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Management Sri Lanka February 2017 Alejandro Susel - PowerPoint PPT Presentation

Jun 22, 2023 •251 likes •538 views

E-Contract Management Sri Lanka February 2017 Alejandro Susel asusel@holos-consulting.com A small big difference between a good and a service Goods: manufactured out of site 2 E-Contract Management Alejandro Susel /

  1. E-Contract Management Sri Lanka February 2017 Alejandro Susel asusel@holos-consulting.com

  2. A small big difference between a good and a service Goods: “manufactured” out of site 2 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  3. A small big difference between a good and a service Services: mostly “ manufactured ” on site 3 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  4. A essential premise in hiring … … Vendor is capable of creating value for the governement 4 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  5. What is a contract? An agreement, generally written, with specific terms between two or more parties in which there is a promise to do something in return for a valuable benefit known as consideration. E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  6. What is contract management? Contracts need to be methodically managed in order to ensure that financial and operational risk is minimized and vendor performance maximized. Contract management considers three distinct areas of vendor relationship: Service Delivery Source: http://www.purchasing-procurement-center.com/what-is-contract-management.html E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  7. Benefits of e-CM According to the Aberdeen Group, best-in-class organizations place a significant priority on stakeholders pressure to perform. Points of influence for contract management Business pressures felt by Sourcing & Procurement The following figure considers the areas of impact an degree of influence that contract management has on them E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  8. Benefits of e-CM • Increases Productivity/efficiency • Provides Transparency/Visibility • Improves Performance • Improves Compliance • Manages Risk E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  9. The typical three process of strategic sourcing • Sourcing : Focused on the strategic aspects of the supply process for both good and services • Procurement : Focused on the transactional activities within the supply of goods and services • Planning : Essential for the link between sourcing and procurement Sourcing Procurement 9 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  10. Contract management process Evaluation TOR Contract Publish Bid Bid Evaluation Award criteria Preparation creation Sourcing Award Contract Biddding process Contract Execution closeout Operational Start Contract Management Evaluación Decommissioni Perform Contract/Vendo Kickoff meeting Planning Penalties proveedor/servi ng activities r evaluation cio Review Monitoring KPI SLA Contract Return Payment performance regulatory monitoring ammendments Warranties request expectations items Regulatory Lessons compliance learned E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  11. Contract Contract Identify need signature closeout • Definition of need • Hiring personnel (vendor) • Acquire goods for service (vendor) • Supplier Market Analysis • Contract Commissioniing • Definition of sourcing strategy • Contract Execution (Vendor) • Elaboration of terms of reference • Contract evaluation • Definition of evaluation criteria • Contract closeout • Publication / invitation to suppliers • Decommissioning (vendor) • TOR Analysis (Vendor) • Questions / Answers to TOR • Elaboration of offer (Vendor) • Bid Evaluation • Negotiation • Elaboration and signature of contract 11 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  12. Contract Portfolio Management Model III I • Segmentation – focus resources in project and contract management Criticality High Critical – Features of the Projects and for Contracts Contracts Program (P&CP) that Difficulty might increase contract Dificultad management complexity: • Resources committed • Duration (months, years, etc.) Low Critical Impact • Areas involved Contracts Criticality • Nature of the P&C • Contract type (infrastructure, education, justice, etc.) • Level of specialization required IV II • Impacto Others 12 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  13. Contract Portfolio Management Model III I • Model approach … strenghthening the project/contract management structure Criticidad Contratos por de Alta – Competences of the Dificultad Criticidad project/contract manager Dificultad – Support team – Monitoring frequency (annual, semester, quarter) Contratos – Monitoring dimensions: Criticidad de Baja por Impacto Criticidad • Financial • Environment • Legal IV II • HR Impacto • Etc. 13 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  14. Why we need an e-CM? Contract Creation/Authoring Negotiations Contract Portfolio Monitoring State of physical vs. financial progress Expiration alerts (contract, warranties) Approval workflow Knowledge Management Tracking of activities/milestones Performance evaluation vendor/contract KPIs/SLAs compliance Continual improvement E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  15. … so, what functionalities an e -CM software should have Document management Workflow Alerts (expiration of documents) Collaborative space KPIs measurement and monitoring Surveys System Integration Reporting Business Intelligence Predictive Tools E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  16. Magic Quadrant for Strategic Sourcing Application Suites • The strategic sourcing application suite delivers four primary capabilities: – Spend Analysis – E-Sourcing – Contract Management – Supply Base Management (SBM) • Other functionality widely available: – Project Management, – Category Management – Savings Tracking – Supplier Marketplace Source: Gartner, Magic Quadrant for Strategic Sourcing Application Suite, February 2015 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  17. Magic Quadrant for Strategic Sourcing Application Suites Source: Gartner, Magic Quadrant for Strategic Sourcing Application Suite, February 2015 E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  18. Main screen – Contract Manager Contract Portfolio Events To Do List Alerts Calendar Alerts and notifications Interface with other systems E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  19. Información General del contrato Administración del contrato ROL Nombre Nombre del Contrato: Servicio de Aseo Industrial Número de contrato: 4600087654 Contacto Administrador Mandante: Guillermo Gomez Monto del contrato: 30.992.084,67 USD Example – Contract Monitoring XXXXXX@XXX.com Gastado del contrato: 8.987.345,65 USD Operador Mandante: Alexis Contreras Personal Asignado: 100 XXXXXX@XXX.com FTE Asignadas: 80 Administrador Contratista: Alejandra Parraguez XXXXXX@XXX.com Especialista de Abastecimiento: Fernando Antiquera Control y Monitoreo Alertas por ámbito de Gestión XXXXXX@XXX.com Operacional Área Administradora: Plantas Concentradoras Meses restantes del Contrato Desviaciones de Presupuesto Desviaciones de FTE Cumplimiento Planificación Financiero Índice de endeudamiento Índice de Pasivo Circulante Índice de Quiebra Capital de Trabajo HSEC Infracciones de transito Accidentes registrados Estadísticas de seguridad Budget Resultado OPS 30 30 OPT 5 5 CTP 3,6 0 IG 2,1 0 ….. … …. E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  20. Example – Contract Portfolio Segmentation of contract portfolio according to variables which determine the complexity of the contract administration (annual spending, risks, and impact on business, commercial dependency, etc.) E-Contract Management Alejandro Susel / asusel@holos-consulting.com

  21. Acquisition Options The acquisition options are: Design and Acquire an off the Develop and e- shelf solution and Procurement customize it Solution Outsource the License On Software as a Develop with Develop with a development with Premise Service (SaaS) internal resources mixed team a software factory E-Contract Management Alejandro Susel / asusel@holos-consulting.com

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