Contract management is the process of managing the creation of contracts, execution of agreements and the analysis of contracts to ensure there is a maximum financial and operational performance in a firm while reducing financial risks. Brilliant contract management creates a robust relationship in business and paves the way to more profits to a firm when it comes to dealing with contracts (Fried, 2015).
A contract lifecycle has the following stages:
The people involved in the contracting process ought to have contracting competencies. These competencies can get included in a contracting competency model that has the following levels; pre-award and award, negating, price analysis, contract administration, contract termination, contracting in a combat environment and other professional competencies such as customer service, communication, resilience, accountability, and credibility (Peel, 2015).
During the process of contracting the contract managers should ensure that supply chain alignment configurations namely; lean supply chains, agile supply chains, fully flexible supply chains, and continuous replenishment supply chains should get considered since they affect the process directly (Gattorna, 2016).
Fried, C. (2015). Contract as a promise: a theory of contractual obligation. Oxford University Press, USA.
Gattorna, J. (2016). Dynamic supply chain alignment: a new business model for peak performance in enterprise supply chains across all geographies. Florida: CRC Press.
Peel, E. (2015). Treitel on the Law of Contract (Vol. 414). London: Sweet & Maxwell.