Once a contract is signed, the real work begins – execution of the contract. Not only must you ensure correct implementation, but you must carefully manage the forthcoming invoices and monitor contract obligations as well.
Manage Payment Approval Process
With typical paper processes in place at many organizations today, invoices get lost. To protect against this risk, you must store your invoices in digital format to effectively manage and track them. Many vendors today send invoices digitally, and some businesses believe merely saving these emails is sufficient. However, people tend to forget about them and lose track of time as their inboxes slowly fill with clutter.
Another way that organizations obtain invoices today is by downloading the invoice from a supplier's website. What if someone forgets to download an invoice? Do you have a notification system to alert you when an invoice is lost/missing/not managed?
In today’s digital world, suppliers are not as forgiving about late payments. Suppliers need your payments on time to run their businesses, pay their staff, and pay their suppliers. Late payment fees can add up and add unnecessary costs. ProcureSafe manages your invoices electronically, sends reminders to involved stakeholders, and ensures that you never miss a payment or lose an invoice again.
Your contract specifies the product or service to be delivered and states the cost. But does your supplier bill you accurately? How do you compare the invoices to the actual contracted pricing? How do you manage and track any uncovered disputes?
It is amazing how many invoices are incorrect. The more items on the invoice, the more opportunity for inaccuracies. Do you have contracts with addendums? Are you managing all the changes from the addendums to the invoices? Many incorrect invoices arise from trying to manage changes preexisting contracts.
A process is needed to help track and manage disputes that will inevitably arise. Do you have an efficient process in place? If not, ProcureSafe is the solution.
Match Contract Obligations to Requirements
Many contracts commit organizations to purchasing a set amount. For example, let's say you create a contract to buy 1,000 widgets a month from Widget Manufacturing over the next 24 months. Two months into the contract, your business demand increases substantially, and you begin ordering 1,500 widgets per month.
Fifteen months into the contract, you have met your contractual obligations with Widget Manufacturing. Are you aware that you have met your obligations? Most likely, the supplier is not going to tell you. If you now need more widgets but have met your contract requirements early, you can renegotiate your contract or request quotes from other suppliers. You can only do this if you tracked your contractual obligations.
What will happen if you start using less widgets. Will you meet your obligations? You need automated tools to know when contract requirements are met.
ProcureSafe clients tell us they previously had struggled with these conditions every day. ProcureSafe was built and designed to handle these challenges. Over the next three months we will address each of these conditions. We will share best business practices and how ProcureSafe can help you overcome these challenges with minimal effort.