Global Standard for Procurement and Supply

Current segment

Level: Operational

Theme: Delivering Outcomes

Segment 7.5 Effective Contract Management in Procurement and Supply

Segment 7.5 Effective Contract Management in Procurement and Supply

Knowledge: Will know and understand Capabilities: Will be able to

The main types of risks in the performance of contracts such as internal, market, economic, legal, ethical sourcing and performance based risks

Evaluate the potential risks that purchased goods and services may be subjected to and liaise with suppliers and stakeholders to create and implement plans to mitigate the adverse effects of these risks

Responsibilities for contract management

Allocate clear responsibilities with stakeholders for the roles of contract management for purchased goods and services

Demand management for contracts

Forecast and plan requirements with internal stakeholders and suppliers to ensure the supply of goods and services matches demand taking into account actual demand

The use of contractual terms, specifications, KPIs, reporting, governance, escalation and benchmarking in contract management

Monitor the supply of goods and services to ensure required performance standards and KPIs are achieved and identifies where changes in the contract or other changes are required taking actions to implement these

Payment responsibilities in contract management

Certify costs and monitor compliance to, and take remedial actions, for any deviations from contracted payment terms for purchased goods and services, managing any contracted risk and reward mechanisms

Creating targets for assessing the performance of suppliers based on the SMART (specific, measurable, achievable, relevant and timely) targets for performance

Formulate SMART targets for supplier performance and agree their application with suppliers and other stakeholders

Supplier relationship management and the use of improvement plans

Ensure supplier relationship management processes and improvement plans are proactively executed to correct defective performance for the delivery of purchased goods or services

Transition and exit arrangements for contracts

Ensure security of supply in any transition period or exit of contracts with suppliers

Close out of contracts and learning from experience

Conduct activities to close out contracts and evaluate learning from experience

The use of budgets in contract management

Ensure budgets are monitored instigating actions for deviations from planned budgeted costs

Knowledge: Will know and understand

The main types of risks in the performance of contracts such as internal, market, economic, legal, ethical sourcing and performance based risks

Capabilities: Will be able to

Evaluate the potential risks that purchased goods and services may be subjected to and liaise with suppliers and stakeholders to create and implement plans to mitigate the adverse effects of these risks

Knowledge: Will know and understand

Responsibilities for contract management

Capabilities: Will be able to

Allocate clear responsibilities with stakeholders for the roles of contract management for purchased goods and services

Knowledge: Will know and understand

Demand management for contracts

Capabilities: Will be able to

Forecast and plan requirements with internal stakeholders and suppliers to ensure the supply of goods and services matches demand taking into account actual demand

Knowledge: Will know and understand

The use of contractual terms, specifications, KPIs, reporting, governance, escalation and benchmarking in contract management

Capabilities: Will be able to

Monitor the supply of goods and services to ensure required performance standards and KPIs are achieved and identifies where changes in the contract or other changes are required taking actions to implement these

Knowledge: Will know and understand

Payment responsibilities in contract management

Capabilities: Will be able to

Certify costs and monitor compliance to, and take remedial actions, for any deviations from contracted payment terms for purchased goods and services, managing any contracted risk and reward mechanisms

Knowledge: Will know and understand

Creating targets for assessing the performance of suppliers based on the SMART (specific, measurable, achievable, relevant and timely) targets for performance

Capabilities: Will be able to

Formulate SMART targets for supplier performance and agree their application with suppliers and other stakeholders

Knowledge: Will know and understand

Supplier relationship management and the use of improvement plans

Capabilities: Will be able to

Ensure supplier relationship management processes and improvement plans are proactively executed to correct defective performance for the delivery of purchased goods or services

Knowledge: Will know and understand

Transition and exit arrangements for contracts

Capabilities: Will be able to

Ensure security of supply in any transition period or exit of contracts with suppliers

Knowledge: Will know and understand

Close out of contracts and learning from experience

Capabilities: Will be able to

Conduct activities to close out contracts and evaluate learning from experience

Knowledge: Will know and understand

The use of budgets in contract management

Capabilities: Will be able to

Ensure budgets are monitored instigating actions for deviations from planned budgeted costs

This segment was last updated on: 4th April 2017

The Global Standard for Procurement and Supply structure

Released in 2014 the Standard is a competency framework of procurement and supply skills, knowledge and capabilities that can be used by individuals and organisations to identity training and professional development needs at varying levels of competency.

The Global Standard for Procurement and Supply structure
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