Watch Video on Contract Management

I have learned various things that helped me to understand the complete process of contract management from beginning to the end. The video describes some of the issues that might occur in contract execution. While making a contract with the supplier, it is highly essential to properly identify, evaluate and check the background of the supplier. It is important that you build trust on supplier and he doesn’t break it. Otherwise, it can cause various problems for the organization. As shown in the video, the financial controller was not able to track 1 million euro savings that were negotiated previously in the financial results. They later came to know about the fraud made by the supplier. The new bottles were faulty, and they received only 34% savings from 1 million euro. So, I found that supplier selection is a crucial step. I have learned that negotiation is one of the crucial processes in contract management. The negotiator must have information about the party on the opposite side. The issues can arise even after making the deal. Therefore, it is very important to check the product and service before making the payment. Otherwise, it can cause financial issues as shown in the video.

Reference

Procurementacademy. (2012, March 19). Contract management course: issues in contract execution – Procurement training – Purchasing skills [Video file]. Retrieved from https://www.youtube.com/watch?v=e7AMgh_aT8U