Contract management is the process of creating, negotiating, executing, and tracking contracts between two or more parties. The goal of contract management is to ensure that all parties fulfill their obligations under the contract, and that the terms and conditions of the contract are adhered to throughout the contract's lifecycle. Contract management can involve a wide range of contracts, from simple purchase orders to complex multi-year agreements.
Effective contract management is critical for any organization that enters into contracts with vendors, suppliers, customers, or other parties. Properly managing contracts can help reduce the risk of disputes, ensure compliance with legal and regulatory requirements, and improve the overall efficiency and effectiveness of an organization. With the right contract management processes in place, organizations can more effectively manage their relationships with vendors and customers, improve their negotiating power, and achieve better outcomes from their contracts.