Business as Usual? We Should Hope Not When It Comes to Contracts!

June 30th, 2015

Do you have a contract expiring soon?

 

Today’s post is written by Heather Powell, Director of the Customer Focus Team & Project Manager at SafeSourcing Inc.

'In conclusion; our major contract expires tomorrow, we have no idea what we want, and no knowledge of the market,  It is time to pass this across to the Procurement Team,,,'

 

 

 

 

 

 

 

Do you have a contract expiring soon? Or are you working from a contract that already expired months or years ago and have not done anything with it?

Now is the time to act, do not let your contract go on any further until you know for sure it is beneficial to your company.

How do you go about making that assurance? By doing a lot of research and homework first and foremost, and asking those who need the goods and services on the contract if there are any changes, modification, recommendations that they would like to see. Many times goods are purchased through the supplier you have always worked with…or why rock the boat when it has always worked great for your company in the past.

In either circumstance, it is great you have confidence in your supplier or their product; but are they offering you the best product, warranty, certifications, services, pricing, and even net terms?

By running a RFI to gather information from your supplier’s competition, you can determine who’s who in the category. By running a RFP you can see if they can implement the same, or better pricing, or net terms.  Running a RFQ with all the suppliers, including your supplier or incumbent, you can be sure they are competitive in their pricing, terms, and goods.

It is never good business practice to let a contract expire or work from an expired contract. SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments

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