KC - 10.3 - Contract Life Cycle Management (CLM) & Developing Selection Criteria - Contd..

Contract Lifecycle Management (CLM) is a systematic process for the creation, execution, compliance, and analysis of corporate contracts for the purpose of reducing costs, maximizing operational efficiency, and minimizing risk. Now a days there are many CLM tools available in the market which automates the process to make the monitoring of contracts a lot easier.

More specifically, CLM includes:

• Requirements Definition.
  
• Define the requirements properly
  
• Plan
  
• Include key staff at beginning of process
• Do you need the new equipment?
  
• Can you reuse (all or part of) existing equipment?
  
• Can you plan for extended life?
  
• Use the Acquisition/Procurement Checklist
  
• Tenders & Evaluation
• Drafting the Tender document or "Market Package"
  
• Making sure that the following are very carefully drafted
  
• Format and contents
• Conditions of tendering, rights and obligations
• Writing good questions that get good answers
  
• Facilitating the best responses
• Getting the best effort from the market
• Managing briefings, data rooms, question and answers and site
  visits
  
• Evaluation
• Comparing the bids and scoring techniques
• Use of interactive evaluation techniques such as interviews and
  site visits
• Value for money selection and understanding how lowest price
  may come at the highest cost
  
• Applying due diligence to ensure the viablity of the supplier, the bid & the contract
• Company / financial
• Price
• Contract compliance
• Customer references
• Negotiation
• Explained in the next page
• Approval & Amendments
• Includes Contract Awarding after approval, communication to respecive stakeholders.
  
• Contract Monitoring - Managing Obligations & Risks
• Obtain sales figures of products meeting specified criteria from vendors.
  
• Back to the first step
  
• Look for changes if any in the requirements.