There are several use cases in which a company may find itself on the receiving end of contracts without much control over the preparation part. This can happen in business relationships between retailers and suppliers, service providers and clients, contractors and government agencies or subcontractors and prime contractors. In these scenarios, the receiving company must carefully review the contracts and ensure they align with their business objectives and risk tolerance. While they may have limited control over the initial preparation, they can still engage in negotiation and seek legal advice to safeguard their interests and mitigate any unfavourable terms.
As the amount of received contracts can be very large and burdensome, it’s important to have an effective system in place to organise and monitor the mass of contracts. First let’s see what are the important aspects of a received contract to keep in mind and how to effectively use Agrello for better organisation and overview.
Key aspects to keep in mind after receiving a contract
When receiving a contract, it is crucial to pay attention to several important aspects to ensure that the terms and conditions align with your business objectives and protect your interests. Here are some key aspects to keep in mind:
- Products or services. This may include details such as product descriptions, pricing, quantities, quality standards, and any specific requirements.
- Delivery and logistics. The agreement outlines the terms for the delivery of products, including shipping methods, responsibilities, delivery schedules, and any associated costs or liabilities.
- Payment terms. It defines the payment terms and conditions, such as the pricing structure, payment due dates, methods of payment, and any applicable discounts, rebates, or penalties.
- Marketing and promotion. The agreement may include provisions related to marketing and promotional activities, such as cooperative advertising programs, branding guidelines, and responsibilities for advertising expenses.
- Term and termination. The agreement states the duration of the contract and the conditions under which either party can terminate the agreement, including any notice periods or penalties.
- Intellectual property rights. It addresses issues related to intellectual property, such as trademarks, copyrights, patents, and any licensing or usage rights granted to the receiving party.
- Confidentiality and non-disclosure. The agreement may include provisions to protect sensitive information and trade secrets, outlining confidentiality obligations and restrictions on sharing proprietary information.
It is important for both parties to carefully review and negotiate the terms of the agreement to ensure that their respective rights, obligations, and interests are adequately protected. Consulting legal professionals familiar with commercial contracts is recommended to ensure compliance with applicable laws and regulations.
5 steps for effective operations
One integral aspect of managing a business involves receiving and organising a multitude of contracts from suppliers and manufacturers. To ensure smooth operations, a company must implement effective strategies to streamline the process of handling incoming contracts. In this paragraph, we will explore practical tips to efficiently organise and manage incoming contracts on Agrello platform.
Establish a centralised contract management system
Creating a centralised contract management system for contract creation, signing and storing is the foundation of effective organisation. Utilise digital solutions such as contract management software or cloud-based platform like Agrello to store and manage contracts. This approach eliminates the hassle of dealing with physical paperwork and provides easy access to contracts from anywhere, improving efficiency and reducing the risk of misplacing important documents. In addition to contract creation on Agrello platform you can also easily upload all incoming contracts to the platform and make the most of Agrello by organising contracts into folders, defining roles and responsibilities and setting reminders about important deadlines.
Categorise contracts by type or supplier
Organising contracts into categories based on type or supplier is an effective way to create a logical structure. Create folders or subfolders within Agrello to sort contracts by product categories, services, or individual suppliers. Consistency in naming conventions for contract files is also vital for easy retrieval. Developing a standardised naming format that includes relevant information like the supplier name, contract date, and a brief description of the contract's purpose helps to locate specific contracts faster, saving time and minimising confusion. This approach simplifies navigation and facilitates quick access to contracts related to specific suppliers or product lines.
Assign clear ownership and responsibilities
Clearly define roles and responsibilities within your organisation for managing contracts. Designate a contract administrator or a team responsible for contract management tasks. This person or team should oversee the receipt, review, and organisation of incoming contracts. On Agrello it’s possible to handle permission rights to different folders and assign roles, whether the person needs to edit and create contracts under that folder or just needs to be able to access documents. By assigning ownership and responsibilities, accountability is established, ensuring that contracts are handled promptly and efficiently.
Establish a contract review process
Develop a standardised contract review process to ensure thorough examination of all incoming contracts. Identify key elements that require attention, such as pricing, delivery terms, and intellectual property rights, this has been made very convenient on Agrello platform with the help of AI. Use Agrello’s AI-based co-driver to locate important information in any contract faster.
Track key dates and renewals
Maintaining awareness of contract expiration dates and renewal options is vital. Implement a system to track and monitor key dates, such as contract start and end dates, termination notice periods, and renewal deadlines. You can set reminders about anything and everything on Agrello, so no important deadline goes unnoticed. This proactive approach enables timely decision-making regarding contract extensions, renegotiations, or exploring alternative supplier options.
Conclusion
Effectively organising incoming contracts is essential to streamline operations, maintain compliance and strong business relationships. By establishing a centralised contract management system and review process, implementing consistent naming conventions, categorising contracts, assigning clear ownership and keeping up with all dates and renewal deadlines, a company can efficiently manage their contracts.
