Contract management and E-Procurement are essential parts of SCM that provide saving potential. Contract management works with managers in supplier relationship and services and goods that have negotiations. With E-Procurement, one can keep on identifying performance factors. These factors are important for successful delivery and management of the benefits.

Each and every organizationhas several of contracting challenges. And so the importance of contract management in an organization is huge. Contract managementis considered vital to manage the performance, negotiation, execution, modification and termination of contracts among parties. And without a shadow of doubt, the success of a business project hugely depends on how the contracts are managed in the organization.

There can be hundreds of active agreements that total to thousands of contract clauses and terms for smaller companies. If such contract clauses and terms are not monitored before enforcement, they will carry no meaning at all. Procurement managers realize that putting reasonable prices on products is only a portion of strategic sourcing activity. The tools in contract management help businesses achieve the most out of those agreement terms, which buyers spend their entire effort discussing and negotiating.

Business is all about contracts.It becomes extremely important that you work closely with your clients for a smooth and long lasting business relationship. You are deemed to meet your client’s requirement. The Key Managerial Professionals inside your company are by default considered responsible for the identification and resolution for most of the business risks. So they need to perform a thorough investigation of, not only the business backgrounds of proposing parties but their legal backgrounds as well.

The complexity of this process makes it difficult for the businesses to deal with the critical issues. This is where contract management and e-procurement solutions come into play. The contract management system and e-procurement of Microsoft Dynamics AX allows the organizations to organize their workflow with vendors and suppliers by drafting, reviewing, monitoring and executing contracts.

There are umpteen reasons why businesses need to include e-procurement and contract management into their systems. Some of them are:

• Transactional Advantages. Businesses may use online transaction tools, where products are essentially chosen from catalogues that are pre-sourced and submitted for e-approval. The tool then is linked to Microsoft Dynamics AX (ERP System) back-end to enable entry, invoice payments, and collate management information.
• Contract agreements are easy to access. After the contracts are signed, businesses with contract management tools usually store hard copies in different places. It gets filed by legal departments, stacked by procurement managers, and transported to stockholders. With Microsoft Dynamics AX contract management and e-procurement, companies can organize and store contract records in a centralized and easily accessible repository. One can just click on the mouse to review and download agreements, by guessing where the contract documents are located and giving the business a visibility where contracts are kept at that instant.
• More organized database, smarter spending. With Microsoft Dynamics AX contract management and e-procurement, you have searching and sorting functionalities and can quickly locate whatever documents are needed. It will help managers to quickly search all kinds of agreements being searched. Moreover, with an organized database, businesses may be able to spend smartly.

Microsoft Dynamics AX: E-procurement and Contract Management system helps in improving the overall operational efficiency of a business by integrating the business functions and reducing the cost. It reduces the business risks to a great extent. Effective contract management system will help you to streamline all the important aspects of a contract by increasing visibility and reducing risk. Organizations especially in Gulf Countries (Saudi Arabia, Bahrain, United Arab Emirates, Oman, Kuwait and Qatar) who are using Microsoft Dynamics AX e-procurement and contract management systems provided by Global iTS, understand the overall benefits of a seamless data environment. This system helps organization to achieve better productivity and it also offers scalability and flexibility to business users.