I recently saw a podcast featuring Charles Dominick talking about contract management in supply organization. The video was kind of flat (and without any excitement!) but it had some interesting insights for procurement managers.

Charles Dominick defined contract management as a tool to ensure that both supplier and buyer are doing what is written in the contract and for procuring organization to see whether the organization is realing the estimated benefits in the contract. In fact, contract management targets one of the common problems in purchasing:



Right now, the focus in procurement is more on strategic sourcing and negotiation and after signing the contract, supply organization reports the estimated or anticipated savings as real ones. No one checks whether those savings were realized or not. The task of a sharp supply chain officer is to ask when and where this savings were realized; contract management can help companies to have more visibility over the deployment of the contracts. Hope you enjoy the video!