Powerful Vendor Contract Management
Watch a brief video of Vendor Contract Management in action
Vendor contracts may be limited by date, dollar, and/or quantity
Enforce vendor-negotiated terms and provide blanket purchase order capabilities.
Vendor contracts are an excellent way to bring more corporate spending under management. Contracts allow you to track committed amounts and quantities against contract budgets, restrict purchases to a defined list of items, enforce pricing and terms agreements, and limit overall spending to a particular supplier. Effective contract tracking and monitoringcan ease that challenge by spelling out the commitments and expectations of both parties.
Entering into purchasing contracts with your vendors is a smart idea. Essentially a master purchase order, a vendor contract establishes an agreement between the two of you, covering details including items, pricing, terms, and shipping methods. Contracts are valuable to both your organization and your vendors as they can mitigate any misunderstandings, and build convenient, mutually-beneficial relationships.
Paramount WorkPlaceprovides the mechanisms to build, use, and monitor vendor contracts. By providing a central contract repository, the software makes it easier to identify overlapping or conflicting terms, ensuring continuing compliance, and identifying the potential for volume discounts. By allowing you to create requisitions and then purchase orders referencing the contract, Paramount WorkPlace tracks the committed amounts against a contract, even before the goods are received. You can also establish alerts and approval workflows if contracted quantity or dollar amounts are exceeded. In short, vendor contracts save money by enforcing negotiated terms, ensuring you’re getting the most out of your vendor relationships.
Features and Benefits:
- Budget Control: Track committed amounts and quantities against contract budgets
- Flexible: Manage by dollar amount, quantity, or both
- Control: Restrict to a predefined list of items
- Time Sensitive: Enforce vendor contract for a specified period
- Approval Routing: Auto route requisition line items for approval when amount is exceeded
- Convenient: Originate vendor contracts from within requisition
Terms & Definitions
What is a Vendor Contract:
Ad-Hoc means formed, arranged, or done for one particular purpose only. It comes from Latin, meaning “for this.” When applied to the approval process, it refers to a one-time change to the normal approval process.
What Approval Routing:
Approval rules are rules the company establishes to cover its purchasing activity. Rules may cover such things as approval dollar limits, routing, individual approvers, escalation conditions, etc.
What is a Purchase Order:
A purchase order is a commercial document issued by a buyer to a seller, indicating types, quantities, terms, and agreed prices for products or services.
What is Requisition:
A requisition is a documented way to request an action or item for delivery by a certain date, department or individual.