7 Tips to Optimize Service Contract Lifecycle Management
Contract management refers to the complete process of generating, storing, and enforcing the terms and conditions outlined in a service contract, from beginning to end. Contract management isn’t the most attractive aspect of field service, but it is one of the most important.
With the help of a contract management solution, you can get a consistent revenue source, it can help field techs avoid awkward conversations that could lead to contract leaks. With CLM solution you can ensure that the requirements and expectations of consumers are satisfied continuously.
Below we have shared 7 tips to optimize service contract lifecycle management.
1. Create a vendor contract management strategy.
Establishing a contractor procurement strategy that involves the development and management of high-performing contracts helps you prevent difficulties like missed deadlines, confusing language, and lowered product and service quality.
CLM software allows you to monitor contract performance trends using customizable KPIs and other measures, revealing which agreements are most helpful to your targets. Contract management software can also save various copies of a contract as it evolves throughout talks, allowing them to be compared later without losing anything.
2. Keep in touch with vendors to discuss priorities and expectations.
While much back-and-forth goes into the development and negotiation of a vendor contract, it’s also critical to maintain a discussion about business priorities and requirements with vendors and internally. The examination of a contract’s performance toward the conclusion of its life cycle, when it will either be renewed, renegotiated, or canceled, is an important aspect of your vendor management strategy. These assessments will benefit you in developing best practices for future contracts. Effective vendor management provides vendors with the openness they require to satisfy your requirements.
3. Think about the cost against the commitment.
It’s critical to seek competitive bids, but a good contract relationship is about more than just negotiating contracts that are less expensive than those offered by competitors. Long-term relationships in which both parties are committed to helping one another can result in improved outcomes and substantial cost savings in future renegotiations. Effective contract management is negotiating a contract with terms that satisfy both your company and your vendors, rather than drawing a firm line in the sand over one-sided expectations that solely serve your organization’s interests.
4. Seek contractors’ input on strategy
Suppliers are certainly a part of your team—and a critical component to your success—even though they are not your employees. Your procurement team has targeted certain critical vendors because they can give a high-quality deliverable that affects how your firm generates revenue. Their experience can provide significant insights when reviewing KPIs and creating goals connected to third-party products and services.
5. Report & Audit
Both parties must create individual strategies for obtaining and auditing contract information and other relevant materials to assess compliance and generate reports based on their findings.