to         those who need buyer support or supplier support.                             © 2019-2020 All Rights Reserved, No part of this document should be modified / used without prior consent. DocuCollab​​- 1604 Spring Hill Road, Suite 216, Tysons, Virginia, 22182, USA Contact Number:​ +1-571-228-7037 | ​Email:​ sales@docucollab.com

6.     Small to medium businesses may best utilize the DocuCollab contract lifecycle             management platform that provides highly scalable, secure, and reliable solutions.    DocuCollab`s all-in-one cloud-based contract lifecycle management platform provides       enterprise-wide management of all contract functions (including the buy-side and the         sell-side). It streamlines and accelerates contract negotiations for sales teams, so they           can close deals faster. With its Strategic Sourcing Portfolio, it manages the entire               sourcing, contracting, and spend analysis processes for all types of spending, all in one           place.    Its key contract automation capabilities include a central robust repository, contract           authoring, track approvals, enforce workflows, audit contracts, granular security controls,         flexible routing and approval rules, and reports that are automatically generated and             emailed. Users can edit contracts through the cloud, and contracts can be legally           executed with the built-in e-signature functionality as well.    DocuCollab`s solutions improve customer, vendor and supplier relationship and       commitment management; simplify procurement processes, enhance productivity,       ensure compliance, reduce contract risks, and increase efficiency.    Ideal for both Buy-side and Sell-side contracts allowing businesses to negotiate best             terms for all types of contracts, DocuCollab is truly procurement contract management             software.    Click here to discover how you can automate every step of your contract management               lifecycle through ​DocuCollab​’s seamless ​contract lifecycle management tools​.                                                                                                                                                                                              © 2019-2020 All Rights Reserved, No part of this document should be modified / used without prior consent. DocuCollab​​- 1604 Spring Hill Road, Suite 216, Tysons, Virginia, 22182, USA Contact Number:​ +1-571-228-7037 | ​Email:​ sales@docucollab.com