How do you monitor expiry dates of your contracts?
Procurement professionals love framework contracts. The ones that last for 36 or 48 or more months. And it is indeed very convenient, you organize a tender once and then you simply manage the contract for years.
But sometimes we got used to established supply chain, regular, recurring deliveries and we forget about expiry dates. Even if suppliers continue to deliver and invoice you, working without a contract is risky for the following obvious reasons:
- You cannot claim or report any complaint, if you are unhappy with the delivery (remember, you have no agreement);
- You might miss the discounts applicable to other buyers, because you did not re-tender, renew or renegotiate your contract;
- You might miss new product lines;
- Any auditor will see you continued to work without a contract.
So, how to monitor the expiry dates? With a simple Contract Monitor Excel file that will help you by warning you, should the expiry date approach. All you need to do is insert the expiry date once. Color-coded cells will automatically inform you of the approaching deadline:
Green – you still have time;
Yellow – you need to start your tendering or renewal process;
Red – your contract is at risk and will expire soon.
Procurement Network monitored over 100 e-procurement solutions and published them on its website, however, small and simple Excel files sometimes are equally valuable and helpful.