Getting started
So you’re currently…
… using expenditure analysis source data (probably extracted from financial systems, including supplier name and invoiced value) to identify off contract spend, and to capture any additional spend information (eg contracts / obligations / agreements, future procurement plans, contact info etc).
Recommended next steps
- Upload expenditure data to a spreadsheet (we recommend using the template spreadsheet developed by London Councils)
- Use this spreadsheet to record any contract / agreement details against spend with each supplier
- This will be easier if you can split spend by category and delegate the task to individual category / department managers
- If you are delegating this task to multiple persons / departments – make sure they know exactly what is expected of them (if not, the spreadsheet will likely become unworkable)
- The template spreadsheet and associated guidance material developed by London Councils should help you to do this.
- Identify off contract spend, and assess whether a contract ought to be in place
- Explore options for implementing a database approach to contract management
How can NIP help?
We provide a standard format for capturing basic (and detailed) contract information in a spreadsheet (see above).
This spreadsheet is your first step towards basic spend / contract management. It can also be used to upload data to any contract management system you may (or may not) eventually decide to adopt.
Use this spreadsheet to help identify what information you may be missing. You can also use it as a tool to help you capture the information you need.
The spreadsheet should help you see the path forward, but it is yours to use as you see fit, you can add, edit or delete columns.
Alternatively…
Whilst it is recommended that you undertake at least some form of basic spend analysis first – you can start using any of NIPs contract / procurement management tools now. Data can be input manually so that you can start to gain tighter control and greater perspective.
For organisations interested in basic contract management tools – take a look at our Active Contract Register.
For organisations looking for more complete ‘Procurement Lifecycle Management – take a look at our PL-cms.
Issues / Risks associated with being in this position
You’ve taken the first logical step towards addressing these, so you’re probably already aware of the following issues associated with poor contract management.
- Lack of direct control
- No strategic insight
- Exposure to risk
- difficult to find contract documentation
- difficult to identify off contract spend
- decision points / proper procurement approach can not be evidenced
- Missed opportunities for savings as a result of poor contract / supplier management
- Important renewal dates / deadlines missed
- Contract managers spend time on avoidable administration
- FOI response time and effort is high
Warning signs
- Little or no contract performance monitoring
- A supplier challenges a procurement decision and it is difficult or impossible to assemble supporting evidence
- Renewal dates and the opportunities to renegotiate are missed
- FOI requests become increasingly difficult to manage
- ‘Contract Managers‘ feel that they are really just ‘Contract Administrators‘