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Procurement Contract

8Manage can help you manage complex contractual terms and delivery acceptance, ensuring that the delivery of your purchased products and services is implemented in accordance with the requirements of the contractual terms.

8Manage procurement contract is flexible and easy to use, and can be applied to the procurement of different types of products and services.  For example, it can be used to manage:

  • Standardized products-and-services purchases (similar to using 8Manage Purchase Order)
  • Bulk purchases with complex terms and deliveries
  • Complex products-and-services purchases with service level agreement (SLA) and penalty
Master Contract and Sub-contract

8Manage supports the following master-contract and sub-contract management:

    Master-contract management:
  • Contract validity
  • Calculate the price of each product or service based on the cumulative total of purchases
  • Quality or service level agreement (SLA) and rewards and punishments
  • Delivery method and scope
    Sub-contract management:
  • The exact quantity that needs to be purchased for each product or service
  • Delivery arrangements and methods

8Manage supports each sub-contract to be settled separately and also supports all sub-contracts to be aggregated into the master contract for settlement.

Procurement Project and Milestone Management

8Manage supports the management of the delivery and acceptance of purchased products or services through project deliverables and milestones.  8Manage can support the following types of procurement contract management:

  • Infrastructure construction or reengineering
  • Software development or system implementation
  • Organizational transformation

8Manage supports a set of delivery milestones linked to one or more projects. At the contract level, users can view and manage the resources, activities, dependencies, deliverables, and milestones of all projects in this contract.

After the purchase contract is approved, the contract budget will be automatically allocated to each item in the contract according to preset conditions, and the accrued expenses and actual expenses will be automatically aggregated from each item level to the contract level in real time. Besides, 8Manage supports users to manage the complex delivery and acceptance of purchase contracts. Users can control the specific arrangements, resources, activities, expenses and other matters of delivery and acceptance in real time.

Procurement and Sales Interconnection

8Manage supports the interconnection of procurement and sales. 8Manage procurement contract can automatically collect sales information and create a real-time connection between the procurement contract and sales. Through these connections, you can effectively control:

  • Delivery and acceptance of products and services provided to you by suppliers
  • Delivery and acceptance of the products and services you provide to customers

Any changes or impacts in the sales business (for example: adjustments in purchasing requirements, increase/decrease in profit and loss) will be automatically reflected in the 8Manage purchasing contract in real time. No matter how complex the purchasing contract is, you can understand the overall situation and the ins and outs at a glance.

Service Level Agreement (SLA)

The quality of products and services is the core of procurement concerns. 8Manage provides service level agreement (SLA) and reward-and-penalty management. You can create SLA and reward-and-penalty mechanisms for purchasing products and services as appropriate for your situation. 8Manage will automatically measure the actual delivery results based on the SLA and calculate the reward-and-penalty accordingly.

8Manage supports the setting of metrics for each deliverable according to the quality level agreement. During the actual delivery of the procurement contract, 8Manage will detect the deviation of the actual delivery in real time according to the quality level agreement, and issue a deviation reminder, automatically calculate the fine and issue a penalty notice.

Contract Budget & Settlement

8Manage supports the following features:

  • Contract budget and actual cost management
  • Supplier payment management
  • Goods & services acceptance
  • Supplier invoice management
  • Contract settlement management

The budget and actual cost data of procurement contracts and projects are interconnected in real time. 8Manage provides an overview of procurement costs. Through this overview, you can see the real-time updated budget and actual cost information of procurement contracts and projects at the same time.

8Manage purchase contracts provide invoice management. Each invoice issued by the supplier will be recorded and tracked instantly by the system for its approval results and payment status. 8Manage supports the following payment methods:

  • Settle multiple invoices together
  • Support installment payment (the amount or percentage of each installment can be set as needed)
Change, Version and Renewal Management

In 8Manage, an approved contract can be modified after the change request is approved. 8Manage will automatically track all modified versions of the procurement contract, and manage the needed re-approval of each version.

Procurement contract renewal is common. 8Manage supports procurement contract renewal management. Users can preset the renewal cycle and price adjustment as needed. Before the contract expires, the system will automatically send a renewal reminder to relevant parties.

At the same time, 8Manage provides an overview of all contract renewals. Through this overview, you can easily view all your contracts that need to be renewed. In addition, 8Manage supports the automatic generation of a new procurement contract based on the renewal setting and the old contract.