Why is the process orientation of contract management necessary?

According to a general definition, a process is a cross-functional, reproducible sequence of activities with defined interfaces (to other processes) and responsibilities.The goal definition is to ensure smooth cooperation in the sequences and a target-oriented flow of information within the company.This goal is implemented organizationally by a cross-departmental process responsibility with defined tasks.

There are a number of methods for the achievement of objectives, such as the Six Sigma Methodology of General Electric (GE) with the acronym DMAIC.

  • D - (Define) Definition and description of the problem, marking out the task, the order, the process

  • M - (Measure) How can the type of change be measured and the process performance described?

  • A -  (Analysis) Determination of the causal relationships between the variables

  • I -   (Improve) improvement, development of necessary modifications, actions, etc.

  • C - (Control) Standardization of continuous improvement

By a process-oriented view on the contract administration the basis for further improvement potential is laid by the application of a suitable methodology.

More about the topic

The process communication takes place on the basis of a rule-controlled DOCM e-mail dispatch to a defined SharePoint group "Contract Manager". The trigger is usually a missed deadline of set resubmission dates. If a processor uploads or changes documents to the contract partners or contracts, an e-mail is sent to the "Contract Manager" group.
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The following text describes the first part of a contract management process in an eEPK diagram (extended event-driven process chain). Steps 1-4 of the contract initiation process include the first part of the DOCM contract management process. Stages 5-8 comprise the second line of the active DOCM contract management process with review of the agreed deliveries and services and monitoring of the contract end date.
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As early as the contract initiation phase, draft contracts must not only be examined according to formal legal criteria, but also assessed with regard to the risks inherent in each contract. As some cases in recent years have shown, early examination and evaluation in the run-up to a contract would not have given rise to problems in the "final phase of contract negotiations".
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