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May 03, 2016
How effective is your contract development process?
By: Jack Barry

The complexities of the global supply chain have complicated the process of developing contractual terms and conditions. These complexities have also added to the delays faced in securing consensus and approvals from all the parties involved in contracts. Time pressure from internal customers is yet another challenge for the procurement and contracting professionals in developing the most appropriate terms and conditions.

As a procurement and contracting professional, you should be able to overcome these challenges and be able to develop the most appropriate terms and conditions that will be beneficial to both the buying organization and the supplier. Applying the concept of service level agreements (SLAs) will help:

  • Achieve contractual protection.

  • Maintain stakeholder requirements.

  • Reduce the cost and time to finalize contracts.

Understanding the purpose of SLAs will help you formulate a working document that captures crucial information pertaining to the contracts. Your SLA should comprise details pertaining to the contractual terms and conditions, price adjustment schemes, intellectual properties, payment methods, warranties and claims, disputes, termination and revocation clauses, and any other issues that could potentially impact the relationship, costs, and performance. By gaining consensus on key issues in the initial stages, you will be able to save significant time in finalizing the contract.

Does your SLA cover the current, anticipated, and potential issues of a supplier relationship? If an SLA does not provide answers to questions of what, why, who, when, where, and how, then managing the contract and resolving any future conflicts smoothly becomes particularly challenging. The consistent approach of an SLA will allow you to operate more efficiently. The Accenture Academy course Managing Service Level Agreements (SLAs)  highlights and discusses the key essentials of a service level agreement. This way, you will be able to use SLAs to achieve a competitive advantage and level the playing field for both current and potential suppliers.

About Accenture Academy

Accenture Academy offers proven, cost-effective learning solutions for a more versatile workforce and a more agile organization. We provide a flexible learning approach that helps your people be more versatile and your entire organization be more agile in the marketplace. Curriculum includes Supply Chain Management, Finance, Procurement, Analytics, Leadership & Management and Specialty Skills.

LEARN MORE ABOUT ACCENTURE ACADEMY 

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