One of the biggest challenges for any business is controlling costs—primarily supply costs, which are usually an organization’s second-largest expense (behind employee compensation). Luckily for Lawson customers, the solution’s Contract Management application is designed to minimize supply costs by simplifying contract creation and management.
As part of the Lawson S3 Supply Chain Management Suite, you can get standardized, auditable processes for contract creation and better visibility into the supplies and services your organization has under contract. This information helps purchasing managers negotiate vendor discounts with insights into supply usage trends, and also cut costs by enforcing compliance with vendor contracts.
Let’s take a closer look at some of the benefits (and best practices) of using Lawson Contract Management.
Contract Management Challenges
Organizations struggle with a wide range of issues when it comes to contract management. You’re likely dealing with a few, if not all, of these problems at your organization:
- Lack of visibility
- Legal and compliance issues
- Manual, error-prone processes for managing the contract lifecycle
- Disparate systems
- Complex contracts that require lots of managing
- Missed contract requirements, rebates, and renewals
- Reliance on suppliers and partners for contract information
Many of those challenges can be addressed by implementing Contract Management. Here are some of the top features and benefits we’ve discovered with Contract Management.
Features and Benefits of Contract Management
Lawson’s Contract Management tool gives you more visibility around the entire contract lifecycle. One way it does this is by reporting on contract performance, so you don’t miss those critical milestones and deliverables, giving you a better way to track rebates and when to renew contracts. Contract Management can also store corporate and other non-purchasing contracts to ensure you have a more comprehensive view of these documents.
Contract Management also provides better integrations with 832s through Electronic Data Interchange. For those who don’t know, an EDI 832 is a catalog price file used to request or provide prices and product information of goods electronically. It replaces the paper catalog and also includes seller name and contact information. Contract Management is also compatible with Lawson Business Intelligence to help organizations create unlimited types of reports. In addition, the tools integrates heavily with the Procurement S3 module to give you better visibility into contract generation and compliance.
Finally, Contract Management supports flexible pricing scenarios like complex tiered pricing and management of rebates. So if you’d like to manage agreements and automate enforcement of terms to save money and keep projects on task, we’ve got good news for you.
Setting Up Contract Management Like a Pro
One of the first steps in implementing Contract Management is preparing your data. For example, if you have an item master list with thousands of items because you kept adding specials, deactivate them. Next, set those items up in Contract Management as a special. Having the cleanest data possible will help you achieve a successful implementation.
Now consider your design considerations. You’ll want to outline your current setup and find ways to optimize the process with the new solution. We find that setting up a workshop with key stakeholders to go over different contract scenario is a great way to build the right process.
Training and Testing
It’s also essential to invest in training. You may have an outstanding system, but if nobody knows how to use it, it’s not going to do you much good, is it? Get a few of your users the right training, however, and you’ll implement with ease, not to mention get more out of your investment in the long run. Additionally, don’t forget to keep testing in mind as you train users on how to best use Contract Management. It’s important to test out all the different contract types and approval flows. (And don’t forget to document the process.)
Partner With the Experts
If you’re considering implementing Contract Management or are ready to pull the trigger, you’ll want to partner with the experts to help you succeed. From designing your process to testing and support, our senior-level Infor Lawson consultants have the experience to help you take advantage of this powerful tool and will be with you every step of the journey.
Learn more by contacting us today.