Whenever there are a variety of moving parts that all have to work seamlessly together – systems and processes can become convoluted. Procurement teams have to operate similarly to that of a clock. Each piece a cog, whose function affects the entirety of the clock. Contract management is one of the most important aspects in procurement.
While there are many actions associated with contract management specifically, there is also still some overlap between contract management activities and other procurement based activities. Some of this redundancy is planned as a quality-assurance tactic.
An example of this overlap in activity is reverse auction software and contract management software. Since both activities are involved with the initial negotiation of the contract; both branches have involvement in that action.
What Is Contract Management?
Contract management is the process and procedures built around the management of vendor and supplier contracts on goods and services that a company needs to source. There are a variety of elements included in contract management that relate to the establishing, extending, and extinguishing of vendor-contracts.
Additionally, contract management functions include negotiating activities as well as other actions that can also be associated with other branches of procurement.
Changes Moving Forward
The year 2020 has been full of chaos and rapid shifts to the business landscape and marketplace. As the global pandemic continues onward, business and organizations have had to find new and innovative ways to continue operating, and keep cash flowing.
Procurement departments have been far from unaffected by the impact of COVID-19 and the other economically significant events of 2020. As such, procurement software has been undergoing some rapid changes as well to accommodate a new normal.
Contract management software has already had a significant impact on procurement. Streamlining activities, centralizing functions, and optimizing operational efficiency – contract management software delivers impressive results that elevate your procurement team and maximize savings-on-contracts.
However, with the major shifts in how companies and businesses are operating, there have been necessary adjustments made to some of the functionality of contract management software as well.
These shifts are to prepare for the new normal moving forward, and enhance your contract management software for 2021 and beyond.
Decentralized and Remote
One of the most significant changes in the business landscape is the work-from-home wave. More employees are working from home than ever before due to the pandemic. As such, companies have had to come up with entirely new operations and procedures to accommodate a workforce that mostly works remotely.
In light of this, contract management software has undergone updates in order to accommodate a more fragmented workforce. Allowing for a decentralized database that users can access securely from around the globe.
These functions will also streamline the ability for procurement professionals and contract managers to conduct their duties more effectively from a remote environment.
Digital Integration/Automation
There was already a focus on digital integration and automation in contract management software, but with an enhanced contract management strategy, these efforts are taken to the next level entirely.
Automating more tasks in the contract management wheelhouse than ever before, 2021 brings capabilities to contract management that will optimize efficiency and streamline processes throughout the entire contract management lifecycle.
Org-Specific
Finally, there has been a need in contract management software for more customization. Enhanced CM software in 2021 and beyond will address that need. That way companies and organizations can build custom processes into their contract management cycle that is specific to their own organization.
Offering organization-specific customization is a massive benefit to the companies that utilize these features. No procurement department operates in the exact same way, and there are often nuances to each and every procurement team. Having a software that accommodates these little nuances completely changes the way procurement teams will operate.
Prep For 2021 At ProcurePort
Procurement is an ever-changing industry. Riddled with technology and software that function in sync and separate from one another, there are always updates as well as new information being released.
ProcurePort is the premier source for everything procurement. From the latest software and technology, to the most relevant and helpful information. Visit ProcurePort today to learn more, and get started on your procurement journey for 2021.
