RECENT ARTICLES IN SUPPLY CHAIN MANAGEMENT

Set up your Contracts for Active Management

Posted in Supply Chain Management on 4/15/2015

Contracts are an often overlooked asset in an organisation. In fact they are frequently not even regarded as an asset. The proper setting out of contracts, management and storage of them is however a fundamental activity in business. Each contract represents the relationship with the respective supplier, so it’s value is the sum of the purchase value from that supplier plus all the value added through your own processes. In short, your contract portfolio would have roughly the same value as your balance sheet!