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Michael Jordan says, “Talent wins games, but teamwork and intelligence win championships.” And we cannot agree more here.
Procurement is a team process, and intelligence is the element that runs the game. We do not even have to explain it here. But living in 2021 (the age of tech), intelligence is not the only element you need. You need artificial intelligence too. To make the process easier, a team needs tools and software with artificial intelligence.
A procurement team works on several levels at one time. They manually analyse
· The requirements of the business
· Prepare requirement drafts
· Contact sellers and suppliers
· Set out budgets
· Carry out multiple checks on the deliveries
· And the list goes on.
While there are a lot of physical tasks, contract building is something that does not take a lot of physical effort but a lot of mental effort. The process just does not end after writing the agreement terms. It also involves tracking the work, keeping a check on renewal dates, expectation meetings in terms of the contract, etc. When you do it the right way with artificial intelligence, it takes no physical effort at all and minimal mental effort.
The procurement process runs on relationships with customers, suppliers, and dealers. This is why contract building becomes an essential and beneficial part of the entire process.
We asked a few procurement managers about the essential parts of the building and keeping track of contracts, and here is what they said.
1. To constantly keep a check on the date of the deliverable.
2. To make sure the expiration and renewal dates of the contract are kept in check.
3. To ensure if the agreements changed have been updated or not.
4. To keep the team aware of the agreements in a particular contract or not.
5. To keep a check on if the process is meeting the expectations of the contract or not.
We are sure if you suffer from these issues with contract building if you or your business carries out a procurement process. The simple answer to all these questions is to bring in contract management platform.
Here are a few reasons why a procurement team thinks it is a good idea to use contract management software.
Enhanced Supplier Management and Terms Agreement
One of the most important aspects of a procurement process is to establish and carry-on great relationships with suppliers. Yes, a procurement team is supposed to be skilled to do that. But a little help from an AI can improve the functionality.
A contract management software will not only help the procurement team to sort the data faster, but it will also keep track of the suppliers, details of the agreement, categories of the suppliers, changes in the terms, expiration dates of the contract, and a lot more.
While all these tasks, when done manually, can take days or weeks, with contract management software, the task will be done error-free in just minutes.
Getting Rid of Negotiations and Physical Purchasing
With contract management software, the procurement team is able to generate a pool of suppliers. This is the first step of the procurement process. This pool consists of the required information and costs that a supplier works on. This information is recorded in the system, separated into categories, and placed for future use.
When done manually, it will take hours to store information for each supplier. Then each time the business needs information or purchase, manually sorting will waste weeks.
Contract management software also saves a lot of time spent negotiating monetary terms and corporate agreements. The software will bring out the most appropriate supplier that matches the need and does not require much effort to start working together, converting it into a swift, streamlined process.
Monitoring and Regulating the Budget
The main and the most vital aim of a procurement process is to save as much cost as possible while giving excellent performance. With the help of contract-making software, the procurement team will be able to monitor the minute details of the contract, along with the monetary agreements of the contract.
Here, with the help of the software, the team will be able to analyse whether the budget is being regulated in the right way. The procurement team will also be able to check if the supplier is performing as per the mentioned agreements and on the budget standards or not.
At the time of breach of agreements, or low standard performance on monetary terms, the team can quickly change the course of action. This will happen by simply reading and understating details with the help of the software.
Easier Management of Tasks and Responsibility for the Team
The procurement process is not limited to maintaining supplier relationships and carrying out all the tasks in the purchase process. Management of the procurement team is an important aspect that decides the smooth running of the process.
The procurement process is divided into multiple levels. Each level has different sets of tasks. Each business has multiple suppliers. Thus, manually managing all the tasks can create trouble and confusion while being assigned.
Contract management software assigns the tasks to procurement team members right at the beginning of the process to escape confusion.
This makes handling multiple suppliers at the same time easier and eliminates the confusion on tasks to be performed by individual team members.
Easy Monitoring of the Details of a Contract
Contract management tools are designed with high-end features. These features will give you the power to point out minute details in a second. Be it a clause, a term, a monetary agreement, or any other major or minor detail; the software will pick it out in the blink of an eye.
This helps the team to keep updated with the contract constantly. The team is aware of the renewal timelines, task deadlines, contract deliverables, and supplier information.
A procurement team is a team of experts coming together to carry out a swift procurement process to facilitate the business and save as much cost as possible. While the team already has experts, contract management software only helps the team reduce their efforts and errors in the process.
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