What is contract management?

Contract Management is a critical business process that involves the creation, negotiation, execution, and ongoing monitoring of contracts between an organization and its suppliers, partners, or customers. These contracts may encompass a wide range of agreements, such as procurement contracts, service level agreements (SLAs), and legal agreements.

Effective Contract Management is essential for mitigating risks, ensuring compliance, and optimizing supplier relationships. It involves centralizing contract data, tracking key milestones, and facilitating collaboration among stakeholders. Contract Management software is often utilized to streamline these processes, providing tools for contract drafting, electronic signatures, and automated alerts for renewals and compliance deadlines.

Properly managed contracts not only protect the interests of all parties involved but also contribute to cost savings, legal certainty, and improved supplier performance. Contract Management is a cornerstone of sound procurement and business operations.