Many organisations do not keep track of their contracts digitally and we’ve never really understood why. They exist to make life easier, but we understand that the topic can seem overwhelming, especially if you are already juggling numerous contracts. But rest assured, it’ll all make sense soon.
So, what is the purpose of a contracts register? A contracts register is a full and comprehensive list of all the contracts or purchase arrangements that you are signed up to. They can track your contract status and helps maintain a consistent level of transparency.
Contracts registers are still yet to be adopted by many procurement departments even though their usefulness is widely praised. Companies that have taken them on cannot understate their importance.
When an organisation is juggling a multitude of procurement related contracts, each with their own expiry date and price to renew that creep up on you a week before a renewal is due, it can be hard to keep track of them all.
Couple that with how paperwork is deceptively easy to misplace or file incorrectly. The likelihood of your business being blindsided by a supplier, leaving you underprepared increases drastically.
The point of a contracts register is to let the piece of software do all the hard work for you.
It ensures all the information on your contract is kept in one easy to access place. It also allows you to perform tasks that would require a lot more time using traditional methods.
For example, most contracts registers allow you to:
It can turn a contract renewal letter from a panicked dash for paperwork, into a relaxed click of a button. No suppliers will be able to confuse you with alternative facts or dates and you’re protected from being rushed into rolling-over your expensive contracts!
More importantly, monitoring your contracts is vital. Failing to do so will mean that your hard-earned contract will eventually fall short of expectations.
Having a contracts register allows you to easily monitor your successes. This makes sure they keep saving you money in the long term and avoid contract value leakage.
A good contracts register should eliminate the need to check your paperwork entirely. You should be able to log into your software and have all the information at your fingertips.
The key information in our contract register is:
The effort it takes to set up contracts is substantial. The last thing you want is to then be filled with regret as your lack of monitoring causes it to run away from you.
A comprehensive record of your contracts also allows you to maintain rapport with previous suppliers. Being able to see who you’ve partnered with gives you an easier time if you need to change supplier. It also makes you a more intelligent customer because you know your own previous contracts so well.
With regards to public procurement, transparency must be available to all parties, contractors, service providers, suppliers, and even the public. One of the ways this documentation is recorded is through the UK Government’s website, Contracts Finder.
If you’re announcing a business deal to the market, you will need to maintain an incredibly high level of detail.
This is so that potential business partners don’t get put off by your perceived lack of knowledge on the subject.
Ensuring that your information is correct when you’re following an ever-increasing paper trail can lead to unforeseen errors when publishing procurement requirements. This can lead to supplier confusion, a lack of interest in your organisation and, in some cases, a fine.
Having a contract register keep every detail in one place makes both maintaining and publishing important data far less stressful.
The best thing about a contracts register is how easy it is to get started with one. Start from the top and work your way down.
Add your big spend bills to the register first, such as your:
After you’ve filled in the big expenditures, you can work on the smaller contracts. When you’re setting up your register, just focus on adding the contract end date and annual spend to begin with.
In doing this, you’re unlocking the ability to analyse your contracts register. This allows you to benchmark against other deals and start saving money.
Benchmarking is a market price comparison method that is available on our contracts register. In order to explore what it is in further detail; we will use the example of a school.
Your school can use our contracts register to compare other schools’ spending and patterns of service. From this, your school can determine whether they should follow the other schools’ patterns of service as to improve efficiency and save money.
Benchmarking is a critical exercise that should be performed on a regular basis for all high-to-medium value contracts. By maintaining a level of market comparison, you are more aware of day-to-day market trends and how they can affect you.
If you would like to find out more about how our Contracts Register can benchmark your spends, click here. Or, if you would like to see our other solutions, click here.
Keeping track of contracts is a difficult process. So far, we’ve found its application to be particularly useful for any organisation that is running several contracts.
Many contract registers can start to look like an information minefield if an organisation is juggling a large amount of them. Our contract register allows you to create multiple, separate entities to split up contracts. Giving you a neatly organised display, scaling to your needs.
A contracts register exists to make your working life easier. Through compiling detailed information into one easy to understand place, you can stay ahead of the curve. Ensuring suppliers don’t surprise you with contract renewal documents or forcing you into rolling over your pricey contracts.
They also allow you to perform otherwise lengthy processes with the click of a button. Examples include benchmarking, auditing and forewarning you of a contracts expiration.
Save on unnecessary costs by keeping on top of market trends and having a vital level of transparency.
Would you feel like a contracts register would benefit you and your organisation? Or are you interested in our unique software?
Whatever it may be, sign up today and get started straight away, no payment necessary!
If you’d like to get in touch with us about something we may have missed, or just generally have any specific questions for us, feel free to contact us and we will be happy to get in touch with you.