7 keys to optimizing your vendor contract management system

It’s up to A/P to double-check vendor contract terms to make sure everyone’s sticking to them, as well as to handle the renegotiation of contracts.

In order to be able to easily access contract documents, and not waste time hunting down misplaced pages or sections, strong contract organization is essential.

Digital, secure, trackable vendor contracts

According to software provider ContractWorks, some simple but effective things you can do to improve your vendor contract management, and deter legal and spending issues, include:

1. Digitize paper contracts. Not only is it ideal for preserving your documents, it should also help you be able to easily run a search for key clauses and terms.
2. Centralize your vendor contracts in a secure online location. Having your contracts in a searchable database that’s accessible from anywhere is vital in today’s era of hybrid work.
3. Set reminders for contract milestones. It’s crucial to be aware of expiration and auto-renewal dates so there’s enough time for contract re-evaluation and/or renegotiation. Consider adding contract milestone dates to your calendar or setting up phone reminders for them.
4. Control who can access contracts. Limiting access to your contracts protects sensitive information. Contract management software is available that allows you to control access, securing confidential data from potential fraud.
5. Track contracts during the signing process. Knowing who has a contract and whether they’ve signed it can be tracked via a spreadsheet. If you’re considering turning it over to contract management software, look for a system with electronic signature capabilities so contracts get signed faster.
6. Create an easy-to-digest report summarizing your contract achievements. This shows leadership how A/P is helping to get business done and can provide insights into your contract process. And if you’re not fully automated, this can help make a strong case to the top brass for how a contract management system could help A/P achieve even more efficiency.
7. Keep contract templates handy. If you need to quickly generate a contract, and it’s a contract type that you use often, an easy-to-access template will save time. Consider storing frequently-used templates in your central database, and make sure you periodically check that they’re up-to-date.